Navistar, CBRE allocate deals; MoneyGram yanks discount; LCDX 19 index narrowly advances

By Paul A. Harris

Portland, Ore., March 26 - Navistar Inc. priced its $700 million term loan B at par with a 450 basis points spread to Libor, which was inside of the original 475 bps to 500 bps spread talk.

CBRE Services Inc. priced its $215 million Libor plus 275 basis points eight-year term loan B at par, and the deal traded to par ½ bid, 101 offered.

And MoneyGram International Inc. eliminated a contemplated discount on its $850 million seven-year covenant-light term loan B, as pricing was hiked to par, versus earlier OID talk of 99 to 991/2.

The LCDX 19 index of bank loan credit default swaps closed at 102 7/8 bid, 103 3/8 offered, up 1/8 of a point on the day, according to a market source.

Meanwhile, cash keeps flowing into the bank loan asset class, according to an institutional investor.

Most of the money is flowing from high-yield accounts, the investor said, suggesting that more cash ought to be flowing into leveraged loans from high-grade bond accounts because those investors would pick up yield while they are waiting to see whether or not rates will rise.

Alas, loans are much easier to sell to below-investment-grade accounts than they are to high-grade investors, the manager mused.

However, maturities - one of the biggest generators of apprehension among high-grade bond investors who dabble in speculative-grade credits - right now are being pushed out in a massive wave of refinancings, the investor said.

The Tuesday session generated plenty of primary market news.

Navistar prices term loan

The spread on Navistar's $700 million term loan B due Aug. 17, 2017 came inside of the original 475 bps to 500 bps spread talk, but the 1.25% Libor floor and the 101 hard call protection for two years remained unchanged.

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

Proceeds will be used to refinance a portion of the company's existing $1 billion term loan B due July 16, 2014.

Other funds for the refinancing will come from up to $300 million of unsecured debt.

Navistar is a Lisle, Ill.-based manufacturer and seller of commercial and military trucks, buses, and diesel engines, and a provider of service parts for trucks and trailers.

ISS/AS allocates

A $350 million Libor plus 275 basis points eight-year term loan B from Copenhagen-based ISS/AS price at 99.75 and allocated on Tuesday.

The deal features a 1% Libor floor and a 101 soft call.

Goldman Sachs, Deutsche Bank, Nordea and UBS led the deal, which also featured a €380 million term A.

The facilities services company plans to use the proceeds to refinance a second-lien loan.

EMG Utica climbs past par

EMG Utica LLC priced its $325 million Libor plus 375 bps seven-year senior secured term loan (B2) at 99.5 on Tuesday, according to a market source.

The deal was trading at par ½ bid, 101 offered on Tuesday afternoon.

The Libor spread was decreased to 375 basis points from 450 bps. The Libor floor was decreased to 1% from 1.25%. Discount talk was revised to move the original issue discount to 99.5 from 99.0.

The loan has 101 repricing protection for one year, the source said.

Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are the lead banks on the deal.

Covenants include maximum leverage and interest coverage ratios, the source said.

Proceeds will be used to help fund growth capital expenditures associated with the development of the EMG Utica joint venture and to prefund interest during the construction period.

Other funds will come from more than $650 million of equity.

EMG Utica is a joint venture between the Energy & Minerals Group and MarkWest Energy Partners LP that will develop midstream infrastructure on behalf of natural gas producers operating in the Utica Shale formation in Ohio.

CBRE allocates

CBRE Services' $215 million term loan B traded to par ½ bid, 101 offered, according to a loan investor.

As reported, pricing on the term loan was reduced from Libor plus 325 bps, and talk on was revised to par from 991/2, the source said.

There is no Libor floor.

In addition, the company priced a $1.2 billion and a $500 million five-year term loan A, both at Libor plus 200 bps with no Libor floor.

The revolver and term loan came with a 25 bps to 50 bps upfront fee, compared to initial talk of a 30 bps to 50 bps upfront fee, the source added.

Existing revolver lenders will receive a 25 bps extension fee.

Amortization on the term loan A is 7.5% in years one, two and three, 15% in year four and 62.5% in year five. Term loan B amortization is 1% per annum.

Financial covenants include maximum leverage and interest coverage ratios.

Commitments were due on Tuesday, the source said.

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, RBS Securities Inc., HSBC Securities (USA) Inc., Barclays and Scotia Capital (USA) Inc. are the lead banks on the now up to $1,915,000,000 credit facility (Ba1/BB).

Proceeds will be used to refinance existing debt.

CBRE is a Los Angeles-based real estate services and asset management firm.

MoneyGram yanks discount

MoneyGram did away with a contemplated discount on its $850 million term loan B on Tuesday, according to a market source.

Talk on the Libor plus 325 basis points deal, which comes with a 1% Libor floor, was hiked to par.

Previous talk had the deal coming at an original issue discount of 99 to 991/2.

The loan has 101 soft call protection for one year, the source said.

In addition to the term loan B, the company's $975 million credit facility (B1/BB-) includes a $125 million five-year revolver, the source continued.

The revolver has maximum leverage, minimum interest coverage and minimum liquidity covenants.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Credit Agricole Securities (USA) Inc. are the lead banks on the deal.

Proceeds will be used to refinance 13¼% second-lien notes due 2018 and existing term loans.

MoneyGram is a Dallas-based provider of money transfer and payment services.

Ranpak sets talk

Ranpak Corp. set spread and price talk for $450 million of first- and second-lien term loans on Tuesday, according to a market source.

The $300 million six-year first-lien term loan B (B2/B) is talked at a 350 to 375 basis points spread to Libor, with a 1.25% Libor floor at 99.5. The first-lien loan has with a 101 soft call.

The $150 million seven-year second-lien term loan (Caa2/CCC+) is talked at Libor plus 775 to 800 bps with a 1.25% Libor floor at 98.5. The second-lien piece is callable at 103 in year one.

Goldman Sachs & Co. is the lead bank on the deal.

The $470 million facility also has a $20 million five-year revolver.

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

Ranpak is a Concord Township, Ohio-based producer of protective paper packaging materials and systems.

tw telecom lender call

A lender call is planned for Wednesday to discuss the proposed tw telecom, inc. $570 million credit facility, according to a market source.

The deal is comprised of a $100 million five-year revolver and a $470 million seven-year term loan B.

Wells Fargo Securities LLC is the lead.

Proceeds will be used to refinance debt.

The Littleton, Colo.-based company provides managed data, internet and voice networking services to businesses and large organizations.

Cenveo call for Wednesday

A lender call is set to take place on Wednesday to discuss the proposed Cenveo Corp. $360 million seven-year term loan, according to a market source.

BofA Merrill Lynch and Macquarie Capital are the leads for the refinancing deal, which features a springing maturity and a 1010 soft call.

Cenveo is a Stamford, Conn.-based manager and distributor of print and related products and services.

Starwood's $300 million

A lender call is set to take place at 10 a.m. ET on Wednesday to discuss the proposed Starwood Property Trust, Inc. $300 million seven-year first-lien covenant-lite term loan, according to an informed source.

Credit Suisse Securities (USA) LLC is managing the deal.

Credit Suisse and Citigroup Global Markets Inc. were the leads on the senior secured bridge loan backing the deal.

The spread and issue price for the new term loan, as well as the credit ratings, remain to be determined.

Proceeds will be used to help fund the $1.05 billion acquisition of LNR Property LLC.

Starwood is a Greenwich, Conn.-based commercial real estate finance company. LNR is a Miami Beach, Fla.-based real estate investment, finance, management and development firm.

Orbitz closes

Orbitz Worldwide, Inc. announced in a Tuesday press release that it has closed on $450 million of senior secured term loans.

As reported, Orbitz's credit facility was comprised of a $300 million six-year term loan C and the $150 million 41/2-year term loan B.

Pricing on the term loan C is Libor plus 675 bps with a 1.25% Libor floor, and it was sold at a discount of 99.There is 101 repricing protection for one year and amortization of 1% per annum.

The term loan B, which amortizes at a rate of 10% per annum, is priced at Libor plus 600 bps with a 1.25% Libor floor and was sold at an original issue discount of 99.

During syndication, the term loan C was upsized from $250 million and the repricing protection on both term loans was changed from 102 in year one and 101 in year two.

Orbitz's credit facility (B+), for which Credit Suisse Securities (USA) LLC is the lead, also provides for a $50 million revolver.

Proceeds will be used to refinance existing debt and for general corporate purposes, and the additional amount raised through the term loan C upsizing will be put into a restricted account to collateralize letters of credit.

Orbitz is a Chicago-based online travel agency.

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