Calpine, Alliant Techsystems break; Amneal reworks deal; Exopack updates tranching

By Sara Rosenberg

New York, Oct. 22 - Calpine Corp.'s term loan made its way into the secondary market on Tuesday, with levels seen above its original issue discount price, and Alliant Techsystems Inc. began trading as well.

Over in the primary, Amneal Pharmaceuticals LLC trimmed the size of its ABL revolver and term loan B and reduced incremental allowances, and Exopack Holding Corp. disclosed U.S. and euro tranche sizes under its term loan B.

Also, Garda World Security Corp., Genesys Telecommunications Laboratories Inc., Duff & Phelps Corp., AmWINS Group LLC and CACI International Inc. released talk as their deals were presented to investors during the session, timing emerged on KIK Custom Products Inc.'s add-on term loans, and Pacific Architects and Engineers came out with new deal plans.

Calpine frees up

Calpine's $390 million seven-year senior secured covenant-light term loan (B1) broke for trading on Tuesday, with levels quoted at par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the term loan is Libor plus 300 basis points with a 1% Libor floor and it was sold at an original issue discount of 99 7/8. There is 101 soft call protection for six months.

During syndication, the loan was downsized from $570 million as the company's bond offering was upsized to $750 million from $570 million and the discount was tightened from 99.

Citigroup Global Markets Inc., Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets, UBS Securities LLC, Mitsubishi and RBS Securities Inc. are leading the deal that is expected to close on Oct. 31.

Proceeds from the loan and notes will be used to redeem 7¼% senior secured notes due 2017.

Calpine is a Houston-based power producer.

Alliant hits secondary

Alliant Techsystems' credit facility also freed up, with the $250 million seven-year term loan B quoted at par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the B loan is Libor plus 275 bps with a 0.75% Libor floor and it was issued at par. There is 101 soft call protection for six months.

During syndication, the spread firmed at the low end of the Libor plus 275 bps to 300 bps talk and the offer price was tightened from 991/2.

The company's $1.96 billion senior secured credit facility (Ba1/BBB-) also includes a $700 million five-year revolver and a $1.01 billion five-year term A, both priced at Libor plus 200 bps.

Bank of America Merrill Lynch, Bank of Tokyo-Mitsubishi UFJ Ltd., RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., U.S. Bank NA and Wells Fargo Securities LLC are leading the deal.

Alliant buying Bushnell

Proceeds from Alliant Techsystems' credit facility and $300 million of notes will be used to fund the $985 million acquisition of Bushnell Group Holdings Inc., refinance existing bank debt and for other general corporate purposes.

Pro forma senior secured leverage is 2 times and total leverage is 3.2 times

Closing is expected in the third or fourth quarter of the company's fiscal year 2014, subject to regulatory approvals and customary conditions.

Alliant Techsystems is an Arlington, Va.-based aerospace, defense, and commercial products company. Bushnell is an Overland Park, Kan.-based designer, marketer and distributor of branded sports optics, outdoor accessories and performance eyewear.

Amneal tweaks deal

Moving to the primary, Amneal Pharmaceuticals downsized its five-year ABL revolver to $60 million from $90 million and its six-year term loan B (B2/B) to $415 million from $475 million, according to a market source.

In addition, the incremental allowance under the ABL facility was reduced to the lesser of $30 million from the lesser of $60 million, or ABL up to 1 times EBITDA, and the incremental allowance under the term loan B was cut to $55 million plus unlimited up to 3.75 times net senior leverage from $90 million plus unlimited up to 4.5 times net senior leverage, the source said.

Price talk on the revolver is still Libor plus 250 bps with no Libor floor, and the term loan B is still talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

GE Capital Markets and RBS are leading the $475 million senior secured deal that will be used by the Bridgewater, N.J.-based generic pharmaceuticals company to refinance debt and fund a dividend.

Based on LTM Aug. 31 EBITDA of $108.4 million, senior leverage is 3.8 times and total leverage is 4 times, the source added. This compares to senior leverage of 4.4 times and total leverage of 4.7 times based on LTM Sept. 30 EBITDA of $110.8 million under the original structure.

Exopack tranche sizes

Exopack Holding decided that its roughly $675 million 51/2-year term loan B (B) will be split between a $475 million U.S. tranche and a €150 million euro tranche, according to a market source. Previously, it was known that that there would be U.S. and euro pieces but the sizes were unavailable.

Talk on the U.S. portion is still Libor plus 450 bps to 475 bps and talk on the euro portion is still 50 bps wider than the U.S. tranche, with both having a 1% floor, an original issue discount of 99 and soft call protection for one year of 101.

Commitments are due at noon ET on Wednesday, but the deal is already "solidly oversubscribed", the source remarked.

Goldman Sachs & Co., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Investec and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with $325 million of notes to refinance existing debt.

Initially, the term loan was sized at $750 million and the notes were sized at $250 million, but $75 million was shifted between the financings last week.

Exopack is a Chicago-based manufacturer of plastic packaging products.

Garda sets talk

In more primary happenings, Garda World Security held its bank meeting on Tuesday and revealed price talk on its U.S. and Canadian term loans, according to a market source.

The $525 million seven-year term loan B is talked at Libor plus 325 bps and the C$150 million seven-year term loan B is talked at BA plus 375 bps, the source said. Both tranches have a 1% floor, an original issue discount of 991/2, and 101 soft call protection for six months.

Commitments for the roughly $825 million senior secured credit facility (Ba3/B+), which also includes a $150 million five-year revolver, are due on Oct. 31.

RBC Capital Markets, Bank of America Merrill Lynch, TD Securities (USA) LLC and Mizuho Securities USA Inc. are leading the deal that will be used to refinance existing credit facility debt and senior unsecured notes due 2017 and fund the C$110 million acquisition of G4S Cash Solutions.

Closing on the acquisition is expected before the end of this year, subject to regulatory approvals.

Garda is a Montreal-based provider of business solutions and security services. G4S Cash is a provider of risk management and secure transit of valuables such as currency, diamonds, jewelry and more.

Genesys pricing

Genesys disclosed talk in the Libor plus 325 bps area with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $300 million term loan (B2/B) that launched during the session, according to market sources.

The total term loan is split between a $100 million funded tranche and a $200 million delayed-draw tranche.

J.P. Morgan Securities LLC and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt and fund the acquisition of Echopass Corp., a Pleasanton, Calif.-based application service provider offering web-based telephone and internet customer support services.

Closing on the acquisition is expected in the fourth quarter,

Genesys is a Daly City, Calif.-based provider of customer engagement and contact center solutions.

Duff & Phelps guidance

Duff & Phelps held its call in the morning, and shortly before the event kicked off talk on the $135 million first-lien covenant-light tack-on term loan due April 2020 came out at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 991/4, a market source said. There is 101 soft call protection for six months.

The spread and floor on the tack-on match existing first-lien term loan pricing.

Commitments are due on Oct. 29, the source added.

Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to repurchase a portion of the company's tax receivable agreement and to fund a dividend to shareholders.

Duff & Phelps is a New York-based financial advisory and investment banking firm.

AmWINS holds call

AmWINS announced in the morning plans to hold a call at 1 p.m. ET to launch a $175 million first-lien covenant-light tack-on term loan due September 2019 talked at Libor plus 375 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Pricing on the tack-on loan matches existing term loan pricing, and the entire tranche will benefit from the call protection.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund an acquisition and refinance holdco PIK notes.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

CACI launches pro rata

CACI International launched with a bank meeting its $750 million five-year revolver and $631 million five-year term loan A that are talked at Libor plus 200 bps, according to a source. The revolver has a 35 bps undrawn fee.

The company's $1,681,000,000 senior secured credit facility also includes a $300 million seven-year term loan B that has not yet launched.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, PNC Capital Markets LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are leading the deal that will be used with $45 million in cash on hand to fund the $820 million acquisition of Six3 Systems Inc. from GTCR.

Total senior secured debt will be 2.78 times and total funded debt will be 3.53 times.

Closing is expected in the quarter ending December, subject to customary regulatory approvals.

CACI is an Arlington, Va.-based provider of professional services and information technology to the federal government. Six3 is a McLean, Va.-based provider of strategic and differentiated services to support the missions of customers in the U.S. national security and defense intelligence communities.

KIK reveals timing

KIK Custom Products nailed down timing on the launch of its $275 million in add-on term loans, with the bank meeting set for 2:30 p.m. ET in New York on Thursday, according to a market source.

The debt consists of a fungible $225 million add-on first-lien term loan due May 23, 2019 talked at Libor plus 425 bps with a 1.25% Libor floor and 101 soft call protection through May 2014, and a fungible $50 million add-on second-lien term loan due Nov. 23, 2019 talked at Libor plus 825 bps with a 1.25% Libor floor and call protection of 103 through May 2014, then 102 for a year and 101 for a year, the source said, adding that terms match the existing first-and second-lien term loans.

Issue prices on the add-on debt are still to be determined.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the deal that will be used with $75 million of new cash equity to fund the $315 million acquisition of Chemtura Corp.'s consumer products business BioLab.

Pro forma leverage is 3.8 times through the first-lien debt and 5.5 times total.

Closing is targeted for Dec. 31, subject to customary conditions and regulatory approvals.

KIK is a Toronto-based contract and private label manufacturer of consumer, institutional and industrial products.

Pacific Architects readies deal

Pacific Architects and Engineers will hold a bank meeting at 10 a.m. ET on Friday to launch a $400 million credit facility, according to a market source.

The facility consists of an $80 million five-year revolver and a $320 million six-year term loan, the source said.

RBC Capital Markets LLC, RBS Citizens and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing and debt and fund a dividend.

Total net leverage is 3.5 times based on LTM EBITDA of $92.3 million, the source added.

Pacific Architects is an Arlington, Va.-based provider of contract services to U.S. government agencies, international organizations and foreign governments.

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