Sheridan, ADS, Cannery, Allison break; Zayo down with repricing; TriZetto moves deadline

By Sara Rosenberg

New York, Sept. 25 - Sheridan Production Partners, ADS Waste Holdings Inc., Cannery Casino Resorts LLC and Allison Transmission Inc. emerged in the secondary market on Tuesday, and Zayo Group LLC's term loan weakened on repricing news.

Over in the primary, TriZetto Group Inc. accelerated the commitments deadline on its loan, and Valeant Pharmaceuticals International Inc. revised pricing lower on its incremental loan and decided to go ahead with a refinancing of its existing institutional debt.

In additiong, Gray Television Inc. trimmed the size of its upcoming credit facility as its bond deal was upsized, and Six3 Systems Inc. reduced its credit facility size and lifted term loan pricing.

Also, Southern Graphics Inc. (SGS International Inc.), Level 3 Communications Inc., Centerplate Inc. and Tank Holding Corp. released price talk as the deals were launched to investors during the session.

Furthermore, structure and timing on the buyout financing for GCA Services Group Inc. and David's Bridal Inc. surfaced, and Northfield Park Associates, StandardAero (DAE Aviation Holdings Inc.), Brand Energy & Infrastructure Services and Pro Mach Inc. disclosed that they will be launching deals this week.

Sheridan frees up

Sheridan Production Partners' new term loans broke for trading on Tuesday, with the $900 million seven-year tranche quoted at par bid, par ½ offered, and the $100 million six-year tranche quoted at par bid, 101 offered, a market source said.

Earlier in the day, the seven-year loan was upsized from $800 million and pricing was lowered to Libor plus 375 basis points from Libor plus 400 bps, the source remarked. Last week, the spread was outlined as being at the low end of initial guidance of Libor plus 400 bps to 425 bps.

Pricing on the six-year loan, which was added to the deal last week, is Libor plus 350 bps.

Both term loans have a 1.25% Libor floor and 101 soft call protection for one year and were sold at an original issue discount of 99.

UBS Securities LLC, Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the $1 billion deal that will be used to refinance existing debt.

Sheridan Production Partners, a Houston-based oil and gas production company, expects to close on the transaction on Thursday.

ADS Waste tops OID

ADS Waste's credit facility also began trading, with the $1.8 billion seven-year covenant-light term loan B quoted at par bid, 101 offered on the break, one source said, and a second source remarked that shortly thereafter it was quoted at par ½ bid, 101 offered.

The B loan is priced at Libor plus 400 bps with a 1.25% Libor floor and was sold at a discount of 99. There is 101 soft call protection for one year.

Recently, the term loan was upsized from $1.65 billion as the company's bond offering was downsized by $150 million to $550 million, and pricing was cut from Libor plus 450 bps.

The company's $2.1 billion credit facility (B1/B+) also includes a $300 million revolver that was being offered with a 100 bps upfront fee for orders of $15 million.

Deutsche Bank Securities, Inc., Macquarie Capital, UBS Investment Bank, Barclays and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

ADS funding acquisition

Proceeds from ADS Waste's credit facility and bonds will be used to fund the purchase of Veolia ES Solid Waste Inc. from Veolia Environmental Services North America Corp. in a transaction valued at about $1.9 billion.

At close, Star Atlantic Waste Holdings LP, a Highstar Capital portfolio company, will combine its existing investments in Advanced Disposal Services Inc. and Interstate Waste Services Inc. with the acquired Veolia operations. The combined business will operate as Advanced Disposal Services.

Secured leverage is 4.3 times and total leverage is 5.6 times.

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

ADS Waste is a Jacksonville, Fla.-based provider of integrated, non-hazardous solid waste collection, transfer, recycling and disposal services.

Cannery Casino breaks

Cannery Casino Resorts' credit facility made its way into the secondary market too, with the $385 million six-year first-lien term loan (B2/BB-) quoted at 99¾ bid, par ¼ offered, and the $165 million seven-year second-lien term loan (Caa2/CCC+) quoted at 99½ bid, par ½ offered, according to a market source.

The first-lien term loan was upsized from $350 million and pricing was reduced to Libor plus 475 bps from Libor plus 500 bps. The loan has a 1.25% Libor floor and 101 soft call protection for one year, and was sold at an original issue discount of 99.

Meanwhile, the second-lien term loan was downsized from $175 million, and the coupon was flexed lower to Libor plus 875 bps from Libor plus 900 bps, the source continued. This tranche has a 1.25% Libor floor as well as call protection of 103 in year one, 102 in year two and 101 in year three and was sold at a discount of 98.

Cannery lead banks

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Macquarie Capital are the lead banks on Cannery Casino's credit facility.

The $590 million also provides for a $40 million five-year revolver (B2/BB-).

Proceeds will be used to repay bank debt and PIK preferred stock. As a result of the term loan size changes, which resulted in an additional $25 million being raised, all of the PIK will be repaid instead of just a portion, the source added.

Cannery Casino is a Las Vegas-based owner and operator of hotels and casinos.

Allison hits secondary

Another deal to free up was Allison Transmission's $300 million add-on term loan B-3, with levels quoted at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the loan, which was upsized from $250 million, is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99 7/8, after tightening earlier in the day from 993/4. There is 101 soft call protection through August 2013.

The spread, floor and call protection on the add-on match that of the existing term loan.

Bank of America Merrill Lynch is the lead bank on the deal that will be used to repay non-extended term loan borrowings.

Allison is an Indianapolis-based automatic transmission company.

Zayo softens

In more trading happenings, Zayo Group's term loan was down a quarter of a point to par ¾ bid, 101¼ offered as word surfaced that the debt will be repriced, according to a market source.

The company will hold a call on Wednesday morning to launch the repricing of the $1.62 billion term loan, and its $250 million revolver will be repriced as well.

Morgan Stanley Senior Funding Inc. and Barclays are leading the $1.87 billion senior secured credit facility.

Zayo is a Louisville, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

Universal Health rises

Universal Health Services Inc.'s term loan B moved up in trading to par ½ bid, 101 offered, from par ¼ bid, par ¾ offered, as the company completed a pay down on the debt, according to a trader.

The company recently completed an amendment to its credit facility, providing for a new $900 million term loan A-2 due Aug. 15, 2016 and extending the maturity on the existing term loan A and revolver by nine months to match the A-2 maturity.

Of the total term loan A-2 amount, $700 million was used to repay term loan B borrowings and $200 million was used to pay transaction related fees and expenses and to repay other floating-rate debt.

Pricing under the term loan A-2 is 100 bps lower than term loan B pricing, and the A-2 loan has no Libor floor, versus a 1% floor on the B loan.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch led the deal.

Universal Health is a King of Prussia, Pa.-based operator of acute care hospitals, behavioral health facilities and ambulatory centers.

TriZetto shutting early

Moving to the primary, TriZetto Group moved up the commitment deadline on its $150 million 61/2-year second-lien term loan (Caa1/CCC+) to noon ET on Wednesday from 5 p.m. ET on Wednesday, according to a market source.

The loan is talked at Libor plus 725 bps to 750 bps with a 1.25% Libor floor and an original issue discount of 981/2, and includes call protection of 103 in year one, 102 in year two and 101 in year three.

RBC Capital Markets is the lead arranger on the deal.

Proceeds will be used to refinance the company's revolving credit facility and put additional cash on its balance sheet.

TriZetto is a Greenwood Village, Colo.-based health care information technology company to the health care payer industry.

Valeant reworks deal

Valeant Pharmaceuticals made some changes to its $1 billion seven-year incremental term loan B, including decreasing pricing to Libor plus 325 bps from Libor plus 375 bps and extending the 101 soft call protection to October 2013 from June 2013, according to a market source.

As before, the incremental loan has a 1% Libor floor and an original issue discount of 991/2.

There is a ticking fee of 325 bps until March 31, 2013, and after that, it will be the higher of Libor and the Libor floor plus the full margin, the source said.

Commitments are due at noon ET on Wednesday, accelerated from Thursday.

Proceeds, along with $1.75 billion of bonds, will fund the acquisition of Medicis Pharmaceutical Corp., a Scottsdale, Ariz.-based specialty pharmaceutical company, for $44 per share in cash, or about $2.6 billion, and refinance Medicis' convertible notes.

Closing is expected in the first half of 2013, subject to customary conditions, including approval by Medicis stockholders and expiration of any applicable regulatory waiting period.

Valeant adds refi

With the success of its incremental term loan B, Valeant decided to launch a refinancing of its existing roughly $1.3 billion term loan B due February 2019 to take pricing down to Libor plus 325 bps from Libor plus 375 bps, the source remarked.

The refinancing loan has a 1% Libor floor, unchanged from the existing floor, and is being offered at a price of 99¾ to par. There is 101 soft call protection for one year from the closing date.

Commitments for the refinancing loan are also due at noon ET on Wednesday.

Existing lenders will get paid at 101 with the refinancing, the source added.

J.P. Morgan Securities LLC is leading the now roughly $2.3 billion of term loans (Ba1/BBB-).

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

Gray Television downsizes

Gray Television cut its term loan B (B+) to $575 million from $625 million on the back of lifting its senior notes offering to $300 million from $250 million, according to a market source. The bonds priced late Monday at 99.266 to yield 7 5/8%.

The company's now $615 million senior secured credit facility, which still includes a $40 million revolver (BB-), is being led by Wells Fargo Securities LLC and Bank of America Merrill Lynch.

As previously reported, a conference call will be held on Thursday to launch the deal.

Proceeds will be used to refinance existing bank debt, repurchase up to $268.5 million of 10½% senior secured second-lien notes due 2015 in a tender offer that expires on Oct. 22 and redeem series D perpetual preferred stock.

Gray Television is an Atlanta-based television broadcast company.

Six3 restructures

Six3 Systems downsized its seven-year term loan B size to $240 million from $260 million and its five-year revolver to $40 million from $50 million, according to sources.

Pricing on the term loan B was flexed up to Libor plus 575 bps from the Libor plus 500 bps context, while the 1.25% Libor floor and original issue discount of 99 were left intact, sources said.

Also, the soft call protection was sweetened to 102 in year one and 101 in year two, versus just 101 soft call protection for one year previously, sources added.

Goldman Sachs & Co., J.P. Morgan Securities LLC, Bank of America Merrill Lynch and RBS Citizens are the lead banks on the $280 million credit facility (B2/B+) that will be used to refinance existing debt and to repay preferred equity.

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.

SGS reveals talk

Southern Graphics held a bank meeting on Tuesday to kick off syndication on its credit facility, and in connection with the launch, talk on the $375 million seven-year first-lien covenant-light term loan was announced at Libor plus 425 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments for the company's $450 million credit facility (B1/B), which also includes a $75 million five-year revolver, are due on Oct. 9, the source remarked.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs & Co. are leading the deal that will help fund the $813 million purchase of the company by Onex Corp. from Court Square Capital Partners.

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

Southern Graphics is a Louisville, Ky.-based provider of design-to-print graphics services to the consumer products packaging industry.

Level 3 guidance

Level 3 Communications launched a $1.2 billion covenant-light senior secured term loan in the morning with price talk of Libor plus 325 bps with a 1.25% to 1.5% Libor floor and a par offer price, according to a market source.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance the company's term loan B-2 and term loan B-3.

Commitments are due on Friday.

Level 3 is a Broomfield, Colo.-based provider of fiber-based communications services.

Centerplate pricing

Centerplate came out with talk of Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99 on its $342 million credit facility (B2/B+) with its Tuesday bank meeting, according to sources.

The facility consists of a $75 million revolver and a $267 million term loan.

Commitments are due in two weeks, the source added.

GE Capital Markets, PNC Capital Markets LLC and Rabo Securities USA Inc. are leading the deal that will be used to help fund the acqusition of the company by Olympus Partners from Kohlberg & Co. LLC.

Centerplate is a Stamford, Conn.-based provider of food and beverage concessions, high-end catering and merchandise services in sports facilities, convention centers and other entertainment facilities.

Tank holds call

Tank Holding held its call on Tuesday, launching the repricing of its $349.6 million covenant-light term loan at Libor plus 425 bps with a 1.25% Libor floor, compared to current pricing of Libor plus 550 bps with a 1.25% Libor floor, according to a market source.

GE Capital Markets is the lead bank on the deal.

Tank Holding is a Lincoln, Neb.-based manufacturer of polyethylene and steel material handling products.

Harron discloses deadline

Also launching a repricing was Harron Communications LP, and lenders are being asked to commit to the deal by Oct. 4, according to a market source.

As already reported, the roughly $250 million repriced term loan B is being talked at Libor plus 375 bps with a 1.25% Libor floor, versus current pricing of Libor plus 400 bps with a 1.5% Libor floor.

The repriced loan is being offered at par.

SunTrust Robinson Humphrey Inc. is the lead bank on the deal.

Harron Communications is a Frazer, Pa.-based provider of digital television, high-speed internet, digital phone and business services.

Rexnord launches

Rexnord LLC launched its $945 million covenant-light first-lien term loan due April 2018 on Tuesday at expected talk of Libor plus 350 bps with a 1% Libor floor and a par offer price, according to a market source. There is 101 soft call protection for six months.

The loan is repricing an existing term loan from Libor plus 400 bps with a 1% floor, and existing lenders are getting paid down at par.

Credit Suisse Securities (USA) LLC is leading the deal.

Rexnord is a Milwaukee-based industrial company comprising two strategic platforms: process & motion control and water management.

GCA readies deal

In more primary news, GCA Services scheduled a bank meeting for Thursday in New York to launch a $525 million credit facility that will help fund its purchase by Blackstone from Nautic Partners LLC and other minority shareholders, according to a market source.

The facility consists of a $60 million revolver, a $315 million seven-year first-lien term loan that has 101 repricing protection for one year, and a $150 million eight-year second-lien term loan with call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Jefferies & Co. are leading the deal, for which price talk is not yet available.

Closing is expected in October, subject to government approvals and other customary conditions.

GCA Services is a Cleveland-based facility services company that provides customized janitorial/custodial, facilities operations and maintenance, grounds management, diversified staffing and other ancillary services.

David's coming soon

David's Bridal set a bank meeting for Thursday as well to launch a $625 million credit facility that will help fund its buyout by Clayton, Dubilier & Rice for about $1.05 billion from Leonard Green & Partners, who will retain a minority interest in the company, market sources said.

The facility consists of a $125 million ABL revolver and a $500 million covenant-light term loan B, sources added.

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

Closing on the buyout is expected in the fourth quarter.

David's Bridal is a Conshohocken, Pa.-based specialty retailer of bridal gown and wedding-related apparel and accessories.

Northfield joins calendar

Northfield Park Associates will also be hosting a bank meeting on Thursday, at which time it will launch a $195 million credit facility that is being led by Credit Suisse Securities (USA) LLC, according to a market source.

The facility consists of a $25 million five-year revolver offered at 981/2, a $150 million six-year term loan offered at 98 and a $20 million six-year delayed-draw term loan offered at 98, the source said. The term loans are non-callable for 11/2-years, then at 102, 101, par.

Coupon and Libor floor guidance on the credit facility is still to be determined, the source added.

Proceeds will be used fund the construction of the Hard Rock Casino.

Northfield Park Associates is a Cleveland-based casino operator.

StandardAero loan plans

StandardAero scheduled a bank meeting for Friday to launch a $695 million credit facility that is comprised of a $175 million ABL revolver and a $520 million secured term loan, according to a market source.

Barclays is leading the deal that will be used to refinance existing debt and for general corporate purposes.

StandardAero is a Tempe, Ariz.-based company that specializes in engine maintenance, repair and overhaul, and nose-to-tail services, for business and general aviation, air transport and military aircraft.

Brand Energy refinancing

Brand Energy & Infrastructure Services revealed plans to hold a bank meeting on Thursday to launch a refinancing of its first-lien debt, according to a market source.

UBS Securities LLC is leading the deal for the Kennesaw, Ga.-based provider of multi-craft services to the downstream energy infrastructure market.

Pro Mach sets call

Pro Mach scheduled a lender call at 2 p.m. ET on Thursday to launch a refinancing of its existing senior secured credit facility, an add-on to its term loan B and certain amendments, according to a market source.

Barclays is leading the deal.

Pro Mach is a Loveland, Ohio-based provider of packaging machinery services and related aftermarket products to clients in the food, beverage, household goods and pharmaceutical industries.

Alkermes closes

In other news, Alkermes Inc. closed on its $375 million of term loans that were led by Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC and were used to refinance existing credit facility debt, according to an 8-K filed with the Securities and Exchange Commission.

The deal includes a $300 million seven-year senior secured term loan B-1 priced at Libor plus 350 bps with a 1% Libor floor and sold at a discount of 99, and a $75 million four-year term loan B-2 priced at Libor plus 300 bps with a 1% floor and sold at a discount of 991/2. Both loans have 101 soft call protection for one year.

During syndication, the seven-year loan was downsized from $375 million as the four-year loan was added to the capital structure. Also, pricing on the seven-year tranche came inside of talk of Libor plus 375 bps to 400 bps and the floor was lowered from 1.25%, and pricing on the four-tranche was reduced from talk of Libor plus 325 bps.

Alkermes is a Dublin-based biopharmaceutical company.

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