Roundy's rises with IPO news; NPC shutting early; Alere reworks deal; High Liner sets talk

By Sara Rosenberg

New York, Dec. 5 - Roundy's Inc.'s term loans headed higher in trading on Monday after the company disclosed that it plans to refinance the debt in connection with an initial public offering, and Michaels Stores Inc.'s term loans moved around a bit with the launch of an amend and extend transaction.

Over in the primary, NPC International Inc. accelerated the commitment deadline on its credit facility by almost a week as the deal has been met with strong interest from lenders, and Alere Inc. reworked its term loan add-on offering, increasing the amount and setting the original issue discount at the wide end of guidance.

Additionally, High Liner Foods Inc. released price talk on its term loan B with launch, Datatel Inc. began circulating guidance on its B loan in preparation for its upcoming bank meeting, and LIN Television Corp. emerged with new deal plans.

Roundy's gains ground

Roundy's saw its term loans trade up during Monday's market hours following news of an initial public offering of common stock and concurrent refinancing transaction, according to a trader.

The term loan B was quoted at 99½ bid, par ½ offered, up from 99 bid, par offered, and the second-lien term loan was quoted at 98½ bid, par ½ offered, up from 97½ bid, 99½ offered, the trader said.

In an S-1 filed with the Securities and Exchange Commission to announce the IPO, the company said that it will get a new senior credit facility that will include a revolver and possibly term loans, depending on market conditions and other financing alternatives available.

Proceeds from the stock sale and new credit facility will repay all of the outstanding borrowings under the company's existing credit facility.

Roundy's is a Milwaukee, Wis.-based supermarket chain.

Michaels sees movement

Michaels Stores' non-extended term loan B-1 and extended term loan B-2 saw a slight shift in levels in trading as the company launched an amendment and extension of $400 million of its roughly $1 billion B-1 tranche, according to traders.

The term loan B-1 and B-2 were quoted by one trader at 97¼ bid, 98¼ offered, up from 97 bid, 98 offered. A second trader had the two tranches at 97 bid, 98 offered versus 97 1/8 bid, 97 7/8 offered on the B-1 on Friday and 97¼ bid, 97¾ offered on the B-2.

Under the proposal, the company is asking for responses by Thursday to extend the maturity on the $400 million of B-1 debt to July 2016 (the B-2 maturity date) from Oct. 31, 2013 and price talk is Libor plus 450 basis points to 475 bps with no Libor floor and an offer price of 99 to par. By comparison, the term loan B-1 is priced at Libor plus 225 bps and the term loan B-2 is priced at Libor plus 450 bps.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal for the Irving, Texas-based retailer of arts, crafts, framing, floral, wall decor and seasonal merchandise.

NPC resets deadline

Switching to the primary, NPC International revised the commitment deadline on its $460 million senior credit facility to this Wednesday at 5 p.m. ET from Dec. 13, being that the deal is already oversubscribed since launching on Nov. 29, according to a market source.

The facility consists of an $85 million revolver and a $375 million term loan, both talked at Libor plus 550 bps. The revolver is offered with a 250 bps upfront fee and has no Libor floor, and the term loan is offered at an original issue discount in the 97 area and has a 1.5% Libor floor as well as 101 soft call protection for one year.

At launch, it was revealed that the revolver was upsized from a previously outlined amount of $75 million as a result of good demand.

Barclays Capital Inc. and Goldman Sachs & Co. are the lead banks on the deal.

NPC plans notes

In addition to the credit facility, NPC will issue $190 million of senior notes due 2020 that are expected to price late this week. This bond offering is replacing the company's previously planned roughly $190 million of mezzanine debt, the source remarked.

The source explained that the decision was likely made to do notes instead of mezzanine financing because there is strength in the high-yield market and the company felt like it "could get attractive pricing."

Proceeds from the credit facility, bonds and about $240 million of equity will be used to fund NPC's buyout by Olympus Partners and to refinance all existing debt.

Closing is expected by Dec. 28, subject to regulatory approvals and customary conditions.

Secured leverage is 3.3 times, net total leverage is 5.0 times and net lease adjusted leverage is 5.9 times.

NPC is an Overland Park, Kan.-based Pizza Hut franchisee.

Alere ups add-on

Alere made some changes to its add-on term loan on Monday, lifting the size to $250 million from $200 million and finalizing the original issue discount at 971/2, the high side of the 97½ to 98 talk, according to a market source.

Pricing on the add-on matches existing B loan pricing at Libor plus 350 bps with a 1% Libor floor. When done in June, however, the existing loan was sold at 991/2. There is a pricing step-up by 25 bps when senior secured leverage is greater than 3.0 times and by an additional 50 bps when it's 4.0 times.

Proceeds will repay $190 million of revolver debt and put cash on the balance sheet. With the upsizing, the revolver paydown was lifted from $150 million, so senior leverage is staying at 3.3 times and total leverage at 5.1 times.

Lead banks GE Capital Markets, Jefferies & Co. and Credit Suisse Securities (USA) LLC are seeking recommitments by 3 p.m. ET on Tuesday.

Alere is a Waltham, Mass., provider of near-patient diagnosis, monitoring and health management.

High Liner talk emerges

In more primary happenings, High Liner Foods held a bank meeting on Monday to kick off syndication on its proposed $250 million term loan B (B2), and with the launch, price talk was announced, according to a market source.

The B loan is talked at Libor plus 550 bps with a 1.5% Libor floor and an original issue discount of 98 and includes 101 soft call protection for one year, the source said.

By comparison, upon first coming out with the term loan B plans around mid-November, the company had said that based on current market conditions, pricing was expected somewhere in the area of Libor plus 550 bps to 600 bps with a 1.5% Libor floor and an original issue discount of 98 to 99.

RBC Capital Markets and BMO Capital Markets are the lead banks on the deal and are asking for commitments by Dec. 15.

High Liner lifting ABL

Along with the new term loan B, High Liner is working on increasing its existing asset-based credit facility to $180 million from $120 million.

Proceeds will be used to help fund the purchase of Icelandic Group's U.S. subsidiary and Asian procurement operations for $230.6 million and to repay an existing roughly $47 million term loan.

Closing is anticipated to occur late this year or during the first quarter of 2012, subject to customary conditions, including regulatory approvals.

Leverage is expected to be reduced to about 3.8 times on a pro forma basis adjusted for the expected near-term synergies and seasonal debt levels, the company said when the deal was first announced.

High Liner is a Lunenburg, N.S.-based frozen seafood company. Icelandic's U.S. subsidiary is a supplier of seafood to the U.S. food service market.

Datatel reveals guidance

Datatel started floating price talk on its $1.07 billion 61/2-year term loan B at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 98 as the transaction is getting ready to launch with a bank meeting on Tuesday, according to a market source.

Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the lead banks on the $1.195 billion credit facility (B+), which also includes a $125 million revolver.

The facility already launched to a select group of investors in an early round effort that kicked off last month.

At the time of the early round launch, talk was that the yield on the term loan B was being discussed in the high-6% area.

Proceeds will be used to help fund the $1.775 billion acquisition of SunGard Higher Education by Hellman & Friedman LLC from SunGard Data Systems Inc. and the concurrent merger with Datatel, an existing Hellman & Friedman portfolio company.

Datatel to sell bonds

With the buyout/merger, Datatel will also issue high-yield bonds, with these notes backed by commitment for a $530 million senior unsecured bridge loan.

The credit facility and bridge financing commitment was obtained by an entity named Sophia LP.

Once SunGard Higher Education is merged with Datatel, the combined company will operate under a new name that will be announced by the parties at the closing of the transactions.

Closing is subject to customary conditions, including applicable regulatory clearances.

Datatel is a Fairfax, Va.-based provider of technology products, services and insight to higher education. SunGard Higher Education is a Malvern, Pa.-based provider of software and services to the higher education community.

LIN Television readies deal

LIN Television surfaced with new deals plans, setting a bank meeting for 10 a.m. ET on Wednesday to launch a proposed $260 million seven-year term loan B that is being led by J.P. Morgan Securities LLC, according to a market source.

Proceeds will be used to redeem all of the company's outstanding 6.5% senior subordinated notes due 2013.

While closing on the loan is expected later this month, the notes redemption is expected to occur in January.

LIN is a Providence, R.I.-based television and digital media company.

Pharmaceutical Product closes

In other news, Pharmaceutical Product Development Inc.'s buyout by Carlyle Group and Hellman & Friedman for about $3.9 billion has been completed, according to a news release.

To help fund the transaction, the company got a new $1.625 billion senior secured facility (Ba3/BB-), consisting of a $175 million revolver and a $1.45 billion seven-year covenant-light term loan B priced at Libor plus 500 bps with a 1.25% Libor floor and sold at an original issue discount of 981/2. The B loan has 101 soft call protection for one year.

During syndication, the term loan B was upsized from $1.325 billion, financial covenants were removed, coupon was trimmed from Libor plus 550 bps and discount tightened from 97.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Goldman Sachs & Co. and UBS Securities Inc. led the deal for the Wilmington, N.C.-based product development and management services provider to the pharmaceutical research industry.

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