Carribean, Telx break; AMC lowers pricing; Nuveen, NXP Semiconductors release price talk

By Sara Rosenberg

New York, Feb. 15 - Caribbean Restaurants LLC and Telx Group saw their new deals hit the secondary market on Wednesday, and Dean Foods Co.'s term loans were unchanged to softer despite the company's release of quarterly results that showed year-over-year improvements in earnings and sales.

Over in the primary, AMC Entertainment Inc. trimmed the coupon on its term loan B-3, Nuveen Investments disclosed guidance on its second-lien term loan as the deal was presented to lenders during the session, and NXP Semiconductors' came out with price talk on its in market incremental term loan B.

Additionally, JMC Steel Group Inc. and Capital Automotive surfaced with plans to bring term loan add-ons to market, and RailAmerica Inc. set structure and timing on the new loan financing for its bond tender offer.

Caribbean frees up

Caribbean Restaurants, an operator of Burger King restaurants in Puerto Rico, saw its credit facility break for trading on Wednesday, with the $195 million term loan quoted at 98½ bid on the open and then it moved up to 99 bid, par offered, according to a trader.

Pricing on the term loan, as well as on a $22.5 million revolver, is Libor plus 750 basis points with a 1.5% Libor floor. The term loan was sold at a discount of 98, while the revolver was sold at 97. Included in the term loan is soft call protection of 102 in year one and 101 in year two.

Earlier this week, the term loan was upsized from $190 million, the revolver was upsized from $20 million, pricing on both tranches was lowered from Libor plus 800 bps and the discount price on the term loan tightened from 97.

Jefferies & Co. is leading the $217.5 million credit facility (B3/B-) that will be used to refinance existing bonds. The additional term loan proceeds raised through the upsizing will be used to decrease sponsor equity by $2.8 million.

Telx tops OID

Another deal to emerge in the secondary was Telx Group's $75 million incremental term loan (B1/B), which was quoted at par ½ bid, 101½ offered, according to a trader.

Pricing on the incremental loan is Libor plus 650 bps with a 1.25% Libor floor, in line with existing term loan pricing, and it was sold at an original issue discount of 991/2. By comparison, when the existing loan was obtained last year, it was sold at a discount price of 94.

Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC are the lead banks on the deal that will be used to repay revolver borrowings and for general corporate purposes.

Telx is a New York-based provider of interconnection and colocation facilities.

Dean Foods flat to down

Also in trading, Dean Foods' bank debt was steady to weaker on Wednesday even with the release of favorable fourth quarter results, according to traders.

One trader was quoting the old term loan at 98 bid, 99 offered, down from 98½ bid, 99¼ offered, the 2016 term loan at 97½ bid, 98½ offered, down from 97¾ bid, 98¾ offered, and the 2017 term loan at 97½ bid, 98½ offered, flat on the day.

Meanwhile, a second trader had all of the loans unchanged, quoting the old term loan at 97½ bid, 98½ offered, the 2016 term loan at 98 bid, 99 offered, and the 2017 term loan at 98½ bid, 99½ offered.

For the fourth quarter, the company reported a net loss of $10 mi9llion, or $0.05 per diluted share, compared to a net loss of $21 million, or $0.11 per diluted share, last year.

Net sales for the quarter totaled $3.3 billion, versus $3.2 billion in the fourth quarter of 2010.

Also, at Dec. 31, the Dallas-based food and beverage company had total debt, net of $115 million in cash on hand, of $3.65 billion and a funded debt to EBITDA ratio of 4.64 times.

AMC cuts spread

Switching to the primary, AMC Entertainment lowered pricing on its $300 million six-year senior secured term loan B-3 (Ba2/BB-/BB) to Libor plus 325 bps from Libor plus 350 bps, while leaving the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a source.

Commitments were due at 5 p.m. ET on Wednesday and there's talk that allocations may go out before the end of the week.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on the deal that will be used, along with cash on hand, to fund a tender offer for up to $160 million of the company's $300 million of 8% senior subordinated notes due 2014 and to repay term loans due in 2013.

AMC Entertainment, a Kansas City, Mo.-based theatrical exhibition and entertainment company, has set an expiration date of March 6 for the notes tender offer.

Nuveen second-lien talk

Nuveen Investments held its conference call on Wednesday, at which time price talk on its $500 million seven-year second-lien term loan (Caa1/CCC) was announced, according to a market source.

The second-lien loan is talked at Libor plus 700 bps to 725 bps with a 1.25% Libor floor and an original issue discount of 98, and includes call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the lead banks on the deal that will be used to replace an existing $500 million second-lien term loan priced at 12.5%.

As was previously reported, the company is also seeking to extend $500 million of its first-lien term loan debt (B2) to May 2017 from 2014 at pricing of Libor plus 550 bps versus non-extended pricing of Libor plus 300 bps, and the extended loan will have 101 soft call protection for one year.

Nuveen is a Chicago-based provider of investment services to institutions as well as individual investors.

NXP sets guidance

NXP Semiconductors came out with price talk on its $475 million seven-year incremental term loan B (B+) on Wednesday morning, a day after the deal's official conference call launch, according to a market source.

The loan is being shopped at Libor plus 400 bps with a 1.25% Libor floor and an original issue discount of 98½ and is non-callable for one year, then at 101 in year two, the source said.

Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch are leading the deal that will be used, along with a $300 million revolver draw, to refinance the company's roughly $775 million senior unsecured notes due in 2015.

Commitments are being sought after by noon ET on Thursday.

NXP is an Eindhoven, Netherlands-based provider of mixed-signal products and semiconductor components. The borrowers of the new term loan will be NXP BV and NXP Funding LLC.

JMC plans add-on

JMC Steel has scheduled a conference call for Thursday morning to launch a proposed $100 million add-on term loan B (B1/BB) due April 1, 2017 that will have the same pricing as the existing term loan B - Libor plus 325 bps with a 1.5% Libor floor, according to a market source.

Original issue discount talk on the add-on is floating around ahead of the call at 99 to 991/2, the source said. When the existing loan was done almost a year ago, it was sold at a discount of 991/2.

Proceeds from the new loan, along with $150 million of 8¼% senior notes due 2018 that priced on Wednesday at 103.25 to yield 7.466%, will be used for general corporate purposes, which may include acquisitions.

J.P. Morgan Securities LLC and Jefferies & Co. are the lead banks on the deal.

JMC Steel is a Chicago-based steel pipe and tube manufacturer.

Capital Auto readies deal

Capital Automotive set a call for Thursday afternoon to launch a proposed $400 million add-on term loan that is being led by Barclays Capital Inc., according to a market source.

Use of proceeds and price talk are not yet available, the source said.

The company got its existing term loan B (sized at $1.5 billion at close) in 2011 at pricing of Libor plus 350 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

RailAmerica details emerge

RailAmerica had disclosed early this month that it would be getting a new credit facility to fund a tender offer for up to $444 million of its 9¼% senior secured notes, and now it is known that the bank debt is coming in the form of a $585 million senior secured term loan, according to a market source.

A bank meeting to launch the term loan has been set for Thursday morning, the source continued.

Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. are the lead banks on the deal.

The bond tender offer is scheduled to expire on Feb. 29 and is subject to completion of the new term loan. On Tuesday, the company said that it has received early tenders for about $513 million of the $518 million notes outstanding and will accept the tendered notes on a pro rata basis.

RailAmerica is a Jacksonville, Fla.-based owner and operator of short-line and regional freight railroads.

EMI Music attracts interest

In other news, EMI Music Publishing's $1.125 billion senior secured credit facility (Ba3/BB-) was "going really well" ahead of its Wednesday commitment deadline with the transaction described as being "more than two times" oversubscribed, a market source told Prospect News.

The facility consists of a $1.05 billion six-year term loan B and a $75 million five-year revolver, both talked at Libor plus 475 bps with a 1.25% Libor floor. The B loan has an original issue discount of 98½ and 101 soft call protection for one year, and the revolver has a 75 bps undrawn fee that is subject to one step-down.

UBS Securities LLC is leading the deal that will be used to help fund the buyout of the music publishing company for $2.2 billion from a wholly owned subsidiary of Citigroup Inc.

The group buying EMI includes Sony/ATV Music Publishing, a subsidiary of Sony Corp. of America that is co-owned by trusts formed by the Estate of Michael Jackson, Mubadala Development Co. PJSC, Jynwel Capital Ltd., GSO Capital Partners LP and David Geffen.

TransDigm wraps acquisition

TransDigm Group Inc. completed its purchase of AmSafe Global Holdings Inc. for $750 million from a group controlled by Berkshire Partners LLC and Greenbriar Equity Group LLC, according to a news release.

For the transaction, TransDigm got a new $500 million add-on senior secured covenant-light term loan (Ba2/BB-) due Feb. 14, 2017 that is priced at Libor plus 300 bps with a 1% Libor floor, and was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the Cleveland-based aircraft components company reduced pricing on the loan from Libor plus 325 bps and tightened the discount from 99 as a result of strong oversubscription.

Credit Suisse Securities (USA) LLC and UBS Securities LLC led the deal.

Blue Coat closes

Blue Coat Systems Inc.'s buyout by Thoma Bravo LLC and Ontario Teachers' Pension Plan for $25.81 in cash per share has closed, according to a news release.

To help fund the purchase, Blue Coat got a new $525 million senior secured credit facility consisting of a $50 million revolver (B1/BB-), a $360 million first-lien term loan (B1/BB-) and a $115 million second-lien term loan (Caa1/B-).

Pricing on the first-lien term loan is Libor plus 600 bps with a 1.5% Libor floor, and the debt was sold at an original issue discount of 98. There is 101 soft call protection for one year.

Second-lien loan pricing is Libor plus 1,000 bps with a 1.5% Libor floor, and it was sold at 97 after firming at the wide end of the 97 to 98 talk. The tranche, which was upsized from $85 million as equity was downsized, has hard call protection of 103 in year one, 102 in year two and 101 in year three.

Jefferies & Co. led the deal for the Sunnyvale, Calif.-based provider of web security and WAN optimization services.

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