Citco, JBS break; Harland down on pulled deal; IMG, Il Fornaio, Penn National set talk

By Sara Rosenberg

New York, May 24 - Citco Funding LLC's new term loan started trading on Tuesday, with levels quoted a little higher than the original issue discount price, and JBS USA LLC's term loan freed up as well.

Also in trading, Harland Clarke Holdings Corp. saw levels on its term loan tumble after word surfaced that the company pulled its amendment and extension proposal due to a lackluster response to the extended debt.

Moving to the primary, IMG Worldwide Inc. and Il Fornaio Corp. released pricing guidance as their deals were presented to lenders during the session, and Penn National Gaming Inc. began circulating talk on its pro rata bank debt ahead of its launch.

Additionally, infoGROUP Inc. sweetened spread and Libor floor on its term loan B, while firming the original issue discount at the wide end of talk, and LabelCorp (York Label) updated tranche sizes and pricing.

Furthermore, Artel Inc. lowered spread and Libor floor on its credit facility due to strong demand, and Ducommun Inc. nailed down timing on its proposed transaction.

Citco frees up

Citco's $490 million seven-year senior secured term loan made its way into the secondary market on Tuesday, with levels quoted at 99¾ bid, par ¼ offered on the open and then it widened to 99¾ bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 500 basis points with a step-down to Libor plus 425 bps upon receipt of a rating from Standard & Poor's. There is a 1.25% Libor floor and 101 soft call protection for one year, and it was sold at an original issue discount of 991/2.

At launch, the loan was talked at Libor plus 350 bps to 375 bps and then during the syndication process, talk moved to Libor plus 400 bps to 425 bps before firming at the final levels.

UBS Securities LLC and Deutsche Bank Securities Inc. are the leading the deal that will be used by the provider of financial services to refinance existing debt.

JBS starts trading

JBS' $475 million seven-year term loan B broke too, with levels quoted at par bid, par ¼ offered on the open and then it moved to par bid, par 3/8 offered, according to a trader.

Pricing on the loan is Libor plus 300 bps with a 1.25% Libor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the loan was upsized from $400 million, pricing was lowered from the Libor plus 325 bps area and call protection was extended from six months.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance existing debt.

As part of the refinancing, JBS, a Greeley, Colo.-based animal protein processor, priced on Friday $650 million of 7¼% senior notes at 98.26 to yield 7½%. The notes offering was reduced from $1 billion.

Harland Clarke slides

Harland Clarke's term loan dropped to 93 bid, 94 offered from 94¾ bid, 95¾ offered after news hit that the company withdrew its credit facility amendment and extension proposal, according to a trader. Lenders did approve the amendment, but the extension didn't get as much interest as the company wanted, so the decision was made to cancel the whole transaction.

The company had been looking to extend some of its $1.729 billion term loan to June 2017 from June 30, 2014, with pricing of Libor plus 425 bps on the extended versus Libor plus 250 bps on the non-extended. Pricing on the extended had been flexed up from Libor plus 375 bps during syndication.

Also, the Credit Suisse Securities (USA) LLC-led amendment would have allowed for future extensions of revolver commitments, added incremental term loan capacity, permitted the incurrence of second-lien or unsecured debt and allowed for debt buybacks through tender offers.

Harland Clarke is a San Antonio, Texas-based provider of integrated payment, marketing and security services and retail products.

IMG pricing comes out

Switching to the primary, IMG Worldwide held a call on Tuesday to kick off syndication on its credit facility, and with the launch, price talk on the $300 million five-year term loan B was announced, according to a market source.

The B loan is being talked at Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 991/2, the source said.

The company's $350 million credit facility also includes a $50 million 41/2-year revolver.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance existing debt.

IMG is a New York-based provider of sports and event marketing and management services.

Il Fornaio reveals guidance

Il Fornaio also released price talk, with the $130 million six-year term loan coming out at Libor plus 550 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the $145 million credit facility (BB-), which also includes a $15 million five-year revolver and was launched with a bank meeting on Tuesday.

Proceeds, along with $50 million of mezzanine debt from DLJ Investment Partners, will be used to help fund the buyout of the company by Roark Capital Group from Bruckmann, Rosser, Sherrill & Co.

Leverage through the term loan is 3.5 times.

Il Fornaio is an operator and franchiser of restaurants and one production bakery, including the Corner Bakery and Il Fornaio brands.

Medpace launches

Another company to hold a bank meeting during market hours was Medpace Inc., as it launched a $335 million credit facility (B2/B+), comprised of a $50 million revolver and a $285 million term loan.

Price talk on the facility did not come out at the meeting, a market source told Prospect News.

"They met with some accounts for one-on-ones yesterday, and so it sounds like they are letting large guys dictate price," the source said in explanation of why talk has yet to surface.

Jefferies & Co., Barclays Capital Inc., Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are the lead banks on the deal that will be used to help fund CCMP Capital Advisors LLC's buyout of the company from management.

Medpace, a Cincinnati-based research-based drug development company, will have senior leverage of 4.5 times.

Penn National floats talk

Meanwhile, price talk of Libor plus 175 bps emerged on Penn National's $1.4 billion of pro rata bank debt as the deal is getting ready to launch with a bank meeting on Wednesday, according to a market source.

The debt consists of a $700 million five-year revolver and a $700 million five-year term loan A.

The company's $2.15 billion credit facility also includes a $750 million seven-year term loan B that is expected to launch sometime in June. Price talk on this tranche is not yet available.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are the lead banks on the deal, with Wells Fargo the left lead on the pro rata and Bank of America the left lead on the B loan.

Proceeds will be used by the Wyomissing, Pa.-based gaming company to refinance existing debt.

infoGROUP flexes up

In more primary happenings, infoGROUP raised pricing on its $410 million seven-year term loan B to Libor plus 425 bps from Libor plus 375 bps, increased the Libor floor to 1.5% from 1.25% and firmed the offer price at 99, the wide end of the 99 to 99½ talk, according to a market source, who said that the tranche has 101 soft call protection for one year.

The company's $460 million credit facility (B1/B+) provides for a $50 million five-year revolver as well.

Bank of America Merrill Lynch is the lead bank on the deal that will be used to refinance existing debt and fund a dividend.

infoGROUP is an Omaha, Neb.-based provider of data-driven and interactive resources for targeted sales, marketing and research services.

LabelCorp reworks deal

LabelCorp revised sizes of its first- and second-lien term loans, firmed pricing on its first-lien tranche at the high end of talk and flexed pricing higher on its second-lien loan, according to a market source.

The six-year first-lien term loan B (Ba3/B+) is now sized at $160 million, up from $150 million, and pricing is Libor plus 475 bps versus talk of Libor plus 450 bps to 475 bps talk, with a 1.5% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

As for the 61/2-year second-lien term loan (Caa1/CCC+), it is sized at $90 million, down from $100 million, and pricing is Libor plus 1,050 bps plus 100 bps PIK, up from Libor plus 850 bps, with a 1.5% Libor floor that firmed at the tight end of the 1.5% to 1.75% talk, the source continued. The original issue discount remained at 98½ as did the call protection of 103 in year one, 102 in year two and 101 in year three.

LabelCorp getting revolver

LabelCorp's $275 million senior secured credit facility also provides for a $25 million five-year revolver (Ba3/B+).

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

LabelCorp is an Omaha, Neb.-based provider of labeling technologies to consumer goods, wine & spirits, pharmaceutical and food & beverage companies.

Artel trims pricing

Artel made changes to its credit facility too, lowering the spread to Libor plus 425 bps from Libor plus 500 bps and the Libor floor to 1.25% from 1.5%, according to a market source, who said that the original issue discount of 99 was left unchanged.

The $95 million credit facility consists of a $20 million revolver and a $75 million term loan.

RBC Capital Markets LLC is the lead bank on the deal that will be used to help fund the buyout of the company by TPG and Torch Hill Investment Partners.

Artel is a Reston, Va.-based telecom and IT solutions provider.

Ducommun sets launch

Ducommun zeroed in on timing for the launch of its proposed senior secured credit facility with the scheduling of a bank meeting for Thursday with a 10:30 a.m. ET start time at the Waldorf Astoria in New York, according to a market source.

Based on filings with the Securities and Exchange Commission, the facility is expected to be sized at $230 million, comprised of a $190 million six-year covenant-light term loan and a $40 million five-year revolver, and priced at Libor plus 325 bps with a 1.25% Libor floor. If the company's corporate credit/family rating is less than B1 or less than B+, the spread will be Libor plus 350 bps.

Additionally, according to the filings, the revolver will have a 75 bps unused fee, and the term loan will have 101 soft call protection for one year.

The source said that official price talk on the deal is not out yet, and isn't expected to emerge until the bank meeting.

Ducommun buying LaBarge

Proceeds from Ducommun's facility, which is being led by UBS Securities LLC and Credit Suisse Securities (USA) LLC, will be used to help fund the acquisition of LaBarge Inc. for $19.25 per share in cash, or $310.3 million, refinance existing debt, and put cash on the balance sheet.

Other funds for the transaction are expected to come from $200 million of senior unsecured notes that are backed by a commitment for a $200 million senior unsecured bridge loan with pricing of Libor plus 675 bps if ratings are B3/B- and Libor plus 750 bps if ratings are lower, with a 1.25% Libor floor.

Closing is expected to take place in the second quarter, subject to approval of LaBarge shareholders and certain other customary conditions, including expiration of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Ducommun is a Carson, Calif.-based provider of engineering and manufacturing services to the aerospace and defense industry. LaBarge is a St. Louis-based supplier of electronics manufacturing services.

CHG Healthcare wraps loan

In other news, CHG Healthcare Services firmed its $217 million first-lien term loan in line with initial talk at Libor plus 400 bps with a 1.5% Libor floor, an original issue discount of 99 7/8 and 101 soft call protection for one year, according to a market source.

The loan has been quoted around par bid, par ½ offered since breaking for trading on Monday, the source said.

Barclays Capital Inc., Bank of America Merrill Lynch and Goldman Sachs & Co. are the lead banks on the deal that is being used to reprice/refinance an existing first-lien term loan priced at Libor plus 550 bps with a step-down to Libor plus 525 bps when leverage is less than 4.0 times. There is a 1.75% Libor floor, and the debt was sold at an original issue discount of 98 when it was obtained in late 2010.

CHG Healthcare Services is a Salt Lake City-based health care staffing provider.

Chrysler closes

Chrysler Group LLC completed its $4.3 billion senior secured deal (Ba2), consisting of a $3 billion six-year term loan B and a $1.3 billion five-year revolver, according to a news release.

Pricing on the tranches is Libor plus 475 bps, with the B loan having a 1.25% Libor floor and being non-callable for one year, then at 102 in year two and 101 in year three. The term loan B was sold at an original issue discount of 99.

During syndication, the revolver was downsized from $1.5 billion and the term loan B was first downsized to $2.5 billion from $3.5 billion and then upsized to $3 billion. Also, pricing on the B loan widened from talk of Libor plus 400 bps to 425 bps, the original issue discount firmed at the wide end of the 99 to 99½ talk, and call protection was sweetened from just 101 soft call for one year.

Chrysler lead banks

Morgan Stanley & Co. Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and Bank of America Merrill Lynch led Chrysler's credit facility, with Morgan Stanley the left lead on the term loan and Citi the left lead on the revolver.

Proceeds, along with new notes and $1.3 billion of proceeds from an investment by Fiat, were used to help repay all of the company's loans provided by the U.S. Department of the Treasury and the Canadian federal and Ontario governments.

The bond offering had initially been sized at $2.5 billion, was then moved to $3.5 billion and then firmed at $3.2 billion.

Chrysler is an Auburn Hills, Mich.-based producer of Chrysler, Jeep, Dodge, Ram, Mopar and Fiat vehicles and products.

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