Chelsea, V. Group break; Charter, Universal Services, AlixPartners, Kenan, Jackson updated

By Sara Rosenberg

New York, July 22 – Chelsea Petroleum Products I LLC and V. Group saw their new deals emerge in the secondary market on Wednesday, and Interline Brands Inc.’s term loan was bid higher with news of its acquisition by The Home Depot Inc.

Switching to the primary, Charter Communications Inc. upsized the total amount of term loan debt it is getting by downsizing its term loan H and adding a new term loan I to the capital structure and disclosed pricing on the tranches.

Also, Universal Services of America moved some funds between its first- and second-lien term loans, firmed the spread on the first-lien debt at the tight end of talk and widened pricing and sweetened call premiums on the second-lien tranche, and AlixPartners LLP tightened the spread and issue price on its term loan B.

In addition, Kenan Advantage Group Inc. reduced the spread on its term debt, Jackson Hewitt Tax Service Inc. widened spread and original issue discount on its term loan, and Numericable moved up the commitment deadline on its deal.

Furthermore, Asurion LLC released price talk with launch, Alion Science and Technology Corp. cancelled its in market refinancing transaction and instead plans to approach lenders with a new credit facility to fund a buyout by Veritas Capital, and Pharmaceutical Product Development LLC (Jaguar Holding Co. II) joined the new issue calendar.

Chelsea revised, trades

Chelsea Petroleum Products firmed pricing on its $425 million seven-year term loan B (Ba3/BB-) at Libor plus 425 basis points, the tight end of the Libor plus 425 bps to 450 bps talk, and changed the original issue discount to 99.5 from 99, according to a market source.

The term loan still has a 1% Libor floor and 101 soft call protection for one year.

There is a ticking fee on the term loan of half the spread after Sept. 1, the full spread after Oct. 1 and the full spread plus the Libor floor after Oct. 15, the source said.

Recommitments were due at 3 p.m. ET and then by late Wednesday the term loan broke for trading, with levels quoted at par bid, 100½ offered, a trader added.

The company’s $1,125,000,000 senior secured deal also includes a $700 million ABL revolver.

Morgan Stanley Senior Funding Inc. and BMO Capital Markets Corp. are leading the deal, with Morgan Stanley the left lead on the term loan B and BMO the left lead on the ABL.

Proceeds will be used to help fund the buyout of the midstream oil and gas company by ArcLight Capital Partners from Cumberland Farms.

V. Group frees up

V. Group’s fungible $90 million add-on first-lien term loan (B1) began trading too, with levels quoted at 100¼ bid, a trader said.

Pricing on the add-on term loan is Libor plus 400 bps with a 1% Libor floor, in line with the existing first-lien term loan, and the add-on was issued at par after tightening during syndication from talk of 99 to 99.5.

Goldman Sachs Bank USA is leading the deal that will be used to help repay the company’s second-lien term loan.

V. Group is a supplier of a broad range of specialist outsourcing services to asset owners and operators in the shipping, offshore, leisure and defense sectors.

Interline bid rises

Also in trading, Interline Brands’ term loan was bid stronger on the back of news that the company is being purchase by Home Depot for $1,625,000,000 billion in cash, subject to customary adjustments, according to a trader.

The term loan was quoted at par bid, 100½ offered, versus levels of 99¾ bid, 100½ offered on Tuesday, the trader said.

Closing on the acquisition is expected during Home Depot’s fiscal third quarter, which ends on Nov. 1, subject to regulatory approval and other customary conditions.

Interline Brands is a Jacksonville, Fla.-based distributor and direct marketer of broad-line maintenance, repair and operations products. Home Depot is an Atlanta-based home improvement retailer.

Charter restructures

Back in the primary market, Charter went out to lenders with a revised term debt structure under which it is seeking a $1 billion six-year term loan H and a $2.8 billion 7.5-year term loan I, in place of one $3.5 billion seven-year term loan H, according to a market source.

The term loan H is priced at Libor plus 250 bps with a 0.75% Libor floor and an original issue discount of 99.75, and the term loan I is priced at Libor plus 275 bps with a 0.75% Libor floor and a discount of 99.75, with both tranches having 101 soft call protection for six months, the source said.

By comparison, at launch, the term loan H was talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, a discount of 99.5 and 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Wednesday, the source added. Earlier in the day, the commitment deadline for the original term loan H had been changed to 1 p.m. ET on Wednesday from 5 p.m. ET on Wednesday.

Charter lead banks

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS AG and Deutsche Bank Securities Inc. are leading Charter’s term loans.

Proceeds will be used to help fund the acquisitions of Time Warner Cable Inc. and Bright House Networks.

Time Warner Cable is being purchased in a cash and stock deal valued at $78.7 billion, and Bright House Networks is being bought from Advance/Newhouse Partnership for $10.4 billion.

Closing on is expected to occur by the end of this year, subject to approval by both Charter and Time Warner Cable shareholders, regulatory review and other customary conditions.

The combination of Stamford, Conn.-based Charter with Time Warner Cable and Bright House will create a broadband services and technology company with 23.9 million customers in 41 states.

Universal Services reworked

Universal Services of America lifted its seven-year first-lien covenant-light term loan to $835 million from $760 million, with the delayed-draw piece increased to $55 million from $50 million, and set pricing at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, according to a market source.

As for the eight-year second-lien covenant-light term loan, it was trimmed to $245 million from $320 million, with the delayed-draw piece cut to $15 million from $20 million, pricing was raised to Libor plus 850 bps from talk of Libor plus 775 bps to 800 bps, and the call protection was modified to 103 in year one, 102 in year two and 101 in year three, from 102 in year one and 101 in year two, the source said.

Both term loans still have a 1% Libor floor and an original issue discount of 99, and the first-lien term loan still has 101 soft call protection for six months.

The delayed-draw term loans have a ticking fee of 50% of the margin starting 45 days post close, and expire after three months, the source continued.

Universal Services revolver

In addition to the first-and second-lien term loans, Universal Services’ $1.21 billion credit facility includes a $130 million revolver.

Commitments for the revised deal were due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to fund the acquisition of Universal Services and Guardsmark by Warburg Pincus.

Universal Services is a provider of manned guarding and related services.

AlixPartners flexes lower

AlixPartners cut pricing on its $1.1 billion seven-year covenant-light term loan B (B2/B+) to Libor plus 350 bps from Libor plus 375 bps and moved the original issue discount to 99.75 from 99.5, a market source remarked.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Commitments were due at 3 p.m. ET on Wednesday, the source added.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA, Jefferies Finance LLC and UBS AG are leading the deal that will be used to refinance the company’s existing first- and second-lien term loans and fund a distribution to shareholders.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

Kenan cuts spread

Kenan Advantage Group lowered pricing on its $750 million term loan and $150 million delayed-draw term loan to Libor plus 300 bps from Libor plus 350 bps and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months intact, a source remarked.

The company’s $1,025,000,000 senior secured credit facility (Ba3/BB) also includes a $125 million revolver.

Recommitments were due at 1 p.m. ET on Wednesday, the source said.

KeyBanc Capital Markets LLC and Goldman Sachs Bank USA are leading the deal that will be used with $405 million of bonds to help fund the buyout of the company by Omers Private Equity from Goldman Sachs Capital Partners and Centerbridge Partners.

Of the total delayed-draw term loan amount, some is being sold as a strip with the funded term loan and some is being held by relationship banks, and the debt can only be used for permitted acquisitions.

Closing is expected in the third quarter.

Kenan Advantage is a North Canton, Ohio-based provider of liquid bulk transportation services.

Jackson Hewitt changes surface

Jackson Hewitt raised pricing on its $200 million five-year term loan B to Libor plus 700 bps from talk of Libor plus 575 bps to 600 bps and modified the original issue discount to 98 from 99, according to a market source, who said the 1% Libor floor and hard call protection of 102 in year one and 101 in year two were unchanged.

Earlier in syndication, the term loan was downsized from $250 million.

The company’s $230 million credit facility also includes a $30 million first-out revolver.

Allocations are targeted for Thursday, the source added.

RBC Capital Markets LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Jackson Hewitt is a Parsippany, N.J.-based provider of full-service individual federal and state income tax return preparation.

Numericable revises timing

Numericable accelerated the commitment deadline for U.S. investors on its €800 million-equivalent U.S. dollar and euro seven-year first-lien covenant-light term loan to 5 p.m. ET on Thursday from Friday, a source said.

Commitments from European investors are due at noon London Time on Friday

The term loan is talked at Libor/Euribor plus 325 bps with a 0.75% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC and BNP Paribas Securities Corp. are the joint physical bookrunners on the deal, and Barclays, Credit Agricole, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Nomura and RBC Capital Markets are also bookrunners.

Proceeds will be used to refinance revolver borrowings.

The borrowers are Numericable-SFR SA and Numericable US LLC.

Numericable is a Lille, France-based cable operator.

Asurion sets talk

In more primary happenings, Asurion held its call on Wednesday morning, and with the event, price talk on its $1.15 billion in term loans was announced, according to a market source.

The $700 million seven-year first-lien term loan (Ba3/B) is talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the $450 million add-on second-lien term loan (Caa1/CCC+) is talked at Libor plus 750 bps with a 1% Libor floor, a discount of 99 to 99.5 and call protection of 103 in year one and 101.5 in year two, the source said.

Commitments are due at noon ET on July 29.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to refinance an existing $250 million term loan and for general corporate purposes, including buying minority equity.

Asurion is a Nashville-based provider of technology protection services.

Alion readies deal

Alion Science and Technology is set to hold a bank meeting on Tuesday to launch a new $340 million first-lien credit facility that will be used to help fund its buyout by Veritas Capital, according to a market source, who said the $400 million refinancing transaction that is currently in market by the company is going away as a result of the new buyout plans.

Also, due to the buyout, Alion no longer intends to do an initial public offering, the source added.

UBS AG is the leading the new credit facility that includes a $40 million revolver and a $300 million term loan, the source said.

The term debt that was in market consisted of a $280 million first-lien term loan (B1) talked at Libor plus 500 bps to 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and a $120 million second-lien term loan (Caa1) talked at Libor plus 900 bps to 950 bps with a 1% Libor floor, a discount of 99, and call protection of 102 in year one and 101 in year two.

Jefferies Finance LLC, Credit Suisse Securities (USA) LLC and UBS AG were leading the refinancing.

Alion is a McLean, Va.-based research and development, IT and operational services company.

Pharmaceutical Product on deck

Pharmaceutical Product Development scheduled a bank meeting for 10 a.m. ET in New York on Friday to launch a $2,875,000,000 credit facility, a market source remarked.

The facility consists of a $300 million five-year revolver, and a $2,575,000,000 seven-year first-lien covenant-light term loan talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source continued.

Commitments are due at 5 p.m. ET on Aug. 5.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Goldman Sachs Bank USA, UBS AG, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that will be used to refinance existing debt and fund a shareholder dividend.

PPD is a Wilmington, N.C.-based contract research organization focused on clinical development and laboratory services.

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