Mediacom, Univision loans trade up; PennantPark may upsize; Valeant, Grifols, Cequel set talk

By Sara Rosenberg

New York, Jan. 31 - Mediacom LLC's term loan D inched its way higher in trading on Tuesday after the company announced plans to repay the debt, and Univision Communications Inc.'s loans were stronger on refinancing news as well.

Over in the primary, PennantPark Investment Corp. is considering upsizing its revolving credit facility due to oversubscription, and Valeant Pharmaceuticals International Inc. and Grifols released price talk on their new deals as the transactions were launched to lenders during market hours.

Furthermore, Cequel Communications Holdings I LLC started going out with pricing on its credit facility in preparation for its upcoming bank meeting and Summit Entertainment LLC zeroed in on timing for the launch of its already funded term loan.

Mediacom better on paydown

Mediacom's term loan D headed up to 99¾ bid, par ¼ offered from 99½ bid, par ½ offered following news that the debt would be repaid in full, according to a trader.

The company said early in the day that it would be selling $200 million of senior notes due 2022, and that proceeds from this offering, along with borrowings under its revolving credit facility, would take out the $293 million outstanding under its term loan D. Then, in the afternoon, the bond offering was upsized to $250 million and priced at par to yield 7¼%.

Pricing on the term loan D due March 2017 is Libor plus 350 basis points with a 2% Libor floor.

The company's other bank debt was unchanged on the news, with the term loan E quoted at 99½ bid, par ½ offered and the term loan C quoted at 97 bid, 98 offered, the trader continued.

However, the term loan F at Mediacom Broadband was slightly lower, moving to 99¼ bid, par ¼ offered from 99½ bid, par ½ offered, the trader added.

Mediacom is a Middletown, N.Y.-based cable television company.

Univision gains ground

Also seeing an improvement on an expected paydown was Univision's extended and non-extended term loans, according to traders.

One trader was quoting the non-extended term loan at 98½ bid, 99½ offered, up from 96¾ bid, 97¼ offered, and the extended term loan at 93½ bid, 94½ offered, up from 93¼ bid, 93¾ offered.

Meanwhile, a second trader was seeing the non-extended term loan at 98¾ bid, 99¼ offered, up from 96¾ bid, 97½ offered, and the extended term loan at 93 7/8 bid, 94 3/8 offered, up from 93¼ bid, 93¾ offered.

The debt that will be repaid is a portion of the company's non-extended term loan B debt due 2014 and funds for the refinancing will come from a $400 million 6 7/8% notes offering.

Univision is a New York-based Spanish-language media company.

PennantPark mulls size change

Moving to the primary, PennantPark Investment will probably increase the size of its $325 million three-year revolver since the deal is oversubscribed, according to a market source, who said that the company is still trying to determine how much of an upsizing they want to make.

The revolver is priced at Libor plus 275 bps with a 50 bps unused fee, and has a one-year term out period.

SunTrust Robinson Humphrey Inc. and J.P. Morgan Securities LLC are leading the deal.

Proceeds will be used to refinance an existing $315 million revolver, and at close, about 70% plus of the new deal will be funded.

PennantPark is a New York-based investment company that has elected to be treated as a business development company. As of Sept. 30, the company's portfolio totaled around $830 million.

Grifols releases guidance

Grifols held a conference call on Tuesday morning to launch its credit facility, at which time lenders were told that the $2.2 billion term loan B is being talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, according to a market source.

The company's roughly $3.4 billion senior secured credit facility also includes a $300 million revolver, a $600 million term loan A and a €220 million term loan A.

Lead banks, Deutsche Bank Securities Inc., Nomura, BBVA Securities Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC, are seeking commitments by Feb. 9.

Proceeds will be used by the Sant Cugat del Valles, Barcelona-based health care company to refinance an existing credit facility.

Valeant talk surfaces

Valeant Pharmaceuticals also launched its deal on Tuesday, with the $500 million seven-year term loan B (Ba1/BBB-) coming at talk of Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

J.P. Morgan Securities LLC, Goldman Sachs & Co. and Morgan Stanley & Co. LLC are the lead banks on the deal that will be used to repay borrowings under the company's $275 million revolver and for general corporate purposes, including acquisitions.

Valeant, a Mississauga, Ont.-based specialty pharmaceutical company, expects to close on the loan in February.

Cequel pricing circulates

Continuing on the topic of pricing, Cequel Communications began distributing talk on its $2.7 billion senior secured credit facility (Ba2/BB-) as the deal is getting ready to launch with a bank meeting on Wednesday afternoon, according to sources.

The $500 million five-year revolver is talked at Libor plus 250 bps with no Libor floor, and the $2.2 billion seven-year term loan B is talked at Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, sources remarked.

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

Cequel, a St. Louis-based cable operator, will have secured leverage of 3.1 times and total leverage of 5.6 times.

Summit firms timing

In other news, Summit Entertainment released timing on its proposed $500 million 41/2-year senior secured term loan (B1/B+) as a conference call has been set for 11 a.m. ET on Wednesday to kick off syndication on the deal that actually closed on Jan. 13, according to a market source.

Pricing is not yet available, the source said, but the company disclosed in recent filings with the Securities and Exchange Commission that the spread is Libor plus 600 basis points.

J.P. Morgan Securities LLC, Barclays Capital Inc. and Jefferies & Co. are the lead banks on the deal that were used to refinance an existing term loan in connection with the company's acquisition by Lions Gate Entertainment Corp., a Vancouver, B.C.-based filmed entertainment studio, for $412.5 million.

The purchase price was funded with Summit's cash on hand, $55 million of Lions Gate cash, $45 million of cash received from a convertible notes offering, $50 million of Lions Gate common stock and an additional $20 million of cash or stock to be issued at Lions Gate's option within 60 days.

Summit Entertainment is a Santa Monica, Calif.-based motion picture studio.

InfoSpace closes

InfoSpace Inc. completed its $105 million senior secured credit facility that consists of a $10 million revolver and a $95 million term loan, according to a market source.

During syndication, the term loan was upsized from $90 million.

RBS Citizens led the deal that was used, along with cash on hand, to fund the acquisition of TaxACT for $287.5 million in cash.

InfoSpace is a Bellevue, Wash.-based developer of metasearch products. TaxACT is a Cedar Rapids, Iowa-based provider of online tax services.

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