Phoenix frees up; loan BWIC emerges; Prestige tweaks deal; Vantage, U.S. Security set talk

By Sara Rosenberg

New York, Jan. 24 - Phoenix Services LLC saw its credit facility emerge in the secondary market on Tuesday, with levels on its U.S. term loan debt quoted above its original issue discount price, and a Bid Wanted In Competition (BWIC) was announced.

Moving to the primary market, Prestige Brands Holdings Inc. made some changes to its well-oversubscribed term loan B, increasing the size, reverse flexing the coupon and tightening the original issue discount.

Additionally, Vantage Specialty Chemicals and U.S. Security Associates Inc. released price talk on their loans as the deals were presented to lenders during the session, and Roundy's Supermarkets Inc. and Tronox Inc. came out with timing and structure on their proposed financings.

Phoenix starts trading

Phoenix Services' credit facility broke on Tuesday morning, with the strip of $155 million six-year funded U.S. term loan and $15 million six-year delayed-draw term loan quoted at 99¾ bid, par ¾ offered, according to a trader.

Pricing on the term loans, as well as on a $45 million equivalent five-year euro term loan and a $30 million five-year revolver, is Libor/Euribor plus 750 basis points with a 1.5% floor. All tranches were sold at an original issue discount of 98. The term loans have 101 soft call protection for one year.

During syndication, the funded U.S. term loan was increased from $140 million and the euro loan was decreased from $60 million. Also, pricing on the U.S. pieces was flexed up from Libor plus 600 bps and on the euro term loan from Euribor plus 550 bps. And, the euro loan saw the addition of the floor, while all of the term loans had call protection added.

Phoenix buying Gagneraud

Proceeds from Phoenix Services' credit facility will be used to help fund the acquisition of Gagneraud Industries and to refinance existing debt.

BNP Paribas Securities Corp. is the lead bank on the deal.

Senior leverage is 2.75 times.

Phoenix Services is a Kennett Square, Pa.-based provider of steel mill services. Gagneraud Industries is a Paris-based provider of metal pre and post production services to mills.

BWIC bids due soon

Furthermore in trading, a roughly $70.9 million BWIC surfaced in the afternoon, with bids being asked for by 10 a.m. ET on Thursday, according to a trader.

The portfolio is comprised of roughly 50 names.

Some of the larger pieces in the portfolio include positions in Caesars Entertainment Operating Co.'s. term loan B-1, IPC Systems Inc.'s tranche B second-lien term loan, U.S. Foodservice Inc.'s term loan and First Data Corp.'s non-extended term loan B-1.

Jarden steady

Meanwhile, Jarden Corp.'s term loan B held pretty firm after the company came out with early fourth-quarter numbers and revealed plans to buy back stock, according to a trader.

The term loan B was quoted at par 1/8 bid, par 5/8 offered, versus Monday's levels of par ¼ bid, par 5/8 offered, the trader said.

For the fourth quarter, the company's preliminary expectation is for revenues of $1.725 billion to $1.735 billion and segment earnings of $205 million to $210 million.

Cash flow from operations for the full year is anticipated to be over $400 million, with cash on hand of over $800 million at year end.

"Based on preliminary results, our record fourth-quarter performance capped off another record year for Jarden in terms of both revenue and segment earnings, despite the mild weather experienced in the fourth quarter," Martin E. Franklin, executive chairman, said in a news release.

Jarden repurchasing stock

As a result of the strong financial performance, Jarden has decided that it will launch a "modified Dutch auction" tender offer for its stock.

The company is planning on offering to buy back $500 million of its stock at a price between $30 and $33 per share.

This tender is expected to be funded with new debt and cash on hand.

Jarden is a Rye, N.Y.-based consumer products company.

Prestige reworks B loan

Over in the primary, Prestige Brands announced a number of issuer-friendly revisions to its seven-year term loan B (Ba3/BB-) that included a change in size and pricing, and accelerated the commitment deadline to noon ET on Wednesday from 5 p.m. ET on Thursday, according to a market source.

The B loan is now sized at $660 million, up from $620 million, and priced at Libor plus 400 basis points with a 1.25% Libor floor and an original issue discount of 981/2, versus initial talk of Libor plus 450 bps with a 1.25% floor and a discount of 98, the source said. There is still 101 soft call protection for one year.

The company's now $710 million senior secured credit facility, up from $670 million, still provides for a $50 million five-year asset-based revolver.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and RBC Capital Markets LLC are the lead banks on the deal.

Prestige trims notes

As a result of the term loan B upsizing, Prestige Brands scaled back its senior notes offering to $250 million from $290 million, the source continued.

The notes priced on Tuesday afternoon at par to yield 8.125%.

Proceeds will be used to help fund the acquisition of 17 over-the-counter GlaxoSmithKline plc brands for $660 million and to refinance existing bank debt.

Closing is targeted for the first half of this year, subject to customary legal and regulatory closing conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act of 1976, and financing.

Prestige is an Irvington, N.Y.-based marketer of branded consumer products in the over-the-counter health care and household cleaning industries.

Vantage discloses guidance

Also on the new deal front, Vantage Specialty Chemicals held its meeting on Tuesday, and with the event, price talk on the $300 million credit facility (B) was announced, according to a market source.

The $60 million five-year revolver is talked at Libor plus 525 bps with no Libor floor, and the $240 million six-year term loan B is talked at Libor plus 550 bps with a 1.5% Libor floor and an original issue discount of 98, the source said.

Lead banks, RBC Capital Markets LLC and Fifth Third Securities Inc., are seeking commitments by Feb. 3.

Proceeds, along with more than 50% equity, will be used to back the already completed buyout of the company by Jordan Co. from H.I.G. Capital LLC.

Vantage, a Chicago-based specialty chemicals company, will have total and senior leverage of around 4.2 times.

U.S. Security pricing

U.S. Security Associates held a conference call in the afternoon to launch a $40 million add-on term loan that is talked in line with existing term loan pricing at Libor plus 475 bps with a 1.25% Libor floor, according to a market source.

The original issue discount on the add-on is still to be determined, the source said. When obtained last year, the existing loan was sold at an original issue discount of 99.

Goldman Sachs & Co. is the lead bank on the deal that will be used to fund an acquisition.

U.S. Security Associates is a Roswell, Ga.-based security firm.

Roundy's details emerge

Looking ahead, Roundy's scheduled a bank meeting for Thursday morning to launch its new senior credit facility, which has been revealed to be sized at $800 million and comprised of a $125 million five-year revolver and a $675 million seven-year term loan B, according to a market source.

When the company first disclosed its credit facility plans in December, it was said that the financing was expected to include a revolver and possibly term loans depending on market conditions and other financing alternatives available.

Price talk on the credit facility is not yet available, but it is known that the term loan B will have 101 repricing protection for one year and covenants.

Roundy's plans IPO

Roundy's is getting the new credit facility in connection with its initial public offering of common stock, and proceeds from both transactions will be used to repay all of the outstanding borrowings under the company's existing credit facility.

As of Oct. 1, the company had $689 million outstanding under its first-lien credit facility and $150 million outstanding under its second-lien loan.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the lead banks on the credit facility and are the underwriters on the IPO.

Roundy's is a Milwaukee, Wis.-based supermarket chain.

Tronox sets launch

Tronox firmed a bank meeting for Thursday to launch its $550 million in term loans that consists of a $425 million funded tranche and a $125 million delayed-draw tranche, according to a market source.

Goldman Sachs & Co. is the lead bank on the deal that will be used to refinance existing term loan borrowings.

The debt commitment was obtained in connection with the company's proposed acquisition of Exxaro Resources Ltd.'s mineral sands operations, which was announced last year.

To complete the transaction, Tronox will form a new Australian-domiciled holding corporation (New Tronox) to combine its assets with Exxaro's mineral sands operations.

Closing is expected in the first half of this year, subject to the SEC registration timeline, Tronox shareholder approval, customary regulatory approvals and other conditions.

Tronox is an Oklahoma City-based producer and marketer of titanium dioxide pigment.

DS Waters call protection

In other news, DS Waters of America Inc. is shopping its $390 million 51/2-year funded term loan (B1/B) and $75 million 51/2-year delayed-draw term loan (B1/B) with 101 call protection for one year, according to a market source. Commitments are due on Feb. 6.

As was previously reported, price talk on the term loans, which launched with a bank meeting on Monday, is Libor plus 675 bps to 700 bps with a 1.5% Libor floor and an original issue discount of 98.

The company's $535 million credit facility also includes a $70 million five-year ABL revolver that is not being marketed.

Credit Suisse Securities (USA) LLC, GE Capital Markets and Jefferies & Co. are the lead banks on the deal, with Credit Suisse the left on the term loan and GE the left on the revolver, and proceeds will be used to refinance existing debt. The delayed-draw term loan is available for acquisition funding.

DS Water, an Atlanta-based bottled water, water filtration and coffee service company, will have leverage of 3.2 times.

Kodak shuts books

Eastman Kodak Co. was scheduled to shut down syndication in its "massively oversubscribed" $950 million 18-month debtor-in-possession credit facility at 4 p.m. ET on Tuesday, after first officially launching the deal with a call on Monday, according to a market source.

The DIP consists of a $250 million revolver talked at Libor plus 325 bps with a 50 bps unused fee and a $700 million term loan talked at Libor plus 750 bps with a 1% Libor floor and an original issue discount of 97 to 971/2, the source said.

The official talk on the term loan came tighter than the guidance circulating late last week at Libor plus 850 bps with a 1.5% Libor floor and an original issue discount of 97.

Citigroup Global Markets Inc. is the lead bank on the deal.

Kodak restructuring

Proceeds from Kodak's DIP will be used to enhance liquidity and working capital while the company goes through its reorganization process.

In a news release, the company explained that the goal of its restructuring is to improve liquidity, monetize non-strategic intellectual property, resolve legacy liabilities and put focus on its more valuable businesses.

Emergence from Chapter 11 is expected to take place during 2013.

Kodak is a Rochester, N.Y.-based provider of imaging technology products and services to the photographic and graphic communications markets.

CCS wraps loans

CCS Corp. closed on its new $200 million add-on term loan due November 2014, according to a news release.

Pricing on the term loan is Libor plus 500 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99.

During syndication, the discount on the term loan was tightened from 98 due to strong demand.

Deutsche Bank Securities Inc. and Goldman Sachs & Co. led the deal that was used to refinance revolver borrowings.

CCS is a Calgary, Alberta-based oil and gas environmental services company.

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