Ineos, EP, Channelview, MMI, SS&C, Xerium, Grede break; primary overrun with deal changes

By Sara Rosenberg

New York, May 2 - A bunch of deals made their way into the secondary market on Thursday, including Ineos Group Holdings SA, EP Energy Corp., GIM Channelview Cogeneration LLC, MMI International Ltd., SS&C Technologies Holdings Inc., Xerium Technologies Inc. and Grede Holdings LLC.

Moving to the primary, Grohe Holding GmbH reduced the Libor floor on its loans, Dave & Buster's Inc. added a step-down to its term debt, and CompuCom Systems Inc. upsized its B loan, and tightened the coupon, floor and discount.

Also, PowerTeam Services (Power Buyer LLC) upsized its term loans while lowering pricing, Libor floors and original issue discounts, and Surgical Care Affiliates LLC cut the spread on its term B, added a leverage-based step-down and revised the discount price.

In addition, TPF Generation Holdings LLC came out with its second reverse flex on its B loan and, this time, the original issue discount was tightened as well, Altisource Portfolio Solutions SA changed the offer price on its add-on loan, Albertson's LLC reduced pricing on its three-year loan, and Key Safety Systems Inc. retranched and cut pricing on its term B.

Furthermore, RentPath Inc. Waddington Group (WNA Holdings Inc.), Teine Energy and LPL Financial LLC revealed talk with launch, and Ancestry.com, Generac Power Systems Inc., SuperValu Inc. and Select Medical Corp. announced new deal plans.

Ineos hits secondary

Ineos' U.S. term loans freed up for trading, with the roughly $2.6 billion tranche due 2018 quoted at par ¼ bid, par ¾ offered and the $370.5 million tranche due 2015 quoted at par ¼ bid, 101¼ offered by one market source. A second source had the 2018 and the 2015 debt at par ½ bid, par ¾ offered.

Pricing on the 2018 loan, which includes a $640 million add-on, is Libor plus 300 bps with a step-down to Libor plus 275 bps to at 3.75 times net leverage. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was issued at par.

The 2015 loan is priced at Libor plus 200 bps with no floor, and was issued at par. There is 101 soft call protection for six months.

Recently, the add-on to the 2018 loan was increased from $570 million, pricing on the whole tranche firmed at the low end of the Libor plus 300 bps to 325 bps talk, the step-down was added and the offer price on the new money finalized at the tight end of the 99½ to par talk. Also, the 2015 loan was flexed down from initial talk of Libor plus 225 bps to 250 bps.

Ineos euro loan

Ineos' roughly $4 billion covenant-light deal (BB-) also provides an €844 million term loan due 2018 that includes a €350 million add-on.

Pricing on the euro loan is Euribor plus 325 bps with a step-down to Euribor plus 300 bps at 3.75 times net leverage. There is a 1% floor and 101 soft call protection for six months, and the debt was issued at par.

During syndication, the euro add-on loan was upsized from €300 million, the spread firmed at the low end of the Euribor plus 325 bps to 350 bps guidance, the step-down was added and the offer price on the add-on came at the tight end of the 99½ to par talk.

The euro loan is expected to allocated on Friday morning, London time, another source added.

Ineos repricing

Proceeds from Ineos' term loans will be used to reprice existing debt, and the incremental funds raised through the add-ons will be used to refinance bonds. The funds raised through the upsizing on the add-ons reduce balance sheet cash used to pay fees and expenses.

Through this transaction, the company's existing U.S. 2018 term loan is being repriced from Libor plus 525 bps with a 1.25% floor, the existing 2015 term loan is being repriced from Libor plus 425 bps with a 1.25% Libor floor and the existing euro term loan is being repriced from Euribor plus 550 bps with a 1.25% floor.

Barclays and Bank of America Merrill Lynch are the joint global coordinators on Ineos' credit facility and bookrunners with Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and UBS Securities LLC.

Net senior leverage is 2.8 times and net total leverage is 4.1 times.

Ineos is a Switzerland-based manufacturer of petrochemicals, specialty chemicals and oil products.

EP Energy starts trading

EP Energy's $750 million senior secured term loan B-3 due April 24, 2018 began trading too, with levels quoted at par bid, 101 offered, a trader remarked.

Pricing on the B-3 loan is Libor plus 275 bps, after firming recently at the tight end of the Libor plus 275 bps to 300 bps area talk. There is a 0.75% Libor floor and 101 soft call protection for six months, and the tranche was issued at par.

Citigroup Global Markets Inc. is leading the deal that is being used to reprice/refinance a $750 million term loan B-1 due May 1, 2018 priced at Libor plus 400 bps with a 1% Libor floor.

EP Energy is a Houston-based oil and natural gas exploration and production company.

Channelview tops OID

GIM Channelview Cogeneration's credit facility began trading, with the $375 million seven-year term loan quoted at par bid, 101 offered on the break and then it moved to par ¾ bid, 1011/4, according to a trader.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at a discount of 991/4. There is 101 soft call protection for one year.

Earlier this week, pricing on the loan was trimmed from talk of Libor plus 375 bps to 400 bps, the floor was revised from 1.25% and the discount was changed from 99.

The company's $420 million senior secured credit facility (Ba3) also provides for a $45 million five-year revolver.

Goldman Sachs & Co., Deutsche Bank Securities Inc. and Union Bank are leading the deal that will be used to refinance existing debt and fund a dividend.

Channelview is a nominal 830 megawatt natural gas-fired cogeneration facility in Houston.

MMI levels emerge

MMI International's $180 million 51/2-year senior secured term loan B broke late in the day, with levels quoted at 98 bid, 99 offered, according to a trader.

Pricing on the loan is Libor plus 600 bps with a 1.25% Libor floor, and it was sold at a discount of 97.

During syndication, the loan was downsized from $230 million, pricing was increased from talk of Libor plus 425 bps to 450 bps and the discount was widened from 981/2.

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

Proceeds will be used to refinance an existing term loan.

MMI is a Singapore-based technology company with a focus on key components for the hard disk drive industry.

SS&C above par

SS&C Technologies' $700.1 million in term loans (Ba3/BB) due June 2019 freed up, with levels seen at par ½ bid, a market source said.

Pricing on the loans, which is split between a $634.5 million term loan B-1 and a $65.6 million term loan B-2, 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.

The Libor floor was added to the deal earlier this week, as was a step-down to Libor plus 250 bps at 2.75 times net senior secured leverage.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B-1 due June 2019 and term loan B-2 due June 2019 from Libor plus 400 bps with a 1% Libor floor.

Closing is anticipated for June 10.

SS&C is a Windsor, Conn.-based provider of financial services software and software-enabled services.

Xerium frees up

Xerium's credit facility also broke, with the $200 million six-year covenant-light term loan (Ba3/BB-) quoted at 101 bid, 101½ offered, according to a market source.

Pricing on the term loan is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is a step-down starting Sept. 30 to Libor plus 450 bps if leverage falls below 2 times and 101 soft call protection for six months.

During syndication, the discount was tightened from 99 and the call protection was shortened from one year.

Jefferies Finance LLC is leading the deal that is refinancing existing U.S. and euro term loans.

In addition to the term loan, the company is getting a $40 million asset-based revolver.

Senior leverage is 2 times. Leverage through the company's notes is around 4.4 times.

Xerium is a Raleigh, N.C.-based manufacturer of clothing and roll covers used primarily in the paper production process.

Grede Holdings breaks

Grede Holdings' $316 million five-year term loan made its way into the secondary market as well, with levels quoted at par ½ bid, 101 offered on the open and then it moved to par ¾ bid, 101¼ offered, according to a trader.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at par after tightening from 991/2. There is 101 soft call protection for six months.

GE Capital Markets is leading the deal.

Proceeds will be used to refinance an existing term loan that is priced at Libor plus 550 bps with a 1.5% Libor floor and repay ABL revolver borrowings.

Grede is a Southfield, Mich.-based iron casting supplier.

BWIC announced

Also in the secondary, a roughly $126 million Bid-Wanted-In-Competition surfaced, with bids due from investors at 8:45 a.m. ET on Friday, according to a trader.

The portfolio includes 15 issuers.

Some of the larger pieces of debt being offered are roughly $24.2 million of Nuveen's term loan B, around $18.9 million of Ocwen's loan, about $16 million of Tempur-Pedic's term loan B, roughly $13.9 million of Supervalu's term loan and around $12.2 million of Bright Horizons' term loan B, the trader added.

Grohe cuts floor

Over in the primary, Grohe trimmed the Libor floor on its $255,072,500 covenant-light term loan due May 2017 and a €173,687,500 covenant-light term loan due May 2017 to 1% from 1.25%, according to a market source.

Pricing on the U.S. term loan remained at Libor plus 400 and pricing on the euro term loan remained at Euribor plus 425 bps, with both still having a par offer price and 101 repricing protection for six months.

Recommitments on the U.S. loan were due by 5 p.m. ET on Thursday and on the euro loan are due at noon London time on Friday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice existing U.S. and euro term loans from Libor/Euribor plus 550 bps with a 1.25% floor.

Grohe is a Germany-based manufacturer of bathroom and kitchen fittings.

Dave & Buster's adds step

Dave & Buster's added a pricing step-down to its $145.9 million term loan B due June 2016 to Libor plus 300 bps when consolidated leverage is less than 2.75 times, and this grid will only be available after the delivery of financials for the fiscal year ended Feb. 2, 2014, according to a market source.

Consolidated leverage at Feb. 3, 2013 was around 2.9 times, the source said.

Opening pricing on the loan was unchanged at Libor plus 325 bps with a 1.25% Libor floor and a par offer price, and there is still 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Thursday, the source added.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance an existing term loan B due June 2016.

Dave & Buster's is a Dallas-based owner and operator of dining and entertainment venues.

CompuCom upsizes, flexes

CompuCom Systems upsized its seven-year senior secured term loan B (B1/B) to $605 million from $580 million, lowered pricing to Libor plus 325 bps from Libor plus 350 bps, modified the Libor floor to 1% from 1.25% and moved the original issue discount to 99½ from 99, according to a market source.

With the term loan upsizing, the company's senior notes offering was reduced to $225 million from $250 million.

The B loan continues to have 101 soft call protection for six months.

Commitments were due by 5 p.m. ET on Thursday, the source added.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BMO Capital Markets, Jefferies Finance LLC and Sumitomo Mitsui Banking Corp. are leading the deal that will be used with the notes to help fund the buyout of the company by Thomas H. Lee Partners LP from Court Square Capital Partners.

Closing is expected the week of May 6.

CompuCom is a Dallas-based IT services specialist.

PowerTeam reworks deal

PowerTeam Services increased its seven-year covenant-light first-lien term loan (B2/B) to $400 million from $385 million, cut pricing to Libor plus 325 bps from Libor plus 350 bps, trimmed the floor to 1% from 1.25%, revised the discount to 99 ½ from 99 and shortened the 101 repricing protection to six months from one year, according to a market source.

Also, the 71/2-year covenant-light second-lien term loan (Caa2/CCC+) was upsized to $170 million from $140 million, pricing was reduced to Libor plus 725 bps from Libor plus 750 bps, the floor was changed to 1% from 1.25%, the discount was tightened to 99 from 98½ and the call protection was modified to 102 in year one and 101 in year two from 103 in year one, 102 in year two and 101 in year three, the source said.

Furthermore, pricing on the $50 million covenant-light first-lien delayed-draw term loan (B2/B) that is available for one year was flexed to Libor plus 325 bps from Libor plus 350 bps, the floor was changed to 1% from 1.25%, the discount moved to 99 ½ from 99 and the 101 repricing was shortened protection to six months from one year. The ticking fee was unchanged at half the spread from days 31 to 90 and the full spread starting on day 91. There is no fee for the first 30 days.

PowerTeam getting revolver

With the new term loans, PowerTeam is getting a $60 million revolver (B2/B), bringing the total credit facility size to $680 million, versus $635 million prior to the term loan upsizings.

Commitments were due at 5 p.m. ET on Thursday, the source remarked.

Credit Suisse Securities (USA) LLC, RBC Capital Markets and GE Capital Markets are leading the deal that will be used to help fund the buyout of the company by Kelso & Co. from CIVC Partners and True North Equity LLC.

The equity component of the transaction was reduced as a result of the term loan upsizings, the source added.

PowerTeam is a Plymouth, Mich.-based provider of services to electric and gas utilities.

Surgical Care reveals changes

Surgical Care Affiliates trimmed pricing on its $390 million term loan B (B1/B) due June 2018 to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps, added a step-down to Libor plus 300 bps when the total leverage ratio is less than 4.25 times and tightened the discount to 99¾ from 991/2, a market source said.

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

Recommitments are due at noon ET on Friday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan B due in 2014, a term loan B due in 2018 and PIK notes due in 2015.

At Dec. 31, the company's total leverage ratio was around 4.7 times.

Surgical Care is a Birmingham, Ala.-based operator of surgical facilities.

TPF lowers pricing again

TPF Generation cut the coupon on its $425 million 41/2-year term loan B (B2/B+) to Libor plus 375 bps from recently revised talk of Libor plus 425 bps and initial talk of Libor plus 450 bps, and tightened the original issue discount to 99½ from 99, according to a market source.

The loan still has a 1% Libor floor and is non-callable for one year, then at 102 in year two for repricings and refinancings only. The floor had been revised from 1.25% at the time of the first pricing reduction.

The company's $455 million credit facility also includes a $30 million four-year revolver (B1/B+) priced at Libor plus 275 bps with a par offer price.

Recommitments were due at 3 p.m. ET on Thursday, the source added.

UBS Securities LLC and Goldman Sachs & Co. are leading the deal that will be used by the operator of power generation facilities to refinance existing debt.

Altisource at premium

Altisource Portfolio Solutions' revised the offer price on its $200 million add-on senior secured term loan (B1/B+) to par ½ from par, while keeping pricing at Libor plus 450 bps with a 1.25% Libor floor, according to a market source.

The spread and the floor match that of the existing term loan.

Bank of America Merrill Lynch, Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to fund the remainder of the previously announced transaction with Ocwen Financial Corp. related to the Residential Capital LLC servicing portfolio, stock repurchases and corporate purposes, including potential acquisitions.

Altisource is a Luxembourg-based provider of services focused on high-value, technology-enabled knowledge-based solutions principally related to real estate and mortgage portfolio management, asset recovery and customer relationship management.

Albertson's trims spread

Albertson's lowered pricing on its $450 million three-year term loan to Libor plus 325 bps from Libor plus 350 bps, while leaving the 1% Libor floor, par offer priced and 101 soft call protection for six months unchanged, according to a market source.

The $700 million six-year term loan is still priced at Libor plus 375 bps with a 1% Libor floor and a par offer price, and includes 101 soft call protection for a year.

The company also revised the incremental allowance under the term loans to $300 million from $250 million, the source added.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are the bookrunners on the $1.15 billion of senior secured term loan B debt that will be used to reprice and extend existing term loan B borrowings priced at Libor plus 450 bps with a 1.25% Libor floor.

Closing is targeted for May 6.

Albertson's is a food and drug retailer based in Boise, Idaho.

Key Safety restructures

Key Safety Systems upsized its five-year first-lien term loan B to $400 million from $395 million, reduced pricing to Libor plus 375 bps from Libor plus 400 bps and revised the Libor floor to 1% from 1.25%, according to a market source.

The term loan still has an original issue discount of 99½ and 101 soft call protection for one year.

With the term loan upsizing, the company downsized its 41/2-year revolver to $70 million from $75 million, the source said.

Recommitments were due at 4 p.m. ET on Thursday.

UBS Securities LLC is the lead bank on the $470 million credit facility (B1/B+) that will be used to refinance existing debt.

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

RentPath discloses talk

Also on the new deal front, RentPath held a bank meeting on Thursday morning to kick off syndication on its credit facility, and with the event, talk on the $425 million seven-year term loan B was released, according to a market source.

The B loan is being guided at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

In addition to the term B, the company's $470 million credit facility (B2) includes a $45 million five-year revolver.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

RentPath is a Norcross, Ga.-based digital marketplace for apartment rentals.

Waddington guidance emerges

Waddington Group launched with a bank meeting in the morning its $350 million seven-year first-lien term loan with talk of Libor plus 350 bps to 375 bps with a 1.25% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, according to a market source.

Also, talk came out on the C$100 million seven-year first-lien term loan at Libor plus 425 bps to 450 bps with a 1.25% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, the source said.

And, the $150 million 71/2-year second-lien term loan was launched at Libor plus 750 bps to 800 bps with a 1.25% Libor floor, a discount of 98 to 98½ and call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

The company's $650 million senior secured credit facility also includes a $50 million five-year revolver.

Waddington lead banks

Barclays, RBC Capital Markets, GE Capital Markets and Goldman Sachs & Co. are leading Waddington's credit facility and are asking for commitments by 5 p.m. ET on May 16, the source added.

Proceeds will be used to fund the acquisition of Par-Pak Ltd., a designer and manufacturer of rigid plastic packaging, and to refinance existing debt at both companies.

First-lien leverage is 3.9 times and total leverage is 5.3 times.

Waddington is a Covington, Ky.-based manufacturer of disposable drinkware, dinnerware, servingware, cutlery and custom packaging.

Teine launches

Teine Energy launched its $200 million six-year second-lien term loan with talk of Libor plus 650 bps to 675 bps with a 1.25% Libor floor, an original issue discount of 98½ and hard call protection of 102 in year one and 101 in year two, according to a market source.

Commitments are due at 5 p.m. ET on May 16, the source said.

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

The company is getting a C$175 million five-year revolver.

Net debt is 1.6 times.

Teine Energy is a Calgary, Alta.-based company focused on acquiring and developing low-cost, repeatable, long reserve life index, high netback oil and gas assets.

LPL Financial pricing

LPL Financial launched its $1,084,000,000 term loan B due March 2019 with talk of Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99¾ on new money and a par offer price on existing money, according to a market source.

The term loan B has 101 soft call protection for six months.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance term loan A and term loan B debt.

LPL Financial is a broker-dealer, an RIA custodian and a consultant to retirement plans with offices in Boston, Charlotte, N.C., and San Diego.

Ancestry.com readies deal

Ancestry.com set a call for 10 a.m. ET on Friday to launch a $200 million five-year amortizing term loan B-2 and a repricing of its existing $670 million term loan B from Libor plus 575 bps with a 1.25% Libor floor, according to a market source.

Proceeds from the term loan B-2 will be used to refinance existing debt, and with this transaction, the company will repay $30 million of the existing term loan B with cash from the balance sheet, the source said.

Morgan Stanley Senior Funding Inc. is the sole lead arranger on the deal. Barclays is the administrative agent.

Ancestry.com is a Provo, Utah-based online family history resource.

Generac coming soon

Generac Power Systems scheduled a call for 11 a.m. ET on Friday to launch a $1.15 billion seven-year senior secured term loan B that is being talked at Libor plus 300 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.

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

Proceeds will be used to refinance an existing term loan and pay a special dividend to common shareholders of up to $5 per share.

Also, the company plans on getting a $150 million asset-based revolver, which is expected to be undrawn at close.

Generac is a Waukesha, Wis.-based designer and manufacturer of generators.

SuperValu plans call

SuperValu will host a call at 11:30 a.m. ET on Friday to launch a $1.5 billion covenant-light term loan due March 21, 2019 that is talked at Libor plus 350 bps with a 1% Libor floor, a par offer price and 101 repricing protection for six months, according to a market source.

Proceeds will be used to reprice an existing term loan from Libor plus 500 bps with a 1.25% Libor floor.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are leading the deal, for which commitments are due on May 9, the source added.

SuperValu is an Eden Prairie, Minn.-based food wholesaler.

Select Medical on deck

Select Medical set a call for 11 a.m. ET on Friday to launch a $620 million term loan B due June 2018 that is talked at Libor plus 325 bps with a 1% to 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 the lead bank on the deal.

Proceeds will be used to refinance an existing term loan B and a term loan B series A due 2018.

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

Caraustar closes

In other news, the buyout of Caraustar Industries Inc. by H.I.G. Capital has been completed, according to a news release.

For the transaction, Caraustar got a new $400 million credit facility consisting of a $50 million five-year ABL revolver (Ba2/BB) and a $350 million six-year covenant-light first-lien term loan (B2/B+).

Pricing on the term loan is Libor plus 625 bps with a 1.25% Libor floor, and it was sold at a discount of 991/4. There is soft call protection of 102 in year one and 101 in year two.

During syndication, the term loan was upsized from $330 million as the equity component for the buyout was reduced, pricing was lowered from Libor plus 650 bps and the discount was tightened from 99.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Jefferies Finance LLC and Wells Fargo Securities LLC led the deal.

Caraustar is an Austell, Ga.-based manufacturer of recycled paperboard products and packaging.

National CineMedia wraps

National CineMedia LLC closed on its $380 million credit facility that includes a $270 million term loan and $110 million revolver, according to a news release.

Pricing on the term loan is Libor plus 275 bps, after firming during syndication at the wide end of the Libor plus 250 bps to 275 bps talk. There is no Libor floor and 101 soft call protection for one year, and the debt was issued at par.

The revolver is priced at Libor plus 200 bps with no Libor floor.

Barclays led the deal that was used to reprice/refinance an existing $110 million revolver priced at Libor plus 225 bps and a $265 million term loan priced at Libor plus 325 bps with no Libor floor, and for general corporate purposes.

National CineMedia is a Centennial, Colo.-based media company that provides advertising and events across theater circuits.

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