Dynegy, Livingston, Tower Auto, Pinnacle Foods, Crown Castle break; Securus changes surface

By Sara Rosenberg

New York, April 16 - Dynegy Inc.'s credit facility broke for trading on Tuesday, with the strip of term loan debt quoted above its original issue discount price, and Livingston International Inc., Tower Automotive Holdings USA LLC, Pinnacle Foods Finance LLC and Crown Castle Operating Co. emerged in the secondary market as well.

Moving to the primary, Securus Technologies Inc. came out with revisions to its credit facility, including increasing the size of the first-lien term loan while trimming the spread, and decreasing the size of the second-lien term loan while firming the coupon at the low end of guidance and tightening the original issue discount.

CDW LLC, Capital Automotive LP, Horseshoe Baltimore, Advantage Sales and Marketing Inc., MB Aerospace and HCA Inc. released price talk, and Truven Health Analytics Inc., Key Safety Systems Inc. and Nuveen Investments emerged with deal plans.

Dynegy starts trading

Dynegy's credit facility freed up for trading on Tuesday, with the strip of seven-year covenant-light term loan B-1 and B-2 debt quoted at par bid, par ½ offered, according to a market source.

Both the $500 million term loan B-1 and the $800 million term loan B-2 are priced at Libor plus 300 basis points with a 1% Libor floor, and were sold at an original issue discount of 991/2. The tranches have 101 soft call protection for one year.

During syndication, the maturity on the term loan B-1 was pushed out from two years, pricing was cut from Libor plus 350 bps and call protection was added. Also, the coupon on the term loan B-2 was reduced from Libor plus 375 bps, the floor was trimmed from 1.25% and the discount was tightened from 99.

The term loan B-1 is expected to be taken out in the senior unsecured markets in the near term, market permitting, once the required financial statements and pro formas related to its proposed acquisition of Ameren Energy Resources are available.

Dynegy getting revolver

In addition to the term loans, Dynegy's $1.8 billion credit facility (B2/BB-) includes a $500 million five-year revolver.

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

Proceeds will be used to refinance credit facilities at subsidiaries GasCo and CoalCo.

Dynegy is a Houston-based energy company.

Livingston hits secondary

Another deal to break was Livingston International, with its $250 million six-year first-lien term loan (B1/B) quoted at 101 bid, 101½ offered, and its $115 million seven-year second-lien term loan (Caa1/CCC+) quoted at 101¾ bid, 102½ offered, according to a trader.

Pricing on the U.S. first-lien term loan is Libor plus 375 bps with a 1.25% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 775 bps with a 1.25% Libor floor, and was sold at a discount of 98. There is soft call protection of 102 in year one and 101 in year two.

The $545 million credit facility also provides for a $65 million Canadian six-year first-lien term loan (B1/B) priced at BA plus 450 bps with a 1.25% floor and a $125 million five-year revolver (B1/B) priced at BA plus 400 bps with no Libor floor. Both of these tranches were issued at 99, and the Canadian term loan has 101 soft call protection for six months.

Livingston lead banks

RBC Capital Markets and Morgan Stanley Senior Funding Inc. are leading Livingston's credit facility that will be used to refinance existing bank debt and fund a tender offer for the company's 10 1/8% senior notes due Nov. 9, 2015.

During syndication, the total amount of first-lien term loan debt was upsized from $300 million, the soft call protection was shortened from one year, and the spread on the U.S. tranche was reduced from Libor plus 425 bps. Furthermore, the second-lien loan was upsized from $110 million and pricing was cut from Libor plus 825 bps.

Investors had been told at launch that the first-lien loan would likely include a Canadian piece, but the size was left as to be determined.

Livingston is a Toronto-based provider of consulting and trade management services and international freight forwarding.

Tower Auto tops OID

Tower Automotive's $420 million seven-year senior secured term loan B (B1/B+) made its way into the secondary market too, with levels quoted at par 5/8 bid, 101 5/8 offered, a trader said.

Pricing on the term loan B is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at a discount of 991/2. The tranche includes 101 soft call protection for one year.

Recently, the loan was upsized from $275 million, pricing was lowered from talk of Libor plus 475 bps to 500 bps and the discount was revised from 99.

Citigroup Global Markets; Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that is expected to close on Wednesday.

Proceeds will be used to refinance the company's 10 5/8% senior secured notes, all of which will be taken out as result of the previous term loan upsizing.

Tower Automotive is a Livonia, Mich.-based supplier of automotive metal structural components and assemblies.

Pinnacle Foods breaks

Pinnacle Foods' credit facility began trading too, with the $1.63 billion seven-year term loan G quoted at par ¼ bid, 101¼ offered, according to a market source.

Pricing on the G loan is Libor plus 250 bps with a step-down to Libor plus 225 bps at 4.25 times net total leverage. The debt has a 0.75% Libor floor and 101 soft call protection for one year, and it was sold at an original issue discount of 993/4.

During syndication, the term loan G was upsized from $1.58 billion, the pricing step-down was added, the Libor floor was reduced from 1%, the discount firmed at the low end of the 99½ to 99¾ talk and the call protection was extended from six months.

The company's $1.78 billion senior secured credit facility (Ba3/BB) also includes a $150 million five-year revolver.

Pinnacle Foods refinancing

Proceeds from Pinnacle Foods' credit facility and $350 million of senior unsecured notes will be used to repay/replace the company's existing credit facility and 8¼% senior unsecured notes.

The notes were downsized from $400 million with the term loan G upsizing.

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

Pinnacle Foods is a Mountain Lakes, N.J.-based diversified packaged food company.

Crown Castle above par

Crown Castle's $1.58 billion term loan also made its way into the secondary, with levels quoted at par ¼ bid, par 5/8 offered, a trader remarked.

Pricing on the 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.

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

Bank of America Merrill Lynch, RBS Securities Inc. and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Crown Castle is a Houston-based owner, operator and leaser of towers and other infrastructure for wireless communications.

Securus reworks deal

Switching to the primary, Securus Technologies upsized its seven-year first-lien term loan (B2) to $350 million from $335 million and lowered pricing to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps, according to a market source.

The first-lien term loan still has a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

As for the eight-year second-lien term loan (Caa2), it was downsized to $140 million from $155 million, pricing was set at Libor plus 775 bps, the low end of the Libor plus 775 bps to 800 bps talk, and the discount was changed to 99 from 981/2, the source said.

The 1.25% floor and call protection of 103 in year one, 102 in year two and 101 in year three on the second-lien term loan were unchanged.

Securus being acquired

Proceeds from Securus' $540 million credit facility, which also includes a $50 million five-year revolver (B2), will be used to help fund its buyout by ABRY Partners.

Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. are the lead banks on the deal.

Securus is a Dallas-based provider of inmate communications services and investigative technologies.

CDW discloses guidance

CDW held its lender call on Tuesday, and with the event, talk on the $1.35 billion seven-year senior secured covenant-light term loan (Ba3/B+) came out at Libor plus 250 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Commitments are due at 5p.m. ET on April 23, the source said.

Barclays, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal that will be used to refinance the company's existing senior secured bank debt.

CDW is a Vernon Hills, Ill.-based provider of integrated information technology services.

Capital Automotive sets talk

Capital Automotive revealed talk of Libor plus 550 bps with a 1% Libor floor, an original issue discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three on its $325 million seven-year senior secured second-lien term loan (B1) that launched with a call during the session, according to a market source.

Commitments are due at 5 p.m. ET on Wednesday, the source remarked.

Barclays, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs & Co. are leading the deal that will be used to repay a portion of the company's first-lien term loan and 6¾% senior notes.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

Horseshoe Baltimore pricing

Horseshoe Baltimore launched its $215 million seven-year term loan B with talk of Libor plus 725 bps to 750 bps with a 1.25% Libor floor and an original issue discount in the 98½ area, according to a market source.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are leading the $330 million credit facility that also includes a $10 million revolver, a $30 million furniture, fixtures and equipment (FF&E) term loan, a $37.5 million seven-year final maturity, delayed-draw for 12 months term loan, and a $37.5 million seven-year final maturity, delayed-draw for 18 months term loan.

The delayed-draw term loans are not being syndicated, the source added.

Proceeds will be used to fund the development of the Horseshoe Baltimore casino, which is a joint venture between Caesars Entertainment, Rock Gaming LLC, CVPR Gaming Holdings LLC; STRON-MD LP and PRT TWO LLC.

Advantage Sales hosts call

Advantage Sales and Marketing revealed in the morning that it would be holding a call at 2:30 p.m. ET on Tuesday to launch $120 million in add-on covenant-light term loans, according to a market source.

The debt includes a $90 million add-on first-lien term loan due December 2017 talked at Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection through February 2014, the source said.

Also, the company is seeking a $30 million add-on second-lien term loan due June 2018 talked at Libor plus 725 bps with a 1% Libor floor, a discount of 99½ and 101 soft call protection through February 2014, the source continued.

Proceeds will refinance mezzanine debt, and the company has to amend its existing credit facility to allow for the tack-on loans for this use of proceeds. Lenders are offered a 5 bps consent fee.

Credit Suisse Securities (USA) LLC, UBS Securities LLC and J.P. Morgan Securities LLC are leading the deal for the Irvine, Calif.-based sales and marketing agency.

MB Aerospace deal emerges

MB Aerospace launched with a lender presentation in the morning a $105 million credit facility that is being led by Societe Generale and BNP Paribas Securities Corp., according to a market source.

The facility consists of a $15 million five-year revolver talked at Libor plus 475 bps with a 1.25% Libor floor, a $70 million six-year term loan talked at Libor plus 475 bps with a 1.25% floor and a discount of 99, and a $20 million GBP equivalent six-year term loan talked at Libor plus 500 bps with a 1.25% floor and a discount of 99, the source said.

Commitments are due on April 30.

Proceeds will be used to back the company's acquisition of Delta Industries.

Senior and total leverage will be 3.9 times and equity is over 45% of pro forma capitalization, the source remarked.

MB Aerospace is a Motherwell, U.K.-based provider of highly-engineered components for the commercial and military aero-engine, and industrial gas turbine markets.

HCA launches

HCA is marketing a $1.25 billion term loan B-4 that is talked at Libor plus 275 bps with no Libor floor and a par offer price to replace its existing term loan B-3 that is priced at Libor plus 325 bps with no Libor floor, according to a market source.

Commitments are due on Friday, the source said.

Bank of America Merrill Lynch is the lead bank on the deal.

HCA is a Nashville-based healthcare company.

Truven readies loan

Truven Health Analytics scheduled a call for 11:30 a.m. ET on Wednesday to launch a $535 million term loan B due May 2019 that is talked at Libor plus 325 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

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

Proceeds will be used by the provider of health care data and data analytics to refinance/reprice its existing term loan B.

Key Safety on deck

Key Safety Systems set a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch a $470 million credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of a $75 million 41/2-year revolver and a $395 million five-year first-lien term loan B with 101 soft call protection for one year, the source said.

UBS Securities LLC is leading the deal.

Commitments are due on May 1, the source added.

Key Safety Systems is a Sterling Heights, Mich.-based supplier of automotive safety components and systems.

Nuveen coming soon

Nuveen Investments will host a call at 2 p.m. ET on Wednesday to launch a repricing of $2.56 billion first-lien term loan due May 2017 and $500 million second-lien term loan due February 2019, according to a market source.

Deutsche Bank Securities Inc. is leading the deal for the Chicago-based provider of investment services to institutions as well as individual investors.

Cenveo closes

In other news, Cenveo Corp. completed its $360 million seven-year term loan (Ba3/BB-), according to a news release.

Pricing on the loan is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at a discount of 991/2. There is 101 soft call protection.

The term loan was flexed from talk of Libor plus 575 bps to 600 bps with a discount of 99 during syndication.

Bank of America Merrill Lynch, Macquarie Capital and Barclays led the deal.

The company also got a $200 million asset-based loan led by Bank of America, Wells Fargo Bank, Barclays and GE Capital Corp.

Cenveo is a Stamford, Conn.-based manager and distributor of print and related products and services.

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