US Airways frees up; CBS Outdoor, Verint, NEP, Ply Gem, W.R. Grace, SNL update deals

By Sara Rosenberg

New York, Jan. 16 - US Airways Inc.'s term loans made their way into the secondary market on Thursday with both the B-1 and the B-2 tranches seen trading above par.

Over in the primary, CBS Outdoor Americas Inc. set pricing on its B loan at the low end of talk and eliminated the amortization, and Verint Systems Inc. and NEP/NCP Holdco Inc. trimmed spreads and Libor floors on their tack-on term loans and added repricings to their transactions.

Also, Ply Gem Industries Inc. increased its term loan amount and lowered pricing, W.R. Grace & Co. tightened spreads and discounts on its term debt, SNL Financial LC lifted the size of its term loan, and VWR Funding Inc. and United States Infrastructure Corp. released details on their deals with launch.

US Airways breaks

US Airways' senior secured term loans began trading on Thursday, with the $1 billion term loan B-1 due May 23, 2019 quoted at par ¼ bid, par 5/8 offered and the $600 million term loan B-2 due Nov. 23, 2016 quoted at par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the B-1 loan is Libor plus 275 basis points with a 0.75% Libor floor and pricing on the B-2 loan is Libor plus 225 bps with a 0.75% Libor floor, with both tranches issued at par and including 101 soft call protection for six months.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch led the $1.6 billion deal that closed on Thursday as well.

Proceeds were used to reprice the Tempe, Ariz.-based airline company's existing term loan B-1 from Libor plus 300 bps with a 1% Libor floor and the existing term loan B-2 from Libor plus 225 bps with a 1% Libor floor.

CBS Outdoor firms pricing

Moving to the primary, CBS Outdoor set the spread on its $800 million seven-year covenant-light term loan B at Libor plus 225 bps, the low end of revised talk of Libor plus 225 bps to 250 bps and down from initial talk of Libor plus 250 bps to 275 bps, and removed the 1% per annum amortization, according to a market source.

The term loan B still has a 0.75% Libor floor, and original issue discount of 99¾ (tightened last week from 991/2) and 101 soft call protection for six months.

The company's $1,225,000,000 senior secured credit facility (Ba1/BB+), which is being done in connection with its initial public offering of common stock, also includes a $425 million five-year revolver.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used with $800 million of notes to make a payment to parent company CBS Corp. for the contribution of the entities comprising the Outdoor Americas operating segment and for general corporate purposes.

Closing is expected during the week of Jan. 27.

CBS Outdoor is a New York-based lessor of advertising space on out-of-home advertising structures and sites.

Verint reworks deal

Verint Systems revised pricing on its $300 million covenant-light tack-on term loan (BB-) due Sept. 6, 2019 and is asking to reprice its existing $645 million covenant-light term loan due Sept. 6, 2019 to match the tack-on, according to a market source.

Both the tack-on and the repricing are now talked at Libor plus 275 bps with a 0.75% Libor floor, down from Libor plus 300 bps with a 25 bps step-down at Ba3/BB- ratings and a 1% Libor floor, the source said.

Additionally, the term debt will now have 101 soft call protection through Sept. 7, 2014 instead of through March 6, 2014, the source continued.

The tack-on loan is still offered at an original issue discount of 993/4. The repriced loan is offered at par and has a ticking fee of the full spread starting on Feb. 3. There is no ticking fee on the tack-on loan.

Verint moves deadline

Commitments for Verint's revised transaction are due on Wednesday, pushed out from an original deadline of Friday, the source added.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal.

Proceeds from the tack-on loan, about $100 million in cash on hand and a revolver draw will be used to fund the roughly $514 million acquisition of KANA Software Inc. from Accel-KKR.

Closing is expected in the fiscal quarter ended April 30, subject to the expiration of applicable regulatory waiting periods and the satisfaction or waiver of other customary conditions.

Verint is a Melville, N.Y.-based provider of actionable intelligence and value-added services. KANA is a Silicon Valley, Calif.-based provider of customer service solutions delivered both on-premises and in the cloud.

NEP changes emerge

NEP/NCP Holdco cut the spread on its $155 million incremental senior secured first-lien term loan B (B2/B) due Jan. 22, 2020 to Libor plus 325 bps from Libor plus 350 bps, trimmed the Libor floor to 1% from 1.25% and set the original issue discount at 991/2, the tight end of the 99 to 99½ talk, according to a market source.

Also, the company is now asking to reprice its existing roughly $525 million first-lien term loan B (B2/B) due Jan. 22, 2020 to Libor plus 325 bps with a 1% Libor floor from Libor plus 350 bps with a 1.25% Libor floor, the source said. The repricing is offered at par.

The incremental loan and the existing term B are still getting 101 soft call protection for six months.

Leads, Barclays and Morgan Stanley Senior Funding Inc., are asking for recommitments by 5 p.m. ET on Friday.

NEP buying GTV

Proceeds from NEP's incremental loan will be used to help fund the acquisition of GTV Holdings Pty. Ltd. (Global Television) from Catalyst Investment Managers.

Closing is expected early this year.

In connection with this transaction, the company is seeking to amend its existing first-and second-lien credit facility to permit the incurrence of the new loan.

NEP is a Pittsburgh-based provider of outsourced teleproduction services critical to the delivery of live sports and entertainment events. Global Television is an Australia-based television technical services company.

Ply Gem discloses revisions

Ply Gem raised its seven-year first-lien covenant-light term loan (B2/B+) to $430 million from $380 million as its bond deal was cut to $500 million from $550 million, and flexed the loan spread down to Libor plus 300 bps from Libor plus 350 bps, according to a market source.

The 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months on the loan were left unchanged.

Commitments are due at 2 p.m. ET on Friday.

Credit Suisse Securities (USA) LLC is leading the debt that will be used to help fund the redemption of $756 million of 8¼% senior secured notes due 2018 and $96 million 9 3/8% senior notes due 2017.

Ply Gem is a Cary, N.C.-based manufacturer of exterior building products.

W.R. Grace tweaks deal

W.R. Grace revised pricing on its $700 million funded and $250 million delayed-draw U.S. seven-year term loan debt to Libor plus 225 bps from Libor plus 250 bps and on its $200 million euro equivalent seven-year term loan to Euribor plus 250 bps from Euribor plus 275 bps, according to a market source.

Furthermore, the original issue discounts on the term loans were moved to 99¾ from 991/2, while the 0.75% floor was left intact, the source said. The delayed-draw loan has a 100 bps ticking fee.

Commitments for the company's $1.55 billion credit facility (Ba2/BBB-), which also includes a $400 million five-year revolver, are due on Wednesday.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Bank of America Merrill Lynch and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the company's emergence from Chapter 11 bankruptcy.

W.R. Grace is a Columbia, Md.-based specialty chemicals company.

SNL Financial resizes

SNL Financial increased its first-lien covenant-light term loan due October 2018 to $279 million from $269 million and will use the extra funds for tuck-in acquisitions, a market source said. The remainder of the proceeds will still be used to reprice an existing term loan from Libor plus 425 bps with a 1.25% Libor floor.

Pricing on the new term loan was left unchanged at Libor plus 350 bps with a 1% Libor floor and a par offer price, and there is still 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Thursday.

Credit Suisse Securities (USA) LLC is leading the deal for the financial information provider.

VWR holds call

Also in the primary, VWR held its call on Thursday afternoon, launching a $587 million senior secured term loan B due April 3, 2017 with talk of Libor plus 325 bps to 350 bps and a €573 million senior secured term loan B due April 3, 2017 with talk of Euribor plus 350 bps to 375 bps, according to a market source.

Both loan have no floor, a par offer price and 101 soft call protection for six months, the source said.

Citigroup Global Markets Inc. and Bank of America Merrill Lynch are leading the deal that will be used to reprice the four tranches of existing U.S. and euro term loan debt due April 3, 2017 - split between a roughly $240 million term loan priced at Libor plus 425 bps, a roughly $349 million term loan priced at Libor plus 400 bps, a roughly €474 million term loan priced at Euribor plus 450 bps and a roughly €101 million term loan priced at Euribor plus 425 bps.

Commitments are due at 5 p.m. ET on Jan. 24, allocations are targeted for Jan. 27 and closing is expected on Jan. 29, the source added.

VWR is a Radnor, Pa.-based provider of laboratory supplies, equipment and services.

US Infrastructure repricing

United States Infrastructure Corp. launched with a call a repricing of its $430 million covenant-light term loan that is talked at Libor plus 300 bps to 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

The repricing will take the loan down from Libor plus 375 bps with a 1% Libor floor.

Deutsche Bank Securities Inc., RBC Capital Markets and GE Capital Markets are leading the deal.

United States Infrastructure is an Indianapolis-based provider of outsourced utility locating services.

Open Text closes

In other news, Open Text Corp. completed its $800 million seven-year senior secured term loan B (BBB) that is priced at Libor plus 250 bps with a 0.75% Libor floor, according to an 8-K filed with the Securities and Exchange Commission. The loan was sold at an original issue discount of 99½ and has 101 soft call protection for six months.

During syndication, the spread on the loan was increased from Libor plus 225 bps and the MFN sunset provision was eliminated.

Barclays and RBC Capital Markets led the deal that was used with cash and equity to fund the $1,165,000,000 acquisition of GXS Group Inc.

Open Text is an Ontario-based provider of enterprise information management software that helps companies manage, secure and leverage their unstructured business information. GXS is a Gaithersburg, Md.-based B2B integration services provider.

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