Microsemi, Safety-Kleen, JMC break; Vantiv, CommScope slide with refi; SunGard inches up

By Sara Rosenberg

New York, Feb. 17 - Microsemi Corp. firmed the coupon on its term loan B and then freed up for trading on Friday, and new deals from Safety-Kleen Systems Inc. and JMC Steel Group Inc. began trading as well.

Also in the secondary, Vantiv LLC (formerly Fifth Third Processing Solutions LLC) and CommScope Inc. saw their term loans soften on refinancing news, and SunGard Data Systems Inc.'s non-extended term loan was a bit stronger as an extension deal was launched.

In more loan happenings, Hyland Software released price talk on its incremental term loan that was presented to lenders during the session, and WCA Waste Corp. narrowed down timing on the launch of its credit facility.

Microsemi frees up

Microsemi set the spread on its $810 million senior secured term loan B (Ba2/BB) due Feb. 2, 2018 at Libor plus 300 basis point, and then broke for trading at par ½ bid, 101 offered, which is in line with where the existing term loan B was being quoted, according to a trader.

Pricing on the new loan came at the tight end of the Libor plus 300 bps to 325 bps talk, while the 1% Libor floor and 101 soft call protection for one year were left unchanged.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal that was used to reprice an existing $798 million term loan B from Libor plus 450 bps with a 1.25% Libor floor and to pay related fees. The existing loan was repaid at 101.

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor services.

Safety-Kleen starts trading

Safety-Kleen's credit facility hit the secondary market on Friday morning, with the $225 million term loan B quoted at 99¾ bid, par ½ offered on the open and then it moved up to par bid, par ¾ offered, according to a trader.

Pricing on the B loan is Libor plus 375 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 term loan B was reduced from $250 million, the spread came in from Libor plus 450 bps and the discount tightened from 98.

J.P. Morgan Securities LLC is the lead bank on the deal.

Safety-Kleen revolver

Safety-Kleen's $450 million five-year credit facility (B1/BB-) also includes a $225 million revolver that was increased from $150 million at the time of the term loan B downsizing.

Proceeds will be used to repay an existing senior secured deal, including a revolver due in August 2012, fund share repurchases and for general corporate purposes.

Safety-Kleen is a Plano, Texas-based used oil recycling and re-refining, parts cleaning and environmental services company.

JMC levels surface

JMC Steel Group's $100 million add-on term loan B (B1/BB) due April 1, 2017 broke as well, with levels quoted at par bid, par ½ offered, according to a trader.

The loan is priced at Libor plus 325 bps with a 1.5% Libor floor, and was sold at an original issue discount of 991/2, the tight end of early talk that had been circulating in the 99 to 99½ area.

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

Proceeds will be used for general corporate purposes, which may include acquisitions.

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

Vantiv term loan dips

Vantiv's term loan was softer in trading, moving to 99½ bid, par ¼ offered from par 1/8 bid, par 3/8 offered, as the company revealed plans to repay its existing bank debt, a trader told Prospect News.

Funds for the refinancing will come from an up to $1.6 billion credit facility that is set to launch with a Wednesday morning bank meeting.

The facility includes a $250 million five-year revolver and a $1 billion five-year term loan A, both talked at Libor plus 225 bps, a market source said. The revolver has a 50 bps unused fee.

In addition, there is also a $250 million to $350 million seven-year term loan B that is talked at Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99, the source continued.

J.P. Morgan Securities LLC is left lead on the deal. Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and Fifth Third Securities Inc. are bookrunners as well.

Vantiv is a Cincinnati-based integrated payment processor serving merchants and financial institutions.

CommScope weakens

Also falling on word of a refinancing was CommScope, with its term loan B quoted by one trader at 99¾ bid, par ½ offered, down from par bid, par ¾ offered, and by a second trader at par 1/8 bid, par 3/8 offered, down from par ¼ bid, par ¾ offered.

The existing term loan B will be replaced with a new $992.5 million term loan B due Jan. 14, 2018 that is scheduled to launch with a call on Tuesday afternoon, a market source said.

Price talk on the new B loan, led by J.P. Morgan Securities LLC, is Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

By comparison, the existing covenant-light term loan B was obtained in early 2011 at a size of $1 billion and pricing of Libor plus 350 bps with a 1.5% Libor floor. The debt had been sold at an original issue discount of 991/2.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

SunGard gains ground

SunGard Data Systems' non-extended term loan moved up to 99 5/8 bid, par 1/8 offered from 99½ bid, par offered as the company launched an extension offer to lenders, according to a trader, who said that the existing extended loan was unchanged at 99¾ bid, par ¼ offered.

Under the proposal, the company is seeking to push out the maturity on up to $1 billion of its non-extended term loan B and incremental term loan B to 2017 from 2014 at pricing of Libor plus 375 bps, versus current pricing of Libor plus 350 bps.

Lenders are being offered a 25 bps extension fee.

J.P. Morgan Securities LLC, the left lead bank on the deal (BB), is asking for commitments by Feb. 24.

SunGard is a Wayne, Pa.-based software and technology services company.

Hyland sets talk

On the new deal front, Hyland Software held a call on Friday to kick off syndication on an $80 million incremental first-lien term loan (B2/B+), and price talk of Libor plus 475 bps with a 1.25% Libor floor and an original issue discount of 98 emerged on the deal, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the loan that will be used to fund a dividend.

With the transaction, the company is asking to amend its existing credit facility to allow for the dividend, and consenting term loan lenders will get repriced to match the incremental pricing from Libor plus 425 bps with a 1.5% Libor floor, the source added.

Hyland Software, a Westlake, Ohio-based enterprise content management software vendor, is offering lenders a 20 bps amendment fee.

Commitments/consents are due on Feb. 24.

WCA coming soon

Looking ahead, WCA Waste is getting close to firming up timing on its up to $325 million credit facility as it is now anticipated that a bank meeting will be held during the week of Feb. 20, according to a market source, who said that a firm date should emerge shortly.

Previously, the deal was simply labeled as February/March business.

The facility consists of a $50 million revolver and a maximum $275 million term loan.

Credit Suisse Securities (USA) LLC and Macquarie Capital are the lead banks on the deal for the Houston-based non-hazardous solid-waste services company.

WCA being acquired

Proceeds from WCA's credit facility and shareholder capital will fund its buyout by Macquarie Infrastructure Partners II for $6.50 per share in cash for a transaction value of about $526 million.

Additionally, the new debt will provide liquidity, refinance existing bank debt, and potentially redeem 7½% senior notes due 2019.

The term loan amount will be reduced to the extent that any notes remain outstanding. A tender offer for the notes is currently in place and expires on March 8.

Closing is expected this quarter, subject to stockholder approval, which will be sought at a March 8 meeting, and regulatory approvals, which have already been obtained.

Bragg well met

In other news, the book on Bragg Communications Inc.'s $400 million six-year term loan B was shut down around mid-week, accelerated from an original commitment deadline of Feb. 22, as the tranche was more than two times oversubscribed, according to a market source.

Price talk on the term loan B is Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99, and there is 101 soft call protection for one year.

The company's roughly C$1.75 billion senior secured credit facility (BB) also includes a C$150 million five-year revolver and a C$1.2 billion five-year term loan A, for which lenders still have until Wednesday to place their orders.

The revolver and term loan A are talked at BA plus 300 bps. The spread can range from BA plus 200 bps to 350 bps based on leverage. The revolver has an unused fee that is 25% of the drawn margin.

Bragg lead banks

TD Securities (USA) LLC, CIBC World Markets Corp., BMO Capital Markets Corp. and RBC Capital Markets LLC are leading Bragg's credit facility.

Allocations on the term loan B will not go out until after the pro rata commitment deadline has passed, the source added.

Proceeds will be used to refinance existing debt and fund a dividend.

Bragg Communications is a Halifax, N.S.-based cable television and telecommunications company.

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