EnergySolutions up on possible asset sale; Harland Clarke dips; Asurion lifts loan sizes

By Sara Rosenberg

New York, July 17 - EnergySolutions Inc.'s term loan was stronger in trading on Tuesday following the company's announcement that it is considering the sale of its U.K. and European business, and Harland Clarke Holdings Corp.'s extended term loan softened after a slight run-up in the previous session.

Over in the primary market, Asurion LLC increased the size of its add-on term loan and new amortizing term loan B-1 as a result of strong demand, and the Corporate Executive Board Co. and LVI Services Inc. disclosed price talk on their deals with launch

In addition, Essential Power LLC, Homeward Residential Inc. and FLY Leasing Ltd. revealed plans to bring new credit facilities to market later this week.

EnergySolutions gains

EnergySolutions' term loan moved higher in trading on Tuesday after news emerged that the company is mulling over the sale of its U.K. and European business that holds a contract with the Nuclear Decommissioning Authority (NDA) to manage and operate 22 of the U.K.'s Magnox nuclear reactor fleet, a trader said.

The term loan was quoted at 92 bid, 93 offered, up from 90¾ bid, 91¾ offered, the trader added.

"We were approached by third parties to purchase the ESEU business, which holds the Magnox contract with the NDA, and are considering a number of proposals and transaction structures," remarked David Lockwood, chief executive officer and president, in a news release.

"We are evaluating these alternatives in the best interests of our shareholders, customers and employees," Lockwood added.

EnergySolutions is a Salt Lake City-based provider of nuclear services.

Harland Clarke retreats

Harland Clarke's extended term loan weakened as the company priced a downsized bond offering and Standard & Poor's revised its outlook on the company to negative from stable, according to a trader.

The extended term loan was quoted at 91½ bid, 93½ offered, down from 93½ bid, 94½ offered, the trader said. On Friday, the loan was seen at 92½ bid, 94½ offered, but it moved up on Monday after news of the bond deal hit.

On Tuesday, the company priced a $235 million 9¾% senior secured notes offering at 96 to yield 10.666%. The deal, which will be used to repay some term loan debt, was downsized from $250 million.

As for the ratings outlook change, S&P said that the move reflects the company's significant debt maturities in 2014 and 2015 and the risk that cash flow and interest coverage could be reduced meaningfully if the maturities are refinanced.

Harland Clarke is a San Antonio-based provider of integrated payment, marketing and security services and retail products.

Asurion tweaks sizes

Switching to the primary, Asurion raised its add-on to the existing first-lien term loan due May 2018 to $500 million from $400 million, while leaving pricing at Libor plus 400 basis points with a 1.5% Libor floor and an original issue discount of 99, according to sources. The spread and floor match that of the existing loan.

Also, the company increased its new amortizing five-year first-lien term loan B-1 to $375 million from $300 million and left pricing at Libor plus 350 bps with a 1.25% Libor floor and an original issue discount of 99, sources said.

The add-on is prepayable at par and the new loan has 101 soft call protection for one year.

Amortization on the add-on is 1% per annum, while amortization on the new loan, which was expected to appeal to collateralized loan obligations, is 12.5% in year one, 15% in year two, 20% in year three, 22.5% in year four and 25% in year five.

Asurion readies allocations

With the change to tranche sizes, Asurion is now getting ready to give out allocations on its well-received $875 million of new covenant-light first-lien term loan debt on Wednesday, sources remarked.

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

Proceeds, including those from the upsizing, will be used to pay down some of the company's second-lien term loan debt that are priced at Libor plus 750 bps with a 1.5% Libor floor.

Asurion is a Nashville-based provider of technology protection services.

Corporate Executive sets talk

Corporate Executive Board held a bank meeting on Thursday to kick off syndication on its credit facility, and in connection with the launch, talk on the $375 million seven-year term loan B came out at Libor plus 350 bps to 375 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

By comparison, in filings with the Securities and Exchange Commission, expected term loan B pricing was outlined as Libor plus 350 bps with a 1.25% Libor floor.

The company's $625 million senior secured credit facility also includes a $50 million five-year revolver and a $200 million five-year term loan A.

Pricing on the pro rata tranches was described as Libor plus 300 bps in the regulatory filings.

Corporate Executive buying SHL

Proceeds from Corporate Executive Board's credit facility will be used to help fund the purchase of SHL from funds managed by HgCapital and Veronis Suhler Stevenson for $660 million in cash, subject to customary pre- and post-closing adjustments.

Bank of America Merrill Lynch and Barclays Capital Inc. are the lead banks on the deal and are seeking commitments from lenders by July 30, the source remarked.

Corporate Executive Board is an Arlington, Va.-based member-based advisory company. SHL is a U.K.-based provider of cloud-based talent measurement and management services.

LVI guidance emerges

Also releasing pricing with launch was LVI Services', with its $155 million credit facility presented to lenders with talk of Libor plus 450 bps with no Libor floor, a market source said.

The facility consists of a $40 million revolver, a $90 million term loan A and a $25 million delayed-draw term loan.

M&T Bank is leading the deal that will be used for general corporate purposes.

Leverage is 3.1 times, the source continued.

LVI Services is a New York-based provider of integrated facility services, including environmental remediation, demolition and fireproofing.

Essential Power readies deal

In more primary news, Essential Power scheduled a bank meeting for 1 p.m. ET on Thursday to launch a $665 million senior secured credit facility, according to market sources.

Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Union Bank of California and RBC Capital Markets are leading the deal that is comprised of a $100 million five-year revolver and a $565 million seven-year term loan B, sources said.

Expected credit facility ratings are Ba2/BB, sources continued.

Proceeds will be used to refinance existing bank debt and fund a tender offer for the company's 10 7/8% senior secured second-lien notes due 2016 that expires on Aug. 15.

Essential Power is an Iselin, N.J.-based wholesale power generation and marketing company.

Homeward coming soon

Homeward Residential has set a bank meeting for 9:30 a.m. ET in New York on Thursday to launch a proposed $375 million credit facility, according to a market source.

The facility consists of a $75 million revolver and a $300 million term loan, the source said, adding that price talk is not yet available.

Barclays Capital Inc., Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the deal that will be used to redeem preferred shares held by WL Ross & Co.

Homeward Residential is a Coppell, Texas-based non-bank mortgage servicing and finance company.

FLY plans loan

Another company to join the calendar was FLY Leasing, with the intention being to hold a bank meeting at 10:30 a.m. ET in New York on Thursday to launch a $395 million term loan, according to a market source.

Citigroup Global Markets Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and RBC Capital Markets LLC are leading the loan that will be used to refinance existing bank debt.

FLY is an aircraft lessor with corporate offices in Dublin, Ireland and San Francisco.

WideOpenWest closes

In other news, WideOpenWest Finance LLC completed its purchase of Knology Inc., a West Point, Ga.-based provider of interactive communications and entertainment services, for $19.75 per share in cash, or about $1.5 billion, according to a news release.

For the transaction, WideOpenWest got a new 2.12 billion credit facility (B1/B) consisting of a $200 million five-year revolver and a $1.92 billion six-year first-lien term loan B.

Pricing on the term loan B is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 96. There is 101 soft call protection for one year.

During syndication, the term loan maturity was shortened from seven years. Also, at launch, the discount was talked at 981/2, it was then moved to 95 and then to 95¾ to 96, before firming at 96.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Bank of Tokyo-Mitsubishi-UFJ Ltd. led the deal for the Denver-based provider of residential and commercial high-speed internet, cable television and telephone services.

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