SGS, iStar, Gray TV, Nexeo, GCA, First American free up; Momentive, Clear Channel rise

By Sara Rosenberg

New York, Oct. 11 - Southern Graphics Inc. (SGS International Inc.), iStar Financial Inc., Gray Television Inc., Nexeo Solutions LLC, GCA Services Group Inc. and First American Payment Systems LP all broke for trading during Thursday's market hours.

Also in the secondary, Momentive Performance Materials Inc.'s term loans headed higher on refinancing plans, and Clear Channel Communications Inc. was better with news of an upcoming conference call.

Moving to the primary, Fortescue Metals Group upsized its term loan and tightened the coupon as well as the Libor floor, and Artel Inc., Village Roadshow Films (BVI) Ltd. and Confie Seguros announced new deal plans.

Furthermore, Kronos Inc., nTelos Inc., Western Dental Services Inc., Endurance International Group (EIG Investors Corp.), Dexter Axle, MMM Holdings Inc., SumTotal Systems Inc. and Buffalo Gulf Coast Terminals LLC released talk with launch, and IMS Health Inc. began circulating original issue discount guidance.

Southern Graphics breaks

Southern Graphics' credit facility made its way into the secondary market on Thursday, with the $400 million seven-year first-lien covenant-light term loan quoted at 99¾ bid, according to a market source.

Pricing on the term loan is Libor plus 375 basis points with a step-down to Libor plus 350 bps if net first-lien secured leverage is less than 2.8 times. There is a 1.25% Libor floor and 101 repricing protection for one year, and the debt was sold at an original issue discount of 991/2.

Of the total term loan amount, $365 million will be funded and there is a $35 million delayed-draw tranche that has a ticking fee of half the spread after 30 days and the full spread after 60 days.

During syndication, the term loan was increased from $375 million as the delayed-draw tranche was added and the funded amount was reduced, pricing was flexed down from Libor plus 425 bps, the step-down was added and the discount was revised from 99.

SGS being acquired

Proceeds from Southern Graphic's $475 million credit facility (B1/B), which also includes a $75 million five-year revolver, will be used to help fund the buyout of the company by Onex Corp. from Court Square Capital Partners for $813 million. The delayed-draw loan will be for acquisition financing.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs & Co. are the lead banks on the deal.

Closing is expected in the fourth quarter, subject to customary regulatory approvals.

Southern Graphics is a Louisville, Ky.-based provider of design-to-print graphics services to the consumer products packaging industry.

iStar hits secondary

iStar Financial's $1.83 billion five-year term loan B (B1/BB-) started trading in the afternoon, with levels quoted at 99¾ bid, par ¼ offered on the open and then it moved to 99 7/8 bid, par ¼ offered, a trader said.

Pricing on the loan is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

J.P. Morgan Securities LLC, Barclays and Bank of America Merrill Lynch are the lead arrangers on the loan that will be used to refinance the entire remaining balance of the company's 2011 senior secured credit facility, which is comprised of two tranches scheduled to mature in 2013 and 2014.

iStar is a New York-based fully integrated finance and investment company focused on the commercial real estate industry.

Gray TV starts trading

Gray Television freed up too, with its $555 million term loan B (B2/B+) quoted at par bid, par ½ offered, according to a market source.

Pricing on the B loan is Libor plus 375 bps with a step-down to Libor plus 350 bps based on leverage. There is a 1% Libor floor as well as 101 soft call protection for one year, and it was sold at discount of 991/2.

Last week, the term loan B was downsized from $575 million, pricing firmed at the tight end of the Libor plus 375 bps to 400 bps guidance, the step-down was added and the discount was revised from 99.

The company is also getting a $40 million super-priority revolver (Ba3/BB-) as part of its now $595 million senior secured credit facility.

Gray TV refinancing

Proceeds from Gray Television's credit facility and $300 million of senior notes will be used to repurchase up to $268.5 million of its 10½% senior secured second-lien notes due 2015 in a tender offer that expires on Oct. 22 and redeem outstanding shares of its series D perpetual preferred stock.

The notes priced in September at 99.266 to yield 7 5/8% after being upsized from $250 million, which resulted in the term loan B being reduced to $575 million from an originally anticipated amount of $625 million.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are the lead banks on the credit facility.

Gray Television is an Atlanta-based television broadcast company.

Nexeo tops OID

Nexeo's $175 million incremental term loan (B) due Sept. 9, 2017 began trading, with levels quoted at 98¼ bid, 98¾ offered, according to a trader.

The loan, which was initially talked with a size of $150 million to $200 million, is priced at Libor plus 350 bps with a 1.5% Libor floor, and was sold at an original issue discount of 98. The spread and floor match the existing term loan B.

Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used to pay down ABL revolver borrowings and for general corporate purposes.

Nexeo is a Woodlands, Texas-based distributor of chemicals, plastics and composites.

GCA frees up

Another deal to make its way into the secondary was GCA Services, with both its $325 million seven-year first-lien term loan (B1/B) and $150 million eight-year second-lien term loan (Caa1/CCC+) quoted at par bid, par ½ offered, according to a market source.

The company is also getting a $65 million revolver (B1/B) that sold with a 100 bps upfront fee.

Recently, the revolver was upsized from $60 million, the first-lien term loan (B1/B) was upsized from $315 million and pricing on both tranches was cut to Libor plus 400 bps from Libor plus 425 bps. The first-lien term loan also saw the addition of a step-down to Libor plus 375 bps when first-lien leverage is less than 3 times, and its original issue discount was changed to 99½ from 99.

Furthermore, pricing on the second-lien term loan was lowered to Libor plus 800 bps from talk of Libor plus 825 bps to 850 bps and the original issue discount was modified to 99 from 981/2.

Unchanged was the 1.25% Libor floor on all tranches, the 101 one year repricing protection on the first-lien loan and the call protection of 103 in year one, 102 in year two and 101 in year three on the second-lien loan.

GCA lead banks

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Jefferies & Co. are leading GCA's $540 million senior secured credit facility.

Proceeds will help fund the purchase of the company by Blackstone from Nautic Partners LLC and other minority shareholders, which is expected to close this month, subject to certain government approvals and other customary conditions.

The additional funds raised through the revolver upsizing will be used for general corporate purposes, and the first-lien term loan upsizing will be used to increase the restricted cash balance to cash collateralize letters of credit, the source added.

GCA Services is a Cleveland-based facility services company that provides customized janitorial/custodial, facilities operations and maintenance, grounds management, diversified staffing and other ancillary services.

First American levels

First American Payment Systems' credit facility broke as well, with the $250 million six-year first-lien term loan (B1/B) quoted at par bid, par ½ offered, and the $125 million 61/2-year second-lien term loan (Caa1/CCC+) quoted at 99 bid, par offered, according to a market source.

Pricing on the first-lien loan is Libor plus 450 bps, after flexing recently from Libor plus 500 bps. There is a 1.25% Libor floor and 101 repricing protection for one year, and it was sold at a discount of 99.

The second-lien loan is priced at Libor plus 950 bps with a 1.25% floor, and was sold at a discount of 98. This debt has call protection of 103 in year one, 102 in year two and 101 in year three.

Also included in the $405 million credit facility is a $30 million five-year revolver (B1/B)

Proceeds will be used to refinance existing debt and fund a dividend.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the lead banks on the deal.

First American Payment is a Fort Worth, Texas-based provider of payment processing services.

Momentive gains ground

In more trading happenings, Momentive Performance Materials' term loans were stronger on Thursday following news that the debt will be repaid in full with proceeds from a bond offering, according to a trader.

Both the term loan B-1 and the term loan B-3 were quoted at 99¼ bid, par ¼ offered, up from 96½ bid, 97½ offered, the trader said.

In the morning, the company said that it would issue $1.1 billion of first-priority senior secured notes and use the proceeds to repay its existing senior secured credit facility in full, to redeem all $200 million of its 12½% second-lien senior secured notes due 2014 and for general corporate purposes.

In connection with the refinancing, the company plans on getting a $300 million asset-based revolver, for which $270 million in commitments has already been received and the additional $30 million in commitments are expected to be obtained following the bond sale.

Momentive is a Columbus, Ohio-based producer of thermoset resins.

Clear Channel gains

Clear Channel's term loan B rallied in the secondary as news surfaced that the company will be holding a conference call on Friday that is being hosted by Citigroup Global Markets Inc., according to traders

One trader had the term loan B quoted at 85 bid, 86 offered, up from 82¼ bid, 83¼ offered, and a second trader had the loan quoted at 84½ bid, 85½ offered, up from 82 5/8 bid, 83 1/8 offered.

Details on what the upcoming conference call is regarding are not yet available.

Clear Channel is a San Antonio-based media and entertainment company.

Fortescue reworks deal

Over in the primary, Fortescue Metals lifted its five-year covenant-light senior secured term loan (Ba1/BB+/BBB-) to $5 billion from $4.5 billion, trimmed pricing to Libor plus 425 bps from Libor plus 475 bps and revised the Libor floor to 1% from 1.25%, according to a market source.

As before, the loan has an original issue discount of 99 and 101 soft call protection for one year.

Recommitments were due at noon ET on Thursday, the source added.

Credit Suisse and J.P. Morgan Securities LLC are leading the deal that will be used to refinance all of the company's existing bank debt and to provide additional liquidity.

Fortescue is an East Perth, Australia-based iron ore producer.

Artel coming soon

Looking ahead, Artel set a bank meeting for Monday to launch a $165 million credit facility that is being led by RBC Capital Markets, according to a market source.

The facility consists of a $20 million revolver and a $145 million term loan B, the source said.

Proceeds will be used to refinance existing debt and fund a dividend.

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

Village Roadshow plans deal

Village Roadshow Films will be holding a call at 10 a.m. ET on Wednesday to launch a new $875 million five-year credit facility, according to a market source.

The facility consists of a $325 million revolver, and a $550 million term loan B that is talked at Libor plus 400 bps with a 1.25% Libor floor and an original issue discount of 99, the source said. The B loan is non-callable for two years, then at 101 in year three.

J.P. Morgan Securities LLC and Rabobank are leading the deal for the Australian-based filmed entertainment company.

Proceeds will be used to refinance an existing senior secured credit facility and acquire pictures one year after theatrical release.

Confie Seguros joins calendar

Confie Seguros scheduled a bank meeting for Wednesday to launch a $437 million credit facility that consists of a $75 million revolver, a $252 million first-lien term loan and a $110 million second-lien term loan, according to a market source.

RBC Capital Markets and GE Capital Markets are leading the deal.

Confie Seguros, a New York-based provider of personal lines insurance, will use the credit facility to help fund its buyout by ABRY Partners from Genstar Capital.

Kronos reveals details

In other news, Kronos, a Chelmsford, Mass.-based provider of workforce management software, held a meeting on Thursday morning to kick off syndication on its credit facility, and with the event, price talk on the first-and second-lien covenant-light term loans was disclosed, according to a market source.

The 1,155,000,000 seven-year first-lien term loan is talked at Libor plus 400 bps to 425 bps and the $745 million 71/2-year second-lien term loan is talked at Libor plus 825 bps to 850 bps, with both tranches having a 1.25% Libor floor and an original issue discount of 99, the source remarked.

As previously reported, the first-lien term loan includes 101 repricing 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.

Proceeds from the $1,965,000,000 credit facility, which also provides for a $65 million five-year revolver, will be used to refinance existing debt and fund a dividend.

Lead banks, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC, are seeking commitments by Oct. 23, the source added.

nTelos guidance emerges

nTelos revealed talk of Libor plus 400 bps to 425 bps with a 1% Libor floor on its $475 million seven-year term loan B (B1/BB-) shortly before the morning conference call took place to launch the debt to investors, according to market sources.

Early on in the day, the original issue discount on the loan was labeled as still to be determined, but by the afternoon, sources were hearing that the debt is being offered at 99.

J.P. Morgan Securities LLC, UBS Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance an existing term loan.

nTelos is a Waynesboro, Va., provider of wireless and wireline communications services.

Western Dental releases talk

Western Dental Services came out with talk of Libor plus 550 bps to 600 bps with a 1.25% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year on its $275 million term loan, according to a market source.

The company's $300 million senior secured credit facility, which launched with a bank meeting during the session, also includes a $25 million revolver.

Commitments are due on Oct. 24, the source said.

Jefferies & Co. and BMO Capital Markets Corp. are leading the transaction that will help fund the acquisition of the company by New Mountain Capital LLC.

Leverage is 4.1 times, and there is 52% equity.

Western Dental is an Orange, Calif.-based dental and oral health maintenance organization.

Endurance holds call

Endurance International launched its $1,115,000,000 of new covenant-light term loans with a call in the afternoon, and price talk on the debt was announced, according to a market source.

The $800 million seven-year first-lien term loan is talked at Libor plus 500 bps and the $315 million 71/2-year second-lien term loan is talked at Libor plus 900 bps, with both having a 1.25% Libor floor and an original issue discount of 99, the source remarked.

As previously reported, the first-lien term loan has 101 repricing 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.

Lead banks, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Goldman Sachs & Co., are asking for commitments by Oct. 26.

Proceeds will be used by the Burlington, Mass.-based provider of web hosting and online services to refinance existing debt and fund a dividend.

Dexter Axle pricing

Dexter Axle launched its $185 million six-year term loan B on Thursday with price talk of Libor plus 500 bps to 525 bps with a 1.5% Libor floor and an original issue discount of 99, a market source said.

BNP Paribas Securities Corp. is the lead bank on the $210 million credit facility that also provides for a $25 million five-year revolver.

Proceeds, along with $60 million of mezzanine debt, will fund the buyout of the company by Sterling Group from Pinafore Holdings BV for about $360 million.

Closing is expected in the fourth quarter, subject to customary conditions.

Dexter Axle is an Elkhart, Ind.-based manufacturer of trailer axle, brake and suspension assemblies and related replacement parts and components.

MMM discloses guidance

MMM Holdings launched its $450 million term loan B with talk of Libor plus 825 bps with a 1.5% Libor floor, an original issue discount of 98 and soft call protection of 102 in year one and 101 in year two, according to a market source.

The company's $480 million five-year credit facility (B2/B+) also includes a $30 million revolver.

Commitments are due on Oct. 19, the source remarked.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Jefferies & Co. are leading the deal that will refinance existing debt and to fund a dividend.

MMM is a Medicare Advantage insurer in Puerto Rico.

SumTotal talk comes out

SumTotal Systems set talk on its $405 million seven-year covenant-light first-lien term loan at Libor plus 425 bps to 450 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source. The loan has 101 soft call protection for one year.

Also, guidance on the $160 million eight-year covenant-light second-lien term loan emerged at Libor plus 825 bps to 850 bps with a 1.25% Libor floor and a discount of 981/2, the source said. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $595 million credit facility, which launched with a bank meeting in the afternoon, also includes a $30 million five-year revolver.

Commitments are due at 5 p.m. ET on Oct. 22.

Bank of America Merrill Lynch, Goldman Sachs & Co. and J.P. Morgan Securities LLC are leading the deal that will refinance existing debt and fund a dividend.

SumTotal is a Gainesville, Fla.-based human resource software company.

Buffalo Gulf launches

Another company to reveal talk was Buffalo Gulf Coast Terminals, with its $280 million secured term loan (Ba1/BB+) launching Thursday at Libor plus 400 bps to 425 bps with a 1.25% Libor floor, an original issue discount of 99¾ and 101 hard call protection for one year, according to a market source.

Commitments are due on Oct. 18, the source said.

Barclays is leading the deal that will refinance a roughly $275 million term loan priced at Libor plus 600 bps with a 1.5% Libor floor, and pay fees and expenses, including the 102 call premium that existing lenders are receiving with this transaction.

Buffalo Gulf Coast is the owner of Houston Fuel Oil Terminal Co. LLC, a provider of crude and residual fuel oil storage in the Gulf of Mexico.

IMS floats OID

IMS Health released original issue discount talk of 99 to 99½ on its $750 million add-on term loan that is scheduled to launch with a call on Friday, according to sources.

Pricing on the debt will match existing term loan pricing, so any U.S. portion will be priced at Libor plus 325 basis points with a 1.25% Libor floor and any euro portion will be priced at Euribor plus 350 bps with a 1.5% floor, sources said.

Bank of America Merrill Lynch and Goldman Sachs & Co. are leading the deal that will fund a dividend.

IMS is a Parsippany, N.J.-based provider of information, services and technology for the health care industry.

Quintiles sets deadline

Also on the primary side, Quintiles Transnational Corp. revealed that it is looking for commitments for its $175 million non-fungible term loan B-1 loan due June 2018 by Oct. 17, after launching to investors this past Wednesday, according to a market source.

Price talk on the loan is Libor plus 325 bps to 350 bps with a 1.25% Libor floor and an original issue discount of 991/2, and the debt includes 101 soft call protection for one year.

The company's $250 million of new bank debt (B1/BB-) also includes a $75 million incremental revolver due June 2017.

J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal that will be used to pay a distribution to shareholders of Quintiles Transnational Holdings Inc.

Quintiles Transnational is a Durham, N.C.-based contract research organization.

Pep Boys closes

Pep Boys - Manny, Moe & Jack completed on Thursday its $200 million six-year term loan B (Ba2/BB-), according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the B loan is Libor plus 375 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/4, after flexing during syndication from Libor plus 400 bps with a 1.25% floor and a discount of 99. There is 101 soft call protection for one year.

Wells Fargo Securities LLC and Bank of America Merrill Lynch led the deal that was used to refinance an existing term loan and senior subordinated notes.

Pep Boys is a Philadelphia-based automotive aftermarket chain.

© 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.