Sabre, Anaren, Arden break; MultiPlan down with buyout; Roundy's, iQor, Aramark revised

By Sara Rosenberg

New York, Feb. 18 - Sabre Inc.'s term loan hit the secondary market during Tuesday's market hours, as did deals from Anaren Inc. and Arden Group Inc., and MultiPlan Inc.'s term loan headed lower with buyout news.

Moving to the primary, Roundy's Supermarkets Inc. lifted the spread on its term loan, widened the original issue discount and sweetened the call protection, and iQor US Inc. downsized its second-lien term loan and updated pricing and the offer prices on both its second-lien and first-lien debt.

Also, Aramark Corp. firmed offer prices on its U.S. term loans at the wide end of revised talk while extending the call protection, and SMG (Stadium Management Group) accelerated the commitment deadline on its credit facility.

Furthermore, Waddington Group (WNA Holdings Inc.), Calpine Construction Finance Co. and Playa Resorts Holding BV released offer prices on their deals with launch, and Mallinckrodt, Cengage Learning Acquisitions Inc., Payless Inc., Asurion LLC, SafeNet Inc., Alliance Laundry Holdings LLC and Station Casinos LLC joined this week's calendar.

Sabre tops par

Sabre's roughly $1.7 billion term loan B due Feb. 19, 2019 freed up for trading on Tuesday afternoon, with levels seen at par 1/8 bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 325 basis points with a leverage-based step-down to Libor plus 300 bps. The debt has a 1% Libor floor and 101 soft call protection for six months, and was issued at par.

During syndication, the step-down on the term loan was revised from Libor plus 275 bps.

Proceeds will be used to reprice an existing term loan from Libor plus 400 bps with a 1.25% Libor floor.

Bank of America Merrill Lynch is leading the deal for the Southlake, Texas-based online travel company.

Anaren starts trading

Anaren's credit facility made its way into the secondary market with the $145 million seven-year first-lien term loan (B2/B+) quoted at 99½ bid, par ½ offered and the $70 million 71/2-year second-lien term loan (Caa2/CCC+) quoted at 101 bid, 103 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor and was sold at a discount of 99. This tranche has has call protection of 103 in year one, 102 in year two and 101 in year three.

Recently, the spread on the first-lien term loan was reduced from Libor plus 475 bps.

Anaren getting revolver

In addition to the first- and second-lien term loans, Anaren's $235 million senior secured facility includes a $20 million revolver (B2/B+).

Credit Suisse Securities (USA) LLC led the deal that was used with equity to fund the buyout of the company by Veritas Capital for $28.00 per share in cash, or about $381 million.

Closing on the buyout was announced on Tuesday.

Anaren is a Syracuse, N.Y.-based designer, developer, manufacturer and seller of highly integrated microwave components, assemblies and subsystems.

Arden frees up

Arden Group's credit facility broke for trading in the morning, after allocating late Friday, with levels on the $150 million six-year term loan B quoted at 99¼ bid, par ¼ offered, according to a trader.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

During syndication, pricing on the term loan was raised from Libor plus 375 bps.

The company's $180 million senior secured credit facility also includes a $30 million five-year revolver.

BMO Capital Markets is leading the deal that will be used with $170 million of equity to help fund the buyout of the company by TPG for $126.50 per share, or about $394 million.

Closing is expected this quarter, subject to customary conditions, including, among other things, expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Arden is a Compton, Calif.-based operator of specialty grocery stores.

MultiPlan dips

Also in the secondary, MultiPlan's term loan fell to par ¼ bid, par ¾ offered from par 5/8 bid, 101 offered as the company announced that it is being acquired by Starr Investment Holdings and Partners Group from Silver Lake and BC Partners, a trader said.

Financing for the buyout is being led by Barclays and J.P. Morgan Chase & Co.

Closing is subject to regulatory approvals and customary conditions.

MultiPlan is a New York-based provider of health care cost management services.

Roundy's reworked

Over in the primary, Roundy's Supermarkets lifted pricing on its $460 million seven-year first-lien covenant-light tem loan (B1/B) to Libor plus 475 bps from talk of Libor plus 400 bps to 425 bps, moved the discount to 98 from 99 and extended the 101 soft call protection to one year from six months, a market source said.

In addition, the incremental allowance was revised to unlimited subject to 3.25 times first-lien net leverage, from $150 million plus unlimited subject to 3.75 times first-lien net leverage, the source continued.

As before, the term loan has a 1% Libor floor.

Recommitments were due at 5 p.m. ET on Tuesday.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and BMO Capital Markets are leading the deal that will be used by the Milwaukee-based supermarket chain to refinance an existing loan priced at Libor plus 450 bps with a 1.25% Libor floor.

The existing loan will be repaid at par instead of at 101 due to the revised yield, the source added.

iQor changes emerge

iQor cut its eight-year covenant-light second-lien term loan (Caa2/CCC+) to up to $170 million from up to $220 million, set pricing at Libor plus 875 bps, the high end of the Libor plus 850 bps to 875 bps talk, and widened the original issue discount to 97½ from 981/2, according to a market source.

The second-lien term loan still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

In addition, the up to $630 million seven-year covenant-light first-lien term loan (B2/B) was flexed to Libor plus 500 bps from talk of Libor plus 450 bps to 475 bps and its original issue discount was revised to 98 from 99, while the 1% Libor floor and 101 soft call protection for one year were left intact, the source remarked.

The company's now up to $900 million senior secured credit facility also includes a $100 million five-year revolver (B2/B).

iQor lead banks

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and GE Capital Markets are leading iQor's credit facility, for which recommitments are due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to fund the acquisition of the aftermarket services business of Jabil Circuit Inc., a St. Petersburg, Fla.-based provider of aftermarket services to electronics manufacturers, retailers and service providers, for $725 million.

Closing is expected this quarter, subject to customary regulatory approvals.

iQor is a New York-based provider of business process outsourcing services.

Aramark tweaks deal

Aramark set the offer price on its $1.4 billion term loan E due September 2019 at 993/4, the high end of revised talk of 99¾ to par and wide of initial talk of just par, and on its $2.15 billion seven-year term loan F at 991/2, the high end of revised talk of 99½ to 99¾ and wide of initial talk of just 993/4, according to a market source.

Pricing on the term loan E is Libor plus 250 bps, after flexing recently from Libor plus 225 bps, and pricing on the term loan F is also Libor plus 250 bps. Both tranches have a 0.75% Libor floor.

Additionally, pricing on the company's £115 million seven-year term loan firmed at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, the seven-year euro term loan was upsized to €140 million from €110 million with pricing set at Euribor plus 275 bps, the tight end of the Euribor plus 275 bps to 300 bps talk, and the C$95 million seven-year term loan was eliminated from the capital structure, the source said.

The pound and euro term loans still have a 0.75% floor and a discount of 991/2.

The cancelled Canadian loan was talked at BA plus 275 bps to 300 bps with a 0.75% floor and a discount of 993/4.

Aramark call protection

With the updates to pricing, Aramark pushed out the 101 soft call protection on its term loans to one year from six months, the source continued.

J.P. Morgan Securities LLC, Barclays, Goldman Sachs Bank USA, Wells Fargo Securities LLC and RBC Capital Markets are leading the deal (B1/BBB-) that will be used to refinance existing debt.

Aramark is a Philadelphia-based professional services company that provides food, hospitality and facility management services as well as uniform and work apparel.

SMG shutting early

SMG moved up the commitment deadline on its $325 million credit facility to 5 p.m. ET on Thursday from Feb. 26, a market source said.

The facility consists of a $25 million five-year revolver, and a $300 million six-year first-lien term loan talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal.

Proceeds will be used to refinance existing loans and fund a dividend.

SMG is a West Conshohocken, Pa.-based venue management company.

Waddington launches

In more primary happenings, Waddington Group (WNA Holdings Inc.) launched with a call its fungible $50 million incremental covenant-light term loan B due June 7, 2020 with offer price talk of 99¾ to par, according to a market source.

The add-on, like the existing first-lien term loan, is priced at Libor plus 325 bps with a 1.25% Libor floor and has 101 soft call protection until June 7, 2014.

Commitments are due at noon ET on Friday.

Barclays, RBC Capital Markets, GE Capital Markets and Goldman Sachs Bank USA are leading the deal that will be used to fund contemplated acquisitions.

Net first-lien leverage is 4 times and net total leverage is 5 times, the source added.

Waddington is a Covington, Ky.-based manufacturer of disposable drinkware, dinnerware, servingware, cutlery and custom packaging.

Calpine holds call

Calpine Construction Finance held a call in the afternoon to launch $375 million add-on term loan B-2 due Jan. 31, 2022 with talk of Libor plus 250 bps with a 0.75% Libor floor and an original issue discount of 98½ to 99, according to a market source.

The spread and floor on the add-on matches the existing term loan B-2.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Union Bank and UBS Securities LLC are leading the deal that will be used to help fund the $625 million acquisition of a nominal 1,050 megawatt, combined-cycle power plant in Guadalupe County from MinnTex Power Holdings LLC.

Closing is expected this quarter, subject to customary conditions, antitrust review under the Hart-Scott-Rodino Act and approval by the Public Utility Commission of Texas.

Calpine Construction is a subsidiary of Calpine Corp., a Houston-based power producer.

Playa reveals offer price

Playa launched during the session its $375 million term loan (B2) due August 2019 with talk of a par offer price, according to a market source.

Talk on the loan had already come out last week at Libor plus 300 bps to 325 bps with a 1% Libor floor and 101 soft call protection for six months.

Proceeds will be used to reprice an existing term loan from Libor plus 375 bps with a 1% Libor floor, and existing lenders will get paid out a 101 with the repricing due to current call protection.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal for which commitments are due on Friday.

Playa is an owner, operator and developer of all-inclusive resorts in the Dominican Republic, Mexico and Jamaica.

Mallinckrodt timing surfaces

Mallinckrodt disclosed timing on the launch of its $1.55 billion senior secured credit facility, with the bank meeting set to take place at 10 a.m. ET in New York on Thursday, a market source said.

The facility consists of a $250 million five-year revolver and $1.3 billion seven-year covenant-light term loan B, the source continued.

Deutsche Bank Securities Inc. is leading the deal that will be used with cash on hand to fund the purchase of Cadence Pharmaceuticals Inc. for $14.00 per share in cash, or about $1.3 billion on a fully diluted basis.

Closing is expected in mid-to late-March, subject to customary conditions, the tender of a majority of Cadence Pharmaceuticals' shares and the expiration or termination of the waiting period under the Hart Scott Rodino Antitrust Improvements Act.

Mallinckrodt is a Dublin-based specialty pharmaceutical and medical imaging business. Cadence Pharmaceuticals is a San Diego-based biopharmaceutical company.

Cengage joins calendar

Cengage will hold a bank meeting at 1:30 p.m. ET in New York on Thursday to launch a $1.95 billion credit facility, according to market sources.

The facility consists of a $200 million ABL revolver, and a $1.75 billion six-year first-lien covenant-light term loan talked at Libor plus 700 bps with a 1% Libor floor and an original issue discount of 99, sources said.

Commitments are due on March 5.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and KKR Capital Markets are leading the deal that will be used to help fund the company's exit from bankruptcy.

Cengage is a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets.

Payless on deck

Payless scheduled a bank meeting for 1:30 p.m. ET in New York on Wednesday to launch $665 million in debt comprised of a $520 million first-lien term loan and a $145 million second-lien term loan, according to a market source.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and MerchCap Capital Markets LLC are leading the deal that will be used to refinance the company's existing term loan B and fund a dividend.

Payless is Topeka, Kan.-based specialty family footwear retailer.

Asurion coming soon

Asurion set a bank meeting for 10 a.m. ET on Wednesday to launch $2.25 billion in covenant-light term loans, split between a fungible $300 million add-on term loan B-1 due May 2019, a $250 million three-year term loan B-3 and a $1.7 billion seven-year second-lien term loan, according to sources.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal.

Proceeds will be used by the Nashville-based provider of technology protection services to refinance existing debt and fund a dividend.

SafeNet sets meeting

SafeNet scheduled a bank meeting for 2:30 p.m. ET on Wednesday to launch a $255 million credit facility, according to a market source.

The facility consists of a $30 million five-year revolver, a $175 million six-year first-lien term loan and a $50 million seven-year second-lien term loan, the source said.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

SafeNet is a Belcamp, Md.-based provider of information security software and encryption technology.

Alliance Laundry readies loan

Alliance Laundry plans to hold a bank meeting at 9:30 a.m. ET on Wednesday to launch a $230 million incremental first-lien term loan, according to a market source.

BMO Capital Markets and Bank of America Merrill Lynch are leading the deal that will be used to help fund the acquisition of Primus Laundry Equipment Group.

Closing is expected by the end of March, subject to customary conditions.

With the news of the incremental loan, the company's existing first-lien term loan was quoted in trading at par ½ bid, 101½ offered, unchanged on the day, a trader added.

Alliance Laundry is a Ripon, Wis.-based designer, manufacturer and marketer of commercial laundry equipment. Primus is a Gullegem, Belgium-based marketer of commercial washer-extractors, tumbler dryers, ironers and feeding and folding equipment.

Station Casinos plans call

Station Casinos set a call for Wednesday to launch a repricing of its roughly $1.5 billion term loan, according to a market source.

The repricing is talked at Libor plus 300 bps to 325 bps with a 1% Libor floor and a par offer price, versus current pricing of Libor plus 400 bps with a 1% Libor floor.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal for the Las Vegas-based casino company.

Kronos closes

In other news, Kronos Worldwide Inc. completed its $350 million six-year term loan B (B1/B+/BB-), according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the loan is Libor plus 375 bps with a 1% Libor floor and it was sold at a discount of 991/2. There is 101 hard call for one year.

During syndication, the loan was upsized from $275 million, pricing was cut from talk of Libor plus 425 bps to 450 bps, the discount was changed from 99 and the call protection was revised from hard call protection of 102 in year one and 101 in year two.

Deutsche Bank Securities Inc. led the deal that was used to refinance existing debt.

Kronos is a Dallas-based producer of titanium dioxide pigments, the primary pigment for providing whiteness, brightness and opacity.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.