WaveDivision, Avis, Select Medical break; West, SuperValu, Sabre, Capsugel revise deals

By Sara Rosenberg

New York, Aug. 9 - WaveDivision Holdings LLC's credit facility freed up for trading on Thursday with the term loan B quoted above its original issue discount price, and Avis Budget Car Rental LLC and Select Medical Corp. broke too.

Moving to the primary, West Corp. upsized and reverse flexed pricing on its term loan B, SuperValu Inc. tightened the original issue discount on its covenant-light term loan, Sabre Inc. increased its loan while setting the coupon at the low end of talk, and Capsugel added a ratings step-down to its repricing proposal.

Furthermore, Warner Chilcott plc, Allison Transmission Inc. and USI Holdings Corp. revealed guidance on their loans, ServiceMaster Co. released price talk and fees on its extension request as all of these transactions were launched during the session, and Town Sports International Holdings Inc. announced repricing plans.

WaveDivision frees up

WaveDivision's credit facility made its way into the secondary market on Thursday, with the $500 million term loan B quoted at 99¾ bid on the open and then it moved to par ¼ bid, par ¾ offered, according to a market source.

Pricing on the B loan is Libor plus 425 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year and a ticking fee that starts on Sept. 17 at half the spread and increases to the full spread on Nov. 1.

During syndication, the term loan B was upsized from $470 million, the spread was reduced from talk of Libor plus 450 bps to 500 bps and the ticking fee was added.

The company's $550 million credit facility (B1/BB-) also provides for a $50 million revolver.

WaveDivision lead banks

Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the lead banks on WaveDivision's credit facility.

Proceeds will be used to help fund the company's buyout by Oak Hill Capital Partners, GI Partners and management from Sandler Capital Management.

As a result of the change to the term loan B size, the equity for the buyout is being reduced by $30 million.

Closing is expected next quarter, subject to regulatory approvals and customary conditions.

WaveDivision is a Kirkland, Wash.-based owner and operator of broadband cable systems.

Avis begins trading

Avis' $200 million add-on term loan C due 2019 also broke, with levels seen at 99½ bid, par ¼ offered, according to a trader.

Meanwhile, the Parsippany, N.J.-based vehicle rental operator's existing term loan C was quoted at 99½ bid, par ¼ offered, versus 99¼ bid, par ¼ offered on Wednesday, the trader added.

Pricing on the add-on is Libor plus 325 bps with a 1% Libor floor, which matches the pricing on the existing term loan C, and it was sold at an original issue discount of 99 after firming at the tight end of the 98½ to 99 guidance.

J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance the company's term loan B due 2018 that is priced at Libor plus 500 bps with a 1.25% Libor floor.

Select Medical tops OID

Select Medical lifted its incremental term loan B (Ba3/BB-) amount to $275 million from $150 million and then it hit the secondary market with levels quoted at 98¼ bid, 99 offered, according to a trader.

Pricing on the add-on due June 1, 2018 is Libor plus 375 bps with a 1.75% Libor floor, in line with existing term loan B pricing, and it was sold at an original issue discount of 97. There is 101 soft call protection through June 1, 2013.

J.P. Morgan Securities LLC, Goldman Sachs & Co., Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., Wells Fargo Securities LLC and RBC Capital Markets are leading the deal that will be used to call a portion of the company's 7 5/8% senior subordinated notes due 2015.

Select Medical is a Mechanicsburg, Pa.-based operator of specialty hospitals and outpatient rehabilitation clinics.

West reworks loans

Switching to the primary, West increased the size of its term loan B to $970 million from $720 million and terminated plans for a $250 million add-on to its 7 7/8% senior notes due Jan. 15, 2019, according to sources.

Also, pricing on the loan is now Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 991/4, versus initial talk of Libor plus 475 bps with a 1.25% floor and a discount of 99, sources said. There is still 101 soft call protection for one year.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., Wells Fargo Securities LLC, Bank of America Merrill Lynch and Barclays are leading the deal that will be used to refinance existing debt and to fund a dividend.

West is an Omaha-based provider of voice-related communication services.

SuperValu moves OID

SuperValu revised the original issue discount on its $850 million six-year covenant-light term loan (B1/BB-) for a second time, this time moving it to 97 from 96, a market source said. Earlier, in the process, the discount had been modified from 98.

Pricing on the loan was left at Libor plus 675 bps, which is where it had flexed in late July from initial talk of Libor plus 625 bps. There is a 1.25% Libor floor and soft call protection of 102 in year one and 101 in year two.

Upon making the coupon change, the company had also changed the soft call protection from just 101 in year one and shortened the maturity from seven years.

With the new discount price announcement, the company asked lenders to get their recommitments in on Thursday, with the hope being to allocate on Friday, the source continued.

SuperValu getting revolver

SuperValu's $2.5 billion credit facility also includes a $1.65 billion five-year ABL revolver that has pricing ranging from Libor plus 175 bps to 225 bps.

Credit Suisse Securities (USA) LLC and Barclays Capital Inc. are the bookrunners on the term loan, and Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., Barclays and Credit Suisse are the bookrunners on the revolver.

SuperValu, an Eden Prairie, Minn.-based supermarket operator, plans to use proceeds from the new credit facility to refinance existing debt.

Sabre upsizes

Sabre raised its incremental term loan to $375 million from $250 million and set pricing at Libor plus 600 bps, the tight end of the Libor plus 600 bps to 625 bps guidance, sources said.

As before, the loan has a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., Barclays, Natixis and Mizuho are leading the deal that is expected to allocate on Friday.

Proceeds will be used to repay non-extended term loan debt.

Sabre is a Southlake, Texas-based online travel company.

Capsugel tweaks deal

Capsugel added a step-down to Libor plus 300 basis points on its term loan repricing proposal if a B1 rating is achieved, according to a market source. Currently, the company is at B2/BB-.

As before, the company is looking to reduce pricing on its $875 million term loan and $150 million revolver to Libor plus 350 bps from Libor plus 400 bps.

The term loan will continue to have a 1.25% Libor floor, and 101 soft call protection for one year will be added back in to the debt.

Consents were due on Thursday.

UBS Securities LLC is the lead bank on the deal.

Total leverage as of April 1 was 5.1 times last 12 months adjusted EBITDA.

Capsugel is a Morristown, N.J.-based manufacturer of hard capsules and drug-delivery systems.

Warner Chilcott pricing

Warner Chilcott held its conference call on Thursday afternoon, and with the event, price talk on the $600 million of new senior secured term loans (Ba3/BBB-) was announced, according to a market source.

The $300 million term loan B-4/5 due August 2017 is talked at Libor plus 300 bps to 325 bps with no Libor floor and an original issue discount of 99 to 991/2, and the $300 million term loan B-1 due March 2018 is talked at Libor plus 325 bps with a 1% floor and a discount of 99, the source said, adding that both tranches have 101 soft call protection for one year.

Amortization on the term loan B-4/5 is 10% in year one, 20% in years two to four and 30% in year five.

Commitments are due on Aug. 15.

Warner Chilcott dividend

Proceeds from Warner Chilcott's term loans and cash on hand will be used to fund a special dividend to ordinary shareholders of $4 per share, or around $1 billion in total.

As a result of the new debt, leverage will go up to about 2.75 times, from around 2.3 times at the end of June.

The dividend is conditioned on the amendment of the existing credit facility to allow for the new debt.

Bank of America Merrill Lynch and Goldman Sachs & Co. are leading the deal that is expected to close this quarter.

Warner Chilcott is a Dublin-based specialty pharmaceutical company.

Allison holds call

Allison Transmission had a conference call too, launching its $500 million term loan due 2019 with talk in the Libor plus 325 bps area with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, a source said.

Lead banks, Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Barclays Capital Inc., are asking for commitments by Tuesday.

Proceeds will be used to repay some of the company's non-extended term loan.

Allison is an Indianapolis-based automatic transmission company.

USI guidance surfaces

USI Holdings released price talk of Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 99½ to 99¾ on its $100 million incremental term loan in connection with its launch on Thursday afternoon, according to a market source.

Commitments are due on Tuesday and allocations are targeted for Wednesday, the source added.

Goldman Sachs Lending Partners LLC and J.P. Morgan Securities LLC are leading the deal that will be used for general corporate purposes, including potential acquisitions.

USI is a Briarcliff Manor, N.Y.-based distributor of property and casualty insurance and employee benefits products.

ServiceMaster extended talk

ServiceMaster announced in the morning that it would be holding a conference call in the afternoon to launch its term loan extension proposal, and lenders were told that extended pricing is talked at Libor plus 400 bps, with the offer also having a 10 bps consent fee and a 15 bps extension fee, according to a market source.

By comparison, non-extended term loan pricing is Libor plus 250 bps.

Under the request, the company wants to extend some of its $2.5 billion senior secured term loan to Jan. 31, 2017 from July 24, 2014, and there is a minimum extension threshold of 60%.

J.P. Morgan Securities LLC is the lead on the extension request.

ServiceMaster plans paydown

The company first revealed that it would be doing an extension on Wednesday when it came to market with a senior notes offering, of which a portion of the proceeds will be used to reduce term loan borrowings.

Specifically, sources were told that the company will use $500 million of the proceeds from the $1 billion bond offering to repay the term loan, and that following the paydown, the extended term loan size would likely be around $1 billion.

The minimum term loan paydown is 25%, so if the extended commitments exceed $2 billion, the repayment amount will be increased to maintain that threshold, a source explained.

Remaining proceeds from the bond sale will be used to redeem $396 million of 10¾% senior notes due 2015 and for general corporate purposes.

ServiceMaster, a Memphis-based provider of maintenance services to residential and commercial customers, expects to close on the loan extension and the notes at the same time.

RCN launches

RCN Cable held a bank meeting for its credit facility as planned on Thursday, and the original issue discount on its $585 million four-year term loan B emerged at 991/2, in line with earlier unofficial guidance, according to a market source.

Price talk on the B loan is Libor plus 425 bps with a 1.25% Libor floor, and there is 101 soft call protection for one year.

The broadband services provider's roughly $672 million credit facility also includes a $40 million three-year revolver and an about $47 million four-year term loan A, both talked at Libor plus 400 bps with no Libor floor.

Commitments are due on Aug. 16.

SunTrust Robinson Humphrey Inc., GE Capital Markets and TD Securities (USA) LLC are the lead banks on the deal that will be used to refinance existing credit facility borrowings.

Town Sports repricing

Town Sports scheduled a conference call for Monday to launch a repricing of its $271 million term loan to take pricing down to Libor plus 450 bps with a 1.25% Libor floor from Libor plus 550 bps with a 1.5% floor, according to sources.

The repriced loan will have 101 soft call protection for one year.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and KeyBanc Capital Markets LLC are leading the repricing.

In May, the company pulled a similar request because of unfavorable market conditions, but at that time, the company was asking to reduce pricing to Libor plus 425 bps with a 1.25% Libor floor.

Town Sports is a New York-based owner and operator of fitness clubs.

Essential Power closes

In other happenings, Essential Power LLC completed its $665 million senior secured credit facility (Ba2/BB) that includes a $100 million five-year revolver and a $565 million seven-year term loan B, both priced at Libor plus 425 bps, according to a news release.

The B loan has a 1.25% Libor floor and 101 soft call protection for one year, and was sold at an original issue discount of 981/2.

During syndication, pricing on the entire deal was reduced from Libor plus 450 bps, and the discount on the term B firmed at the low end of the 98 to 98½ talk.

Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Union Bank of California and RBC Capital Markets led the deal that is being used to refinance existing bank borrowings and to fund a tender offer for 10 7/8% senior secured second-lien notes due 2016.

Essential Power is an Iselin, N.J.-based wholesale power generation and marketing company.

FLY completes loan

FLY Leasing Ltd. closed on its $395 million senior secured term loan (B1/BBB-) that is priced at Libor plus 550 bps with a 1.25% Libor floor and was sold at an original issue discount of 96, according to a news release. There is 101 soft call protection for one year.

During syndication, pricing on the loan was increased from Libor plus 500 bps and the discount widened from talk of 98 to 99.

Citigroup Global Markets Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC and Jefferies & Co. led the deal.

Proceeds will be used to refinance remaining 2012 debt maturities, as well as outstanding debt under a facility that matures in 2013.

FLY is an aircraft lessor with corporate offices in Dublin, Ireland, and San Francisco.

Dunkin' wraps

Dunkin' Brands Inc. closed on its $400 million add-on senior secured term loan B-2 (B2/B+) due Nov. 23, 2017, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the add-on is Libor plus 300 bps with a 1% Libor floor, in line with existing term loan B pricing, and it was sold at an original issue discount of 99.

During syndication, the discount finalized at the tight end of the 98½ to 99 guidance with a delayed-draw option so that it will fund onto the balance sheet.

Barclays Capital Inc., J.P. Morgan Securities LLC and Morgan Stanley Funding Inc. led the deal that is being used to return capital to shareholders and for general corporate purposes.

Dunkin' Brands is a Canton, Mass.-based franchisor of quick-service restaurants.

© 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.