AMC Networks prices, starts trading; Husky, Totes, Avantor, Embanet, Evergreen tweak deals

By Sara Rosenberg

New York, June 22 - AMC Networks Inc. (Rainbow Media Holdings LLC) determined pricing on its term loan B on Wednesday and then saw the debt free up for trading above its original issue discount price.

In more loan happenings, Husky International Ltd. firmed pricing on its term loan B at the wide end of talk and adjusted the call premium, and Totes-Isotoner Corp. raised the spread and original issue discount on its first-lien term loan, while also adding call protection.

Also, Avantor Performance Materials Holdings SA and Embanet-Compass Knowledge Group reduced spreads on their term loans, and Evergreen International Aviation Inc. is wrapping its first-lien term loan with a smaller size and higher pricing and an original issue discount price that came at the high side of guidance.

Furthermore, Hawaiian Telcom Holdco Inc. began circulating price talk on its upcoming term loan, and Rent-A-Center Inc. revealed timing on the launch of its all pro rata deal.

AMC sets spread, breaks

AMC Networks firmed pricing on its $595 million 71/2-year term loan B at Libor plus 300 basis points, the wide end of the Libor plus 275 bps to 300 bps talk, and left the 1% Libor floor and an original issue discount of 99½ intact, according to a market source.

Once the spread on the loan was figured out, the debt hit the secondary market late in the day, with levels quoted at par bid, par ½ offered, the source said.

The company's $2.225 billion senior secured credit facility (Ba2/BB+) also includes a $1.13 billion six-year term loan A and a $500 million five-year revolver, both priced at Libor plus 200 bps, with the revolver having a 37.5 bps unused fee.

Earlier in syndication, the B loan was upsized from $565 million while the A loan was downsized from $1.16 billion.

AMC lead banks

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the lead banks on AMC Networks' credit facility, which is in connection with the spinoff of Rainbow Media from Cablevision Systems Corp.

Proceeds, along with $700 million of senior notes, will be used to refinance all existing Rainbow Media debt and to repay $1.25 billion of Cablevision and/or CSC Holdings LLC debt. The revolver will also be available for general corporate purposes.

Completion of the spinoff is expected by the end of this month.

Following the spinoff, AMC's assets will include programming networks AMC, WE tv, IFC, Sundance Channel and Wedding Central, IFC Entertainment, an independent film business, and Rainbow Network Communications, a network programming origination and distribution company.

Husky updates pricing

Husky International set pricing on its $920 million covenant-light term loan B at the high end of revised talk and ended up with hard call protection of 101 for one year, instead of soft call protection, a market source told Prospect News.

Pricing on the loan is Libor plus 525 bps with a 1.25% Libor floor and an original issue discount of 99, the source said. Most recently, the deal had been talked at Libor plus 500 bps to 525 bps with a discount of 99 to 991/2, and at launch, spread guidance was Libor plus 425 bps to 450 bps.

The company's $1.03 billion credit facility (B) also provides for a $110 million revolver.

Goldman Sachs & Co., Morgan Stanley & Co. Inc., RBC Capital Markets LLC and TD Securities (USA) LLC are leading the deal.

Husky being acquired

Proceeds from Husky's credit facility will be used to help fund the buyout of the company by Berkshire Partners LLC and Omers Private Equity Inc. from Onex Corp. for $2.1 billion.

Other funds for the acquisition will come from $570 million of eight-year senior notes that were privately placed.

Closing on the transaction is expected early in the third quarter, subject to customary conditions.

Husky is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry.

Totes flexes first-lien

Also coming out with revisions was Totes-Isotoner, as it widened the spread and discount on its $145 million six-year first-lien term loan (B3/B) and $15 million six-year final maturity delayed-draw first-lien term loan (B3/B), according to a market source.

Specifically, pricing on the $160 million of first-lien term loan debt is now set at Libor plus 575 bps, up from Libor plus 525 bps, the original issue discount moved to 98 from 99 and 101 soft call protection for one year was added, the source said. The 1.5% Libor floor was left unchanged.

Recommitments were due at 5 p.m. ET on Wednesday.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Totes revolver, second-lien

Totes-Isotoner's $325 million credit facility also includes an $85 million five-year ABL revolver and an $80 million 61/2-year second-lien term loan (Caa2/CCC+).

Pricing on the second-lien term loan ended up in line with initial talk at Libor plus 925 bps with a 1.5% Libor floor and an original issue discount of 97, the source said. This tranche includes call protection of 103 in year one, 102 in year two and 101 in year three, with a carve-out for change of control at par.

Proceeds from the credit facility will be used to refinance existing debt and pay a dividend to shareholders.

Totes-Isotoner is a Cincinnati-based marketer of umbrellas, gloves, rainwear, rubber overshoes and other weather-related accessories.

Avantor cuts spread

Continuing on the topic of changes, Avantor Performance Materials trimmed pricing on its $185 million six-year term loan to Libor plus 375 bps from Libor plus 400 bps, while leaving the 1.25% Libor floor and original issue discount of 99½ intact, according to a market source. There is 101 soft call protection for one year.

The company's $220 million credit facility (Ba3/BB-) also provides for a $35 million revolver.

Credit Suisse Securities (USA) LLC is the lead bank on the deal that will be used to refinance existing debt and fund an acquisition.

Avantor is a Phillipsburg, N.J.-based chemical company.

Embanet reverse flexes

Embanet-Compass Knowledge cut pricing on its $125 million six-year term loan to Libor plus 425 bps from Libor plus 450 bps and left the 1.25% Libor floor and original issue discount of 99 unchanged, according to a market source.

The company's $130 million credit facility also includes a $5 million five-year revolver.

Recommitments are due at noon ET on Thursday.

Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp. and BMO Capital Markets Corp. are the lead banks on the deal that will be used to refinance existing debt.

Embanet-Compass is a Chicago-based provider of online learning services to universities and colleges.

Evergreen reworks deal

Evergreen International Aviation reduced its first-lien term loan to $190 million from $225 million, raised pricing to Libor plus 1,000 bps from talk of Libor plus 900 bps to 950 bps and set the original issue discount at 97, the wide end of the 97 to 98 talk, according to a market source.

The term loan still has a 1.5% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

The McMinnville, Ore.-based aviation services company's $200 million credit facility (B+), down from $235 million, also includes a $10 million revolver.

The downsizing of the term loan resulted from an asset sale by the company and a decision to forgo a $5 million pay down on the second-lien term loan.

Goldman Sachs & Co. is the lead bank on the deal that will be used to refinance existing debt.

Hawaiian Telcom floats talk

Hawaiian Telcom began distributing talk of Libor plus 550 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year on its $300 million six-year term loan (B1) as the deal is getting ready to launch with a bank meeting on Thursday, according to sources.

By comparison, in a previous filing with the Hawaii Public Utilities Commission, the company said that it was projecting pricing of Libor plus 475 bps with a 1.25% Libor floor on the loan.

Credit Suisse Securities (USA) LLC is the lead arranger on the term loan.

The company's $330 million credit facility also includes a $30 million revolver (Ba1) that is being done by First Hawaiian Bank.

Hawaiian Telcom repaying debt

Proceeds from Hawaiian Telcom's credit facility will be used to refinance an existing $300 million term loan due Oct. 28, 2015 that is priced at Libor plus 600 bps with a 3% Libor floor and a $30 million revolver that is priced at Libor plus 400 bps with a 1.5% floor.

Leverage is 2.6 times and net leverage is 2.0 times, sources added.

Plans for the transaction were announced last month, with the hope being that the deal would come to market within a few weeks. Holding up the process a little bit was the need for approval from the Hawaii Public Utilities Commission to proceed with the refinancing. However, that hurdle has now been cleared as the commission gave the company the okay last Friday.

Hawaiian Telcom is a Honolulu, Hawaii-based provider of integrated communications services.

Rent-A-Center timing

Rent-A-Center will be holding a bank meeting on Thursday to launch its recently announced $750 million senior credit facility, according to a market source.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Compass Bank and Wells Fargo Securities LLC are the joint lead arrangers and bookrunners on the deal.

The facility, which consists of $250 million term loan A and a $500 million revolver, will be used to refinance about $358 million of existing senior term debt and replace a $375 million revolver that is set to mature on Sept. 30, 2013.

Rent-A-Center, a Plano, Texas-based rent-to-own operator, expects to complete the refinancing in the third quarter.

Cloverhill sets pricing

In other news, Cloverhill Bakery finalized the spread on its $165 million credit facility at Libor plus 400 bps, the low end of the Libor plus 400 bps to 450 bps talk, according to a market source.

As before, the facility includes a 1.5% Libor floor and was sold at an original issue discount of 99.

Earlier, it was known that the deal had filled out at the tight end of talk, but whether there was going to be a pricing was still to be determined.

GE Capital Markets is the lead bank on the deal that consists of a $10 million revolver and a $155 million term loan, and will be used to refinance existing debt.

Allocations have already gone out, the source added.

Cloverhill is a Chicago-based pre-packaged pastry company.

TriMas closes

TriMas Corp. completed its $335 million senior secured credit facility (Ba2/BB) consisting of a $110 million five-year revolver and a $225 million six-year term loan B, according to a news release.

Pricing on the term loan B is Libor plus 300 bps, after flexing down from talk of Libor plus 325 bps to 350 bps. 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.

The revolver, which was upsized from $75 million, is priced at Libor plus 325 bps after firming at the low end of the Libor plus 325 bps to 350 bps talk.

J.P. Morgan Securities LLC led the deal that was used by the Bloomfield Hills, Mich.-based provider of engineered and applied products to refinance existing debt.

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