Arizona Chem sets coupon, breaks; Sealed Air steady with numbers; Cardone timing emerges

By Sara Rosenberg

New York, Dec. 19 - Arizona Chemical Inc. firmed pricing on its downsized term loan B at the wide side of talk and then proceeded to free up for trading late Monday well above its original issue discount price.

Also in the secondary market, Sealed Air Corp.'s term loan was unchanged to a little better with the company's release of pro forma combined financial results for its acquisition of Diversey Holdings Inc.

Over in the primary, Cardone Industries zeroed in on timing on the launch of its credit facility, and Blue Coat Systems Inc. and Morton's Restaurant Group Inc. have joined the calendar as expected January business.

Arizona Chem starts trading

Arizona Chemical finalized pricing on its $550 million six-year term loan B and then the debt emerged in the secondary market with levels quoted at 98¼ bid, 99¼ offered on the open and 99¾ bid, par ½ offered shortly thereafter, according to a trader.

Pricing on the B loan came at Libor plus 575 basis points, the high end of the Libor plus 550 bps to 575 bps guidance, with the 1.5% Libor floor and original issue discount of 97 unchanged. There is soft call protection of 102 in year one and 101 in year two.

The company's $610 million credit facility also includes a $60 million five-year revolver.

Goldman Sachs & Co. is the lead bank on the deal that will be used to fund a dividend and to refinance existing debt. The size of the dividend was reduced when the term loan B was scaled back from $750 million last week.

Arizona Chemical is a Jacksonville, Fla., supplier of pine chemicals to the adhesives, inks and coatings and oleochemicals markets.

Sealed Air holds firm

Sealed Air's term loan was flat to a little higher on the day as the company released pro forma combined financial statements for itself and Diversey for 2010 and the first nine months of 2011, according to traders.

One trader had the term loan at 101¼ bid, 101 5/8 offered, up from 101 bid, 101½ offered on Friday, and he saw levels get as high as 101½ bid, 101¾ during Monday's session. A second trader, meanwhile, had the loan quoted at 101 bid, 101 3/8 offered, unchanged on the day.

For 2010, the company's preliminary pro forma results include earnings per share of $0.59 and adjusted earnings per share of $1.77, with net earnings of $123 million. Adjusted EBITDA would be $1.122 billion.

For the first nine months of 2011, earnings per share would be $0.60 and adjusted earnings per share would be $1.25, with net earnings of $126 million. Adjusted EBITDA would be $820 million.

Sealed Air is an Elmwood Park, N.J.-based food safety and security, facility hygiene and product protection company.

Cardone sets launch

Cardone Industries has set a bank meeting for Jan. 5 to launch its proposed $300 million credit facility, according to a market source. Timing came out in line with previous expectations for a general syndication meeting in early January. An early round syndication launched in December.

As was already reported, the facility consists of a $50 million revolver and a $250 million term loan.

RBC Capital Markets LLC, BMO Capital Markets Corp. and Mizuho Securities USA Inc. are leading the deal that will be used to help fund the buyout of the company's North American operations by TPG Capital LP.

Cardone is a Philadelphia-based automotive remanufacturing company.

Blue Coat next month

Also on the forward calendar, Blue Coat Systems' $465 million senior secured credit facility is anticipated to launch with a bank meeting in late January, a market source told Prospect News.

Jefferies & Co. is the leading the deal that consists of a $50 million revolver and a $415 million term loan.

Proceeds, along with about $514 million in equity, will fund the purchase of the company by Thoma Bravo LLC and Ontario Teachers' Pension Plan for $25.81 in cash per share in a transaction valued at around $1.3 billion.

Closing is expected in the first quarter of 2012, subject to customary conditions, including regulatory and shareholder approvals.

Blue Coat is a Sunnyvale, Calif.-based provider of web security and WAN optimization services.

Morton's coming soon

Morton's Restaurant Group joined the January calendar as well, with its proposed credit facility expected to come to market around mid-month, according to a market source.

Jefferies & Co. is the lead bank on the deal that will be used, along with cash, to fund the buyout of the company by Tilman J. Fertitta's wholly owned company Fertitta Morton's Restaurants Inc. for $6.90 per share.

Closing is expected in early February, subject to the tender of a majority of shares, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Morton's is a Chicago-based operator of company-owned upscale steakhouses.

High Liner fills out

In other news, High Liner Foods Inc.'s $250 million term loan B (B2/B) has been fully syndicated at initial terms, with pricing firming at Libor plus 550 bps with a 1.5% Libor floor and an original issue discount of 98. There is 101 soft call protection for one year.

Upon first coming out with the term loan B plans around mid-November, the company had said that based on current market conditions, pricing was expected somewhere in the area of Libor plus 550 bps to 600 bps with a 1.5% Libor floor and an original issue discount of 98 to 99.

RBC Capital Markets and BMO Capital Markets led the deal for the Lunenburg, N.S.-based frozen seafood company, the closing of which was announced on Monday.

High Liner lifts ABL

Along with the new term loan B, High Liner increased its existing asset-based credit facility to $180 million from $120 million.

Proceeds were used to help fund the purchase of Icelandic Group's U.S. subsidiary, which is a supplier of seafood to the U.S. food service market, and Asian procurement operations for $230.6 million and to repay an existing roughly $47 million term loan.

Leverage is expected to be reduced to about 3.8 times on a pro forma basis adjusted for the expected near-term synergies and seasonal debt levels, the company said when the deal was first announced.

HMS Holdings closes

HMS Holdings Corp. completed its $450 million credit facility that consists of a $350 million term loan and a $100 million revolver and is priced at Libor plus 300 bps, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Bank of America Merrill Lynch acted as the joint lead arrangers and bookrunners on the deal that was used to help fund the roughly $400 million purchase of HealthDataInsights Inc.

HMS is a New York-based coordinator of benefits and program integrity services for health care payers. HealthDataInsights is a Las Vegas-based technology-enabled health care services company focused on ensuring claims integrity.

SS&C wraps facility

SS&C Technologies Holdings Inc. closed on its $125 million five-year senior secured revolving credit facility, according to a news release.

Bank of America Merrill Lynch led the deal that was used to refinance an existing credit facility and is available for working capital needs and general corporate purposes.

There is a $75 million accordion feature.

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

Fidelity National wraps deal

Fidelity National Information Services Inc. closed on its $1.65 billion of new term loan borrowings, comprised of a $1.25 billion term loan B due July 2016, and a $400 million term loan A-2 add-on due July 2014 that was upsized from $315 million, according to a news release.

Pricing on the B loan, which was downsized from $1.335 billion, is Libor plus 325 bps with a 1% Libor floor, and it was sold at a discount of 99. There is 101 repricing call protection for 18 months.

Additionally, the company upsized its revolver by $78.5 million, and it expects to add another $50 million in commitments in January.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch led the deal that was used to refinance an existing $1.485 billion term loan B due July 18, 2016 that was priced at Libor plus 375 bps with a 1.5% Libor floor and $315 million of term loan A-1 borrowings due Jan. 18, 2012.

Fidelity National is a Jacksonville, Fla.-based provider of financial institution core processing and card-issuer and transaction-processing services.

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