CityCenter, Oberthur start trading; Sinclair reworks loan; Dole, Excelitas reveal price talk

By Sara Rosenberg

New York, Oct. 9 - CityCenter Holdings LLC's credit facility emerged in the secondary market on Wednesday with the term loan B seen above its original issue discount, and Oberthur Technologies' freed up, too.

Moving to the primary, Sinclair Television Group Inc. reduced the size of its add-on term loan B, set the original issue discount price at the high end of guidance and restructured the debt so it is no longer delayed-draw.

Also, Dole Food Co. Inc. released guidance on its credit facility with launch, and Excelitas Technologies Corp. came out with price talk on its first-lien term loan in preparation for its upcoming bank meeting.

CityCenter tops OID

CityCenter's $1.7 billion term loan B broke for trading on Wednesday afternoon, with levels seen at 99½ bid, 99¾ offered, a trader remarked.

Pricing on the B loan is Libor plus 400 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 six months.

The company's $1,775,000,000 senior secured credit facility (B3/B+) also includes a $75 million revolver.

Bank of America Merrill Lynch, Barclays, BNP Paribas Securities Corp., SMBC Nikko Capital Markets and UBS Investment Bank are leading the deal that will be used to refinance existing debt.

CityCenter, a 50/50 joint venture between MGM Resorts International and Infinity World, is the owner and operator a mixed-use development located on the Las Vegas Strip.

Oberthur frees up

Oberthur Technologies' credit facility also began trading, with the $280 million six-year U.S. term loan B quoted at 99½ bid, par ¼ offered, according to a trader.

Pricing on the U.S. loan is Libor plus 475 bps 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 €260 million six-year euro term loan B that is priced at Euribor plus 500 bps with a 1% floor and was sold at 99. This tranche has 101 soft call protection for one year as well.

During syndication, the U.S. term loan was downsized from $372 million and pricing firmed at the low end of the Libor plus 475 bps to 500 bps talk, and the euro term loan was upsized from €165 million while the spread finalized from initial talk of 25 bps to 50 bps wider than the U.S. term loan B.

J.P. Morgan Securities LLC, Goldman Sachs, Lloyds, Barclays, HSBC Securities and Societe Generale are leading the deal (B1/B-/BB-) that will be used with €190 million of senior notes to refinance existing debt.

The notes were downsized from €200 million with the changes to term loan sizes.

Oberthur is a France-based manufacturer of chip-based digital authentication products for the payment and telecom industries.

Sinclair restructures

Over in the primary, Sinclair Television trimmed its add-on term loan B due April 2020 to up to $200 million from $1 billion, firmed the discount at 981/2, the wide end of the 98½ to 99 talk, and removed the delayed-draw feature on the tranche, according to sources.

The B loan still has pricing of Libor plus 225 bps with a 0.75% Libor floor and 101 soft call protection for six months.

The company's now up to $400 million transaction still includes a $200 million add-on delayed-draw term loan A due April 2018 that is talked at Libor plus 225 bps with an original issue discount of 991/2.

Recommitments are due at 5 p.m. ET on Thursday, sources continued.

J.P. Morgan Securities LLC is leading the deal.

Sinclair repaying notes

Proceeds from Sinclair's term loans will be used with proceeds from a recent $350 million senior notes offering to fund the redemption of $500 million 9¼% senior secured second-lien notes due 2017.

The company is no longer using funds from the term loan B to help finance its purchase of Perpetual Corp. and Charleston Television LLC from the Allbritton family for $985 million, but the financing needed for this transaction is expected to be raised at a future date, sources remarked.

Closing on the acquisition is expected in the fourth quarter, subject to approval by the Federal Communications Commission and antitrust clearance.

Sinclair is a Hunt Valley, Md., television broadcasting company.

Dole discloses talk

Dole Food held its bank meeting on Wednesday afternoon, launching its $675 million seven-year covenant-light term loan B (B2/B-) with talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to market sources.

In addition, the company's $150 million five-year ABL revolver is being talked at Libor plus 175 bps, sources said.

Official price talk on both tranches came out in line with what was revealed by the company in earlier filings with the Securities and Exchange Commission, however, those filings had the soft call protection on the B loan extending through one year.

Commitments are due on Oct. 23.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Scotia Capital are leading the $825 million senior secured credit facility.

Dole being acquired

Proceeds from Dole's credit facility, an expected $325 million senior notes offering and $200 million of equity will be used to fund its buyout by chairman and chief executive officer David H. Murdock for $13.50 in cash per share, or about $1.6 billion.

The notes are backed by a commitment for a $325 million senior unsecured bridge loan that is priced at Libor plus 725 bps with a 1% Libor floor. The spread will increase by 50 bps every three months until it hits a cap.

Closing is expected to take place during the fourth quarter.

Dole is a Westlake Village, Calif.-based fruit and vegetable company.

Excelitas guidance surfaces

Excelitas Technologies announced talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year on its $620 million seven-year first-lien term loan that will launch with a bank meeting at 2 p.m. ET in New York on Thursday, according to a market source.

The first-lien term loan includes a $40 million delayed-draw tranche.

In addition to the first-lien term loan, the company's $945 million credit facility provides for a $40 million five-year revolver, and a $285 million 71/2-year second-lien term loan that is being taken entirely by KKR.

UBS Securities LLC, Credit Suisse Securities (USA) LLC and MCS Capital Markets are leading the deal, which will help fund the acquisition of Qioptiq, a Luxembourg-based designer and manufacturer of high performance photonic products and solutions.

Excelitas is a Waltham, Mass.-based provider of specialty lighting and sensor components, subsystems and integrated products to OEMs for health, environmental and security segments.

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