Boyd, Select Staffing, Totes Isotoner, USI Insurance break; Momentive reworks term loan

By Sara Rosenberg

New York, April 29 - Boyd Corp.'s credit facility freed up for trading on Tuesday with the term loan quoted above its original issue discount price, and Select Staffing (Koosharem LLC), Totes Isotoner and USI Insurance Services hit the secondary market as well.

Moving to the primary, Momentive Performance Materials Inc. lowered pricing on its term loan and reduced the Libor floor, and Affinion Group Inc., Ability Network Inc. and Press Ganey Associates Inc. (PGA Holdings Inc.) released talk with launch.

Furthermore, Pregis Corp. North America disclosed timing on its credit facility, and Catalent Pharma Solutions Inc., 24 Hour Fitness Worldwide Inc., UTEX Industries Inc., North American Bancard (NAB Holdings LLC) and NextGen Finance LLC surfaced with new deal plans.

Boyd tops OID

Boyd's credit facility broke for trading on Tuesday with the $275 million term loan quoted at 99¾ bid, par ¼ offered, according to a trader.

Pricing on the term loan is Libor plus 450 basis points with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

During syndication, pricing on the term loan was lifted from talk of Libor plus 375 bps to 400 bps and a covenant was added to the originally covenant-light deal.

The company's $310 million credit facility (B2/B) also includes a $35 million revolver.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing debt, fund an acquisition and pay a dividend.

Boyd is a Modesto, Calif.-based manufacturer and supplier of custom fabricated sealing and energy management components for OEMs.

Select Staffing breaks

Select Staffing's credit facility hit the secondary too, with the $370 million six-year senior secured term loan (B3) seen at par ¼ bid, par ¾ offered, according to a market source.

The term loan is priced at Libor plus 650 bps with a 1% Libor floor and was sold at a discount of 991/4. There is soft call protection of 102 in year one and 101 for six months thereafter.

During syndication, the term loan was upsized from $350 million, the spread was cut from Libor plus 700 bps, the discount was tightened from 99 and the call premiums were revised from 102 in year one and 101 in year two.

The company's $490 million credit facility LAO includes a $120 million ABL revolver.

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to refinance existing debt and for general corporate purposes in connection with the company's exit from bankruptcy.

Select Staffing is a Santa Barbara, Calif.-based temporary staffing services provider.

Totes frees up

Totes Isotoner's $245 million seven-year first-lien covenant-light term loan (B2/B) began trading as well, with levels seen at 99½ bid, par offered, a trader remarked.

Pricing on the term loan is Libor plus 425 bps, after finalizing at the tight end of the Libor plus 425 bps to 450 bps talk. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was issued at a discount of 99.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Golub Capital are leading the loan.

The company is also getting a $100 million ABL revolver led by Wells Fargo Securities LLC and an $80 million second-lien term loan that was placed prior to syndication of the first-lien deal.

Proceeds will be used to help fund the buyout of the designer, distributor and retailer of branded accessories by Freeman Spogli & Co. and Investcorp from MidOcean Partners.

USI starts trading

USI Insurance Services' fungible $125 million add-on term loan also freed up, with levels quoted at 99 3/8 bid, 99 7/8 offered, according to a trader.

Pricing on the add-on is Libor plus 325 bps with a 1% Libor floor, in line with the existing term loan, and it was sold at discount of 99, after firming at the tight end of the 98¾ to 99 talk. There is 101 soft call protection for six months.

Bank of America Merrill Lynch is the left lead on the deal that will be used to help fund the acquisition of 42 insurance brokerage and consulting locations from Wells Fargo Insurance.

Closing is expected in the second quarter.

USI is a Valhalla, N.Y.-based insurance broker.

Momentive flexes

Over in the primary, Momentive Performance Materials trimmed pricing on its $300 million term loan to Libor plus 325 bps from initial talk of Libor plus 400 bps and revised the Libor floor to 0.75% from 1%, according to a market source.

As before, the term loan has an original issue discount of 991/2.

In addition to the term loan, the company's $570 million debtor-in-possession financing facility includes a $270 million asset-based revolver that is expected to be priced at Libor plus 275 bps.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and UBS Securities LLC are leading the deal that will be used to help fund the company's Chapter 11 restructuring process.

Momentive is an Albany, N.Y.-based silicones and advanced materials company.

Affinion discloses talk

Affiion Group held its call on Tuesday, launching its $650 million first-lien term loan due April 2018 at Libor plus 525 bps and its $500 million second-lien term loan due October 2018 at Libor plus 700 bps, with both tranches having a 1.5% Libor floor and a 25 bps upfront fee, according to a market source.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan is non-callable for two years, then at 102 in year three and 101 in year four.

Also included in the company's $1.27 billion credit facility is a $120 million revolver due January 2018.

Commitments are due on May 6, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to amend and extend the company's existing senior secured credit facility.

Affinion is a Norwalk, Conn.-based provider of marketing services and loyalty programs.

Ability Network guidance

Ability Network released talk on its $200 million seven-year covenant-light first-lien term loan at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months in connection with its bank meeting, according to sources.

Also, talk on its $80 million eight-year covenant-light second-lien term loan was announced at Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99, and call protection of 102 in year one and 101 in year two, sources said.

The company's $300 million credit facility also includes a $20 million revolver.

Commitments are due at noon ET on May 9, sources added.

Deutsche Bank Securities Inc. and Macquarie Capital are leading the deal that will be used to help fund the buyout of the Minneapolis-based health care information technology company by Summit Partners.

Closing is subject to standard regulatory approvals.

Press Ganey offer price

Press Ganey came out with original issue discount talk of 99½ on its $35 million incremental first-lien term loan due April 20, 2018 that launched with a call in the morning, a market source said.

Pricing on the incremental loan matches the company's existing roughly $376.7 million first-lien term loan due April 20, 2018 at Libor plus 325 bps with a 1% Libor floor.

Barclays is leading the deal that will be used with cash on hand to repay the company's existing $45 million second-lien term loan, bringing first-lien and total leverage to 4.3 times, and net leverage to 4.2 times.

As part of the transaction, the company is looking to amend its existing credit facility to allow for the second-lien loan repayment, not have the incremental loan reduce the incremental basket, and increase the basket for non-recurring items in the definition of consolidated EBITDA to 15% of consolidated EBITDA.

Lenders are being offered a 10 bps amendment fee, and commitments and consents are due on May 6.

Press Ganey is a South Bend, Ind.-based provider of health-care performance improvement services.

Pregis timing emerges

Pregis released timing on its $280 million credit facility, with the deal slated to launch with a bank meeting at 10 a.m. ET on Thursday, a source remarked. Previously, the deal was labeled as May business.

The facility consists of a $50 million revolver and a $230 million first-lien term loan.

Goldman Sachs Bank USA and Barclays are leading the deal that will be used to help fund the buyout of the company by Olympus Partners from AEA Investors LLC.

Closing is expected in May.

Pregis is a Deerfield, Ill.-based protective packaging materials and systems manufacturer.

Catalent coming soon

Catalent Pharma Solutions scheduled a call for 10 a.m. ET on Wednesday to launch a $1,945,000,000 senior secured credit facility, according to a market source.

The facility consists of a $200 million revolver, a $1.47 billion first-lien term loan and a $275 million first-lien euro equivalent term loan, the source said.

Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Catalent is a Somerset, N.J.-based provider of advanced technologies and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer health care companies.

24 Hour readies deal

24 Hour Fitness emerged with plans to hold a bank meeting on Thursday to launch a $1 billion credit facility (B+), according to a market source.

The facility consists of a $150 million revolver, and an $850 million seven-year term loan B talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the buyout of the company by AEA Investors and Ontario Teachers' Pension Plan from Forstmann Little & Co.

24 Hour Fitness is a San Ramon, Calif.-based fitness-club operator.

UTEX plans recapitalization

UTEX Industries scheduled a bank meeting for Thursday to launch a $725 million senior secured credit facility that will be used to refinance existing debt and fund a dividend, according to sources.

The facility consists of a $50 million five-year revolver (B2/B), a $475 million seven-year covenant-light first-lien term loan (B2/B) and a $200 million eight-year covenant-light second-lien term loan (Caa2/CCC+), sources said.

Bank of America Merrill Lynch, BNP Paribas Securities Corp., Societe Generale and UBS Securities LLC are leading the deal.

UTEX is a Houston-based manufacturer of engineered sealing and other specialty products used in oil and gas drilling and production, power, mining, water treatment and other industrial sectors.

NAB on deck

North American Bancard set a bank meeting for 12:30 p.m. ET in New York on Wednesday to launch a $220 million credit facility (BB), according to a market source.

The facility consists of a $20 million revolver, and a $200 million seven-year first-lien term loan that has 101 soft call protection for one year, the source said.

Leads, Credit Suisse Securities (USA) LLC and BMO Capital Markets, are seeking commitments by May 14.

Proceeds will be used to refinance existing debt and fund a dividend.

North American Bancard is a Troy, Mich.-based merchant acquirer for payment processing.

NextGen joins calendar

NextGen Finance will hold a bank meeting at 10:30 a.m. ET in New York on Thursday to launch a $370 million first-lien senior secured term loan, according to a market source.

The company's proposed credit facility also includes a A$75 million revolver, the source said.

Morgan Stanley Senior Funding Inc. and HSBC Securities (USA) Inc. are leading the deal.

Nextgen is a supplier of network connectivity, Data Centre facilities and cloud services to Australian businesses, government agencies and telecommunications service providers.

Del Taco closes

In other news, Del Taco LLC completed its $260 million credit facility comprised of a $220 million term loan and a $40 million revolver, a news release said.

Pricing on the term loan is Libor plus 450 bps with a step-down to Libor plus 425 bps if the company gets upgraded to B3 any time after six months from close and a 1% Libor floor. There is 101 soft call protection for one year.

Of the total term loan amount, $59.5 million was an add-on that was used to take out a portion of the company's OpCo mezzanine debt, and the remainder was a repricing of the existing term loan from Libor plus 500 bps with a 1.25% Libor floor.

During syndication, the add-on was upsized by $10 million.

GE Capital Markets led the deal for the Lake Forest, Calif.-based operator and franchiser of restaurants.

RCS completes deal

RCS Capital Corp. closed on its $1.15 billion purchase of Cetera Financial Group from Lightyear Capital, according to a news release.

To help fund the transaction, RCS got a new $750 million senior secured credit facility that includes a $25 million three-year revolver (B2/B+), a $575 million five-year first-lien term loan (B2/B+) and a $150 million seven-year second-lien term loan (Caa1/B-).

Pricing on the second-lien loan is Libor plus 950 bps with a 1% Libor floor and it was sold at 981/2. The debt is non-callable for two years, then at 103 in year three and 101 in year four.

The first-lien term loan is priced at Libor plus 550 bps with a 1% Libor floor and was sold at 99. There is soft call protection of 102 in year one and 101 in year two.

RCS lead banks

Barclays and Bank of America Merrill Lynch led RCS's credit facility that was also used to refinance Cetera debt and add cash to the balance sheet.

During syndication, the first-lien term loan was upsized from $550 million, pricing firmed at the high end of the Libor plus 500 bps to 550 bps talk, the original issue discount came at the low end of the 98½ to 99 guidance, and amortization was sweetened to 5% in year one, 10% in years two and three and 15% in years four and five, from just 5% per annum.

Also, pricing on the second-lien loan was set at the low end of the Libor plus 950 bps to 975 bps talk and the discount was moved from 98.

RCS is a New York-based holding company that operates businesses focused on the financial services industry. Cetera is an El Segundo, Calif.-based financial services holding company.

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