Veyance, Verint Systems, RegionalCare, Sutherland break; Del Monte weakens with downgrade

By Sara Rosenberg

New York, March 6 - Veyance Technologies Inc. (formerly Goodyear Engineered Products), Verint Systems Inc., RegionalCare Hospital Partners Inc. and Sutherland Global Services Inc. all hit the secondary market on Wednesday, and Del Monte Corp.'s term loan B softened with downgrade news.

Moving to the primary, Sorenson Communications Inc. outlined detailed price talk on its term loan and accelerated the commitment deadline, and Hostess Snacks told investors that it will be shutting its books early.

Also, Datapipe Inc. set the spread and original issue discount on its first-lien term loan at the tight end of talk and the coupon on its second-lien term loan at the wide end of guidance.

Additionally, the Sun Products Corp. and Edwards Group revealed talk with launch, DJO Finance LLC brought a repricing deal to market, and Orbitz Worldwide Inc., Ruby Western Pipeline Holdings joined the forward calendar.

Veyance tops OID

Veyance's credit facility freed up for trading on Wednesday, with the $1,125,000,000 first-lien covenant-light term loan due September 2017 quoted at 98¾ bid, 99¼ offered on the open and then it moved to 99½ bid, par offered, according to a market source.

Pricing on the loan is Libor plus 400 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 981/2. There is 101 soft call protection for one year.

During syndication, pricing firmed at the high end of revised talk of Libor plus 375 bps to 400 bps and wide of initial talk of Libor plus 325 bps, and the discount was modified from 99.

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc. and Goldman Sachs & Co. are leading the $1.2 billion credit facility (B2/B), which also includes a $75 million revolver.

Proceeds 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.

Verint frees up

Verint Systems' credit facility also broke for trading, with the $650 million 61/2-year covenant-light first-lien term loan quoted at par ¼ bid, par ¾ offered by one source and at par 3/8 bid by another.

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

The company's $850 million credit facility (B1/BB-) also includes a $200 million five-year revolver.

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

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

RegionalCare starts trading

RegionalCare's $291.3 million senior secured term loan due November 2018 also made its way into the secondary market, with levels quoted at par ½ bid, 101½ offered, a trader said.

Pricing on the loan is Libor plus 575 bps with a 1.25% Libor floor, and it was sold at a discount of 993/4. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from talk of Libor plus 475 bps to 500 bps and call protection was extended from six months. Also, the accordion was changed to 4.25 times pro forma first-lien secured leverage plus an additional $20 million, from 4.25 times first-lien leverage plus an additional $40 million, and the total net leverage covenant was changed to 6.75 times with step-downs over times, from 7 times with step-downs over time.

Citigroup Global Markets Inc. is leading the deal that is being used to refinance an existing term loan priced at Libor plus 650 bps with a 1.5% Libor floor.

RegionalCare is a Brentwood, Tenn.-based owner and operator of hospitals.

Sutherland breaks

Another deal to begin trading was Sutherland, with its $225 million six-year term loan quoted at 98½ bid, according to a market source.

Pricing on the term loan is Libor plus 600 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 98. There is call protection of 103 in year one, 101½ in year two and par ½ in year three on all voluntary prepayments.

Recently, pricing on the loan was increased from revised talk of Libor plus 575 bps and initial talk of Libor plus 500 bps, the discount was widened from 99 and the call protection was sweetened from just 101 repricing protection for one year.

Additionally, the accordion was changed to $50 million subject to a 2.75 times pro forma total leverage ratio, plus an additional $80 million subject to a 2.5 times pro forma total leverage ratio, from $30 million, plus $100 million subject to a 3 times total leverage ratio.

Sutherland funds acquisition

Proceeds from Sutherland's $255 million credit facility, which also includes a $30 million five-year revolver, will be used to help finance the purchase of Apollo Health Street Ltd., a provider of health care business services and Health Information Technology-based services, and to refinance existing debt.

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

Sutherland is a Rochester, N.Y.-based provider of business process and technology management services.

Del Monte softens

In more trading happenings, Del Monte's term loan B dipped to par 3/8 bid, par 7/8 offered from par ¾ bid, 101 1/8 offered as the company's ratings were downgraded by Moody's Investors Service, according to a trader.

Specifically, Moody's cut Del Monte's corporate rating to B2 from B1, senior secured term loan rating to B1 from Ba3 and senior unsecured notes rating to Caa1 from B3. The rating outlook is stable.

Moody's said that the ratings reflect the company's high financial leverage that has persisted since its 2011 buyout, and recent soft earnings performance in its pet foods and consumer foods businesses.

"Since the LBO, Del Monte has repaid only $111 million of its four billion dollar debt load and recently reborrowed $100 million through a bank amendment that lowered pricing and expanded the size of the term loan," said Moody's analyst Brian Weddington in the ratings release.

"While we expect future operating performance to benefit from ongoing productivity initiatives, improved product mix and from the relaunch of the Del Monte brand, we believe that the pace of delevering will remain too slow to support the previous B1 rating," Weddington added.

Del Monte is a San Francisco-based producer, distributor and marketer of pet and food products.

Sorenson reveals talk

Switching to the primary, Sorenson Communications released talk on its $500 million term loan B (B1/B-) due Oct. 31, 2014 at Libor plus 825 bps with a 1.25% Libor floor and an offer price of 99½ to par, versus the guidance that was provided at launch of 9½% to 10% yield, according to a market source.

Also, it emerged that the loan has hard call protection of 102½ for six months and 101 for six months, the source said.

As the details were provided on the deal, investors were told that the commitment deadline was moved up to Wednesday from Thursday, the source continued.

J.P. Morgan Securities LLC is leading the loan that launched with a call on Feb. 22 and will be used to repay existing term debt.

Sorenson is a Salt Lake City-based provider of Video Relay telecommunication and interpreting and CaptionCall telephone service for deaf and the hard-of-hearing.

Hostess moves deadline

Hostess Snacks revised the commitment deadline on its $450 million seven-year first-lien covenant-light term loan to 3 p.m. ET on Friday from Monday, according to a market source.

The term loan is talked at Libor plus 600 bps to 625 bps with a 1.25% Libor floor and an original issue discount of 981/2, and is non-callable for two years, then at 102 in year three and 101 in year four.

The company's $510 million credit facility also includes a $60 million ABL revolver.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the deal that will be used to fund the purchase of the baked snack foods business from Hostess Brands Inc. for $410 million by Apollo Global Management LLC and Metropoulos & Co.

Closing is expected by the end of April, subject to approval by the United States Bankruptcy Court and customary conditions.

Hostess Brands is an Irving, Texas-based operator of regional bakeries.

Datapipe updates terms

Datapipe set pricing on its $202 million six-year first-lien term loan B (B2) at Libor plus 450 bps, the tight end of the Libor plus 450 bps to 475 bps talk, and the discount at 991/2, the low end of the 99 to 99½ talk, a source said.

As before, the first-lien loan has a 1.25% Libor floor and 101 soft call protection for one year.

Meanwhile, pricing on the $85 million 61/2-year second-lien term loan (Caa2) firmed at Libor plus 800 bps, the high end of the Libor plus 775 bps to 800 bps talk, and the hard call protection was revised to 102 in year one and 101 in year two, from 103 in year one, 102 in year two and 101 in year three, the source said. The 1.25% Libor floor and discount of 98½ were unchanged.

Datapipe getting revolver

Datapipe's $327 million senior secured credit facility also includes a $40 million five-year revolver (B2) that is priced at Libor plus 425 bps with no Libor floor.

Lead banks, Morgan Stanley Senior Funding Inc., TD Securities (USA) LLC and GE Capital Markets, expect the deal to allocate on Thursday, the source added.

Proceeds will be used to refinance existing bank debt, fund ABRY and affiliates acquisition of remaining equity securities of Datapipe and for general corporate purposes.

Datapipe is a Jersey City, N.J.-based company that offers IT services.

Sun Products sets guidance

Also on the new deal front, Sun Products held its bank meeting on Wednesday morning to launch a new credit facility, and with the event, talk on the $1.08 billion seven-year term loan B surfaced, according to a market source.

The B loan is talked at Libor plus 375 bps to 400 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

In addition to the term loan B, the company's $1.18 billion credit facility (B1/B-) includes a $100 million five-year revolver.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Sun Products is a Wilton, Conn.-based manufacturer of branded and retailer brand fabric care and dish care products.

Edwards pricing

Also launching and coming out with talk was Edwards Group, with its $560 million seven-year term loan (B2) guided at Libor plus 350 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

The company's $650 million credit facility provides for a $90 million super-priority revolver (Ba1) as well.

Commitments are due on March 20, the source said.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to refinance existing debt.

Edwards Group is a Crawley, England-based technology business and a supplier of vacuum and abatement products for the manufacture of microelectronics devices.

DJO holds call

DJO Finance hosted a call at 4 p.m. ET to launch a $962 million credit facility that includes a $100 million revolver due March 2017 and an $862 million first-lien term loan due September 2017, according to sources.

The term loan is talked at Libor plus 400 bps with a 1% Libor floor, a par offered price and 101 soft call protection for one year, sources said.

Proceeds will be used to reprice an existing term loan B-2 and term loan B-3, which are both currently at Libor plus 500 bps with a 1.25% Libor floor.

Lead banks, Credit Suisse Securities (USA) LLC, UBS Securities LLC, Goldman Sachs & Co., Well Fargo Securities LLC and Macquarie Capital, are seeking commitments by March 14, the source added.

DJO is a Vista, Calif.-based leading developer, manufacturer and distributor of medical devices that provide solutions for musculoskeletal health, vascular health and pain management.

CBRE launches

CBRE Services Inc. held its bank meeting in the morning to launch a $1,915,000,000 credit facility, and lenders were told that they have until March 19 to place their orders, according to a source.

The facility consists of a $1.2 billion five-year revolver and a $500 million five-year term loan A, both talked at Libor plus 200 bps with a 30 bps to 50 bps upfront fee, and a $215 million eight-year term loan B talked at Libor plus 325 bps with an original issue discount of 991/2. Existing revolver lenders will receive a 25 bps extension fee.

Credit Suisse Securities (USA) LLC, Bank of America 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 leading the deal that will refinance existing debt.

CBRE, a Los Angeles-based real estate services and asset management firm, also plans to sell $800 million of senior notes that will be used for general corporate purposes, including the repayment of debt.

Orbitz plans deal

Orbitz scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch a $450 million credit facility that will be used to refinance existing debt and for general corporate purposes, according to a market source.

The facility consists of a $50 million revolver, a $150 million 41/2-year term loan B and a $250 million six-year term loan C.

Price talk on the term loan B is Libor plus 600 bps and the term loan C is talked at Libor plus 675 bps, with both having a 1.25% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two against repricings, the source remarked.

Credit Suisse Securities (USA) LLC is leading the deal for the Chicago-based online travel agency.

Ruby Western coming soon

Ruby Western Pipeline set a bank meeting for 10 a.m. ET on Friday to launch a $500 million senior secured seven-year term loan, according to a market source.

Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund a distribution to the sponsors and a six-month debt service reserve.

Leverage is 5.5 times net cash flow available for debt service, the source said.

Ruby Western Pipeline is a holding company with a 50% ownership of the Western US FERC-regulated Ruby Pipeline from Wyoming to Oregon that is a joint venture with Kinder Morgan.

Cedar Fair closes

In other news, Cedar Fair LP completed its $885 million credit facility (Ba1/BB+) that consists of a $255 million five-year revolver and a $630 million seven-year term loan B, according to a news release.

Pricing on the revolver is Libor plus 225 bps and 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.

J.P. Morgan Securities LLC, UBS Securities LLC and Wells Fargo Securities LLC led the deal that was 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.

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