Valeant, Deltek, Bragg, Univar, Colfax break; Clear Channel trades higher with numbers

By Sara Rosenberg

New York, Feb. 19 - Valeant Pharmaceuticals International Inc.'s term loans made their way into the secondary market on Tuesday with levels bid above par, and Deltek Inc., Bragg Communications Inc., Univar Inc. and Colfax Corp. freed up, too.

Also in trading, Clear Channel Communications Inc.'s term loan B was stronger as the company reported earnings results for the fourth quarter, and ServiceMaster Co.'s term loan was bid better.

Over in the primary, TransDigm Inc. carved out a shorter-dated term loan from its longer-dated tranche, MGM Resorts International, Houghton International Inc. and Leslie's Poolmart Inc. pulled their repricing requests, and CAMP International Holding Co.'s loan was put on hold.

Additionally, Veyance Technologies Inc. (formerly Goodyear Engineered Products), Merrill Communications LLC, AES Corp., Consolidated Precision Products Corp. (WPP CPP Holdings LLC), Citco Group of Cos. (Citco III Ltd.) and Ollie's Bargain Outlet released talk with launch.

Furthermore, Phoenix Services (Metals Services LLC), Flexera Software LLC, EarthLink Inc., SunGard Data Systems Inc. Datapipe Inc. and Husky International Ltd. emerged with deal plans.

Valeant starts trading

Valeant Pharmaceuticals' term loans (BBB-) broke for trading on Tuesday, with the $1.3 billion term B-series D loan due February 2019 and the $1 billion term B-series C loan due December 2019 quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loans is Libor plus 275 basis points with a 0.75% Libor floor, and they were sold at par. There is 101 soft call protection for six months.

J.P. Morgan Securities LLC is the lead bank on the $2.3 billion deal.

Proceeds are being used to refinance existing term loan B borrowings.

Valeant is a Mississauga, Ont.-based specialty pharmaceutical company.

Deltek frees up

Deltek's credit facility emerged in the secondary too, with the $450 million first-lien term loan quoted at par ¼ bid, according to a trader.

Pricing on the term loan is Libor plus 375 bps with a 1.25% Libor floor, and it was issued at par. There is 101 soft call protection through October 2013.

The company's $480 million credit facility also includes a $30 million revolver that is priced at Libor plus 375 bps.

Proceeds are being used to reprice the existing revolver and term loan from Libor plus 475 bps, while keeping the term loan floor at 1.25%.

Existing lenders are getting paid out at 101 with the repricing.

Jefferies Finance LLC is leading the deal.

Deltek is a Herndon, Va.-based provider of enterprise software and information for professional services firms and government contractors.

Bragg hits secondary

Another deal to free up was Bragg Communications, with its roughly $300 million term loan B due February 2018 quoted at par ¼ bid, par ¾ offered, according to a trader.

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

Proceeds are being used to reprice the existing term loan B from Libor plus 300 bps with a 1% Libor floor.

TD Securities (USA) LLC is the lead bank on the deal.

Bragg Communications is a Halifax, N.S.-based cable television and telecommunications company.

Univar tops OID

Univar's $250 million incremental term loan B also began trading, with levels quoted at 99 3/8 bid, 99 7/8, a trader said.

Pricing on the loan, which has initially been talked with a size of $250 million to $300 million, is Libor plus 350 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 991/4.

In addition, the company is getting a $150 million euro equivalent incremental term loan.

Bank of America Merrill Lynch is the left lead bank on the deal (B2/B+) that is being used to repay revolver borrowings and for general corporate purposes.

Univar is a Redmond, Wash.-based distributor of industrial and specialty chemicals.

Colfax breaks

Colfax's credit facility freed up as well, with the $400 million its term loan B due January 2019 quoted at par bid, par ½ offered, according to a market source.

Pricing on the B loan, which was downsized from $541 million, is Libor plus 250 bps, after firming at the tight end of the Libor plus 250 bps to 275 bps talk. There is a 0.75% Libor floor and 101 soft call protection for six months, and it was sold at par.

The company's $1.83 billion credit facility also includes a $500 million revolver, a $333 million term loan A-1 due January 2017, a $456 million term loan A-2 due January 2017, and a $141 million euro equivalent term loan A-4 that is priced at Euribor plus 400 bps. The A-4 loan was added when the B loan was downsized.

Proceeds will be used to refinance/reprice an existing credit facility.

Deutsche Bank Securities Inc. is the lead bank on the deal.

Colfax is a Fulton, Md.-based designer, manufacturer and marketer of fluid handling products to commercial marine, oil and gas, power generation, defense and general industrial sectors.

Clear Channel gains

In more trading happenings, Clear Channel's term loan B headed higher after fourth quarter numbers were released, according to traders.

One trader had the B loan at 86½ bid, 87 offered, up from 85½ bid, 86½ offered, and a second trader had the loan quoted at 86½ bid, 87½ offered, up from 85¾ bid, 86¾ offered.

For the quarter, the company reported a net loss of $191 million, versus a net loss of $43 million in the prior year. Fourth quarter 2012 net loss included a $240 million pre-tax loss on extinguishment of debt related to refinancing activities.

Consolidated revenues for the quarter were $1.7 billion, up from $1.65 billion in the 2011 fourth quarter.

And, OIBDAN was $546 million, up from $537 million in the prior year.

Clear Channel is a San Antonio-based media and entertainment company.

ServiceMaster bid rises

ServiceMaster's $1,223,000,000 term loan due January 2017 was bid higher, moving to 99½ bid, par offered from its late Friday breaking levels of 99¼ bid, par offered, according to a trader.

Pricing on the loan is Libor plus 325 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.

During syndication, the loan was downsized from $2,253,000,000, the Libor floor was added, the discount firmed at the wide end of revised talk of 99 to 99½ and wide of initial talk of 99¼ to 991/2,and the maturity was changed from Feb. 28, 2017.

Proceeds are refinancing a roughly $1.2 billion non-extended term loan due July 2014. Due to the downsizing, the company is not refinancing its roughly $1 billion extended term loan due January 2017.

J.P. Morgan Securities LLC is the lead bank on the deal.

ServiceMaster is a Memphis-based provider of maintenance services to residential and commercial customers.

TransDigm retranches

Moving to the primary, TransDigm added a $500 million covenant-light four-year term loan to its capital structure that is talked at Libor plus 275 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for one year, according to sources.

On the flip side, the company downsized its seven-year covenant-light term loan to $1.7 billion from $2.2 billion, sources said. This tranche is talked at Libor plus 300 bps (after flexing last week from Libor plus 275 bps) with a 0.75% Libor floor, a par offer price and 101 soft call protection for one year.

In addition to the term loans, the company is getting a $310 million five-year revolver.

Recommitments are due on Wednesday, sources continued.

Credit Suisse Securities (USA) LLC, UBS Securities LLC, Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading the $2.51 billion deal (Ba2/BB-) that will refinance an existing credit facility, including a $2.2 billion term loan priced at Libor plus 300 bps with a 1% floor.

TransDigm is a Cleveland-based maker of aircraft components.

MGM repricing withdrawn

MGM Resorts pulled the repricing of its $1.75 billion term loan B that would have taken pricing down to Libor plus 275 bps with a 1% Libor floor from Libor plus 325 bps with a 1% Libor floor, according to market sources. The repriced loan was being offered at par.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Barclays and J.P. Morgan Securities LLC were leading the deal.

The company is, howver, amending its credit facility to permit the pledging of some collateral that is not part of the loan's collateral package but had a negative pledge, one source remarked.

MGM Resorts is a Las Vegas-based operator of destination resort brands.

Houghton shelves proposal

Houghton International withdrew the repricing of its $455 million first-lien term loan, under which pricing would have been taken down to Libor plus 300 bps with a 1% Libor floor from Libor plus 400 with a 1.25% Libor floor, according to a source.

Also pulled was the repricing of the €100 million first-lien term loan to Euribor plus 350 bps with a 1% floor from Euribor plus 450 bps with a 1.25% floor.

Both repriced loans were offered at par and had 101 soft call protection for one year, and existing lenders were going to get paid out at 101 with the repricing.

RBC Capital Markets LLC and Deutsche Bank Securities Inc. were leading the deal.

Houghton is a Norristown, Pa.-based developer, producer and manager of specialty chemicals, oils and lubricants.

Leslie's pulled

Leslie's Poolmart's repricing of its roughly $625 million term loan was also removed from market, according to a source.

The Bank of America Merrill Lynch-led repricing was talked at Libor plus 300 bps to 325 bps with a 1% Libor floor and a par offer price.

By comparison, current pricing on the loans is Libor plus 400 bps with a 1.25% Libor floor.

Leslie's Poolmart is a Phoenix-based retailer of swimming pool supplies and related products.

CAMP postponed

CAMP International opted to put on hold its $370 million term loan B (B3/B) that was talked at Libor plus 400 bps with a 1.25% Libor floor, an original issue discount of 99½ to 99¾ and 101 soft call protection for six months, according to a market source.

Deutsche Bank Securities Inc. was leading the deal.

Proceeds were going to be used to refinance the company's existing capital structure.

CAMP is a Ronkonkoma, N.Y.-based provider of maintenance tracking for business aviation.

Veyance reveals guidance

Also on the new deal front, Veyance Technologies held a bank meeting on Tuesday to launch its credit facility, and in connection with the event, price talk on the $1,125,000,000 first-lien covenant-light term loan due September 2017 was announced, according to a market source.

The term loan is talked at Libor plus 325 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

The company's $1.2 billion credit facility (B) also includes a $75 million revolver.

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc. and Goldman Sachs & Co. are leading the deal that will be used to refinance an existing first-and second-lien credit facility.

Commitments are due on March 1.

Veyance is a Fairlawn, Ohio-based manufacturer and seller of engineered rubber products, including conveyor belts, industrials hose and power transmission products.

Merrill sets talk

Merrill Communications came out with talk of Libor plus 650 bps with a 1.25% Libor floor, an original issue discount of 99 and repricing protection of 102 in year one and 101 in year two on its $390 million first-lien term loan that launched with a bank meeting in the afternoon, a source said.

Credit Suisse Securities (USA) LLC and Imperial Capital are leading the $420 million five-year credit facility, which also includes a $30 million super-priority revolver.

Proceeds will be used to refinance existing debt.

Commitments are due on March 1.

Merrill is a St. Paul, Minn.-based provider of technology-enabled services for the financial, legal, health care, real estate and other corporate markets.

AES holds call

AES launched with a call in the afternoon a repricing of its $807 million term loan B due June 2018 to Libor plus 275 bps with a 0.75% Libor floor from Libor plus 325 bps with a 1% Libor floor, according to sources.

The repriced loan is being offered at par and has 101 soft call protection for one year, sources said.

Citigroup Global Markets Inc. and Bank of America Merrill Lynch are leading the deal, for which commitments are due at 5 p.m. ET on Friday.

AES is an Arlington, Va.-based generator and distributor of electricity.

Consolidated repricing

Consolidated Precision Products launched a repricing of its $415 million term loan and a $100 million revolver with talk of Libor plus 350 bps, according to a source who said that the term loan has a 1% Libor floor and 101 soft call protection for six months.

Currently, the revolver and term loan are priced at Libor plus 450 bps and the term loan has a 1.25% Libor floor.

UBS Securities LLC is the lead bank on the $515 million first-lien deal.

Consolidated Precision Products is a Pomona, Calif.-based manufacturer of highly engineered components and sub-assemblies, supplying the commercial aerospace, military and industrial markets with small- to large-function critical products.

Citco comes to market

Citco held a call at 11 a.m. ET on Tuesday to launch an $80 million add-on senior term loan due 2018 and a repricing of its existing term loan due 2018 that are talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, according to a market source.

The add-on is offered at an original issue discount of 99½ and the repricing is offered at par.

Lead banks, UBS Securities LLC and Deutsche Bank Securities Inc., are asking for commitments by Feb. 27.

Proceeds will be used to reprice the existing term loan from Libor plus 425 bps with a 1.25% Libor floor, and the add-on will be used to pay a $40 million dividend and place $40 million into Citco Banking Corp., the source added.

Citco is a provider of financial services to hedge funds, private equity and real estate firms, institutional banks, companies and high net worth individuals.

Ollie's launches

Ollie's Bargain Outlet launched a $50 million add-on term loan and a repricing of its existing $225 million covenant-light term loan with talk of Libor plus 400 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection through Sept. 28, 2013, according to a market source.

Proceeds from the add-on will be used to redeem shares held by financial sponsor CCMP Capital Advisors and the repricing will lower the existing term loan from Libor plus 500 bps with a 1.25 % Libor floor, the source added.

Existing lenders will get paid out at 101 with the repricing.

Pro forma leverage is 4.3 times net of cash.

Jefferies Finance LLC is leading the deal, for which commitments are due on Friday.

Ollie's is a Harrisburg, Pa.-based retailer of closeouts, excess inventory and salvage merchandise.

Phoenix readies add-on

Phoenix Services set a call for Wednesday to launch a $25 million first-lien tack-on term loan due June 30, 2017 that is talked at Libor plus 650 bps with a 1.25% Libor floor and a par offer price, according to market sources.

The spread and floor match the existing term loan, since the debt will be fungible, as does the soft call protection of 102 in year one from the time of closing of the original loan and 101 in year two, sources remarked.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the loan that will be used to fund a new contract win.

Commitments are due on Feb. 26, sources added.

Phoenix Services is a Kennett Square, Pa.-based provider of steel mill services and a processor of slag and co-products from steel mills and foundries.

Flexera joins calendar

Flexera Software will host a bank meeting on Wednesday to launch a $355 million credit facility (B2) that consists of a $25 million revolver and a $330 million term loan B, according to a market source.

BMO Capital Markets Corp. is leading the deal.

Proceeds will refinance an existing first- and second-lien credit facility.

Flexera is a Schaumburg, Ill.-based provider of strategic application usage management services for application producers and their enterprise customers.

EarthLink on deck

EarthLink scheduled a bank meeting for 1 p.m. ET on Wednesday to launch a $450 million secured credit facility that includes a $150 million revolver and a $300 million term loan, according to informed sources.

Regions Bank is leading the revolver and Bank of America Merrill Lynch is the lead arranger on the term loan, sources said.

Proceeds, along with cash on hand, will repay 10.5% senior secured notes due 2016 of EarthLink's wholly owned subsidiary, ITC^DeltaCom Inc., and to replace an existing $150 million undrawn revolver.

EarthLink is an Atlanta-based IT services and communications provider.

SunGard plans loan

SunGard Data Systems plans to host a call at 10 a.m. ET on Wednesday to launch a $2 billion seven-year term loan (BB) that is talked at Libor plus 300 bps with a 1% Libor floor and an original issue discount that is still to be determined, according to a market source.

J.P. Morgan Securities LLC is the left lead bank on the deal.

Proceeds will be used to refinance the existing term loan B due 2016 and a portion of the term loan C due 2017.

In addition, the company will be seeking to amend its existing credit facility, the source said.

SunGard is a Wayne, Pa.-based software and technology services company.

Datapipe coming soon

Datapipe set a meeting for 2:30 p.m. ET on Thursday to launch a $330 million senior secured credit facility that is being led by Morgan Stanley Senior Funding Inc., TD Securities (USA) LLC and GE Capital Markets, according to a market source.

The facility consists of a $40 million revolver, a $205 million first-lien term loan and an $85 million second-lien term loan, the source said.

Proceeds will be used to refinance existing bank debt.

Datapipe is a Jersey City, N.J.-based company that offers a single provider solution for managing and securing mission-critical IT services.

Husky sets call

Husky International scheduled a call for Wednesday to launch a repricing of its roughly $860 million term loan B from Libor plus 450 bps with a 1.25% Libor floor, according to a market source.

Goldman Sachs & Co. and Morgan Stanley Senior Funding Inc. are leading the deal.

Husky is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry.

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