Wolverine, RadNet, David's Bridal, Novelis break; TriMas, National Mentor tweak deals

By Sara Rosenberg

New York, Oct. 5 - Wolverine Worldwide Inc.'s term loan B made its way into the secondary market on Friday afternoon, with levels quoted above par, and RadNet Inc., David's Bridal Inc. and Novelis Inc. freed up too.

Over in the primary, TriMas Corp. made some changes to its credit facility, including moving funds between its term loans and reducing the spread and original issue discount on its institutional tranche, National Mentor Holdings Inc. revised its repricing proposal and OSI Restaurant Partners LLC announced plans for a refinancing transaction.

Wolverine starts trading

Wolverine Worldwide's $350 million seven-year term loan B broke for trading on Friday, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the loan is Libor plus 300 basis points with a 1% Libor floor, and it was sold at par, after firming at the tight end of the 99¾ to par talk, the trader said. There is 101 soft call protection from one year of the closing date.

The J.P. Morgan Securities LLC-led loan is being used to reprice an existing term loan B from Libor plus 375 bps with a 1% floor.

An original issue discount of 99 and a 101 soft call premium are being paid to originally allocated lenders on the closing date, which is targeted for Tuesday.

Wolverine Worldwide is a Rockford, Mich.-based marketer of branded casual, active lifestyle, work, outdoor sport and uniform footwear and apparel.

RadNet hits secondary

RadNet's credit facility freed up as well, with the $350 million six-year term loan B quoted at 99¼ bid, par ¼ offered on the open and then it moved up to par bid, par ¾ offered, according to a market source.

Pricing on the term loan B 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 B loan was upsized from $330 million and pricing firmed at the tight end of the Libor plus 425 bps to 450 bps talk.

The company's $451.25 million senior secured credit facility (Ba3/B+) also includes a $101.25 million five-year revolver.

Barclays, GE Capital Markets, RBC Capital Markets LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance an existing senior secured credit facility and result in senior secured leverage of 2.9 times and total leverage of 4.4 times.

RadNet is a Los Angeles-based owner and operator of fixed-site diagnostic imaging centers.

David's frees up

David's Bridal also saw its credit facility begin trading, with the $525 million covenant-light term loan B (B2/B) quoted at 99½ bid, par offered, according to a trader.

Pricing on the term loan B is Libor plus 400 bps with a step-down to Libor plus 375 bps at 5¼ times total leverage. There is a 1.25% Libor floor and the debt was sold at an original issue discount of 99.

Recently, the B loan was upsized from $500 million as the company's bond offering was downsized to $250 million from $270 million, pricing was flexed from Libor plus 425 bps and the step-down was added. The bonds were then increased back to $270 million as sponsor equity was reduced.

The company's $645 million credit facility also includes a $125 million ABL revolver.

David's funding buyout

Proceeds from David's Bridal's credit facility and notes will fund its buyout by Clayton, Dubilier & Rice for about $1.05 billion from Leonard Green & Partners, who will retain a minority interest in the company.

Bank of America Merrill Lynch, Barclays, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the bank deal.

Closing is expected in the fourth quarter.

David's Bridal is a Conshohocken, Pa.-based specialty retailer of bridal gown and wedding-related apparel and accessories.

Novelis add-on breaks

Another deal to make its way into the secondary market was Novelis' $80 million incremental term loan, with levels quoted at par 1/8 bid, par ½ offered, according to a trader. The new debt trades with the existing term loan.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 993/4, after tightening earlier in the day from the 99½ area.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., RBS Securities Inc., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to repay 7¼% notes.

In addition, the company is amending its credit facility to replace the net leverage covenant of 4.5 times with a net secured leverage covenant of 3.25 times.

Lenders were offered a 15 bps consent fee.

Novelis is an Atlanta-based aluminum-rolled products and beverage can recycling company.

TriMas restructures

Moving to the primary, TriMas revised trancing on its credit facility, decreasing its seven-year term loan B to $200 million from $250 million and increasing its five-year term loan A to $200 million from $150 million, while leaving the five-year revolver size unchanged at $250 million, according to a market source.

In addition, term loan B pricing was revised to Libor plus 275 bps with a 1% Libor floor and an original issue discount of 993/4, from earlier talk of Libor plus 300 bps with a 1% floor and a discount of 991/2, the source remarked. The 101 soft call protection for one year was left unchanged.

Pricing on the revolver and term loan A is Libor plus 200 bps, with the revolver having a 35 bps unused fee. The spread on these tranches can range from Libor plus 150 bps to 250 bps, and the revolver unused fee can range from 25 bps to 45 bps, based on leverage.

Recommitments were due by 3 p.m. ET on Friday, the source added.

TriMas lead banks

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the lead banks on TriMas' $650 million senior secured credit facility (Ba3/BB).

Proceeds will be used to refinance a $125 million revolver, a $218 million term loan B and $200 million of 9¾% second-lien notes, and for general corporate purposes.

With this transaction, TriMas, a Bloomfield Hills, Mich.-based designer, manufacturer and distributor of engineered products for commercial, industrial and consumer end markets, will have pro forma debt to EBITDA of 2.42 times.

National Mentor reworked

National Mentor changes its $550 million term loan B repricing proposal so that the spread will remain at Libor plus 525 bps, but the Libor floor will be reduced to 1.25% from 1.75%, according to a market source.

Originally, the company was looking to take the spread down to Libor plus 475 bps to 500 bps with the reduced Libor floor.

As before, the term loan due Feb. 9, 2017 will have 101 soft call protection for one year.

UBS Securities LLC is leading the deal for the Boston-based provider of home and community-based health and human services.

OSI readies deal

In other news, OSI Restaurant Partners set a bank meeting for 4:40 p.m. ET in Scottsdale, Ariz., on Wednesday to launch a proposed $1.225 billion credit facility that will be used to refinance existing debt, including term loans, according to a market source.

The facility consists of a $225 million revolver and a $1 billion seven-year term loan B, the source said, adding that price talk is not yet available.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Goldman Sachs & Co. are leading the deal.

OSI Restaurant is a Tampa, Fla.-based casual dining restaurant company.

Harron wraps repricing

Harron Communications LP completed the repricing of its roughly $250 million term loan B at initial terms, with the deal put away with the existing lender group, a market source told Prospect News.

Through the transaction, pricing on the loan was reduced to Libor plus 375 bps with a 1.25% Libor floor from Libor plus 400 bps with a 1.5% Libor floor.

Lenders were offered the repriced loan at par, and the debt is now being quoted at par ½ bid in the secondary market, the source added.

SunTrust Robinson Humphrey Inc. led the deal.

Harron Communications is a Frazer, Pa.-based provider of digital television, high-speed internet, digital phone and business services.

Zayo closes

Zayo Group LLC closed on its roughly $1.62 billion term loan B due July 2, 2019 that is priced at Libor plus 400 with a 1.25% Libor floor, according to an 8-K filed with the Securities and Exchange Commission. The loan was sold at par and has 101 soft call protection through July 2, 2013.

Recently, pricing on the loan firmed at the wide end of the Libor plus 375 bps to 400 bps talk.

Proceeds were used to reprice the existing term loan B from Libor plus 587.5 bps with a 1.25% Libor floor.

The company's $1.87 billion senior secured credit facility also includes a $250 million revolver due July 2, 2017.

Morgan Stanley Senior Funding Inc. and Barclays led the deal.

Zayo is a Louisville, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

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