Navistar, Regent Seven, CPM break; DaVita, ServiceMaster, Pinnacle, Immucor revise deals

By Sara Rosenberg

New York, Aug. 16 - Navistar Inc.'s covenant-light term loan B freed up on Thursday, with levels quoted well above the original issue discount price in active trading, and Regent Seven Seas Cruises and CPM Holdings Inc. broke, too.

In more secondary happenings, Revel Entertainment Group LLC's term loan was once again weaker, a trend that started after the release of disappointing revenue results.

Moving to the primary, DaVita Inc. lowered the spread on its term loan B-2 amidst strong demand, and ServiceMaster Co. raised pricing on the proposed extended term loan.

In addition, Pinnacle Foods Finance LLC increased its term loan size and firmed the discount at the low end of talk, and Immucor Inc. modified its repricing amendment request.

Navistar tops OID

Navistar's $1 billion five-year covenant-light term loan B (Ba2/B+/BB-) made its way into the secondary market on Thursday, with levels seen at par ¾ bid, 101¼ offered, then it moved to 101 bid, 101½ offered, and then it moved back to par¾ bid, 101¼ offered, according to a trader.

Pricing on the loan is Libor plus 550 basis points with a 1.5% Libor floor, and it was sold at a discount of 99. There is hard call protection of 101 in year one, 102 in year two and 101 in year three.

During syndication, pricing was cut from talk of Libor plus 650 bps to 700 bps, the discount revised from 98, and the loan was changed to a fully funded tranche from $750 million funded and $250 million delayed-draw for 90 days.

Navistar lead banks

J.P. Morgan Securities, Goldman Sachs Lending Partners LLC, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading Navistar's term loan.

Proceeds will be used for general corporate purposes and to repay outstanding borrowings under the company's ABL credit facility.

Navistar is a Lisle, Ill.-based manufacturer of commercial and military trucks, buses, RVs and diesel engines.

Regent Seven Seas breaks

Regent Seven Seas Cruises' also began trading, with the $300 million 61/2-year term loan B quoted at 99¾ bid, par ½ offered, according to a market source.

The term loan is priced at Libor plus 500 bps, after firming recently at the tight end of the Libor plus 500 bps to 525 bps guidance, and there is a step-down to Libor plus 475 bps when net first-lien leverage is less than 1.75 times that was added during syndication. Included in the loan is a 1.25% Libor floor as well as 101 soft call protection for one year, and it was sold at a discount of 99.

The Miami-based cruise ship company's $340 million credit facility (Ba2) also provides for a $40 million five-year revolver.

Deutsche Bank Securities Inc., Barclays, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an existing revolver and term loan.

CPM frees up

Another deal to break was CPM Holdings, with its $285 million first-lien term loan quoted at 99½ bid, par ¼ offered and its $100 million second-lien term loan quoted at 99 bid, par offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. The debt includes 101 soft call protection for one year.

Meanwhile, the second-lien term loan is priced at Libor plus 900 bps with a 1.25% Libor floor, and was sold at 98. There is call protection of 103 in year one, 102 in year two and 101 in year three.

Recently, the first-lien loan was upsized from $275 million and pricing firmed at the tight end of the Libor plus 500 bps to 525 bps talk, and the second-lien term loan was downsized from $185 million.

CPM getting revolver

CPM Holdings' $425 million credit facility, which is being led by Jefferies & Co., also provides for a $40 million revolver.

Proceeds will be used to refinance existing high-yield bonds and to fund a distribution to shareholders, the size of which was reduced as a result of the downsizing to the total loan amount.

First-lien leverage is about 2.9 times and total leverage is around 3.9 times. Prior to the changes to the term loan sizes, first-lien leverage was 2.4 times and total leverage was 4.8 times.

CPM is a Waterloo, Iowa-based supplier of process equipment used for oilseed processing and animal feed production.

Revel fall progresses

Also in trading, Revel Entertainment's term loan B gave up some more ground on Thursday, falling to 74½ bid, 75½ offered, from 75 bid, 76 offered on Wednesday, according to a trader.

The loan has been slipping since July revenue results were released at the end of last week, showing total revenue of $17.54 million for the month and year-to-date revenue of $60 million.

At the end of last week, the loan was quoted at 79 bid, 81 offered, meaning that it has dropped five points on the bid side over the course of this week.

Revel is a gaming and entertainment company that commenced operations on March 28 and opened to the public on April 2.

DaVita cuts pricing

Switching to the primary, DaVita modified pricing on its $1.65 billion seven-year term loan B-2 to Libor plus 300 bps from talk of Libor plus 325 bps to 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 market source.

The company's $3 billion of debt (Ba2/BB-) also provides for a $1.35 billion five-year term loan A-3 priced at Libor plus 250 bps.

Recommitments were due by 4 p.m. ET on Thursday and allocation are targeted to go out on Friday, the source remarked.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are leading the loans.

DaVita buying HealthCare

Proceeds from DaVita's loans and $1.25 billion of 5¾% senior notes will fund the acquisition of HealthCare Partners for about $4.42 billion, consisting of $3.66 billion in cash and roughly 9.38 million shares of DaVita common stock.

Closing is expected early in the fourth quarter, subject to receipt of Hart-Scott-Rodino approval, obtaining the approval of HealthCare Partners' owners and other customary conditions.

At close, the combined company will be named DaVita HealthCare Partners Inc.

DaVita is a Denver-based provider of kidney care services for those diagnosed with chronic kidney disease. HealthCare Partners is a Torrance, Calif.-based operator of medical groups and physician networks.

ServiceMaster flexes

ServiceMaster revised price talk on its extended term loan to Libor plus 425 bps from Libor plus 400 bps, a source remarked. By comparison, non-extended pricing is Libor plus 250 bps.

As before, the company is asking to extend some of its $2.5 billion senior secured term loan to Jan. 31, 2017 from July 24, 2014, and lenders are being offered a 10 bps consent fee and a 15 bps extension fee.

However, the company is now permitting lenders to extend a portion of their current term loan position, instead of requiring all or none, the source continued.

The company expects the extended loan size to be around $1 billion after giving effect to a planned repayment from notes proceeds.

ServiceMaster revises paydown

ServiceMaster is now anticipating using $300 million of proceeds from a restructured $750 million senior unsecured notes offering to repay the term loan borrowings, instead of using $500 million of proceeds from a $1 billion bond deal. The extended term loan paydown will not exceed 50% of the extended commitments.

The previously expected $1 billion of notes actually priced on Aug. 8 at par to yield 6 1/8%, but have since been withdrawn.

Of the remaining proceeds from the restructured bond deal, about $396 million will be used to redeem 10¾% senior notes due 2015 and the rest, if any, will be used for general corporate purposes.

J.P. Morgan Securities LLC is leading the extension request and has asked for updated signature pages by 4 p.m. ET on Thursday, the source added.

ServiceMaster is a Memphis-based provider of maintenance services.

Pinnacle ups loan

Pinnacle Foods raised its senior secured term loan F (Ba3/B+) due Oct. 17, 2018 to $450 million from $300 million, and as a result, it will refinance some 9¼% senior notes due 2015 in addition to its previously planned paydown on the non-extended term loan B due 2014, according to a market source.

Also, the original issue discount on the loan finalized at 991/4, the tight end of the 99 to 99¼ talk.

Pricing on the loan is Libor plus 350 basis points with a step-down that would take effect upon an initial public offering and 5.0 times total leverage, and there is a 1.25% Libor floor and 101 soft call protection until April 17, 2013. All of these terms mirror the existing term loan E.

Lead banks, Barclays, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC, are still seeking commitments for the loan by noon ET on Friday, the source remarked.

Pinnacle Foods is a Mountain Lakes, N.J.-based packaged food company.

Immucor tweaks amendment

Immucor changed its repricing amendment to leave the current net secured leverage covenant in place, as opposed to turning it into a covenant-light loan, according to a market source.

As before, the company is looking to reprice its $612 million term loan B (BB-) to Libor plus 450 bps with a 1.25% Libor floor from Libor plus 575 bps with a 1.5% Libor floor, and extend the 101 soft call protection for one year.

Consents were due at 5 p.m. ET on Thursday.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and UBS Securities LLC are leading the deal.

Immucor is a Norcross, Ga.-based provider of automated instrument-reagent systems to the blood transfusion industry.

RCN Cable well met

In other news, RCN Cable's roughly $672 million credit facility was "well oversubscribed" by Thursday's official commitment deadline, and the plan is to allocate the transaction next week, a market source told Prospect News.

The facility consists of a $40 million three-year revolver and an about $47 million four-year term loan A, both talked at Libor plus 400 bps with no Libor floor, and a $585 million four-year term loan B talked at Libor plus 425 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year.

SunTrust Robinson Humphrey Inc., GE Capital Markets and TD Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used by the broadband services provider to refinance existing bank debt.

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