Restaurant Brands, American Air break; Blue Coat, WOW, Physio, Flint, Energizer, CHG updated

By Sara Rosenberg

New York, May 15 – Restaurant Brands International Inc. (Burger King Worldwide Inc.) saw its term loan B make its way into the secondary market on Friday, with levels quoted above par, and American Airlines Inc.’s extended and repriced term loan B freed up too.

Meanwhile, in the primary market, Blue Coat Systems Inc. upsized its term loan B while tightening the spread and original issue discount, WideOpenWest Finance LLC (WOW) widened pricing on its term loan B, and Physio-Control International Inc. set spreads on its first- and second-lien term loans and modified the discount on the first-lien tranche.

Also, Flint Group (Colouroz Investment) firmed pricing on its transaction, Energizer SpinCo Inc. tightened the spread and issue price on its term loan while extending the call protection, and CHG Healthcare Services Inc. increased the size of its add-on first-lien term loan.

Furthermore, American Rock Salt Co. LLC revealed issue price talk on its incremental first-lien term loan with launch, and Novelis Inc., ConvaTec Inc., Bass Pro Group LLC and Camping World Inc. emerged with new deal plans.

Restaurant starts trading

Restaurant Brands’ roughly $5.1 billion first-lien term loan B (B+) freed to trade on Friday, with levels quoted at 100¼ bid, 100½ offered, according to a trader.

Pricing on the loan is Libor plus 275 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.75, after firming at the wide end of the 99.75 to par talk. The debt has 101 soft call protection for six months.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC and RBC Capital Markets are leading the deal that will be used to reprice an existing term loan B down from Libor plus 350 bps with a 1% Libor floor.

With the repricing, the company is repaying about $1.55 billion of its existing term loan B debt with proceeds from a $1.25 billion first-lien senior secured notes offering and cash on hand, which is why the repriced loan is sized at about $5.1 billion.

Restaurant Brands is an Oakville, Ont.-based quick service restaurant company.

American Airlines tops par

American Airlines’ extended and repriced $1,867,000,000 term loan B due June 2020 also broke for trading, with levels seen at 100 1/8 bid, 100 3/8 offered, a trader said.

Pricing on the term loan is Libor plus 275 bps with a 0.75% Libor floor. There is 101 soft call protection for six months.

This transaction is pushing out the maturity on the loan from June 2019 and lowering pricing from Libor plus 300 bps with a 0.75% Libor floor.

Also, the company asked to align the collateral release/substitution terms on the loan with comparable Slots, Gates and Routes collateralized credit facilities and to align the restricted payments construct with other American Airlines/US Airways credit facilities.

Deutsche Bank Securities Inc. is leading the deal.

American Airlines is a Fort Worth-based airline company.

Blue Coat revised

Switching to the primary market, Blue Coat Systems raised its seven-year covenant-light term loan B to $1.15 billion from $1.05 billion, trimmed pricing to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps and moved the original issue discount to 99.75 from 99.5, a market source said.

As before, the term loan B has a 1% Libor floor and 101 soft call protection for six months.

The company’s now $1.25 billion credit facility also includes a $100 million revolver.

Commitments were still due on Friday, the source continued.

Jefferies Finance LLC is leading the credit facility that will be used with $470 million of notes, downsized from $570 million with the term loan upsizing, to help fund the roughly $2.4 billion buyout of the company by Bain Capital LLC from Thoma Bravo LLC.

Closing is expected in the first half of this year, subject to customary conditions, including requisite regulatory approvals.

Blue Coat is a Sunnyvale, Calif.-based web security company.

WideOpenWest flexes

WideOpenWest increased the spread on its $1,411,000,000 first-lien term loan B due April 1, 2019 to Libor plus 350 bps from Libor plus 325 bps, and left the 1% Libor floor, par issue price and 101 soft call protection for six months intact, according to a market source.

Additionally, it was outlined that the MFN applies regardless of the tenor of any incremental term loan, the source said.

Credit Suisse Securities (USA) LLC is leading the loan that will be used to reprice an existing term loan B due April 1, 2019 following a $118 million prepayment from Libor plus 375 bps with a 1% Libor floor.

As before, in connection with the repricing, the company is seeking to amend its credit facility to permit the refinancing of senior subordinated notes with senior unsecured notes and to make lender-friendly changes.

Commitments were due at 2 p.m. ET on Friday, the source added.

WideOpenWest is a Denver-based provider of data, video and telephony services.

Physio-Control updated

Physio-Control set pricing on its $350 million seven-year first-lien covenant-light term loan B (B1/B) at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, and changed the original issue discount to 99.5 from 99, according to a market source, who said the 1% Libor floor and 101 soft call protection for six months were unchanged.

As for the $130 million eight-year second-lien covenant-light term loan (Caa1/CCC+), pricing firmed at Libor plus 900 bps, the wide end of the Libor plus 875 bps to 900 bps talk, the source continued. This tranche still has a 1% Libor floor, a discount of 98, and hard call protection of 102 in year one and 101 in year two.

Recommitments were due at 5 p.m. ET on Friday and closing is expected on June 5.

Citigroup Global Markets Inc., Jefferies Finance LLC, RBC Capital Markets and HSBC Securities (USA) Inc. are leading the $480 million of senior secured term loans that will refinance existing debt and fund a dividend.

Physio-Control is a Redmond, Wash.-based developer, manufacturer, seller and servicer of external defibrillator/monitors and emergency medical response products and services.

Flint sets pricing

Flint Group finalized pricing on its $856 million first-lien term loan due Sept. 7, 2021 at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, and on its €622 million first-lien term loan due Sept. 7, 2021 at Euribor plus 325 bps, the wide end of the Euribor plus 300 bps to 325 bps talk, and set the issue price on the loans at par, versus initial talk of 99.9 to par, a source remarked.

The term loans still have a 1% Libor floor and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice existing U.S. and euro term loans.

Also, in connection with the repricing, the company is seeking an amendment to its credit facility to increase the junior debt prepayment basket to €100 million from €30 million.

Flint is a Luxembourg-based supplier of inks and other print consumables.

Energizer changes emerge

Energizer SpinCo cut pricing on its $400 million seven-year term loan B to Libor plus 250 bps from talk of Libor plus 275 bps to 300 bps, revised the original issue discount to 99.75 from 99.5 and extended the 101 soft call protection to one year from six months, a source said.

The term loan still has a 0.75% Libor floor.

The company’s $650 million credit facility (Baa3) also includes a $250 million five-year revolver.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Bank of Tokyo Mitsubishi-UFJ and Citigroup Global Markets Inc. are leading the deal that will be used to help fund the spinoff of Energizer Holdings Inc.’s household products business into a newly formed publicly traded company named Energizer SpinCo.

Energizer SpinCo is a St. Louis-based manufacturer and marketer of batteries and lighting products.

CHG tweaks size

CHG Healthcare lifted its fungible add-on first-lien term loan (B2/B) to $225 million from $200 million and kept pricing at Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The spread and floor on the add-on term loan matches the existing first-lien loan.

All of the first-lien term debt is still getting 101 soft call protection for six months.

Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc. and Jefferies Finance LLC are leading the deal that will be used to repay second-lien term loan borrowings. As a result of the upsizing, the add-on loan will also fund a dividend, the source added.

Commitments were due at noon ET on Friday.

With the add-on, the Salt Lake City-based health care staffing firm is seeking an amendment to its existing credit facility to, among other things, change the restricted payments basket and revise the excess cash flow sweep, and lenders are being offered a 25 bps amendment fee.

American Rock sets talk

Also in the primary, American Rock Salt held its call on Friday, launching its $80 million incremental covenant-light first-lien term loan (B2/B) with issue price talk of par, according to a market source.

As previously reported, pricing on the incremental loan will match the existing first-lien term loan at Libor plus 375 bps with a 1% Libor floor.

Commitments are due on May 29, the source said.

RBS Citizens is leading the deal that will be used to with cash on hand to repay a $120 million second-lien covenant-light term loan at its 102 call protection.

American Rock Salt is a Retsof, N.Y.-based salt mine operator.

Novelis coming soon

Novelis surfaced with plans to hold a call at 1 p.m. ET on Monday to launch a $1.8 billion seven-year covenant-light term loan, a market source said.

Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that will be used to repay a term loan due in 2017 and ABL revolver borrowings.

Novelis is an Atlanta-based aluminum-rolled products and aluminum recycling company.

ConvaTec on deck

ConvaTec set a bank meeting for Tuesday in London and a bank meeting for Wednesday in New York to launch a $1.85 billion credit facility, according to sources.

The facility consists of a $200 million revolver due 2020, an $800 million term loan and an $850 million euro-equivalent term loan, sources said.

Goldman Sachs, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance an existing credit facility and senior secured notes.

ConvaTec is a Luxembourg-based medical products and technologies company owned by Nordic Capital and Avista Capital Partners.

Bass Pro joins calendar

Bass Pro Group will hold a call on Monday to launch a $1.74 billion term loan due June 2020 that is talked at Libor plus 350 bps to 375 bps with a 0.75% Libor floor and an original issue discount of 99, sources said.

J.P. Morgan Securities LLC is leading the deal.

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

Bass Pro is a Springfield, Mo.-based retailer of outdoor sports and recreation products.

Camping World readies call

Camping World scheduled a lender call for Monday to launch a $95 million add-on term loan and a repricing of its existing term loan from Libor plus 475 bps with a 1% Libor floor, a source remarked.

Proceeds from the add-on will be used to fund a dividend, the source added.

Goldman Sachs Bank USA is leading the deal

Camping World is a supplier of RV parts, supplies and accessories.

Sterigenics closes

In other news, Sterigenics International Inc. completed its recapitalization with Warburg Pincus and GTCR, a news release said.

To help fund the transaction, Sterigenics got a new $1.2 billion credit facility (B1/B) that includes a $150 million five-year revolver and a $1.05 billion seven-year term loan B.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. There is 101 soft call protection for six months.

During syndication, pricing on the term loan was trimmed from talk of Libor plus 350 bps to 375 bps and the discount was moved from 99.5.

JPMorgan, Barclays, Jefferies Finance and RBC Capital Markets led the deal.

Sterigenics is an Oak Brook, Ill.-based provider of contract sterilization, gamma technologies and medical isotopes.

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