Jarden, Yankee Candle dip with acquisition news; NXT reworks term B; primary calendar builds

By Sara Rosenberg

New York, Sept. 3 - Jarden Corp. announced plans to buy Yankee Candle Investments LLC on Tuesday morning, and with the news, both companies saw their term loan B's move lower in the secondary market.

Moving to the primary, NXT Capital reduced the size of its term loan B, increased the spread, shortened the maturity and sweetened the call protection.

Also, Envision Pharmaceutical Holdings Inc. (Envision Acquisition Co. LLC), Pinnacle Foods Finance LLC, Pitney Bowes Management Services, Steinway Musical Instruments Inc., Freescale Semiconductor Inc., JBS USA LLC, Biomet Inc., Go Daddy Operating Co. LLC and Belden Inc. joined this week's calendar.

Jarden, Yankee soften

Jarden and Yankee Candle saw their term loan Bs weaken in trading on Tuesday after word surfaced that Jarden will be buying Yankee Candle from Madison Dearborn Partners LLC for $1.75 billion in cash, subject to working capital and other adjustments, according to a market source.

The Jarden term loan B was seen at par ½ bid, 101 offered, down from par 7/8 bid, 101 3/8 offered, and the Yankee Candle term loan B was seen at par bid, par ¾ offered, down from last week's levels of par ½ bid, 101½ offered, the source said.

Funds for the acquisition will come from new bank debt, bonds, cash on hand and common equity.

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

Jarden is a Rye, N.Y.-based provider of a diverse range of consumer products. Yankee Candle is a South Deerfield, Mass.-based designer, manufacturer, wholesaler and retailer of scented candles.

OWIC announced

In more secondary happenings, a $91 million Offers-Wanted-In-Competition surfaced on Tuesday, with market players asked to get their offers in by 12:30 ET on Wednesday, according to a trader.

Some of the larger pieces of debt in the portfolio are Clear Channel Communications Inc.'s term loan D, US Foods Inc.'s incremental term loan, Harland Clarke Holdings Corp.'s term loan B-3 and American Airlines Inc.'s term loan B.

The portfolio includes slightly more than 100 issuers, the trader added.

NXT revised

Over on the new deal front, NXT Capital cut its term loan B to $120 million from $150 million, raised pricing to Libor plus 525 basis points from Libor plus 425 bps, shortened the maturity to five years from seven years and changed the call protection to non-callable for one year, then at 101 in years two and three, from 101 soft call protection for six months, according to a market source.

As before, the B loan has a 1% Libor floor and original issue discount of 99.

Wells Fargo Securities LLC, BMO Capital Markets and SunTrust Robinson Humphrey Inc. are the lead banks on the deal that will be used for general corporate purposes.

NXT Capital is a Chicago-based provider of structured financing services to middle-market and emerging growth companies and real estate investors.

Envision on deck

Also in the primary, Envision Pharmaceutical will host a bank meeting at 1 p.m. ET in New York on Wednesday to launch a $645 million credit facility for its previously announced buyout by TPG, according to a market source.

The facility consists of a $65 million five-year revolver, a $405 million seven-year first-lien term loan and a $175 million eight-year second-lien term loan, the source said.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the transaction.

Closing is expected in the fourth quarter, subject to customary conditions and regulatory clearances, and, as part of the transaction, management and other senior executives will take a significant minority stake in the company.

Envision is a Twinsburg, Ohio-based full-service pharmacy benefit management company.

Pinnacle Foods timing

Pinnacle Foods scheduled a conference call for 9 a.m. ET on Wednesday to launch a $525 million incremental term loan, according to sources.

Bank of America Merrill Lynch, Barclays, UBS Securities LLC, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Macquarie Capital are the lead banks on the deal.

Proceeds, along with cash on hand, will be used to fund the $580 million acquisition of the Wish-Bone salad dressings business from Unilever plc.

Closing is expected late in the third quarter or early in the fourth quarter.

When the acquisition was announced in August, the company had revealed that it would use incremental term loan debt for the transaction, but, at that time, it was said that the loan size would be $550 million.

Pinnacle Foods is a Parsippany, N.J.-based manufacturer and distributor of branded packaged foods.

Pitney Bowes coming soon

Pitney Bowes Management Services set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $365 million credit facility, according to a market source.

The facility consists of a $50 million five-year revolver (B1/BB-), a $215 million six-year first-lien term loan (B1/BB-) that has 101 soft call protection for one year, and a $100 million seven-year second-lien term loan (Caa1/B-) that has call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Talk on the first-lien term loan is Libor plus 550 bps to 575 bps with a 1.25% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 950 bps to 975 bps with a 1.25% Libor floor and a discount of 98, the source continued.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Securities LLC are leading the deal that will be used to fund the buyout of the company by Apollo Global Management LLC from Pitney Bowes Inc. for about $400 million in cash.

Closing is expected in the fourth quarter.

Pitney Bowes Management is a provider of mail and print outsourcing services.

Steinway plans call

Steinway scheduled a conference call for 10 a.m. ET on Wednesday to launch $290 million in first- and second-lien term loans that will be used with about $225 million of equity to fund its buyout by Paulson & Co. Inc. for $40 per share, or about $512 million, according to a market source.

The debt consists of a $190 million six-year first-lien term loan (B1) and a $100 million seven-year second-lien term loan (Caa1), the source said.

Filings with the Securities and Exchange Commission had the first-lien term loan expected at Libor plus 450 bps with a 1% Libor floor and 101 soft call protection for one year, and the second-lien term loan expected at Libor plus 850 bps with a 1% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

The filings also said that the Waltham, Mass.-based musical instruments company would get a $75 million five-year asset-based revolver with pricing of Libor plus 175 bps with a 37.5 bps unused fee.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are the leading the deal that is expected to close in late September, subject to customary conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and receipt of German antitrust approvals.

Freescale redeeming notes

Freescale will launch with a call at 9 a.m. ET on Wednesday a new $300 million senior secured term loan B-5 due Jan. 15, 2021 that will be used to take out 10 1/8% senior secured notes due 2018 and a portion of its 9¼% senior secured notes due 2018, according to a market source.

The term loan B-5 is talked at Libor plus 375 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

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

Deutsche Bank Securities Inc., Barclays and Citigroup Global Markets Inc. are leading the deal.

Freescale is an Austin, Texas-based provider of embedded processing semiconductors.

JBS deal surfaces

JBS USA will host a conference call at 11 a.m. ET on Wednesday to launch a $400 million seven-year term loan (Ba2) that is being led by J.P. Morgan Securities LLC, according to a market source.

Proceeds from the loan and $400 million of new senior notes due 2021 will fund a tender offer, which expires on Sept. 16, for the company's 11 5/8% senior notes due 2014.

JBS is a Greeley, Colo.-based beef, pork and lamb processing company.

Biomet readies loan

Biomet set a call for 9:30 a.m. ET on Wednesday to launch an $865 million covenant-light term loan B due July 25, 2017 that is talked at Libor plus 375 bps with no Libor floor and 101 soft call protection for six months, according to a market source.

The original issue discount on the loan is still to be determined.

The spread and Libor floor on the loan match existing extended term loan pricing.

Bank of America Merrill Lynch, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to repay the extended euro term loan B.

Biomet is a Warsaw, Ind.-based manufacturer of musculoskeletal biomedical devices.

Go Daddy plans loan

Go Daddy Operating Co. LLC scheduled a call for 11 a.m. ET on Wednesday to launch a $100 million incremental senior secured term loan due Dec. 17, 2018, a market source remarked.

Barclays is the left lead bank on the deal that will be used to fund potential acquisitions.

Go Daddy is a Scottsdale, Ariz.-based provider of web hosting and domain names.

Belden sets meeting

Belden will hold a bank meeting at 11 a.m. ET on Monday to launch a $650 million credit facility, according to a market source.

The facility consists of a $400 million ABL revolver and a $250 million seven-year covenant-light term loan B, the source said.

Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Belden is a St. Louis-based designer, manufacturer and seller of signal transmission services for industrial automation, data centers, broadcast studios and aerospace markets.

Genworth closes

In other news, the buyout of Genworth Wealth Management by Genstar Capital LLC and Aquiline Capital Partners LLC from Genworth Financial Inc. has been completed, according to a news release.

For the transaction, Genworth Wealth got a new $255 million credit facility (B2/B) that includes a $25 million five-year revolver and a $230 million first-lien term loan due July 1, 2019.

Pricing on the term loan is Libor plus 550 bps with a 1% Libor floor, and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from Libor plus 475 bps, the discount was modified from 99 and the maturity was shortened from 2020.

Credit Suisse Securities (USA) LLC led the deal.

Genworth is a Richmond, Va.-based product provider in the wealth management industry.

DS Waters wraps

Crestview Partners closed on its purchase of DS Waters of America Inc. (DS Services), a news release said.

For the transaction, DS Waters got a new $395 million senior secured credit facility that consists of a $75 million ABL revolver and a $320 million seven-year covenant-light first-lien term loan (Ba3/BB-).

Pricing on the term loan is Libor plus 425 bps with a 1% 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 term loan was downsized from a revised amount of $360 million but upsized from an original amount of $310 million, and the soft call protection was extended from six months. The extra $10 million raised through the final term loan amount was used for fees and the original issue discount.

Barclays, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and BMO Capital Markets led the deal.

First-lien leverage is 2.1 times and total leverage is 4.3 times.

DS Waters is an Atlanta-based direct-to-consumer beverage services provider.

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