First American Payment frees up; Hoffmaster, Catalent Pharma talk surfaces with launch

By Sara Rosenberg

New York, April 23 - First American Payment Systems LP's add-on term loan made its way into the secondary market on Monday, with levels quoted above its original issue discount price.

Over in the primary, Hoffmaster Group Inc. released price talk on its first-lien term loan repricing and add-on as the deal was presented to investors during the session.

Also, Catalent Pharma Solutions Inc. came to market with an add-on to its incremental term loan and set price talk on the transaction, and Harbor Freight Tools USA Inc. and Granite Broadcasting Corp. surfaced with new deal plans.

First American breaks

First American Payment Systems' $40 million add-on term loan due November 2016 freed up for trading on Monday, with levels quoted at par bid, par ¾ offered, according to a trader.

Pricing on the add-on is Libor plus 500 basis points with a 1.75% Libor floor, and it was sold at an original issue discount of 99.001.

The loan is fungible with the existing $207 million term loan that is priced at Libor plus 500 bps with a 1.75% floor as well.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to pay a distribution to shareholders.

First American Payment is a Fort Worth-based provider of payment processing services for credit card, debit card and check transactions.

Hoffmaster guidance emerges

Hoffmaster launched its first-lien term loan repricing and $15 million add-on loan, at which time price talk of Libor plus 450 bps to 500 bps with a 1.25% Libor floor was announced, according to a market source.

The roughly $235 million of existing first-lien term loan debt is priced at Libor plus 550 bps with a 1.5% Libor floor. When done in December 2011, it was sold at an original issue discount of 98.

The existing term loan and add-on will have 101 soft call protection for one year, a feature that was not previously part of the existing debt, the source said.

Commitments are due on May 4.

Hoffmaster lead banks

GE Capital Markets, Jefferies & Co. and Macquarie Capital (USA) Inc. are the lead banks on Hoffmaster's repricing and add-on transaction.

With the deal, the company is also getting a $23 million add-on second-lien term loan that has already been syndicated.

Proceeds from the add-on term loans will be used to repay some holdco debt.

Hoffmaster is an Oshkosh, Wis.-based producer of specialty disposable tabletop products.

Catalent seeks add-on

Catalent Pharma Solutions launched on Monday a $205 million add-on to its incremental term loan due Sept. 15, 2017 that is talked at Libor plus 400 bps with a 1.25% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection until Feb. 22, 2013, according to a market source.

The add-on is fungible with the existing incremental loan, which was obtained in February at an original issue discount of 99 and has the same spread and floor as the add-on.

Commitments are due on Tuesday, the source said.

Morgan Stanley Senior Funding Inc. is the lead arranger on the deal that will be used to refinance non-extended U.S. term loan B borrowings due in 2014.

Catalent is a Somerset, N.J.-based provider of advanced technologies and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer health care companies.

Harbor Freight readies deal

Harbor Freight Tools joined this week's calendar, scheduling a bank meeting for 1:30 p.m. ET in New York on Wednesday to launch a proposed $1.4 billion credit facility, according to market sources.

The facility consists of a $1 billion seven-year first-lien term loan that has 101 soft call protection for one year and a $400 million ABL revolver, sources said. Price talk is not yet available.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the lead banks on the term loan, and Wells Fargo is leading the revolver.

Proceeds will be used to refinance existing debt and pay a dividend, and total leverage will be 3.7 times, sources remarked.

Harbor Freight is a Camarillo, Calif.-based provider of tools and equipment.

Granite coming soon

Granite Broadcasting has set a conference call for 2:30 p.m. ET on Tuesday to launch a proposed $265.6 million credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of a $5 million five-year revolver, a $215 million seven-year first-lien term loan B and a $45.6 million 10-year second-lien term loan, the source said.

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

Expected corporate ratings are B3/B-, the source continued.

Granite Broadcasting is a New York-based television broadcasting company focused on operating local TV, online and mobile properties.

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