Ancile frees up; Walter Investment revises add-on loan; Monitronics modifies deadline

By Sara Rosenberg

New York, July 15 - Ancile Solutions Inc.' credit facility made its way into the secondary market on Monday, with the term loan seen trading above its original issue discount price.

Moving to the primary, Walter Investment Management Corp. increased the size of its add-on term loan and eliminated plans for an original issue discount, and Monitronics International Inc. accelerated the commitment deadline on its term loan.

Also, United States Infrastructure Corp. released talk on its first-lien term loan on the back of ratings coming out, Pinnacle Entertainment Inc. and Steinway Musical Instruments Inc. disclosed timing and structure on their new deals, and Cetera Financial Group Inc. joined this week's calendar.

Ancile starts trading

Ancile Solutions' credit facility freed up on Monday, with the $120 million term loan quoted at 99¾ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 500 basis points with a 1.25% Libor floor and it was sold at an original issue discount of 99.

The company's $125 million five-year credit facility also includes a $5 million revolver.

During syndication, the term loan was downsized from $155 million and pricing was lifted from Libor plus 450 bps, and the revolver was reduced from $10 million.

BMO Capital Markets and Madison Capital are leading the deal that is being used to refinance existing debt and fund a dividend.

Ancile Solutions is an Elkridge, Md.-based provider of learning and performance software solutions.

Walter tweaks deal

Over in the primary, Walter Investment lifted its add-on first-lien term loan due Nov. 28, 2017 to $250 million from $200 million and tightened the offer price to par from 99, according to a market source.

Like the existing term loan, pricing on the add-on is Libor plus 450 bps with a 1.25% Libor floor and there is 101 repricing protection until Nov. 28, 2013.

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

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays and Bank of America Merrill Lynch are leading the deal that will be used for general corporate purposes.

Walter Investment is a Tampa, Fla.-based asset manager, mortgage servicer and mortgage portfolio.

Monitronics shutting early

Monitronics moved up the commitment deadline on its $225 million term loan to Tuesday from Wednesday, according to a market source.

The loan is talked at Libor plus 325 bps with a 1% Libor floor, in line with existing term loan pricing, and is offered with an original issue discount in the 99 area.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds will help fund the acquisition of Security Networks LLC for $487.5 million of cash and 253,333 newly issued shares of series A common stock by parent company, Ascent Capital Group Inc.

Other funds for the transaction will come from $175 million in 9 1/8% senior notes due 2020, $90 million of convertible senior notes due 2020 issued by Ascent Capital and cash on hand.

Closing is expected in mid-August, subject to customary conditions, including regulatory approvals.

Monitronics is a Dallas-based home security alarm monitoring company. Security Networks is a West Palm Beach, Fla.-based provider of monitored security system services.

U.S. Infrastructure talk

United States Infrastructure announced price talk on its $430 million covenant-light first-lien term loan (B2/B) on the heels of ratings being announced at the end of last week, according to a market source.

The term loan, which launched with a bank meeting on Thursday, is talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

The company's $670 million credit facility also includes a $75 million revolver (B2/B) and a $165 million second-lien term loan (Caa2/CCC+) that has already been privately placed.

Deutsche Bank Securities Inc., General Electric Capital Corp. and RBC Capital Markets are leading the debt that will be used to help fund the buyout of the company by Leonard Green & Partners LP from OMERS Private Equity.

Closing is expected in the third quarter.

United States Infrastructure is an Indianapolis-based provider of outsourced utility locating services.

Pinnacle details surface

Pinnacle Entertainment set a bank meeting for 11 a.m. ET in New York on Tuesday to launch a $1.6 billion seven-year term loan B that will help finance the acquisition of Ameristar Casinos Inc., redeem 8 5/8% senior notes due 2017 and fund general corporate purposes, according to a market source.

For the transaction, the company also plans on getting a $1 billion five-year revolver and issuing up to $800 million of senior unsecured notes.

The financing differs from what the company had previously outlined in filings with the Securities and Exchange Commission.

In the most recent filings, the company had said that it would get a $1 billion five-year revolver, a $1,935,000,000 seven-year term loan that would have a 1% Libor floor and $315 million of senior notes.

And, in earlier filings, prior to the amendment of the debt commitment letter, the company had outlined the financing as a $400 million five-year revolver at Ameristar, a $200 million five-year term loan A at Ameristar, a $990 million seven-year term loan B at Ameristar, a $410 million five-year revolver at Pinnacle, a $730 million seven-year term loan at Pinnacle and $315 million of senior notes.

Pinnacle lead banks

J.P. Morgan Securities LLC, Goldman Sachs Lending Partners LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Barclays, Credit Agricole and UBS Securities LLC are leading Pinnacle's $2.6 billion senior secured credit facility.

Under the agreement, Ameristar is being bought for $26.50 per share in cash. The total enterprise value is $2.8 billion, including debt of $1.9 billion and cash on hand of $116 million as of Sept. 30.

Closing is expected by the end of the third quarter, subject to customary conditions, approval by Ameristar's shareholders and required regulatory approvals.

Pinnacle Entertainment is a Las Vegas-based owner and operator of casinos. Ameristar is a Las Vegas-based casino gaming company.

Steinway coming soon

Steinway Musical revealed that it will be hosting a bank meeting at 10:30 a.m. ET on Thursday to launch a $325 million credit facility, comprised of a $75 million ABL revolver, a $175 million six-year first-lien term loan and a $75 million seven-year second-lien term loan that has been pre-placed, according to a market source.

Official price talk is not yet out, but the commitment letter filed with the Securities and Exchange Commission on Monday had the revolver expected at Libor plus 175 bps, the first-lien term loan expected at Libor plus 400 bps with a 1% Libor floor and 101 soft call protection for one year, and the second-lien term loan expected at Libor plus 850 bps with a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Macquarie Capital (USA) Inc. and Credit Suisse Securities (USA) LLC are leading the term loans, and GE Capital Markets is leading the revolver.

Steinway being acquired

Proceeds from Steinway's credit facility and equity will be used to fund the buyout of the company by Kohlberg & Co. for $35.00 per share in cash, or about $438 million.

Leverage is 3.7 times through the first-lien and 5 times gross, and net leverage is 3.3 times through the first-lien and 4.6 times total, the source added.

Closing is expected in the third quarter, subject to Hart-Scott-Rodino and receipt of German antitrust approvals.

Steinway is a Waltham, Mass.-based designer, manufacturer, marketer and distributor of musical instruments.

Cetera readies loan

Cetera Financial scheduled a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch a $265 million six-year term loan B (B) that is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

J.P. Morgan Securities LLC is leading the deal.

Proceeds will be used to refinance existing debt, fund an acquisition and pay a dividend to shareholders.

Cetera is a Denver-based financial advisor network that provides wealth management and advisory platforms to independent financial advisors.

Kodak sets deadline

Eastman Kodak Co. revealed a commitment deadline of July 26 on its $695 million in first- and second-lien term loans that launched with a meeting on Monday afternoon, and the expectation is for allocations to go out on July 29, the company said in a presentation.

The debt includes a $420 million six-year first-lien term loan talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and a $275 million seven-year second-lien term loan talked at Libor plus 825 bps to 850 bps with a 1.25% Libor floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three.

With the term loans, the company is planning on getting an up to $200 million senior secured asset-based revolver that is priced at Libor plus 300 bps with a 50 bps unused fee.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Barclays are leading the deal that will be used to fund distributions to creditors in accordance with the company's plan of reorganization.

Leverage through the first-lien is 2.5 times and total leverage is 4.2 times, the presentation added.

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

U.S. Silica in demand

U.S. Silica Holdings Inc.'s $425 million senior secured credit facility (B1/BB-) is oversubscribed within original price talk with several investors still working, a market source told Prospect News on Monday.

The facility consists of a $50 million revolver due July 2018, and a $375 million term loan due May 2020 talked at Libor plus 300 bps to 325 bps with a 1% Libor floor, an original issue discount of 99½ on new money and 101 soft call protection for six months.

BNP Paribas Securities Corp. is the lead bank on the deal that will be used to refinance existing senior debt, including a $50 million asset-based revolver and a $255 million term loan.

Closing is expected in the third quarter.

U.S. Silica is Frederick, Md.-based producer of ground and unground silica sand, kaolin clay, aplite and related industrial minerals.

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