Bausch & Lomb, Harbor Freight, Burlington free up; Taminco, Brickman update pricing

By Sara Rosenberg

New York, May 10 - Bausch & Lomb's credit facility broke for trading on Thursday, with the U.S. term loan B very active in the par-plus context, and Harbor Freight Tools USA Inc. and Burlington Coat Factory Warehouse Corp. emerged in the secondary too.

Over in the primary, Taminco Group Holdings nailed down pricing on its term loan Bs at the high end of guidance, Brickman Group Ltd. set its discount price at the low side of talk, and Elo Touch Solutions disclosed call protection on its second-lien term loan, which saw a slight shortening in tenor.

Also, Generac Power Systems Inc. Gibson Energy ULC, SS&C Technologies Inc., Roofing Supply Group LLC, Husky International Ltd., Ceridian Corp. and VWR Funding Inc. revealed talk on their loans as the transactions were launched to lenders during the session, and CAMP International Holding Co. disclosed guidance on its in market deal.

Bausch tops OID

Bausch & Lomb's credit facility hit the secondary market on Thursday, with the $1.935 billion seven-year covenant-light term loan B quoted at 99 7/8 bid, par 3/8 offered on the break and then it moved up to par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the term loan B is Libor plus 425 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The company is also getting a €460 million seven-year covenant-light term loan B priced at Euribor plus 475 bps and a $400 million three-year covenant-light delayed-draw term loan priced at Libor plus 375 bps. Both of these tranches have a 1% floor and 101 soft call protection as well. The euro loan was sold at 99, and the delayed-draw term loan was not syndicated.

Additionally, the roughly $3.43 billion credit facility (B1/B+) includes a $500 million five year revolver.

Bausch buying ISTA

Proceeds from Bausch & Lomb's credit facility will fund the purchase of ISTA Pharmaceuticals Inc. for $9.10 per share in cash, or a total of about $500 million, and refinance existing debt.

Closing is expected this quarter, subject to regulatory and shareholder approval.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Bank of America Merrill Lynch are the lead banks on the deal.

During syndication, the U.S term loan B was downsized from $2.035 billion and the delayed-draw loan was upsized from $350 million, pricing on the U.S. term loan B was increased from talk of Libor plus 375 bps to 400 bps, pricing on the euro B loan was lifted from talk of Euribor plus 400 bps to 425 bps, pricing on the delayed-draw loan firmed at the tight end of the Libor plus 375 bps to 400 bps guidance and the maturity of the delayed-draw loan was shortened from seven-years.

Bausch & Lomb is a Rochester, N.Y.-based eye health company. ISTA is an Irvine, Calif.-based branded prescription eye care business.

Harbor Freight breaks

Also freeing up was Harbor Freight Tools, with its $750 million 51/2-year senior secured term loan (B1/B+) quoted at 99¾ bid, par ¼ offered, a source said.

The loan is priced at 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.

Since launching, the loan underwent some changes, including being downsized from $1 billion. flexing up from Libor plus 400 bps and having the tenor shortened from seven years.

The $1.15 billion credit facility, which also includes a $400 million ABL revolver, will be used to refinance existing debt and pay a dividend.

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

Total leverage is 3 times for Harbor Freight, a Camarillo, Calif., provider of tools and equipment.

Burlington starts trading

Burlington Coat Factory was another deal to make its way into the secondary market, with its $950.5 million term loan B (B3/B) due February 2017 quoted at par bid, par ½ offered on the break, and then it moved to par ¼ bid, par 5/8 offered, according to a trader.

Pricing on the loan firmed at Libor plus 425 bps, the wide side of the Libor plus 400 bps to 425 bps talk, a source said, adding that the 1.25% Libor floor, original issue discount of 99¾ and 101 soft call protection for one year were left intact.

Proceeds will be used to refinance an existing $950.5 million term loan B due February 2017 that is priced at Libor plus 475 bps with a 1.5% Libor floor, and was sold at an original issue discount of 99 in February 2011.

J.P. Morgan Securities LLC, Goldman Sachs & Co., Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal for the Burlington, N.J.-based discount retailer.

Taminco sets coupon

Switching to the primary, Taminco firmed the spread on its $350 million U.S. term loan B at Libor plus 400 bps, versus earlier talk of Libor plus 375 bps to 400 bps, and on its €120 million term loan B at Euribor plus 425 bps, compared to prior guidance of Euribor plus 400 bps to 425 bps, a market source said.

As before, both tranches have a 1.25% floor, a par offer price and 101 soft call protection for six months.

Proceeds are being used to reprice existing term loan B borrowings from Libor/Euribor plus 500 bps with a 1.25% floor.

The existing loans were sold at a discount of 98 in January and investors are getting paid down at 101 as a result of call protection.

Citigroup Global Markets Inc. is the left lead on the deal.

Taminco is a Belgium-based producer of alkylamines and their derivatives.

Brickman finalizes OID

Brickman set the original issue discount on its $539 million term loan B at 993/4, the low end of the 99½ to 99¾ guidance, while leaving pricing of Libor plus 425 bps with a 1.25% Libor floor, as well as the 101 soft call protection for one year, unchanged, according to a market source.

Proceeds will be used to reprice an existing $526.7 million term loan B from Libor plus 550 bps with a 1.75% Libor floor, and the $12.3 million of incremental borrowings will be used to fund a 101 paydown to existing lenders and fees and expenses associated with the repricing.

The existing term loan B was sold at an original issue discount of 99 when obtained in 2010.

Lead banks, Barclays Capital Inc. and Bank of America Merrill Lynch, are hoping to give out allocations late this week or early next week, the source said.

Brickman is a Gaithersburg, Md.-based commercial landscaping company.

Elo call protection

Elo Touch Solutions came out with call protection of non-callable for one year, then at 103 in year two and 101 in year three on its $90 million second-lien term loan (CCC+) and revised the maturity to 6½ years from seven years, according to a market source.

As was previously reported, price talk on the second-lien loan is Libor plus 950 bps with a 1.25% Libor floor and an original issue discount of 98.

The company's $285 million credit facility, which launched with a bank meeting on Thursday, also includes a $15 million five-year revolver (B+) and a $180 million six-year first-lien term loan (B+), both talked at Libor plus 525 bps with a 1.25% Libor floor and an original issue discount of 98. The first-lien term loan has 101 repricing for one year.

Commitments are due on May 24, the source added.

Elo lead banks

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the lead banks on Elo Touch Solutions' credit facility.

Proceeds will be used to help fund the buyout of the company by the Gores Group from TE Connectivity for $380 million in cash.

Closing is expected this quarter, subject to customary regulatory approvals.

Elo is a Menlo Park, Calif.-based supplier of touch screens, touch monitors and all-in-one touch computers.

Generac guidance emerges

Generac Power Systems held a conference call in the morning to kick off syndication on its $800 million six-year term loan B (B1/BB-), and with the event, price talk was announced, according to a market source.

The loan is talked at Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 981/2, and includes 101 soft call protection for one year, the source remarked.

J.P. Morgan Securities LLC is the left lead on the deal that will be used, along with $400 million in senior unsecured debt, to refinance about $574 million of existing term loan debt and to pay a special cash dividend to stockholders of up to $10 per share.

Also, the company plans to refinance an existing $150 million undrawn revolver with a similarly sized asset-backed revolver.

Generac, a Waukesha, Wis.-based designer and manufacturer of generators and other engine powered products, will have leverage of around 5 times at close.

Gibson pricing

Also launching with a call in the morning was Gibson Energy's $650 million term loan B (Ba3/BB-) due June 2018, for which talk of Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99½ surfaced, a market source remarked. There is 101 soft call protection through June 2013.

Proceeds will be used to reprice an existing roughly $650 million term loan due June 2018. The loan was compeleted in June 2011 at Libor plus 450 bps with a 1.25% Libor floor, was sold at a discount of 99, and included 101 soft call protection for two years.

With the repricing, the company is looking to get an up to $100 million add-on to its revolver (Ba3/BB-) that it will use for general corporate purposes.

J.P. Morgan Securities LLC, UBS Securities LLC and Citigroup Global Markets Inc. are leading the Calgary, Alta.-based midstream energy company's deal that is expected to close this quarter.

SS&C releases talk

SS&C Technologies came out with pricing guidance on its loans with launch as well, with the $725 million seven-year term loan B-1 and $100 million seven-year term loan B-2 talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 991/2, according to a market source. The loans have 101 soft call protection for six months.

By comparison, the company had said in filings with the Securities and Exchange Commission that it expected term loan B-1 and B-2 pricing to be Libor plus 325 bps with a 1% Libor floor.

Meanwhile, the company's $300 million 51/2-year term loan A launched in line with earlier talk of Libor plus 275 bps with no floor, and it was announced that the debt is being shopped at a discount of 991/2, the source continued.

SS&C getting revolver

SS&C Technologies' $1.225 billion credit facility (Ba3/BB-) also includes a $100 million 51/2-year revolver, and, in addition to the long-term debt, the company is getting a $142 million 364-day bridge loan that is priced at Libor plus 275 bps with no Libor floor.

Deutsche Bank Securities Inc., Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to fund the purchase of GlobeOp Financial Services SA for 485p per share in cash and refinance an existing credit facility.

SS&C is a Windsor, Conn.-based provider of financial services software and software-enabled services. GlobeOp, with headquarters in London and New York, is a provider of business process outsourcing, financial technology services and analytics to hedge funds and other sectors of the financial industry.

Roofing Supply launches

Roofing Supply Group disclosed that its $290 million seven-year term loan B (B2) is talked at Libor plus 450 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to sources.

The company's $465 million credit facility, which launched on Thursday, also includes a $175 million five-year ABL revolver.

Deutsche Bank Securities Inc., Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, UBS Investment Bank and Citigroup Global Markets Inc. are leading the deal that will be used with $200 million of eight-year senior notes to fund the buyout of the company by Clayton, Dubilier & Rice LLC from the Sterling Group.

Commitments are due on May 24 and closing is expected this quarter.

Roofing Supply is a Dallas-based wholesale distributor of roofing supplies and related materials.

Husky repricing

Husky International came to market with a repricing of its roughly $920 million term loan B, which is talked at Libor plus 400 bps to 425 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for one year, according to a market source.

Currently, the loan is priced at Libor plus 525 bps with a 1.25% Libor floor, and it had been sold at an original issue discount of 99 when done in June 2011.

Lead banks, Goldman Sachs & Co. and Morgan Stanley Senior Funding Inc., are asking for commitments by May 17.

Husky is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry.

Ceridian details

Ceridian told investors on a call that its proposed extended term loan is talked at Libor plus 575 bps, versus non-extended pricing of Libor plus 300 bps, and that the goal is to extend about $1.25 billion of the debt by 2½ years to May 2017, according to a market source.

As part of the transaction, the company wants to amend the existing senior secured debt coverage ratio to increase it by 1 time.

Lenders are being offered a 40% paydown on the extended amount and a 10 bps amendment fee.

Lead banks, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch, are seeking commitments/consents by Wednesday.

Ceridian is a Minneapolis-based provider of human resources, transportation and retail information management services.

VWR asks to extend

VWR also launched an amendment and extension, and it is seeking to extend its term loan (B1) to April 2017 from June 2014 at pricing of Libor plus 350 bps, compared to non-extended pricing of Libor plus 250 bps, according to a market source.

The extended loan has 101 soft call protection for one year, and lenders are being offered a 10 bps consent fee and a 15 bps extension fee, the source said.

Bank of America Merrill Lynch is the lead bank on the deal.

VWR is a West Chester, Pa.-based provider of laboratory equipment to the pharmaceutical, biotechnology, chemical and other industries.

CAMP reveals guidance

CAMP, a N.Y.-based provider of maintenance tracking for business aviation, set price talk on its first-and second-lien term loans, which launched with a bank meeting on Wednesday, as ratings were announced on Thursday by Standard & Poor's. Shortly thereafter, Moody's ratings came out too.

The $230 million seven-year covenant-light first-lien term loan (B1/B) is talked at Libor plus 550 basis points with a 1.25% Libor floor and an original issue discount of 99, a source said. There is 101 soft call protection for one year.

As for the $115 million 71/2-year covenant-light second-lien term loan (Caa2/CCC+), it is being talked at Libor plus 900 bps with a 1.25% floor and a discount of 98, the source remarked. The debt has call protection of 103 in year one, 102 in year two and 101 in year three.

Commitments towards the $375 million credit facility, which also includes a $30 million five-year revolver (B1/B), are due on May 24.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets and UBS Securities LLC are leading the deal that will fund CAMP's buyout by GTCR from Warburg Pincus.

Travelport closes

In other news, Travelport Ltd. completed the refinancing of its non-extended term loan due in 2013 and extended the maturity of about $61 million of its revolver to May 2015, according to a news release.

For the term loan refinancing, the company got a new $175 million 11/2-lien term loan (Caa1/CCC) due Nov. 22, 2015 priced at Libor plus 950 bps with a 1.5% Libor floor, and sold at an original issue discount of 97. There is hard call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the coupon was reduced from Libor plus 1,100 bps and the discount tightened from 96.

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

Travelport is an Atlanta-based provider of transaction processing services to the travel industry.

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