Tervita, FairPoint, PQ, CommScope, Catalent break; EnergySolutions gains with amendment

By Sara Rosenberg

New York, Feb. 11 - Tervita Corp., FairPoint Communications Inc., PQ Corp., CommScope Inc. and Catalent Pharma Solutions Inc. all freed up for trading on Monday, and EnergySolutions Inc.'s term loan was a bit higher as the company launched an amendment to its credit facility.

Moving to the primary, Virgin Media Investment Holdings Ltd. and Centaur Gaming revised the commitment deadlines on their deals, and SuperValu Inc. trimmed price talk and the original issue discount on its term loan.

Also, Fairway Group Acquisition Co. upsized its term loan, and DuPont Performance Coatings and NBTY Inc. withdrew their repricings from market.

Furthermore, Revlon Consumer Products Corp., MGM Resorts International, Houghton International Inc. and Iasis Healthcare LLC emerged with repricing deals, Dematic released talk on its loan with launch, and Sutherland Global Services Inc., Zayo Group LLC and Deltek Inc. joined the forward calendar.

Tervita starts trading

Tervita's credit facility made its way into the secondary market on Monday, with the $750 million first-lien secured term loan B (B2/B-) quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the term loan B is Libor plus 500 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, the term loan B was upsized from $500 million and pricing was cut from talk of Libor plus 525 bps to 550 bps.

With the term loan B, the company is also getting a C$300 million revolver (Ba3).

Tervita repaying debt

Proceeds from Tervita's credit facility will be used to help refinance an existing senior secured credit facility.

Other funds for the transaction will come from $850 million of senior secured notes, which were downsized from $1.1 billion when the term loan B was upsized.

RBC Capital Markets, Goldman Sachs & Co., Deutsche Bank Securities Inc. and TD Bank are leading the credit facility.

Closing is expected before the end of this month.

Tervita is a Calgary-based environmental management company for the oil and gas industry.

FairPoint frees up

FairPoint Communications' credit facility also broke, with the $640 million six-year term loan B quoted at par bid, par ½ offered, according to a market source.

Pricing on the B loan is Libor plus 625 bps with a 1.25% Libor floor, and it was sold at a discount of 99. The tranche has hard call protection of 103 in year one, 102 in year two and 101 in year three.

Changes made to the term B during syndication included downsizing the loan from $650 million, firming pricing at the high end of the Libor plus 600 bps to 625 bps guidance, and beefing up call protection from just 101 soft call for one year.

The company's $715 million senior secured credit facility (B2/B) also provides for a $75 million revolver that is priced at Libor plus 550 bps.

FairPoint lead banks

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Jefferies & Co. are leading FairPoint's credit facility.

Proceeds, along with $300 million of senior secured notes that priced at par to yield 8¾% and cash on hand, will be used to refinance existing bank debt, including a roughly $955 million term loan.

FairPoint is a Charlotte, N.C.-based communications provider of broadband internet access, local and long-distance phone, television and other high-capacity data services.

PQ hits secondary

PQ's $1,235,000,000first-lien term loan due Aug. 7, 2017 freed up too, with levels quoted at par bid, par ¼ offered, a market source said.

Pricing on the loan is Libor plus 350 bps, after flexing recently from Libor plus 325 bps. There is a 1% Libor floor and 101 soft call protection for one year, and the debt was issued at par.

Proceeds are being used to reprice an existing term loan from Libor plus 425 bps with a 1% Libor floor, and existing lenders are getting paid out at 101.

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

PQ is a Malvern, Pa.-based producer of specialty inorganic performance chemicals and catalysts.

CommScope tops par

Another loan to break was CommScope's roughly $985 million term loan B due January 2018, with levels quoted at par 1/8 bid, par 5/8 offered, according to a trader.

Earlier in the day, the offer price on the loan was changed to par from 99¾ and the Libor floor was set at 1%, the high end of the 0.75% to 1% Libor floor talk, a market source said.

The loan is priced at Libor plus 275 bps and has 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will refinance an existing term loan B priced at Libor plus 325 bps with a 1% Libor floor.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

Catalent breaks

Catalent Pharma Solutions' hit the secondary as well, with both the $799.3 million term loan due 2016 and the $659.5 million term loan due 2017 quoted at par ½ bid, 101 offered, according to sources.

Pricing on the 2016 loan is Libor plus 350 bps with no Libor floor and pricing on the 2017 loan (which includes a $60 million add-on) is Libor plus 325 bps with a 1% Libor floor. Both were sold at par and have 101 soft call protection for six months.

Proceeds from the add-on will be used to refinance the remaining euro term loan due 2014, and the remaining debt will be used to reprice the existing 2016 and 2017 term loans.

Morgan Stanley Senior Funding Inc., GE Capital Markets, Deutsche Bank Securities Inc., Goldman Sachs & Co and J.P. Morgan Securities LLC are leading the deal.

Catalent is a Somerset, N.J.-based provider of advanced technologies and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer health care companies.

EnergySolutions rises

In more trading news, EnergySolutions' term loan B moved up to par 1/8 bid, par 5/8 offered, from 99 7/8 bid, par 3/8 offered, as the company launched an amendment to its credit facility that would keep the deal in place in connection with its buyout by Energy Capital Partners II LLC, according to a trader.

Specifically, the amendment would allow for the buyout, provide for the ability to extend the revolver maturity, revise reporting requirements, permit the prepayment of senior notes from equity contributions, and limit total term loans and senior notes pro forma for the transaction to $675 million.

In return for consents, lenders will get a 50 bps increase in term loan B pricing and see the addition of 101 soft call protection for one year, and a 100 bps amendment fee will be paid (50 bps on the amendment effective date and 50 bps on the amendment execution date).

The amendment was launched with a call on Monday and consents are due on Friday.

EnergySolutions facility

Although the company is seeking the J.P. Morgan Securities LLC-led loan amendment, as an alternative, it has also obtained a commitment for a new $685 million credit facility to help fund its buyout, according to a PREM14A recently filed with the Securities and Exchange Commission.

The new facility, which would be led by Morgan Stanley Senior Funding Inc., JPMorgan and Credit Suisse Securities (USA) LLC, consists of an $85 million revolver and a $600 million term loan B.

Under the agreement, EnergySolutions is being purchased for $3.75 in cash per share. The transaction has an enterprise value of $1.1 billion, and anywhere from $499 million to $687 million of equity will be used to help fund the buyout.

Closing is subject to customary conditions, including regulatory approvals, clearance under the Hart-Scott-Rodino Act and stockholder approval, which will be sought at a meeting on April 5.

EnergySolutions is a Salt Lake City-based nuclear commercial services company.

BWIC announced

A $126.64 million Bid-Wanted-In-Competition was disclosed in the morning, and market players are being asked to get their bids in by 11 a.m. ET on Tuesday, according to a trader.

The portfolio includes about 53 issuers.

Some of the larger pieces of debt being offered are Harland Clarke Holdings Corp.'s term loan B-1, Kabel Deutschland GmbH's term loan F-1, RPI Finance Trust's 63/4-year term loan, TASC Inc.'s new tranche B term loan and Texas Competitive Electric Holdings Co.'s 2017 extended term loan B, the trader added.

Virgin Media shutting early

Over in the primary, Virgin Media accelerated the commitment deadline for U.S. investors on its new term loan B debt (Ba3/BB-) to the close of business on Tuesday from Wednesday, according to a market source. European investors have a commitment deadline of noon UK time on Wednesday.

As previously reported, the company is seeking a $2,755,000,000 senior secured seven-year term loan B that is talked at Libor plus 300 bps and a £600 million senior secured seven-year term loan B that is talked at Libor plus 375 bps. Both tranches have a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., Bank of America Merrill Lynch, Barclays and Deutsche Bank Securities Inc. are the lead banks on the deal.

Virgin Media being acquired

Proceeds from the term loans will be used to help fund the purchase of Virgin Media by Liberty Global Inc. for $23.3 billion in stock and cash.

Under the agreement, Virgin Media shareholders will receive $17.50 in cash, 0.2582 Liberty Global series A shares and 0.1928 Liberty Global series C shares for each Virgin Media share.

Other funds for the transaction will come from £2.3 billion equivalent notes at Virgin Media, a draw on Liberty's existing credit facilities, cash on hand and other sources of liquidity at Virgin Media.

Closing is expected in the second quarter, subject to majority approval from both companies' shareholders, regulatory approvals and other customary conditions.

Virgin Media is a New York-based provider of broadband, television, mobile phone and home phone services in the United Kingdom. Liberty is an Englewood, Colo.-based cable company.

Centaur revises deadline

Centaur Gaming changed the commitment deadline on its $665 million credit facility to 5p.m. ET on Wednesday from Friday, according to a market source.

The facility consists of a $20 million five-year revolver (B1/B+), a $460 million six-year first-lien term loan B (B1/B+) and a $185 million seven-year second-lien term loan (Caa1/CCC+).

The first-lien term loan is talked at Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 825 bps with a 1.25% Libor floor and a discount of 98, the source said. The first-lien term loan has 101 soft call protection for one year and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Goldman Sachs & Co. and Deutsche Bank Securities Inc. are leading the deal that will be used to fund the roughly $500 million acquisition of Indiana Grand Casino and Indiana Downs racetrack and refinance existing debt.

Centaur is the owner and operator of Hoosier Park Racing & Casino, a casino and racetrack located near Indianapolis.

SuperValu flexes lower

SuperValu cut price talk on its $1.5 billion covenant-light term loan (B1) due March 2019 to Libor plus 500 bps to 525 bps from Libor plus 575 bps and tightened the original issue discount to 99 from 981/2, according to sources.

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

Recommitments are due on Tuesday, sources added.

The company's $2.4 billion credit facility also provides for a $900 million asset-based revolver due March 2018 that is expected to have opening pricing of Libor plus 200 bps with a 37.5 bps unused fee. Pricing on the revolver is grid-based and can range from Libor plus 175 bps to 225 bps, and the unused fee can range from 25 bps to 37.5 bps.

SuperValu refinancing

Proceeds from SuperValu's credit facility will be used to replace a $1.65 billion asset-based revolver, an $846 million term loan and $490 million of 7½% bonds scheduled to mature in November 2014.

Closing on the credit facility is expected during the week of March 18.

Wells Fargo Securities LLC, U.S. Bank, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays and Bank of America Merrill Lynch are the lead arrangers on the revolver, and Goldman Sachs, Credit Suisse, Morgan Stanley, Bank of America and Barclays are the lead arrangers on the term loan.

Secured debt is 2.7 times, total debt is 4.1 times, and net debt is 3.9 times.

SuperValu is an Eden Prairie, Minn.-based food wholesaler.

Fairway upsizes

Fairway lifted its first-lien term loan due August 2018 to $275 million from $265 million, while keeping pricing at Libor plus 550 bps with a 1.25% Libor floor and a par offer price, according to a market source. There is still 101 repricing protection for one year.

Proceeds will be used to reprice an existing term loan from Libor plus 675 bps with a 1.5% Libor floor, for which existing lenders are getting paid out at 101. Funds from the upsizing will repay a $7 million subordinated note and add $3 million to the balance sheet, the source said.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Jefferies & Co. are leading the deal.

Fairway is a supermarket chain with locations in New York, New Jersey and Connecticut.

DuPont pulls repricing

DuPont Performance Coatings withdrew from market the opportunistic repricing of its $2.3 billion covenant-light U.S. term loan B-1 to Libor plus 300 bps with a 1% Libor floor from Libor plus 350 bps with a 1.25% Libor floor, according to sources.

The repriced loan was being offered at par offer price and included 101 soft call protection for six months.

Barclays is the administrative agent on the deal.

DuPont Performance Coatings is a Wilmington, Del.-based supplier of vehicle and industrial coating systems.

NBTY withdrawn

NBTY pulled the repricing of its $1.508 billion covenant-light senior secured term loan (Ba3/BB-) due Oct. 1, 2017, under which it was looking to take pricing down to Libor plus 250 bps to 275 bps with a 1% Libor floor from Libor plus 325 bps with a 1% Libor floor, according to a market source.

The repriced loan was offered at par offer price and had 101 soft call protection through Oct. 11, 2013.

Barclays, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC were leading the deal.

NBTY is a Ronkonkoma, N.Y.-based manufacturer, marketer, distributor and retailer of vitamins and nutritional supplements.

Revlon launches

Also on the primary front, Revlon launched without a call on Monday a repricing of its $675 million senior secured term loan B due Nov. 19, 2017 with talk of Libor plus 300 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

With this transaction, the company is taking down pricing on its existing term loan (a portion of which is being repaid with proceeds from a recent bond offering to take the total amount outstanding down to $675 million) from Libor plus 350 bps with a 1.25% Libor floor.

Credit facility ratings are expected to be Ba3/B+, the source added.

Citigroup Global Markets Inc., the lead bank on the deal, is asking for commitments by 5 p.m. ET on Friday.

Revlon is a New York-based cosmetics and accessories company.

MGM comes to market

MGM Resorts launched, without a call, a repricing of its $1.75 billion term loan B and is asking for commitments/consents by Thursday, according to market sources.

Under the proposal, the company is looking to take pricing down to Libor plus 275 bps with a 1% Libor floor from Libor plus 325 bps with a 1% Libor floor, sources said.

The repriced loan is offered at par and lenders will get a 100 bps amendment fee for the repricing.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Barclays and J.P. Morgan Securities LLC are leading the deal.

MGM Resorts is a Las Vegas-based operator of destination resort brands.

Houghton repricing

Houghton International also launched a repricing on Monday, under which it is looking to take its $455 million first-lien term loan down to Libor plus 300 bps with a 1% Libor floor from Libor plus 400 with a 1.25% Libor floor, according to a market source.

In addition, the company is asking to reprice its €100 million first-lien term loan to Euribor plus 350 bps with a 1% floor from Euribor plus 450 bps with a 1.25% floor, the source said.

Both repriced loans are being offered at par and have 101 soft call protection for one year, and existing lenders will get paid out at 101 with the repricing.

Lead banks, RBC Capital Markets LLC and Deutsche Bank Securities Inc., are asking for commitments by Friday.

Houghton is a Norristown, Pa.-based developer, producer and manager of specialty chemicals, oils and lubricants.

Iasis deal emerges

Iasis Healthcare is looking to reprice its roughly $1 billion term loan B, and talk on the deal is Libor plus 300 bps to 325 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for six months, a source said.

By comparison, current pricing on the loan is Libor plus 375 bps with a 1.25% Libor floor.

Bank of America Merrill Lynch is leading the deal.

Iasis is a Franklin, Tenn.-based owner and operator of medium-sized acute care hospitals.

Dematic talk surfaces

Dematic held a call at 1 p.m. ET to launch a repricing of its $540 million first-lien covenant-light term loan B due December 2019, and a few hours before the call kicked off, talk on the deal came out at Libor plus 325 bps with a 1% to 1.25% Libor floor, a par offer price and 101 repricing protection for one year, a source said.

The repricing will take the loan down from Libor plus 400 bps with a 1.25% Libor floor. Existing lenders are getting paid out at par.

Commitments are due on Friday, the source continued.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Barclays are leading the deal.

Dematic is an engineering company that provides intelligent warehouse logistics and materials handling services.

Sutherland readies deal

Sutherland Global Services set a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch a $255 million credit facility that is being led by Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc., according to a market source.

The facility consists of a $30 million five-year revolver and a $225 million six-year term loan, the source said. Price talk is not yet available, but it is known that the term loan has 101 repricing protection for one year.

Commitments are due on Feb. 27, the source continued.

Proceeds will help fund the acquisition of Apollo Health Street Ltd., a provider of healthcare business services and Health Information Technology (HIT) based solutions, and refinance existing debt.

Closing is expected this month, subject to customary regulatory approvals and other conditions.

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

Zayo coming soon

Zayo Group scheduled a call for 1 p.m. ET on Tuesday to launch a repricing of its $1,837,000,000 credit facility that consists of a $225 million revolver and a $1,612,000,000 term loan B, according to a market source.

Current pricing on the term loan B is Libor plus 400 bps with a 1.25% Libor floor.

Morgan Stanley Senior Funding Inc., Barclays and RBC Capital Markets are leading the deal.

Zayo is a Louisville, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

Deltek joins calendar

Deltek will host a lender call at 11 a.m. ET on Tuesday to launch repricing of its $480 million credit facility that consists of a $30 million revolver and a $450 million first-lien term loan, according to a market source.

Current pricing on the term loan is Libor plus 475 bps with a 1.25% Libor floor.

Jefferies & Co. is leading the deal.

Deltek is a Herndon, Va.-based provider of enterprise software and information for professional services firms and government contractors.

Hillman allocates

In other news, Hillman Group Inc.'s $389.2 million senior secured term loan due May 31, 2017 allocated on Monday morning, according to a market source.

Pricing on the loan is Libor plus 300 bps with a 1.25% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Barclays, GE Capital and Morgan Stanley Funding Inc. are the lead banks on the deal.

Proceeds are being used to refinance a $312.4 million term loan B and a $76.8 million delayed-draw term loan, both due May 31, 2016 and priced at Libor plus 350 bps with a 1.5% Libor floor, and combine the debt into a single fungible tranche.

Senior secured leverage is 3.4 times and net total leverage is 5.4 times.

Hillman is a Cincinnati-based distributor of fasteners, key duplication systems, engraved tags and related hardware items.

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