JLL/Delta, PharMEDium, Dixie, West, Axalta, Jazz free to trade; Avaya gains with repricing

By Sara Rosenberg

New York, Jan. 23 - JLL/Delta Patheon Holdings LP, PharMEDium Healthcare Corp., Dixie Electric LLC (FR Dixie Acquisition Corp.), West Corp., Axalta Coating Systems (previously known as DuPont Performance Coatings) and Jazz Pharmaceuticals Inc. all freed up for trading on Thursday, and Avaya Inc.'s term loan B-5 moved up on repricing news.

Switching to the primary, Inmar Inc. trimmed spreads on its first- and second-lien term loans, Mergermarket USA Inc. revised first- and second-lien term loan sizes, pricing and original issue discounts, and Lightower Fiber Networks lifted the size of its first-lien term loan.

Also, Phillips Pet Food & Supplies reduced pricing on its first- and second-lien term loans and added call protection to the first-lien tranche, and Atrium Innovations reworked first- and second-lien loan sizes, spreads and discounts.

Additionally, Dunkin' Brands Group Inc. released talk with launch, Ocean Rig (Drillships Financing Holding Inc.) came out with offer price guidance on its add-on loan, and SBA Communications Corp., CareCore National LLC, SunSource (STS Operating Inc.) and Vogue International emerged with new deal plans.

JLL/Delta tops OID

JLL/Delta Patheon's credit facility emerged in the secondary market on Thursday, with the $985 million U.S. seven-year term loan B seen at par ½ bid, 101 offered, according to a market source.

Pricing on the U.S. term loan is Libor plus 325 basis points with a 1% Libor floor and it was sold at an original issue discount of 993/4. There is 101 soft call protection for six months.

The company's roughly $1,525,000,000 credit facility (B2/B) also includes a $200 million five-year revolver and a €250 million seven-year term loan B priced at Euribor plus 350 bps with a 1% floor and sold at 991/2. The euro term loan has 101 soft call protection for six months too.

Earlier this week, the U.S. term loan was upsized from $810 million, the spread was cut from talk of Libor plus 400 bps to 425 bps and the discount was revised from 991/2, and pricing on the euro term loan was reduced from talk of Euribor plus 425 bps to 450 bps.

JLL/Delta leads

UBS Securities LLC, J.P. Morgan Securities LLC, Jefferies Finance LLC, KeyBanc Capital Markets and Morgan Stanley Senior Funding Inc. are leading JLL/Delta Patheon's credit facility that will be used, along with equity, to form the company through the combination of DSM Pharmaceutical Products with Patheon Inc.

Under the agreement, JLL Partners and Royal DSM will acquire Patheon for $9.32 per share, implying an equity value of about $1.4 billion and a total enterprise value of $1.95 billion. Patheon will then be merged with DSM Pharmaceutical Products, and the combined company will be 51% owned by JLL and 49% by DSM.

Due to the recent U.S. term loan upsizing, the company's bond offering was reduced to $450 million from $500 million and a seller note was cut by $125 million, the source added.

Closing is expected in the first half of the year, subject to customary conditions.

JLL/Delta Patheon is a contract development and manufacturing organization for the pharmaceutical industry.

PharMEDium breaks

Another deal to free up was PharMEDium, with the $200 million eight-year second-lien covenant-light term loan (Caa2/CCC+) quoted at par ¾ bid, 101 offered and then it moved up to 101¼ bid, 101½ offered, and the $360 million seven-year first-lien covenant-light term loan (B1/B) quoted at par ¾ bid, 101 offered, a trader remarked.

The second-lien term loan is priced at Libor plus 675 bps with a 1% Libor floor and was sold at a discount of 991/2. There is call protection of 102 in year one and 101 in year two.

Pricing on the first-lien term loan is Libor plus 325 bps with a 1% Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

During syndication, pricing on the second-lien term loan was reduced from talk of Libor plus 750 bps to 775 bps and the original issue discount was moved from 99, and the first-lien term loan was upsized from $320 million and the spread was cut from talk of Libor plus 375 bps to 400 bps.

The company's $635 million credit facility also includes a $75 million revolver (B1/B).

PharMEDium being acquired

Proceeds from PharMEDium's credit facility will be used to help fund its buyout by Clayton, Dubilier & Rice, through which Oak Investment Partners and Baird Capital will exit their stakes in the company, while JVC Management will retain a stake.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the financing, with Credit Suisse as the left lead on the second-lien debt and JPMorgan as the left lead on the first-lien debt.

As a result of the first-lien term loan upsizing, the amount of equity being used for the buyout was reduced.

PharMEDium is a Lake Forest, Ill.-based provider of hospital pharmacy-outsourced sterile compounding services.

Dixie above issue price

Dixie Electric's credit facility emerged in the secondary with the $280 million seven-year term loan B quoted at par ¼ bid, 101¼ offered, a market source said.

Pricing on the B loan is Libor plus 475 bps with a 1% Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

Recently, pricing on the term loan B was trimmed from Libor plus 500 bps, the original issue discount was tightened from 99 and the 18-month MFN sunset provision for incremental facilities was removed.

The company's $320 million credit facility (B3/B+) also includes a $40 million five-year revolver.

UBS Securities LLC, Credit Suisse Securities (USA) LLC, Macquarie Capital and Societe Generale are leading the deal that will help fund the company's buyout by First Reserve from One Rock Capital Partners LLC.

Dixie is an Odessa, Texas-based provider of electrical infrastructure materials and services to the upstream oil and gas sector.

West starts trading

West's term loans broke for trading too, with the roughly $2.1 billion term loan B-10 due June 2018 quoted by one trader at par ¼ bid, par ½ offered and by a second trader at par ¼ bid, par 5/8 offered, and the $318 million term loan B-9 due July 2016 quoted by a trader at par ¼ bid, par ½ offered.

Pricing on the B-10 loan is Libor plus 250 bps with a 0.75% Libor floor and it was sold at a discount of 99 7/8, after firming recently at the middle of the 99¾ to par talk. There is 101 soft call protection for six months.

The B-9 loan is priced at Libor plus 200 bps with a 0.75% Libor floor and was sold at par. This tranche has 101 soft call protection for six months as well.

Proceeds from the B-10 loan will be used to reprice an existing term B-8 June 2018 loan from Libor plus 325 bps with a 1% Libor floor, and the B-9 loan will reprice a term B-7 due July 2016 from Libor plus 275 bps with a 1% Libor floor.

Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are leading the deal for the Omaha-based provider of voice-related communication services that is expected to close on Friday.

Axalta hits secondary

Axalta Coating Systems' loans began trading as well, with the $2,283,000,000 covenant-light term loan due Feb. 1, 2020 quoted at par ½ bid, 101 offered, according to one source. Another source then saw the loan move up to 101 bid, 101½ offered.

Pricing on the U.S. term loan is Libor plus 300 bps with a step-down to Libor plus 275 bps if net total leverage is 4.5 times. There is a 1% Libor floor and 101 soft call protection for six months, and it was issued at par.

The company is also getting a €397 million covenant-light term loan due Feb. 1, 2020 priced at Euribor plus 325 bps with a step-down to Euribor plus 300 bps if net total leverage is 4.5 times and a 1% floor. This tranche was issued at par and has 101 soft call protection for six months as well.

During syndication, the step-downs were added to the term loans.

Axalta repricing

Proceeds from Axalta's loans will be used to reprice an existing U.S. term loan from Libor plus 350 bps with a 1.25% Libor floor, and an existing euro term loan from Euribor plus 400 bps with a 1.25% floor.

Barclays, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., UBS Securities LLC, Jeffries Finance LLC and SMBC are leading the deal.

Axalta is a Wilmington, Del.-based supplier of vehicle and industrial coating systems.

Jazz frees up

Jazz Pharmaceuticals' bank debt also hit the secondary, with the $904.4 million term loan due June 12, 018 quoted at par bid, 101 offered, according to a trader.

Pricing on the term loan is Libor plus 250 bps with a 0.75% Libor floor and there is 101 soft call protection for six months. Of the total amount, $350 million is incremental that was sold at a discount of 99½ and $554.4 million is existing that is being repriced from Libor plus 275 bps with a 0.75% floor and was sold at par.

The company is also getting a $225 million incremental revolver due June 12, 2017 that is priced at Libor plus 250 bps with no Libor floor and was issued with an upfront fee of 30 bps for a $20 million commitment and 20 bps for a commitment less than $20 million.

During syndication, the incremental term loan was downsized from $400 million as the incremental revolver was upsized from $175 million, pricing was cut from Libor plus 275 bps, and the repricing component was added.

Jazz buying Gentium

Proceeds from Jazz Pharmaceuticals' incremental bank debt, along with cash on hand, will be used to fund the acquisition of Gentium SpA for $57.00 per share in a transaction that is valued at about $1 billion.

Barclays, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the $1,129,400,000 deal (Ba3/BB+).

Closing is expected this quarter, subject to at least 66.67% of the fully diluted number of ordinary shares and ADS of Gentium being tendered in the offer, and customary conditions.

Jazz is a Dublin, Ireland-based specialty biopharmaceutical company that identifies, develops and commercializes products that address unmet medical needs. Gentium is a Como, Italy-based biopharmaceutical company focused on the development and manufacturing of therapies to treat and prevent a variety of rare diseases and conditions.

Avaya rises

In more trading happenings, Avaya's $1,137,539,846 term loan B-5 strengthened to 101 bid, 101½ offered from par ¾ bid, 101¼ offered as news surfaced that the company would be launching a repricing of the debt on a call at 2 p.m. ET on Thursday, according to a trader.

With the repricing, lenders will get paid out at 101 due to the current soft call protection.

The repricing will be done through a new $1,137,539,846 term loan B-6 due March 31, 2018 talked at Libor plus 500 bps to 525 bps with a 1% Libor floor and 101 soft call protection for six months. Existing lenders are offered the loan at par and new money commitments are talked at an offer price of 99½ to par, a source said.

By comparison, the term loan B-5 is currently priced at Libor plus 675 bps with a 1.25% Libor floor.

Commitments are due at 5 p.m. ET on Jan. 30, the source added.

Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the deal for the Basking Ridge, N.J.-based provider of business collaboration and communications services.

Inmar reverse flexes

Inmar lowered pricing on its $350 million seven-year first-lien covenant-light term loan (B1/B) to Libor plus 325 bps from Libor plus 350 bps, while keeping the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, according to a market source.

Also, pricing on the $105 million eight-year second-lien covenant-light term loan (Caa1/CCC+) was cut to Libor plus 700 bps from Libor plus 750 bps, but the 1% floor, discount of 99 and call protection of 102 in year one and 101 in year two were unchanged, the source said.

The company's $505 million credit facility also includes a $50 million five-year revolver (B1/B).

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC and BNP Paribas Securities Corp. are leading the deal that will be used to help fund the buyout of the company by ABRY Partners from New Mountain Capital.

Inmar is a Winston-Salem, N.C.-based provider of tech enabled promotion and inventory, logistics and settlement services.

Mergermarket sets changes

Mergermarket upsized its U.S. equivalent seven-year first-lien term loan (B2/B) to £165.22 million from £150 million, lowered pricing to Libor plus 350 bps from Libor plus 375 bps and changed the original issue discount to 99¾ from 991/2, according to a market source. The 1% Libor floor and 101 soft call protection for six months were left intact.

As for the U.S. equivalent eight-year second-lien term loan (Caa2/CCC+), it was downsized to £63.88 million from £70 million, pricing was trimmed to Libor plus 675 bps from Libor plus 725 bps and the discount was moved to 99½ from 99, the source said. The debt still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company's credit facility also includes a $40 million five-year revolver (B2/B).

Mergermarket moves deadline

Commitments for Mergermarket's credit facility are due by 5 p.m. ET on Friday, accelerated from Monday, the source continued.

UBS Securities LLC, Mizuho Securities USA Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the acquisition of Mergermarket Group by BC Partners from Pearson plc for £382 million.

The funds from the first-lien term loan upsizing will add cash to the balance sheet, the source added.

Closing is expected by the end of this quarter.

Mergermarket is a provider of corporate financial news, intelligence and analysis with headquarters in New York, London and Hong Kong.

Lightower ups size

Lightower Fiber Networks raised its first-lien term loan due April 2020 to $1.17 billion from $1,095,000,000 and will use the extra funds to pay down second-lien term loan debt, a market source said.

Pricing on the first-lien loan is still Libor plus 325 bps with a 0.75% Libor floor and a par offer price.

The original amount of the first-lien term loan is being used to reprice an existing first-lien term loan from Libor plus 350 bps with a 1% Libor floor.

J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey are leading the deal.

Lightower is a Boxborough, Mass.-based metro fiber and bandwidth provider.

Phillips Pet revised

Phillips Pet Food & Supplies reverse flexed pricing on its $260 million first-lien term loan (B1/B) to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps, and added 101 soft call protection for six months, a market source said. The 1% Libor floor and original issue discount of 99½ were unchanged.

Additionally, pricing on the $130 million second-lien term loan (Caa1/CCC+) was modified to Libor plus 725 bps from talk of Libor plus 750 bps to 775 bps, the source remarked. This tranche still has a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

The company's $450 million credit facility also includes a $60 million ABL revolver.

Commitments are due at noon ET on Friday, moved up from Monday, the source added.

Jefferies Finance LLC, Goldman Sachs Bank USA and BMO Capital Markets are leading the deal that will be used to help fund the buyout of the company by Thomas H. Lee Partners from AEA Investors.

Phillips Pet is an Easton, Pa.-based distributor of pet food and supplies.

Atrium tweaks deal

Atrium Innovations lifted its seven-year covenant-light first-lien term loan (B2/B) to $350 million from $300 million, cut pricing to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps and moved the offer price to 99½ from 99, according to a market source.

Also, pricing on the $125 million equivalent seven-year covenant-light euro first-lien term loan (B2/B) was lowered to Euribor plus 350 bps from talk of Euribor plus 375 bps to 400 bps and the discount was changed to 99½ from 99, the source said.

Furthermore, the 71/2-year covenant-light second-lien term loan (Caa2/CCC+) was downsized to $150 million from $200 million, the spread was lowered to Libor plus 675 bps from talk of Libor plus 750 bps to 775 bps and the discount was tightened to 99½ from 99.

Unchanged was that all of the term loans have a 1% Libor floor, the first-lien term loans have 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Atrium getting revolver

In addition to the term loans, Atrium Innovations' $700 million credit facility includes a $75 million five-year revolver (B2/B).

Commitments are due at 5 p.m. ET on Friday, accelerated up from Tuesday, the source added.

RBC Capital Markets, Deutsche Bank Securities Inc., National Bank Financial Markets and Toronto-Dominion Bank are leading the deal that will be used to help fund the buyout of the company by Permira Advisers for C$24 in cash per share.

Closing is expected this quarter, subject to court approval pursuant to the Canada Business Corporations Act, the approval of Atrium's shareholders and regulatory approvals.

First-lien leverage is 4.7 times and total leverage is 6. 2 times.

Atrium is a Quebec-based dietary supplements developer and manufacturer.

Dunkin' holds call

Dunkin' Brands held a call at 2 p.m. ET on Thursday to launch a $1.83 billion term loan (B+) due 2021 that is being led by J.P. Morgan Securities LLC, Barclays and Goldman Sachs Bank USA, according to a market source.

Talk on the term loan is Libor plus 225 bps to 250 bps with a 0.75% Libor floor, an offer price of 99¾ to par and 101 soft call protection for six months, the source said.

Proceeds will be used to refinance an existing term loan due 2020 that is priced at Libor plus 275 bps with a 1% Libor floor.

Dunkin' Brands, a Canton, Mass.-based franchisor of quick-service restaurants serving hot and cold coffee and baked goods as well as hard-serve ice cream, said in a recent filing with the Securities and Exchange Commission that it expects to close on the refinancing within the next two weeks.

Ocean Rig offer price

Ocean Rig released offer price talk of 101 on its $821 million add-on term loan B-1 due in 2021 that launched with a call, according to a market source.

Pricing is Libor plus 500 bps with a 1% Libor floor.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Barclays and Goldman Sachs Bank USA are leading the deal that will be used to repay the company's term loan B-2 loan due in 2016.

Ocean Rig is a Nicosia, Cyprus-based international offshore drilling contractor.

SBA readies loan

SBA Communications set a call for 10:30 a.m. ET on Monday to launch a $1 billion incremental term loan B, according to a market source.

Citigroup Global Markets Inc. and Barclays are leading the deal.

SBA is a Boca Raton, Fla.-based first choice provider and owner and operator of wireless communications infrastructure.

CareCore coming soon

CareCore scheduled a bank meeting for 2 p.m. ET on Wednesday to launch a $390 million credit facility, according to a market source.

Tranching on the deal is not yet available, the source said.

RBC Capital Markets, Fifth Third Bank and GE Capital Markets Inc. are leading the debt financing that will be used to help fund the buyout of the company by General Atlantic LLC.

CareCore is a Bluffton, S.C.-based provider of specialty benefits management services to managed care organizations, self-insured entities, and risk-bearing provider organizations.

SunSource joins calendar

SunSource will hold a bank meeting at 10 a.m. ET on Friday to launch a $280 million senior secured credit facility (B), according to a market source.

The facility consists of a $25 million five-year revolver and a $255 million seven-year first-lien term loan, the source said.

Barclays and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt and fund a one-time dividend.

Senior secured and total leverage is 4.4 times.

SunSource is a fluid power and motion-control technologies provider.

Vogue on deck

Vogue International scheduled a bank meeting for Tuesday to launch a $445 million credit facility, according to a market source.

The facility consists of a $30 million revolver and a $415 million term loan, the source said.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to help fund the buyout of the company by the Carlyle Group.

Vogue is a Tampa Bay, Fla.-based manufacturer and distributor of salon-heritage hair care and other personal care products.

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