Leap, Cedar, Realogy, World Kitchen, Husky break; Veyance, Latisys, Avis, Noranda reworked

By Sara Rosenberg

New York, March 1 - Leap Wireless International Inc. tightened the original issue discount, added a ticking fee to its term loan C and then freed up for trading on Friday, and Cedar Fair LP, Realogy Group LLC, World Kitchen LLC and Husky International Ltd. hit the secondary too.

In more happenings, Veyance Technologies Inc. (formerly Goodyear Engineered Products) lifted spread guidance on its term loan, and Latisys Corp. finalized the coupon on its B loan at the low end of talk while tightening the original issue discount.

Also, Avis Budget Car Rental LLC added a ratings-based step-down to the Libor floor under its term loan B, Noranda Aluminum Acquisition Corp. upsized its add-on and canceled repricing plans, and Milacron LLC and Jarden Corp. came out with new deals.

Leap revised, frees up

Leap Wireless changed the original issue discount on its $1,425,000,000 seven-year term loan C (Ba3/B+) to 99¼ from 99 and added a 50 bps ticking fee that starts on March 15, according to a market source.

As before, the loan is priced at Libor plus 350 basis points with a 1.25% Libor floor, and has 101 soft call protection for one year.

With terms finalized, the loan made its way into the secondary market in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, the source said.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, UBS Securities LLC and Citigroup Global Markets Inc. are leading the deal that is expected to fund on April 16.

Leap, a San Diego-based provider of digital wireless services, will use the new term loan to refinance 7¾% secured notes and 4½% convertible notes.

Cedar Fair hits secondary

Cedar Fair's credit facility also broke, with the $630 million seven-year term loan B seen at par 5/8 bid, 101 1/8 offered on the open and then it moved to 101 bid, 101½ offered, a trader said.

Pricing on the B loan is Libor plus 250 bps, after firming at the tight end of the Libor plus 250 bps to 275 bps talk. There is a 0.75% Libor floor and 101 soft call protection for one year.

The company's $885 million credit facility (Ba1/BB+) also includes a $255 million five-year revolver.

J.P. Morgan Securities LLC, UBS Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used with $500 million of notes to refinance an existing $1.13 billion term loan and a revolver.

Cedar Fair is a Sandusky, Ohio-based regional amusement-resort operator.

Realogy tops OID

Another deal to emerge in the secondary was Realogy, with its $1.92 billion term loan B due 2020 quoted at par bid, par ½ offered on the break and then it rose to par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the term loan B is Libor plus 350 bps with a 1% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $1.82 billion, the spread was increased from talk of Libor plus 300 bps to 325 bps, the offer price firmed at the high end of revised talk of 99 to 99½ and wide of initial talk of par, and the call protection was extended from six months.

The company's $2,395,000,000 deal (B1/BB-) credit facility also includes a $475 million revolver due 2018, which was revised from talk of up to $600 million.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing $363 million revolver due April 2016 and a $1.82 billion term loan due October 2016.

Realogy is a Parsippany, N.J.-based provider of real estate brokerage, relocation and settlement services.

World Kitchen breaks

World Kitchen's credit facility began trading too, with the $190 million six-year term loan quoted at 101 bid, 102 offered, according to a trader.

Pricing on the term loan is Libor plus 425 bps with a 1.25% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

The company's $280 million credit facility (B+) also includes a $90 million five-year revolver that is priced at Libor plus 425 bps with no Libor floor, and was sold at an original issue discount of 991/2.

During syndication, the term loan was upsized from $180 million, and pricing on both tranches firmed at the low end of the revised talk of Libor plus 425 bps to 450 bps and tight of initial talk of Libor plus 500 bps to 525 bps.

BMO Capital Markets, SunTrust Robinson Humphrey Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt and for general corporate purposes.

World Kitchen is a Rosemont, Ill.-based manufacturer and marketer of bakeware, dinnerware, kitchen and household tools, rangetop cookware and cutlery products.

Husky begins trading

Husky International's roughly $860 million term loan B broke as well, with levels quoted at par bid, par ½ offered, according to a trader.

The loan is priced at Libor plus 325 bps with a 1% Libor floor, and was issued at par. There is 101 soft call protection for one year, that was extended from six months during syndication.

Goldman Sachs & Co. and Morgan Stanley Senior Funding Inc. are leading the deal that is being used to reprice an existing term loan from Libor plus 450 bps with a 1.25% Libor floor.

Husky is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry.

Phillips holds steady

Also in trading, Phillips Plastics' $271.9 million four-year term loan was quoted at par ¼ bid, par ¾ offered on Friday, in line with levels that were seen on the break in the prior session, according to a trader.

The loan is priced at Libor plus 350 bps with a 1.25% Libor floor, and has 101 soft call protection for one year. The new money portion was sold at a discount of 993/4, after tightening from 991/2, and existing lenders were offered a 25 bps amendment fee.

The company's $316.9 million senior deal (B) also includes a $45 million 31/2-year revolver.

GE Capital Markets and BNP Paribas Securities Corp. are leading the deal that will be used to refinance existing senior and mezzanine debt.

Senior and total leverage is 4 times.

Phillips Plastics is a Hudson, Wis.-based outsource provider of design and manufacturing services to the commercial and medical device and drug delivery markets.

Veyance flexes

Moving back to the primary, Veyance increased talk on its $1,125,000,000 first-lien covenant-light term loan due September 2017 to Libor plus 375 bps to 400 bps from Libor plus 325 bps, while keeping the 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a market source.

Commitments for the $1.2 billion (B2/B), which also includes a $75 million revolver, were due on Friday.

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc. and Goldman Sachs & Co. are leading the deal that will be used to refinance an existing first- and second-lien credit facility.

Veyance is a Fairlawn, Ohio-based manufacturer and seller of engineered rubber products, including conveyor belts, industrial hoses and power transmission products.

Latisys updates pricing

Latisys set pricing on its $180 million term loan B at Libor plus 525 bps, the tight end of the Libor plus 525 bps to 550 bps talk, and revised the original issue discount to 99½ from 99, a source said. The 1.25% Libor floor and 101 soft call protection for one year were unchanged.

In addition to the term loan B, the company's $200 million credit facility (B3/B) includes a $20 million revolver.

Allocations are expected to go out on Monday, the source remarked.

RBC Capital Markets, TD Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the transaction that will be used to refinance existing debt and for general corporate purposes.

Latisys is a provider of data center, managed services and disaster recovery services with facilities located in the Ashburn, Va., Chicago, Denver and Irvine, Calif., markets.

Avis adds floor step

Avis revised its $900 million term loan B (Ba1/BB) due March 2019 by adding a step-down to the Libor floor to 0.75% if corporate credit ratings are Ba3 or BB-, according to a market source, who said that the step can only come into play after six months from closing.

Current corporate ratings are B1/B+.

Opening pricing on the loan was unchanged at Libor plus 275 bps with a 1% Libor floor and a par offer price, and there is still 101 soft call protection for one year.

Recommitments are due at noon ET on Monday, the source said.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the lead banks on the deal.

Avis buying Zipcar

Proceeds from Avis' term loan and €250 million of notes will be used to refinance an existing term loan C due March 2019 and to fund the acquisition of Zipcar Inc. for $12.25 per share in cash, representing a total transaction value of about $500 million.

Closing on the acquisition is expected in the spring, subject to approval by Zipcar shareholders and other customary conditions.

Avis is a Parsippany, N.J.-based provider of vehicle rental services. Zipcar is a Cambridge, Mass.-based car sharing network. Following the acquisition, Zipcar will move its headquarters to Boston.

Noranda ups loan

Noranda Aluminum lifted its incremental secured term loan (Ba3/B) to $110 million from $60 million, according to a market source.

Also, pricing firmed at Libor plus 450 bps with a 1.25% Libor floor, in line with existing term loan pricing, and plans for a repricing were cancelled, the source said. Initially, the deal was talked at Libor plus 375 bps to 400 bps with a 1.25% Libor floor.

The incremental loan is being sold at an original issue discount of 991/2.

Bank of America Merrill Lynch is leading the deal that will be used with $225 million of notes to redeem senior floating-rate notes due 2015 and for general corporate purposes.

Noranda is a Franklin, Tenn.-based producer of value-added primary aluminum products and rolled aluminum coils.

Milacron coming soon

Milacron joined the forward calendar, setting a bank meeting for 10 a.m. ET in New York on Monday to launch a $245 million seven-year term loan B, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the acquisition of Mold-Masters for an enterprise value of C$975 million from 3i Group plc.

Closing is expected by April, subject to certain regulatory approvals.

Milacron is a Cincinnati-based plastics processing solutions provider. Mold-Masters is a Georgetown, Canada-based designer and manufacturer of hot runner systems, temperature controllers and auxiliary equipment for the plastic industry.

Jarden plans refi

Jarden will host a lender call at 10:30 a.m. ET on Monday to launch a $1,486,000,000 senior secured credit facility that will be used to replace an existing credit facility, according to a market source.

The proposed facility consists of a $250 million revolver due March 31, 2016 talked at Libor plus 200 bps, a $596 million term loan A due March 31, 2016 talked at Libor plus 200 bps and a $640 million term loan B due March 31, 2018 talked at Libor plus 250 bps to 275 bps with 101 soft call protection for six months, the source said.

By comparison, the existing credit facility consists of a revolver and term loan A that mature in March 2016 and are priced at Libor plus 225 bps and a current term loan B that matures in January 2017 and is priced at Libor plus 300 bps.

Barclays, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal.

Jarden is a Rye, N.Y.-based provider of diversified niche consumer products, small appliances, household products, fishing and outdoor products and sports equipment.

Verint readies allocations

In other news, Verint Systems Inc.'s $850 million credit facility (B1/BB-) is more than fully subscribed and the anticipation is that it will allocate on Tuesday at initial terms, according to a market source.

The facility consists of a $200 million five-year revolver and a $650 million 61/2-year covenant-light first-lien term loan.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor and an original issue discount of 991/2, and there is 101 repricing protection for one year.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc., HSBC and Barclays are leading the deal that will be used to refinance an existing credit facility.

Verint is a Melville, N.Y.-based provider of actionable intelligence and value-added services.

Cinedigm closes

Cinedigm Digital Cinema Corp. closed on its $125 million five-year term loan (Baa3), a news release said.

Pricing on the loan is Libor plus 275 bps with a 1% Libor floor. The $40 million of new money raised was sold at a discount of 99¾ and the remainder was issued at par. Existing lenders received a 25 bps amendment fee.

During syndication, pricing was reduced from Libor plus 300 bps, the discount on the new money was tightened from 99½ and the amendment fee was changed from 50 bps.

Proceeds from the Societe Generale-led deal were used to reprice about $92 million of existing term loan debt from Libor plus 350 bps with a 1.75% Libor floor while extending the maturity from May 2016, and the new money was used to repay some mezzanine debt.

The company also got a $70 million loan from Prospect Capital Corp. that is priced at Libor plus 900 bps plus 250 bps PIK, and includes a 2% Libor floor.

Cinedigm is a Morristown, N.J.-based company that converts movie theaters into digital and networked entertainment centers.

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