Granite breaks; Orchard Supply gains with bankruptcy filing; BioScrip adjusts deal plans

By Sara Rosenberg

New York, June 17 - Granite Broadcasting Corp.'s term loan hit the secondary market on Monday, and Orchard Supply Hardware Stores' term loans rallied as the company announced that it filed for Chapter 11 and will be acquired by Lowe's Cos. Inc.

Over in the primary, BioScrip Inc. removed its refinancing transaction from the primary but is coming back with a larger deal that will help fund a newly announced acquisition, American Greetings Corp. moved some funds between its revolver and term loan, and Deltek Inc. modified its add-on sizes, original issue discounts and second-lien pricing.

Also, Expera Specialty Solutions LLC lifted the spread on its term loan, widened original issue discount talk, shortened the maturity and sweetened call premiums, Custom Ecology Inc. raised the coupon on its term loan, Stallion Oilfield Holdings Inc. upsized its deal, and State Class Tankers accelerated its commitment deadline.

Additionally, Triple Point Group Holdings Inc. revealed talk with launch, and Drillships Financing Holding Inc. (Ocean Rig), AlixPartners LLP, Vitera Healthcare Solutions and Boulder Brands Inc. are getting ready to bring new deals to market.

Granite Broadcasting tops OID

Granite Broadcasting's $197.5 million term loan B due May 2018 freed up for trading on Monday, with levels seen at par bid, according to a trader.

Pricing on the loan is Libor plus 550 basis points, after flexing up from Libor plus 525 bps. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was issued at an original issue discount of 993/4.

J.P. Morgan Securities LLC is leading the deal that is being used to refinance an existing term loan B due May 2018 priced at Libor plus 725 bps with a 1.25% Libor floor.

Granite Broadcasting is a New York-based television broadcasting company focused on operating local TV, online and mobile properties.

Orchard Supply rises

In more trading happenings, Orchard Supply's term loans were much stronger after news surfaced that the company filed for bankruptcy protection in order to facilitate its acquisition by Lowe's for $205 million in cash, plus the assumption of payables owed to nearly all of its supplier partners, according to a trader.

The extended and the non-extended term loans were quoted at 78 bid, 83 offered, up from 47 bid, 49 offered, the trader said.

During the Chapter 11 process, Orchard Supply will meet its financial obligations by using a $177 million debtor-in-possession financing facility committed by Wells Fargo Bank, its existing ABL lender, and its term loan lenders.

The company expects to complete the process in about 90 days, pending receipt of the necessary approvals from regulators and the Bankruptcy Court.

Orchard Supply is a San Jose, Calif.-based hardware and garden store focused on paint, repair and the backyard.

BioScrip revises plans

Switching to the primary, BioScrip scheduled a bank meeting for Wednesday to launch a new $475 million credit facility and has cancelled plans for its recently syndicated, but net yet allocated, $325 million senior secured credit facility (B2/B), according to a market source.

SunTrust Robinson Humphrey Inc., Jefferies Finance LLC and Morgan Stanley Senior Credit Funding Inc. are leading the deal.

The new facility consists of a $75 million revolver, a $250 million covenant-light term loan and a $150 million delayed-draw covenant-light term loan, the source said.

Both term loans are talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source remarked.

By comparison, the prior deal included a $75 million revolver and had a $250 million covenant-light term loan B priced at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months. The spread on the B loan had firmed in early June at wide end of the initial Libor plus 350 bps to 375 bps talk.

BioScrip buying CarePoint

The reason behind BioScrip's change in financing plans is because the company will now use a portion of its new credit facility to help fund the purchase of CarePoint Partners Holdings LLC for $223 million in cash, which was announced on Monday, the source added.

In addition to funding the acquisition, proceeds from the new credit facility will be used to refinance existing debt, which is what the original deal was intended to do.

Closing on the acquisition is expected to occur in the third quarter, subject to regulatory approval and customary conditions.

BioScrip is an Eden Prairie, Minn.-based provider of comprehensive infusion and home care solutions. CarePoint is a Cincinnati-based provider of home and alternate-site infusion therapy for patients with complex, acute and chronic illnesses.

American Greetings retranches

American Greetings increased its revolver to $250 million from $200 million and decreased its term loan to $350 million from $400 million, according to a market source.

Pricing on the revolver is Libor plus 300 bps with an upfront fee that ranges from 20 bps to 50 bps, and the term loan is priced at Libor plus 325 bps with a 0.75% Libor floor and an original issue discount of 991/2, the source said.

Pricing came out tighter than the Cleveland-based greeting card company had outlined in filings with the Securities and Exchange Commission that had the revolver expected at Libor plus 350 bps and the term loan expected at Libor plus 375 bps with a 1.25% Libor floor.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., PNC Capital Markets LLC, KeyBank and Macquarie Capital (USA) Inc. are leading the $600 million senior secured credit facility (Ba2/BB-) that is expected to allocate on Tuesday.

Proceeds will help fund the buyout of the company by chief executive officer Zev Weiss and president and chief operating officer Jeffrey Weiss for $18.20 per share in cash, or about $878 million.

Deltek tweaks deal

Deltek downsized its add-on first-lien term loan (B1/B) to $125 million from $150 million and widened the discount to 99 from 991/2, according to a market source.

Pricing on the add-on first-lien term loan is still Libor plus 375 bps with a 1.25% Libor floor, in line with existing first-lien loan pricing, and all of the debt has 101 soft call protection for six months.

Meanwhile, the company upsized its add-on second-lien term loan (Caa2/CCC+) to $105 million from $80 million, revised the discount to 99 from 99½ and raised pricing to Libor plus 875 bps from Libor plus 775 bps, the source said. The add-on spread now matches the existing second-lien term loan pricing, meaning that debt will no longer be repriced.

The second-lien loan still has a 1.25% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

Jefferies Finance LLC and RBC Capital Markets are leading the deal that will fund a dividend.

With the add-ons, the company is amending its credit facility to remove the leverage covenant, making the deal covenant-light. This amendment was approved with lenders getting a 50 bps consent fee.

Deltek is a Herndon, Va.-based provider of enterprise software and information for professional services firms and government contractors.

Expera reworks loan

Expera Specialty Solutions flexed pricing on its $178 million term loan B (Caa1/B+) to Libor plus 625 bps from Libor plus 525 bps, revised the discount talk to 97½ to 98 from 99, shortened the maturity to 5½ years from seven years and modified the call protection to 102 in year one and 101 in year two, from just 101 soft call for one year, according to a market source. The 1.25% Libor floor was unchanged.

Also, interest coverage and capital expenditures covenants were added, joining the already in place leverage covenant, the incremental allowance was cut to $15 million plus amounts up to 3 times leverage from $30 million plus amounts up to 3.25 times leverage, and the MFN sunset was removed, the source said.

Leads Goldman Sachs Bank USA and GE Capital Markets are asking for recommitments by noon ET on Wednesday, the source added.

Proceeds will help fund the formation of the company by KPS Capital Partners LP through the acquisition and combination of Wausau Paper Corp.'s specialty paper business and Packaging Dynamics Corp.'s specialty paper business.

Closing is expected in the second or third quarter, subject to customary conditions.

Custom Ecology ups pricing

Custom Ecology flexed pricing higher on its $120 million six-year term loan to Libor plus 550 bps from Libor plus 500 bps, while keeping the 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a market source.

The company's $130 million credit facility (B3/B-) also includes a $10 million revolver.

Leverage is 3.6 times.

Credit Suisse Securities (USA) LLC is leading the deal that will be used by the Walker, La.-based industrial and hazardous waste transporter to refinance existing debt.

Stallion ups loan size

Stallion Oilfield lifted the size of its five-year senior secured covenant-light term loan B (B3/B) to $375 million from $350 million as a result of strong demand and set the original issue discount at 99, the low end of the 98½ to 99 guidance, according to a market source.

Pricing came in line with talk at Libor plus 675 bps with a 1.25% Libor floor, and there is still hard call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal that will be used to redeem the remaining $134 million of the company's senior secured notes due 2015, to help fund a roughly $241 million dividend, increased from $217 million due to the loan upsizing, and for other corporate purposes.

Closing is expected to occur on Wednesday, the source said.

Total debt to 2013 adjusted EBITDA is 2.2 times.

Stallion Oilfield is a Houston-based provider of wellsite support, completion, production and logistics services.

State Class shutting early

State Class Tankers moved up the commitment deadline on its $365 million seven-year covenant-light term loan B to Tuesday from Wednesday, according to a market source.

The loan is talked at Libor plus 575 bps to 600 bps with a 1.25% Libor floor and an original issue discount of 99, and is non-callable for two years then at 102 in year three.

Bank of America Merrill Lynch, UBS Securities LLC and Barclays are the lead banks on the deal.

Proceeds will be used to help fund the construction of four product tankers, to fund an 18-month interest reserve and to put cash on the balance sheet.

Triple Point discloses talk

Also on the new deal front, Triple Point Group held its bank meeting on Monday afternoon, and with the event, price talk on the first- and second-lien term loans was announced, according to a market source.

The $320 million seven-year first-lien covenant-light term loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

And, the $165 million eight-year second-lien covenant-light term loan is talked at Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 98½ and call protection of 102 in year one and 101 in year two, the source continued.

Credit Suisse Securities (USA) LLC is the lead bank on the $525 million credit facility, which also includes a $40 million revolver.

Commitments are due on June 28.

Proceeds will be used to help fund the buyout of the company by Ion Investment Group.

Triple Point is a Westport, Conn.-based provider of software for end-to-end commodity management.

Ikaria launches

Ikaria Acquisition Inc. launched its $850 million in new term loans in the afternoon, for which Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays, Fifth Third Securities Inc. and SunTrust Robinson Humphrey Inc. are the leads, according to a market source.

As previously reported, the debt consists of a $550 million six-year first-lien term loan talked at Libor plus 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and a $300 million seven-year second-lien term loan talked at Libor plus 925 bps with a 1% Libor floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three.

Commitments are due on June 28.

Proceeds will fund a dividend, refinance existing debt and pre-fund research and development.

The company's existing revolver and term loan A will be rolled with this transaction, the source added.

Ikaria is a Hampton, N.J.-based biotherapeutics company in the critical care market.

Drillships coming soon

Drillships Financing surfaced with plans to hold a bank meeting at 1 p.m. ET in New York on Wednesday to launch $1.8 billion in new first-lien covenant-light secured term loan B debt that has 101 soft call protection for one year, according to a market source.

The debt is split between a $900 million seven-year and eight-month term loan B-1 and a $900 million three-year and two-month term loan B-2, the source said.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Barclays and Goldman Sachs Bank USA are leading the deal that will be used to refinance the existing secured bank debt at both Drillships Holdings Inc. and Drillships Investment Inc.

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

AlixPartners on deck

AlixPartners set a bank meeting for Tuesday to launch a $750 million first-lien term loan that has 101 soft call protection for six months and a $250 million second-lien term loan that has call protection of 102 in year one and 101 in year two, according to a market source.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA, Jefferies Finance LLC and UBS Securities LLC are leading the $1 billion deal.

Proceeds will be used for a recapitalization.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

Vitera readies deal

Vitera Healthcare Solutions scheduled a bank meeting for Thursday to launch a $365 million credit facility that will be used to refinance existing bank debt and fund the acquisition of SuccessEHS, according to a market source.

The facility consists of a $25 million five-year revolver, a $255 million seven-year first-lien term loan and an $85 million eight-year second-lien term loan, the source said.

Jefferies Finance LLC and BMO Capital Markets are leading the deal.

Vitera is a Tampa, Fla.-based provider of ambulatory electronic health records and practice management software and services. SuccessEHS is a Birmingham, Ala.-based provider of electronic health record, practice management, electronic dental record, dental imaging and revenue cycle management solutions.

Boulder Brands plans meeting

Boulder Brands will host a bank meeting at 10 a.m. ET in New York on Tuesday to launch a new bank deal, according to a market source.

Citigroup Global Markets Inc., BMO Capital Markets and Barclays are leading the deal.

No further details on the financing were available prior to press time, the source added.

Boulder Brands (previously known as Smart Balance Inc.) is a Paramus, N.J.-based health and wellness food company.

Waupaca closes

In other news, Waupaca Foundry Inc. completed its $125 million add-on term loan (B2/B+) that was used to fund a dividend, according to a news release.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, which is in line with existing term loan pricing, and it was sold at an original issue discount of 991/2, after widening during syndication from talk of 99¾ to par.

The add-on has 101 soft call protection for six months, and the existing term loan had its 101 soft call premium reset for the same period.

GE Capital Markets led the deal.

Waupaca Foundry is a Waupaca, Wis.-based producer of gray and ductile iron castings for the automotive, truck, agriculture, construction, hydraulics and commercial vehicle markets.

Emerald Expo wraps

Onex Corp. closed on its acquisition of Nielsen Expositions (Emerald Expositions Holdings) from Nielsen Holdings NV, a news release said.

For the transaction, Emerald Expositions got a new $520 million facility (B2/BB-) that includes a $90 million five-year revolver and a $430 million term loan.

Pricing on the term loan is Libor plus 425 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, the spread on the term loan was flexed up from talk of Libor plus 350 bps to 375 bps, the floor was increased from 1%, the discount firmed at the wide end of the 99 to 99½ guidance and the call protection was extended from six months.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., RBC Capital Markets and UBS Investment Bank led the deal.

Emerald Expositions is a San Juan Capistrano, Calif.-based operator of large, business-to-business tradeshows.

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