Belfor, Harron break; Mold-Masters rises; Emergency Medical, Mood Media talk surfaces

By Sara Rosenberg

New York, April 5 - Belfor and Harron Communications LP saw their credit facilities make their way into the secondary market on Tuesday, with both companies' term loans quoted above their original issue discount prices, and Mold-Masters' term loan headed higher with sell-down news.

Over in the primary, Emergency Medical Services Corp. came out with price talk on its upsized credit facility, and Mood Media Corp. released proposed spreads, as both deals were officially presented to lenders during the session.

Also, Verint Systems Inc. and PaperWorks Industries emerged with plans to bring refinancing transactions to market and began circulating price talk on their deals, and Ameristar Casinos Inc.'s reduced pricing on its term loan B.

Belfor starts trading

Belfor's credit facility freed up for trading in the morning, with the $250 million six-year term loan B quoted at par ¼ bid, par ¾ offered on the open and then it moved up to par ½ bid, 101 offered, according to a trader.

Pricing on the term loan B is Libor plus 300 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

The company's $460 million credit facility (Ba2/BB-) also includes a $125 million revolver and an $85 million term loan A.

During syndication, the term loan B was downsized from $260 million as the A loan was upsized from $75 million, pricing on the B loan was reduced from initial talk of Libor plus 325 bps to 350 bps and the discount firmed at the tight end of the 99 to 99½ talk.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used by the disaster recovery and property restoration company to refinance existing debt.

Harron frees up

Also breaking for trading was Harron Communications' credit facility, with its $300 million term loan B due 2017 quoted at par 1/8 bid, par ½ offered on the open and then it moved as high as par ½ bid, according to a market source.

Pricing on the term loan B is Libor plus 375 bps, after firming at the tight end of the Libor plus 375 bps to 400 bps talk, with a 1.5% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

The company's $600 million credit facility (B2/B) also includes a $100 million revolver due 2016 and a $200 million term A due 2016, with both priced at Libor plus 300 bps with no Libor floor.

SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC and Credit Agricole Securities (USA) Inc. are the lead banks on the deal that will be used to refinance an all pro rata bank facility and redeem about $54 million of preferred equity.

Harron Communications is a Frazer, Pa.-based provider of digital television, high speed internet, digital phone and business services.

Mold-Masters trades up

Mold-Masters' term loan moved up to wrap around 95 from 92½ bid, 93½ offered following news that Societe Generale is preparing to sell down what's left of the tranche, according to a market source.

Specifically, Societe Generale is holding a conference call on Wednesday to launch the sell-down of the term loan to lenders at a discount price of 95. Pricing on the loan is Libor plus 350 bps with no Libor floor.

Currently, the term loan is sized at $214 million. However, the deal was already partially syndicated, so Societe Generale has less than half of that amount to sell.

Mold-Masters is an Ontario-based designer, manufacturer and supporter of hot runner products, including hot runner systems, temperature controllers, hot halves and gating technologies.

Emergency Medical sets talk

Moving to the primary, Emergency Medical Services held a bank meeting at 10:30 a.m. ET on Tuesday at the W Hotel in New York to formally kick off syndication on its proposed $1.79 billion credit facility, and in connection with the event, price talk was announced, according to a market source.

The $350 million ABL revolver is being talked at Libor plus 250 bps with no Libor floor, the source said.

And, the $1.44 billion term loan B (B1/B+), which has been upsized from $1.375 billion to account for a small acquisition, is being talked at Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 991/2, the source continued.

There was some pre-marketing on the deal, and chatter is that the transaction had been met with a strong amount of interest during that stage.

Commitments are due from lenders on April 14.

Emergency Medical lead banks

Deutsche Bank Securities Inc., Barclays Capital Inc., Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., RBC Capital Markets LLC, UBS Investment Bank, Natixis and Citigroup Global Markets Inc. are the lead banks on Emergency Medical Services' credit facility, with Deutsche the left lead.

Proceeds will be used to help fund the acquisition of the company by Clayton, Dubilier & Rice LLC for $64 in cash per share of common stock and exchangeable unit. The transaction is valued at $3.2 billion.

Originally, a bank meeting for the credit facility had been scheduled to take place on March 17, but the launch was delayed because the Securities and Exchange Commission decided to review the company's proxy.

Emergency Medical plans notes

In addition to the credit facility, Emergency Medical Services plans to issue $950 million of senior unsecured notes and get up to $900 million of equity to help fund its buyout.

The notes are backed by a bridge loan commitment.

Closing on the buyout is expected in the second quarter, subject to customary conditions, including regulatory approvals and approval by the company's stockholders. Onex Corp., the holders of the company's LP exchangeable units, have sufficient voting power to approve the buyout and have agreed to vote in favor of adoption of the agreement.

Emergency Medical Services is a Greenwood Village, Colo.-based provider of health care transportation services and outsourced physician services to health care facilities.

Mood Media spreads surface

Mood Media came out with spread guidance on its $480 million credit facility as this deal was also launched to investors during market hours, according to a source.

The $25 million five-year revolver and the $390 million seven-year first-lien term loan are both being talked at Libor plus 475 bps to 500 bps, and the $65 million 71/2-year second-lien term loan is being talked at Libor plus 900 bps, the source said.

When the bank meeting date emerged earlier this week, it was disclosed that all tranches include a 1.5% Libor floor and are being offered at an original issue discount of 99. It was only the spread that was labeled as to be determined.

Also, the first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Mood Media acquiring Muzak

Proceeds from Mood Media's credit facility will be used to help fund the acquisition of Muzak Holdings LLC for $345 million, including net debt to be repaid on closing, and to refinance existing debt.

The combined company will have LTM pro forma revenue of about $400 million and trailing LTM pro forma EBITDA in excess of $100 million.

The acquisition is expected to close during the second quarter.

Credit Suisse Securities (USA) LLC is the lead bank on the credit facility and is asking for commitments by April 18.

Mood Media is a Toronto-based in-store media specialist. Muzak is a Fort Mill, S.C.-based provider of sensory branding services.

Citco holds U.S. launch

Also launching with a bank meeting in New York on Tuesday was Citco Group of Cos.' $490 million seven-year term loan, which is being guided at Libor plus 350 bps to 375 bps with a 1.25% Libor floor and an original issue discount of 991/2.

Price talk on the loan emerged on Monday as the company held a bank meeting in London to launch the transaction to European investors.

UBS Securities LLC and Deutsche Bank Securities Inc. are the lead banks on the deal that will be used to refinance existing debt.

Citco is a provider of financial services to hedge funds, private equity and real estate firms, institutional banks, companies and high net worth individuals.

Verint floats talk

In more primary happenings, Verint Systems began distributing price talk of Libor plus 350 bps to 375 bps with a 1.25% Libor floor and an original issue discount of 99 on its proposed $780 million credit facility that is set to launch with a bank meeting on Wednesday, according to a market source.

The facility consists of a $200 million five-year revolver that includes a 50 bps unused fee and a $580 million 61/2-year term loan.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are the lead banks on the deal that will be used to refinance existing debt.

Commitments are due from lenders on April 25.

Verint Systems, a Melville, N.Y.-based provider of actionable intelligence and value-added services, will have total leverage of less than 3 times.

PaperWorks readies deal

PaperWorks Industries is targeting a bank meeting on April 12 to launch a proposed $250 million credit facility and early price talk is Libor plus 450 bps with a 1.5% Libor floor based on expected ratings of B2/B, according to a market source.

The facility consists of a $40 million revolver and a $210 million term loan.

BMO Capital Markets Corp. is the lead bank on the deal that will be used to refinance existing debt.

PaperWorks is a Philadelphia-based integrated coated-recycled board and folding carton company.

Ameristar flexes lower

Ameristar Casinos announced on Tuesday that it reduced pricing on its $700 million seven-year term loan B to Libor plus 300 basis points from Libor plus 325 bps, while leaving the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for one year unchanged, according to a market source.

The company's $1.4 billion credit facility (Ba3/BB+) also provides for a $200 million five-year term loan A and a $500 million five-year revolver, both talked at Libor plus 275 bps.

Commitments are due at the end of the day on Wednesday.

Financial covenants include maximum net total leverage, maximum net secured leverage and minimum interest coverage ratios. Initially, the deal was expected to be covenant-light, but after some early talks, the company decided to add covenants to the structure.

Ameristar buying shares

Proceeds from Ameristar's credit facility, along with $800 million of senior unsecured notes, will be used to retire $1.5 billion of existing senior credit facility borrowings and senior notes, to fund a share repurchase and for general working capital purposes.

The Las Vegas-based gaming and entertainment company is buying 26.15 million shares of its common stock held by the Craig H. Neilsen Estate at a price of $17.50 per share, for a total price of roughly $457.6 million. These shares represent about 45% of Ameristar's outstanding shares and 83% of the Neilsen Estate's current ownership in the company.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the lead banks on the credit facility.

Closing on the transaction is expected in the second quarter, subject to financing and customary conditions, including receipt of any necessary gaming and other regulatory approvals.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.