Reynolds sets pricing; CF upsizes; Advantage Sales moves deadline; Mediacom talk emerges

By Sara Rosenberg

New York, April 15 - Reynolds and Reynolds Co. finalized the spread on its proposed term loan at the low end of initial guidance early on Thursday, added a leverage-based step-down and call protection, and set the original issue discount price.

Also in the primary, CF Industries Holdings Inc. increased the size of its revolving credit facility and is now waiting on a few more lenders before wrapping up and allocating, and Advantage Sales & Marketing accelerated the commitment deadline on its new deal.

Additionally, Mediacom came out with price talk on its proposed term loans as the deals were launched in the morning, and Securus Technologies Inc.'s credit facility has been very well met, resulting in strong oversubscription.

Also, U.S. Silica Co. is gearing up to launch its new term loan, and Del Taco LLC and USIC are looking at next week for the launch of their proposed transactions.

Reynolds and Reynolds pricing firms

Switching to the primary, Reynolds and Reynolds set the pricing on its $1.82 billion seven-year term loan at Libor plus 350 basis points, the tight end of the Libor plus 350 bps to Libor plus 375 bps talk, and added a step down to Libor plus 325 bps at 3.0 times net leverage, according to a market source.

Also, the original issue discount on the term loan was revealed to be 991/4, the source said. Previously the discount was being described as still to be determined.

Furthermore, the term loan now includes 101 soft call protection for one year.

The 1.75% Libor floor that the term loan had since launch was left unchanged, the source continued.

Reynolds and Reynolds readies allocation

Reynolds and Reynolds is expected to allocate its term loan on Friday now that the books on the deal closed at 3 p.m. ET on Thursday, the source added.

Deutsche Bank, Bank of America and Credit Suisse are the lead banks on the deal, with Deutsche the left lead.

The company's $1.895 billion credit facility (Ba3) also includes a $75 million revolver.

Proceeds will be used to refinance existing debt.

Reynolds and Reynolds is a Dayton, Ohio-based dealer services company.

CF Industries ups revolver

CF Industries revised the size of its five-year revolving credit facility to $500 million from $300 million, being that the deal was "a blowout," according to a market source. The company had the ability for the upsizing as long as it was done within 90 days of April 5 and with the consent of the lead arrangers and the lenders providing the additional funds.

The revolver is priced at Libor plus 350 bps with a 1.5% Libor floor, stepping down to Libor plus 300 bps upon the issuance of at least $750 million of equity to repay debt. Pricing will also be based on a leverage grid.

The company's now $2.5 billion, up from $2.3 billion, credit facility (Ba1/BBB/BBB-) also includes a $2 billion five-year term loan B that carries the same initial pricing and step-down following an equity sale as the revolver.

Pricing on the term loan B also provides for a step-down to Libor plus 275 bps when leverage is below 2.0 times. This step was added during the B loan syndication process, which went so well and resulted in such strong oversubscription that the books had to be shut down early.

The revolver was offered to lenders with upfront fees and the term loan B was offered at an original issue discount of 991/2.

CF Industries acquires Terra

Proceeds from CF Industries' credit facility are being used to fund the acquisition of Terra Industries Inc., the completion of which was announced on Thursday, for $37.15 in cash and 0.0953 of a share of CF Industries common stock.

The company completed the first drawdown under its credit facility on April 5 to finance the purchase of roughly 86% of Terra Industries Inc.'s shares that were tendered under an acquisition agreement.

A subsequent offering period for all remaining shares of Terra common stock was started and was scheduled to expire on April 9, at which time about 87.5% of the outstanding shares of Terra common stock had been validly tendered. The tender was then extended to April 14.

By the April 14 deadline, 92.1% of Terra's outstanding common stock had been tendered, so the acquisition was able to be completed through the short-form merger procedure without a vote or meeting of Terra's stockholders.

CF Industries plans notes

CF Industries is planning a $1.6 billion senior notes offering, which is expected to price next week, and an about $1 billion common stock offering.

Proceeds from the new notes and stock will be used to reduce borrowings under the company's $1.75 billion bridge loan and the term loan B.

Morgan Stanley and the Bank of Tokyo-Mitsubishi UFJ are the lead banks on the credit facility, with Morgan Stanley the administrative agent.

As for when the credit facility will free up for trading, the source said that the leads are "still waiting for a couple banks to report in before [allocating]."

CF Industries is a Deerfield, Ill.-based producer and distributor of nitrogen and phosphate fertilizer products. Terra is a Sioux City, Iowa-based producer and marketer of nitrogen and methanol products.

Advantage Sales tweaks deadline

Advantage Sales & Marketing moved up the commitment deadline for its $975 million credit facility to Monday at 5 p.m. ET from Wednesday as a result of strong demand, according to a market source.

The facility consists of a $625 million first-lien term loan talked at Libor plus 375 bps with an original issue discount of 99, a $275 million second-lien term loan talked at Libor plus 750 bps with an original issue discount of 98½ and a $75 million revolver talked at Libor plus 375 bps with an original issue discount of 98.

All tranches include a 2% Libor floor.

Credit Suisse, Bank of America and UBS are the lead banks on the deal that will be used to refinance debt and fund a dividend.

Advantage Sales is an Irvine, Calif., consumer packaged goods sales and marketing agency.

Mediacom reveals talk

Mediacom held a lender on Thursday morning to launch $800 million in new term loans (Ba3) that will be used to refinance existing debt and for general corporate purposes, and in connection with the launch, price talk was announced, according to a market source.

Both the $250 million term loan E at Mediacom LLC and the $550 million term loan F at Mediacom Broadband LLC are being talked at Libor plus 300 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2, the source said.

Also on the call, Mediacom LLC asked lenders to extend its $200 million revolver to 2014 from 2011, and pricing on the extended debt will be based on a leverage grid, the source continued.

JPMorgan and Bank of America are the lead banks on the deal, with JPMorgan the left lead on Medicom LLC and Bank of America the left lead on Mediacom Broadband.

Commitments are due from lenders on Wednesday.

Mediacom LLC and Mediacom Broadband are wholly owned subsidiaries of Mediacom Communications Corp., a Middletown, N.Y.-based developer of cable systems.

Securus sees strong interest

Securus Technologies' $210 million credit facility (B) saw a lot of demand from lenders and, as a result, ended up being heavily oversubscribed by the times the books closed earlier this week, according to a market source.

The facility consists of a $40 million revolver and a $170 million term loan talked Libor plus 600 bps with a 2% Libor floor and an original issue discount of 98.

Jefferies is the lead bank on the deal that will be used to refinance existing debt and for general corporate purposes.

Securus is a Dallas-based provider of inmate communications services and offender and case management software design.

U.S. Silica readies launch

U.S. Silica is scheduled to hold a bank meeting on Friday to launch a proposed $160 million term loan that loan is being talked at Libor plus 450 bps with a 1.75% Libor floor and an original issue discount of 99, according to a market source.

BNP Paribas is the lead bank on the deal.

Proceeds will be used to refinance existing debt.

U.S. Silica is a Berkeley Springs, W.Va.-based producer of ground and unground silica sand, kaolin clay, aplite and related industrial minerals.

Del Taco targets next week launch

Del Taco is eyeing late next week as a possible time to hold a bank meeting to launch its proposed credit facility, according to a market source.

The source warned, however, that timing is still very fluid.

Wells Fargo is the left lead bank on the deal that will be used to refinance existing debt.

Del Taco is a Lake Forest, Calif.-based operator and franchiser of restaurants.

USIC expected soon

USIC is also looking at next week to hold a bank meeting for a new credit facility, according to a market source.

GE Capital and BNP Paribas are the lead banks on the deal, with GE the left lead.

Details on the deal will come out next week, the source added.

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