M*Modal, Allison, Mediacom, American Capital, CTI Foods break; Caesars heads higher

By Sara Rosenberg

New York, Aug. 15 - M*Modal Inc.'s credit facility freed up for trading on Wednesday with the term loan quoted above its original issue discount price, and Allison Transmission Inc., Mediacom Broadband Group, American Capital Ltd. and CTI Foods Holding Co. LLC hit the secondary as well.

Also in trading, Caesars Entertainment Operating Co. Inc. non-extended term loans and revolver were better as the company announced plans for an amendment and extension transaction, and Revel Entertainment Group LLC's term loan continued its downward spiral.

Switching to the primary, Wilton Brands Inc. made a number of changes to its term loan, including raising the coupon, setting the original issue discount at the wide end of talk, shortening the maturity and sweetening amortization, and One Call Medical Inc. raised pricing and discount on its term loan.

In addition, Regent Seven Seas Cruises finalized the spread on its term loan at the low end of talk and added a leverage-based pricing step-down, Warner Chilcott plc updated pricing on its term loans, USI Holdings Corp. removed plans for an original issue discount on its loan and Carriage Services Inc. upsized its deal.

Furthermore, Pinnacle Foods Finance LLC announced plans for and quickly launched a new term loan F, with the hope being to wrap syndication by the end of this week.

M*Modal frees up

M*Modal's credit facility emerged in the secondary market on Wednesday, with the $445 million seven-year term loan quoted by one trader at 98 7/8 bid, 99 3/8 offered on the open and later in the day too.

A second trader, meanwhile, had it at 98¾ bid, 99¼ offered on the break and then he saw it come in a bit to 98 5/8 bid, 99 1/8 offered.

Pricing on the term loan is Libor plus 550 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 981/2. There is 101 soft call protection for one year.

During syndication, the term loan spread was increased from talk of Libor plus 500 bps to 525 bps, the discount widened from 99 and the size was lifted from $440 million to cover the larger discount.

The company's $520 million senior secured credit facility (Ba3/BB-) also includes a $75 million five-year revolver.

M*Modal being acquired

Proceeds from M*Modal's credit facility will be used to help fund its buyout by One Equity Partners for $14 per share in a transaction valued at about $1.1 billion and to refinance existing debt.

Bank of America Merrill Lynch and RBC Capital Markets LLC are the joint lead arrangers and bookrunners on the deal, and SunTrust Robinson Humphrey Inc. is a bookrunner too.

Other funds for the transaction will come from $447 million of equity and $250 million 10¾% senior unsecured notes that priced on Tuesday at 98.694 to yield 11%.

Closing on the buyout is expected to take place on Friday.

M*Modal is a Franklin, Tenn.-based provider of clinical documentation services and speech understanding services.

Allison begins trading

Also freeing up was Allison Transmission's $850 million term loan (Ba3/BB-/BB) due 2019, with levels quoted at 99½ bid, par offered, a trader remarked.

Pricing on the loan is Libor plus 325 bps with a step-down to Libor plus 300 bps when total leverage is less than 3¼ times. There is a 1% Libor floor as well as 101 soft call protection for one year, and it was sold at an original issue discount of 99.

On Tuesday, the loan was upsized from $500 million and the pricing step-down was added.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Barclays Capital Inc. are leading the deal that will be used to repay some non-extended term loan borrowings.

Allison is an Indianapolis-based automatic transmission company.

Mediacom tops OID

Mediacom's $200 million term loan G (Ba3/BB-) due January 2020 made its way into the secondary in the afternoon, with levels seen at 97¾ bid, 98¼ offered, according to a trader.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 97½ after firming at the wide side of the 97½ to 98 talk. There is 101 soft call protection for one year and existing lenders were offered a 5 bps consent fee that was added during syndication.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the joint lead arrangers on the deal, and bookrunners with Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and RBC Capital Markets LLC.

Proceeds will be used by the Middletown, N.Y.-based cable operator to repay revolver debt and for general corporate purposes.

American Capital hits par

American Capital's $600 million four-year term loan B (B2/NA/BB) broke as well, with levels quoted at par bid, according to a trader.

Pricing on the loan is Libor plus 425 bps with a 1.25% Libor floor, and it was sold at a discount of 991/2. There is 101 soft call protection for one year and amortization of 25% per annum.

During syndication, pricing was cut from talk of Libor plus 475 bps to 500 bps and the discount tightened from 99.

J.P. Morgan Securities LLC, BMO Capital Markets Corp. and UBS Securities LLC are leading the $750 million credit facility that also includes a $150 million four-year revolver (NA/NA/BB) priced at Libor plus 375 bps with a 50 bps unused fee.

Proceeds will refinance existing debt and fund working capital and general corporate purposes.

American Capital is a Bethesda, Md.-based private equity firm and global asset manager.

CTI Foods breaks

CTI Foods' incremental term loan freed up for trading too, with levels quoted at 99¾ bid, par ½ offered, according to a trader.

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

CTI is a Wilder, Idaho-based provider of food products to national chain restaurants.

Caesars non-extended rises

In more trading happenings, Caesars Entertainment's non-extended term loans B-1, B-2 and B-3 and its revolver all saw gains during Wednesday's trading session in reaction to amendment and extension plans, according to traders.

One trader had the term loans B-1, B-2 and B-3 quoted at 93½ bid, 94½ offered, up from 91½ bid, 92½ offered, the term loan B-4 at 102 bid, 103 offered, up from 101½ bid, 102½ offered, and the revolver at 93½ bid, 94½ offered, up from 92 bid, 93 offered. He also had the term loan B-5 unchanged at 84½ bid, 85½ offered and the term loan B-6 flat at 88 bid, 89 offered.

And, a second trader had the B-1, B-2 and B-3 at 93 bid, 94 offered, up from 92 bid, 93 offered, and the term loan B-6 unchanged at 87¾ bid, 88¾ offered.

Caesars proposal details

Under the amendment, Casesars is looking to extend the maturity of all of its term loans B-1, B-2 and B-3 by three years to Jan. 28, 2018 and add the new extended debt to its existing term loan B-6 that is priced at Libor plus 525 bps. Pricing on the term loans B-1, B-2 and B-3 is Libor plus 300 bps.

Lenders are being offered a repayment of 50% of the extended debt with proceeds from a $750 million senior secured notes offering.

The company is also asking to convert original maturity revolver commitments to extended term loans and would repay 50% of the converted commitments, and for those that don't want to convert, an extension is being sought of the revolver maturity by three years to Jan. 28, 2017 with the plan being to terminate 50% of the extended revolver commitments on a pro rata basis.

Bank of America Merrill Lynch is leading the amendment process, a source remarked.

Caesars is a Las Vegas-based diversified casino-entertainment company.

Revel down again

Revel Entertainment's term loan B dropped to 75 bid, 76 offered, from 76 bid, 77 offered, with recent revenue results still being blamed for the movement, according to traders. At the end of last week, the loan was quoted at 79 bid, 81 offered.

One trader remarked that the company is just not hitting the numbers that it needs to be achieving and that it is basically making about half of what is should be, which is why the loan has spent all of this week falling.

For the month of July, the company had total revenue of $17.54 million and year-to-date revenue was $60 million.

Revel is a gaming and entertainment company that commenced operations on March 28 and opened to the public on April 2.

Getty holds steady

Getty Images Inc.'s term loan was unchanged at par bid, 101 offered, with the announcement that the company is being acquired by The Carlyle Group and management from Hellman & Friedman for $3.3 billion, according to a trader.

The buyout will be funded with new debt led by J.P. Morgan Securities LLC, Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and RBC Capital Markets LLC, as well as with equity.

Closing is expected to take place this year.

Getty Images is a Seattle-based creator and distributor of still imagery, video and multimedia products.

Wilton reworks deal

Moving to the primary, Wilton Brands set pricing on its $400 million term loan (B1/B) at Libor plus 625 bps with a 1.25% Libor floor and a discount of 98, versus talk of Libor plus 550 bps with a 1.25% floor and a discount of 98 to 99, a source said. The 101 soft call protection for one year was unchanged.

Also, the company revised the maturity on the term loan to six years from seven years and amortization was added at 5% in years one, two and three, 10% in years four and five, and 65% in year six.

Other changes were setting OpCo leverage at 4.5 times, with steps downs, outlining that cash interest expense to HoldCo can't be paid if OpCo leverage is more than 3.5 times, and setting the accordion at $125 million, subject to 3.75 times OpCo leverage. All are subject to a $20 million cash netting cap.

The company's $525 million credit facility also includes a $125 million ABL revolver.

Deutsche Bank Securities Inc. and UBS Securities LLC are leading the deal that will be used by the Woodridge, Ill.-based craft and celebration company to refinance existing debt.

One Call flexes

One Call Medical lifted the coupon on its $415 million seven-year covenant-light term loan to Libor plus 575 bps from talk of Libor plus 500 bps to 525 bps and moved the original issue discount to 98 from 99, according to a market source. The 1.25% Libor floor was left intact.

The company's $465 million credit facility (Ba3/B+) also includes a $50 million six-year revolver.

Lead banks, Jefferies & Co. and GE Capital Markets, are seeking recommitments by noon ET on Thursday.

Proceeds, along with $210 million of unsecured debt that is being provided by GSO and equity, will be used to fund the acquisition of MSC Care Management, a Jacksonville, Fla.-based provider of medical products and services to post-discharge and post-injury workers' compensation claimants.

Leverage is 4 times through the bank deal and 6.1 times through the unsecured debt.

One Call Medical is a Parsippany, N.J.-based provider of specialty services to insurance payers.

Regent sets spread

Regent Seven Seas firmed the coupon on its $300 million 61/2-year term loan B at Libor plus 500 bps, the tight end of the Libor plus 500 bps to 525 bps, and added a step-down to Libor plus 475 bps less at less than 1.75 times net first-lien leverage, according to a market source.

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

Deutsche Bank Securities Inc., Barclays Capital Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are the lead banks on the $340 million credit facility (Ba2), which also provides for a $40 million five-year revolver.

Allocations are targeted to go out on Thursday, the source remarked.

Regent Seven Seas, a Miami-based cruise ship company, will use the new credit facility to refinance an existing revolver and term loan.

Warner Chilcott pricing

Warner Chilcott finalized pricing on its $300 million term loan B-4/5 due August 2017 at Libor plus 300 bps with an original issue discount of 991/2, the tight end of the initial Libor plus 300 bps to 325 bps with a discount of 99 to 99½ talk, according to a market source. There is no Libor floor.

Also, the company revised the discount on its $300 million term loan B-1 due March 2018 to 99¼ from 99, but left pricing at Libor plus 325 basis points with a 1% Libor floor, the source said.

Both loans 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.

Bank of America Merrill Lynch and Goldman Sachs & Co. are the lead banks on the $600 million of new senior secured term loans (Ba3/BBB-).

Warner frees up

After firming terms, Warner Chilcott's debt broke for trading late day, with the term loan B-4/5 quoted at 99¾ bid, and the term loan B-1 quoted at 99 ½ bid, 99 7/8 offered, another source said.

Proceeds from term loans will be used with cash on hand to pay a special dividend to ordinary shareholders of $4 per share, or about $1 billion in total.

With this transaction, leverage will be around 2.75 times, versus leverage of around 2.3 times at the end of June.

Recommitments on the updated deal were due on Wednesday, the source added, and closing is expected by the end of this quarter.

Warner Chilcott is a Dublin-based specialty pharmaceutical company.

USI sold at par

USI Holdings ended up syndicating its $100 million incremental term loan (B1/B) at par, versus initial talk of an original issue discount of 99½ to 993/4, according to a market source.

As before, the loan is priced at Libor plus 450 bps with a 1.25% Libor floor.

Goldman Sachs Lending Partners LLC and J.P. Morgan Securities LLC are leading the deal that is being 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.

Carriage Services ups loan

Carriage Services lifted its revolver to $105 million from $70 million due to strong demand, and left its five-year term loan unchanged at $130 million, according to a news release.

Bank of America Merrill Lynch is the lead bank on the $235 million senior secured credit facility that will be used to refinance an existing revolver, redeem 7 7/8% senior notes and for general corporate purposes.

Carriage Services is a Houston-based provider of death care services and products.

Pinnacle Foods holds call

Pinnacle Foods disclosed in the early afternoon that it would be holding a 3 p.m. ET conference call to launch a $300 million senior secured term loan F (Ba3/B+) due Oct. 17, 2018 led by Barclays, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC, according to a market source.

Terms on the term loan F mirror those on the term loan E, so pricing is Libor plus 350 bps with a 1.25% Libor floor, there is a pricing step-down that would take effect upon an initial public offering and 5.0 times total leverage, and the debt has 101 soft call protection until April 17, 2013, the source said.

The term loan F is being offered to investors at an original issue discount of 99 to 991/4.

The source explained that the deal was driven by some reverse inquiry and that orders have already been received ahead of Friday's noon ET commitment deadline.

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

Pexco wraps buyout

In other news, the acquisition of Pexco by Odyssey Investment Partners LLC from Saw Mill Capital Partners LP has been completed, according to a news release.

For the transaction, Pexco got a new $138 million credit facility comprised of a $20 million five-year revolver and a $118 million six-year term loan, both priced at Libor plus 475 bps with a 1.25% Libor floor and sold at an original issue discount of 99.

GE Capital Markets, BMO Capital Markets Corp. and PNC Capital Markets LLC led the deal.

Pexco is an Alpharetta, Ga.-based designer and fabricator of custom plastic extrusion.

West closes

West Corp. completed its $970 million term loan B that is being used to refinance existing debt and to fund a $500 million dividend, according to a news release.

Pricing on the term loan B is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/4. There is 101 soft call protection for one year.

During syndication, the loan was upsized from $720 million as the company terminated plans for a $250 million add-on to its 7 7/8% senior notes due Jan. 15, 2019, pricing was reduced from Libor plus 475 bps and the discount was tightened from 99.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., Wells Fargo Securities LLC, Bank of America Merrill Lynch and Barclays led the deal.

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

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