Caesars reacts to refi news; Jarden breaks; Air Canada, Peabody, Pitney Bowes, Sabre revised

By Sara Rosenberg

New York, Sept. 18 - Caesars Entertainment Resort Properties saw movement in its debt levels in trading on Wednesday after a refinancing transaction was announced, and Jarden Corp.'s term loan hit the secondary market.

Over in the primary, Air Canada reduced the size of its term loan B and sweetened the soft call protection, Peabody Energy Corp. raised the spread on its B loan, Pitney Bowes Management Services lifted first- and second-lien term loan pricing while also increasing amortization on the first-lien debt, and Sabre Inc. upsized its loan while trimming the coupon and offer price.

Furthermore, Sears Holdings Corp. set price talk on its term loan with launch, Fotolia LLC revealed that it is getting ready to bring a restructured deal to market, and Aptalis Pharma Inc. (formerly known as Axcan Holdings Inc.), e-Rewards Inc. and Watchfire Enterprises joined this week's calendar.

Caesars moves around

Caesars Entertainment's debt saw mixed reactions in the secondary market on Wednesday after the company announced that it will be taking out its roughly $4.4 billion of CMBS debt and $450 million senior secured credit facility entered into by Octavius Linq Holding Co. LLC with new financing, according to a trader.

The B-4 non-extended term loan was quoted at par bid, 101 offered, down from par ½ bid, 101½ offered, the B-6 extended term loan was quoted at 92 5/8 bid, 93 1/8 offered, versus 92½ bid, 93½ offered on Tuesday, the PropCo term loan was quoted at 98 bid, 98¾ offered, up from 97 bid, 97½ offered, and the mezzanine debt was quoted at 89¾ bid, 90¼ offered, up from 84 bid, 85 offered, the trader said.

The new debt that will be used for the refinancing includes a $3,269,500,000 senior secured credit facility, comprised of a $3 billion term loan and a $269.5 million revolver, $500 million of first-lien notes and $1.35 billion of second-lien notes, the company said in an 8-K filed with the Securities and Exchange Commission.

A bank meeting for the new Citigroup Global Markets Inc.-led credit facility is set to take place at 2 p.m. ET in New York on Thursday, a source added.

Caesars is a Las Vegas-based diversified casino-entertainment company.

Jarden frees up

In more trading happenings, Jarden's $750 million seven-year term loan B-1 (Ba1/BBB-) freed up, with levels quoted at 99¾ bid, par ½ offered on the open and then it moved to par bid, par ¾ offered, a source said.

Pricing on the B-1 loan is Libor plus 275 bps with no Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

Recently, the discount on the loan was tightened from 99 and the size firmed at the full amount of the company's planned incremental debt, so plans for an add-on to its existing term loan B due March 31, 2018 were eliminated. The add-on had been talked at Libor plus 250 bps with no floor, in line with existing term loan B pricing, and was offered at a discount of 991/2.

Barclays, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal.

Jarden funding acquisition

Proceeds from Jarden's term loan B-1, cash on hand and common equity will be used to fund the purchase of Yankee Candle Investments LLC from Madison Dearborn Partners LLC for $1.75 billion in cash.

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

Secured leverage is 3.1 times and net total leverage is 3.6 times, excluding an accounts receivables securitization.

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.

Air Canada tweaks deal

Moving to the primary, Air Canada cut its six-year term loan B to $300 million from $700 million and modified the soft call protection to 102 in year one and 101 in year two from just 101 for six months, sources said.

As before, the term loan B is priced at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99.

The company's now $400 million senior secured credit facility also includes a $100 million four-year revolver.

Recommitments were due at the end of the day on Wednesday, sources said.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC are leading the deal.

Air Canada ups notes

With the term loan B downsizing, Air Canada added a new $400 million senior first-lien bond tranche to its notes offering, which, as previously reported, also includes a $300 million senior second-lien tranche, sources continued.

Proceeds will be used to refinance existing debt, including 9¼% senior secured notes due 2015, 10 1/8% senior secured notes due 2015 and 12% senior second-lien notes due 2016.

The tender offers for the notes expire on Sept. 18.

Air Canada is a Montreal-based airline company.

Peabody flexes higher

Peabody Energy lifted pricing on its $1.2 seven-year covenant-light term loan B to Libor plus 325 bps from Libor plus 275 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.

The company's $2.7 billion senior secured credit facility (Ba1/BB+/BB+) also includes a $1.5 billion five-year revolver.

Recommitments were due at 5 p.m. ET on Wednesday, the source remarked.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc., PNC Capital Markets LLC and RBS Securities Inc. are leading the deal that will be used by the St. Louis-based coal producer to repay term loan borrowings.

Closing is expected to occur next week, the source added.

Pitney revisions emerge

Pitney Bowes changed pricing on its $215 million six-year first-lien term loan (B1/BB-) to Libor plus 625 bps from talk of Libor plus 550 bps to 575 bps and sweetened the amortization to 1% in year one, 2.5% in year two and 5% thereafter, from 1% in year one and 2.5% thereafter, a market source said. The 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were unchanged.

As for the $100 million seven-year second-lien term loan (Caa1/B-), pricing was increased to Libor plus 1,050 bps from talk of Libor plus 950 bps to 975 bps, the source continued. This tranche still has a 1.25% Libor floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three.

Recommitments for the $365 million facility, which also includes a $50 million five-year revolver (B1/BB-), were due at 5 p.m. ET on Wednesday, the source added.

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.

Sabre reworked

Sabre raised the size of its covenant-light term loan B-2 to $350 million from $300 million, lowered pricing to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps and changed the offer price to par from 991/2, according to a market source.

The B-2 loan still has a 1% Libor floor and 101 soft call protection through February 2014.

Bank of America Merrill Lynch is leading the deal that will be used to help fund costs associated with a marketing agreement between Sabre's wholly owned company, Travelocity, and Expedia Inc.

Sabre is a Southlake, Texas-based online travel company.

Sears reveals talk

Also on the primary front, Sears hosted its bank meeting on Wednesday morning, and with the event, price talk on its $1 billion senior secured term loan (NA/NA/B) due June 2018 surfaced, according to a market source.

The term loan is talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

Commitments are due on Sept. 27.

Bank of America Merrill Lynch is leading the deal.

Proceeds will be used by the Hoffman Estates, Ill.-based retailer to pay down borrowings under the company's existing $3,275,000,000 asset-based revolving credit facility.

Fotolia readies call

Fotolia set a call for Thursday to launch a $210 million seven-year term loan (B2) that is replacing the $300 million deal it had attempted to syndicate this summer, according to a market source.

The term loan is talked at Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, the source said.

By comparison, the original deal was structured as a $200 million seven-year first-lien term loan (Ba3/B) talked at Libor plus 400 bps to 425 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, and a $100 million euro equivalent 71/2-year second-lien term loan (Caa1/CCC+) talked at Euribor plus 800 bps to 825 bps with a 1.25% floor, a discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three.

Goldman Sachs Bank USA, HSBC Securities (USA) Inc., GE Capital Markets and KKR Capital Markets are leading the new loans that will be used to refinance existing debt and fund a dividend that is smaller than the one the company was targeting under its original deal plans.

Fotolia is a New York-based provider of royalty-free images, vectors, illustrations and video footage clips.

Aptalis on deck

Aptalis Pharma will hold a bank meeting at 1 p.m. ET on Thursday to launch a $1.4 billion seven-year term loan B, according to sources.

Bank of America Merrill Lynch, Barclays, RBC Capital Markets LLC, J.P. Morgan Securities LLC and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt and fund a dividend.

Aptalis is a Bridgewater, N.J.-based specialty pharmaceutical company.

e-Rewards joins calendar

e-Rewards Inc. emerged with plans to host a bank meeting at 9:30 a.m. ET in New York on Friday to launch a $315 million senior secured credit facility, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal.

e-Rewards is a Plano, Texas-based permission-based digital data collection and reporting company.

Watchfire coming soon

Watchfire Enterprises scheduled a bank meeting for Thursday to launch a $192.5 million credit facility, according to a market source.

The facility consists of a $25 million revolver, a $125 million first-lien term loan and a $42.5 million second-lien term loan, the source said.

Bank of Ireland is leading the deal that will be used to help fund the buyout of the company by the Jordan Co.

First-lien leverage is just over 4 times and second-lien leverage is around 5½ times, the source added.

Watchfire is a Danville, Ill.-based electronic billboards company.

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