RBS, Live Nation, Ceridian, MEI, Continental Building, Smile Brands, Kinetic, Totes free up

By Sara Rosenberg

New York, Aug. 15 - RBS Global Inc. (Rexnord) finalized pricing on its term loan at the low end of guidance and then broke for trading on Thursday, and Live Nation Entertainment Inc., Ceridian Corp., MEI Conlux Holdings Inc., Continental Building Products LLC, Smile Brands Group Inc., Kinetic Concepts Inc. and Totes Isotoner Corp. emerged in the secondary too.

In more happenings, DS Waters of America Inc. (DS Services) revised its term loan size for a second time, Foresight Energy LLC reduced the size of its term loan and widened the spread, and EXCO Resources Inc. flexed pricing higher on its term loan.

Additionally, Shingle Springs Tribal Gaming Authority downsized its term loan while sweetening the spread and call protection, and Sequa Automotive Group changed the offer price on its incremental deal.

Furthermore, Crown Castle Operating Co. moved up the commitment deadline on its newly launched term loan, and Revlon Consumer Products Corp. released price talk on its term loan in connection with its lender call.

RBS firms spread, breaks

RBS Global set pricing on its $1.95 billion seven-year first-lien covenant-light term loan (B2/B+) at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps talk, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, according to a market source.

Recommitments were due at noon ET on Thursday and, shortly thereafter, allocations went out with the loan freeing up for trading at 99½ bid, par offered, the source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Bank of America Merrill Lynch, BMO Capital Markets, Barclays, SMBC and Mizuho Securities USA Inc. are leading the deal that will be used to refinance existing 8½% senior notes and a term loan.

RBS is a Milwaukee-based multi-platform industrial company.

Live Nation begins trading

Live Nation's credit facility also broke, with the $950 million seven-year term loan B quoted at par bid, par ½ offered on the open and then it moved up to par 1/8 bid, par 5/8 offered, a trader remarked.

Pricing on the B loan is Libor plus 275 bps with a 0.75% Libor floor and it was issued at par as it firmed at the tight end of revised talk of 99¾ to par. There is 101 soft call protection for six months.

The company's $1.4 billion credit facility (Ba3/BB) also provides for a $335 million five-year revolver and a $115 million five-year term loan A.

On Wednesday, pricing on the B loan finalized at the low side of the Libor plus 275 bps to 300 bps talk, the floor was cut from 1% and the offer price was changed from initial talk of 993/4. Additionally, the revolver was upsized from $300 million and the term loan A was upsized from $100 million.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing senior secured credit facility, for general corporate purposes and to add cash to the balance sheet.

Live Nation is a West Hollywood, Calif.-based provider of live music concerts and live entertainment ticketing sales and marketing services.

Ceridian above par

Ceridian's $1,419,000,000 term loan B started trading on Thursday in the par ¼ bid, par ¾ offered context, according to a market source.

Pricing on the loan is Libor plus 425 bps with a step-down and no Libor floor and it was issued at par following a tightening from 99¾ earlier in the week. The debt includes 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal that is being used to reprice an existing term loan from Libor plus 575 bps with no Libor floor.

Ceridian is a Minneapolis-based provider of human resources, transportation and retail information management services.

MEI hits secondary

MEI Conlux's credit facility started trading, with the $395 million seven-year covenant-light term loan seen at 99¾ bid, par ¼ offered, according to a market source.

The loan is priced at Libor plus 400 bps with a 1% Libor floor and was sold at a discount of 991/2. This tranche has 101 soft call protection for one year.

During syndication, the term loan was upsized from $390 million to account for some foreign-currency fluctuations and the discount was revised from 99.

The company's $455 million credit facility (B1/B) also includes a $60 million five-year revolver.

Goldman Sachs Bank USA, Bank of America Merrill Lynch and Nomura are leading the deal that is being used to refinance existing debt.

MEI Conlux is a Malvern, Pa.-based manufacturer of electronic note acceptors, coin mechanisms and other unattended transaction systems.

Continental Building tops OID

Another deal to break was Continental Building's credit facility, with the $320 million seven-year first-lien covenant-light term loan (B1/B+) quoted at par bid, par ½ offered and the $120 million 71/2-year second-lien covenant-light term loan (Caa1/CCC+) quoted at 99¾ bid, par ¼ offered, a source said.

Pricing on the first-lien term loan is Libor plus 350 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor and was sold at 99. This tranche has call protection of 102 in year one and 101 in year two.

Both term loans have a 50 bps step-down with an initial public offering and B1/B+ ratings or less than 4 times total leverage.

Earlier this week, the first-lien term loan was upsized from $300 million, the spread was cut from Libor plus 400 bps and the discount was revised from 99, and the second-lien term loan was increased from $100 million, pricing was lowered from Libor plus 800 bps and the discount was moved from 98.

Continental Building revolver

Along with the term loans, Continental Building's $490 million credit facility includes a $50 million five-year revolver (B1).

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Lone Star Funds from Lafarge for about $700 million. Additional proceeds from the term loan upsizings will be used to reduce the equity portion of the deal to 36% in total.

First-lien leverage is 4.4 times and total leverage is 6 times.

Continental Building is a supplier of drywall for residential and commercial construction industries.

Smile Brands frees up

Smile Brands' credit facility made its way into the secondary too, with the $260 million six-year first-lien term loan quoted at 98½ bid, 99 offered, according to a market source.

Pricing on the term loan is Libor plus 625 bps with a 1.25% Libor floor and it was sold at a discount of 98. There is hard call protection of 102 in year one and 101 in year two that was changed earlier in the week from a 101 soft call for one year. The call protection excludes change-of-control transactions, which carry a 101 premium for one year.

When the call protection was sweetened, the deal saw the addition of a maximum capital expenditure covenant of $35 million per annum through Dec. 31, 2015 and $40 million per annum thereafter, and the maximum leverage and minimum interest coverage covenant levels were modified.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are leading the $310 million credit facility (B1/B-), which also includes a $50 million five-year revolver, and will be used to refinance existing debt.

Smile Brands is an Irvine, Calif.-based provider of support services to dental offices.

Kinetic starts trading

Kinetic Concepts' $350 million add-on term loan (Ba3/BB-) also freed up, with levels quoted at par ½ bid, 101 offered, a trader said.

Pricing on the add-on is Libor plus 350 bps with a 1% Libor floor, and it was sold at a discount of 99 7/8, after tightening recently from talk of 99 to 991/2.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are the lead banks on the deal that will be used to help fund the $485 million acquisition of Systagenix, a U.K.-based provider of advanced wound care products.

The transaction is expected to close in the fourth quarter, subject to customary conditions, including applicable antitrust approvals.

Kinetic Concepts is a San Antonio, Texas-based medical technology company.

Totes levels emerge

Totes' $25 million tack-on term loan due July 2017 hit the secondary as well, with levels seen at par bid, 101 offered, according to a market source.

Pricing on the tack-on loan is Libor plus 575 bps with a 1.5% Libor floor and it was sold at a discount of 993/4, following a revision earlier this week from 991/2. There is 101 soft call protection for six months.

The spread and floor on the tack-on match the existing term loan, which is fungible.

Credit Suisse Securities (USA) LLC is leading the deal that is being used to fund a dividend to shareholders.

Totes is a Cincinnati-based designer and retailer of branded accessories.

DS Waters downsizes

Back in the primary, DS Waters changed its seven-year covenant-light first-lien term loan (Ba3/BB-) size to $320 million from a revised amount of $360 million and an initial amount of $310 million, according to a market source.

Pricing on the term loan is still Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99, and there is still 101 soft call protection for one year. This call premium, however, was extended earlier from six months.

The company's now $395 million senior secured credit facility also includes a $75 million ABL revolver.

Recommitments were due at noon ET on Thursday, the source added.

DS Waters lead banks

Barclays, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and BMO Capital Markets are leading DS Waters' credit facility

Proceeds, along with $350 million of notes and $260 million of equity, will be used to help fund the buyout of the company by Crestview Partners. The notes were reduced to $300 million when the term loan was first upsized but then the bonds reverted back to their original size, which is why the term loan was downsized. The extra $10 million raised through the current term loan amount will be used for fees and the original issue discount, the source explained.

First-lien leverage is 2.1 times, down from 2.3 times recently but up from 2 times initially, and total leverage is 4.3 times.

DS Waters is an Atlanta-based direct-to-consumer beverage services provider.

Foresight revisions surface

Foresight Energy lowered its seven-year covenant-light term loan to $450 million from $600 million and raised the coupon to Libor plus 450 bps from talk of Libor plus 375 bps to 400 bps, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments for the now $950 million senior secured credit facility, which also includes a $500 million five-year revolver, are due at 2 p.m. ET on Friday, the source said.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Credit Agricole Securities (USA) Inc. are leading the deal.

Foresight plans bonds

Foresight is also selling $600 million of senior unsecured notes that were upsized from $500 million.

Proceeds from the new debt will fund a tender offer that expires on Aug. 19 for the company's $600 million of 9 5/8% senior notes due 2017 and a dividend payment. The existing Longwall financing arrangements will no longer be repaid due to the term loan downsizing and the dividend was increased to $375 million from $275 million as a result of the bond upsizing, the source added.

Allocations on the credit facility are expected to go out early next week.

Foresight is a St. Louis-based producer of thermal coal.

EXCO ups spread

EXCO Resources raised pricing on its $300 million first-lien term loan (Ba3/B+) due 2019 to Libor plus 400 bps from Libor plus 350 bps, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year unchanged, according to a market source.

Recommitments were due at 5 p.m. ET on Thursday, the source remarked.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Bank of America Merrill Lynch and BMO Capital Markets Corp. are leading the loan that will be used to refinance an existing senior secured term loan and for general corporate purposes, including acquisitions.

EXCO is a Dallas-based oil and natural gas company.

Shingle Springs reworks loan

Shingle Springs Tribal Gaming Authority changed its six-year term loan B to $230 million from a revised amount of $215 million and an initial amount of $240 million, lifted pricing to Libor plus 500 bps from Libor plus 425 bps, modified the call protection to non-callable for two years, then at 102 in year three and 101 in year four, from 101 soft call protection for six months, and beefed up amortization to 3% per annum from 1%, according to sources.

As before, the loan has a 1.25% Libor floor and an original issue discount of 99.

Bank of America Merrill Lynch is the leading the deal that will be used to refinance existing debt.

Other funds for the refinancing will come from $260 million of notes, downsized from a revised amount of $275 million but up from an initial amount of $250 million.

Shingle Springs Tribal Gaming Authority is the El Dorado County, Calif.-based overseer of the operations at RedHawk Casino.

Sequa tightens offer price

Sequa Automotive modified the offer price on its $30 million incremental term loan B to par from 993/4, and kept pricing at Libor plus 500 bps with a 1.25% Libor floor, a market source remarked.

RBC Capital Markets is the lead bank on the deal that will fund the purchase of Chicago Miniature Lighting, a supplier of interior lighting services to automotive OEMs.

Sequa is a Tampa, Fla.-based diversified industrial company that operates in the aerospace and metal coatings industries.

Crown Castle moves deadline

Crown Castle accelerated the commitment deadline on its $500 million add-on term loan B (NA/B+/BB+) due Jan. 31, 2019 to 10 a.m. ET on Friday from noon ET on Friday, according to a market source.

As previously reported, the add-on loan, which is fungible with the existing term B, is talked at Libor plus 250 bps with a step-down to Libor plus 225 bps when net total leverage is less than 4.5 times, a 0.75% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection until Oct. 19, 2013.

Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch are leading the deal that launched with a call on Thursday morning.

Proceeds will be used to repay revolving credit facility borrowings.

Crown Castle is a Houston-based owner, operator and leaser of towers and other infrastructure for wireless communications.

Revlon reveals talk

Revlon held its call in the morning, launching its $700 million incremental six-year senior secured term loan with talk of Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Also, the loan has a ticking fee of half the spread for days 31 to 60 and the full spread thereafter.

Commitments are due on Wednesday, the source said.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used by the New York-based cosmetics and accessories company to help fund its $660 million acquisition of The Colomer Group, a beauty care company, from CVC Capital Partners.

Closing is expected in the fourth quarter, subject to customary conditions and regulatory approvals, and the cash purchase price is subject to adjustments through the closing date.

Pro forma for the acquisition, net leverage is anticipated to be 4.8 times.

Pantry closes

In other news, Pantry Inc. completed the repricing of its $253 million term loan due Aug. 2, 2019 to Libor plus 375 bps with a 1% Libor floor from Libor plus 450 bps with a 1.25% Libor floor, according to a news release.

The repriced loan was issued at par and has 101 soft call protection for six months.

Wells Fargo Securities LLC led the deal.

Pantry is a Cary, N.C.-based operator of a chain of convenience stores.

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