Dell, Spotless, CPG International, Nexstar break; Information Resources tweaks pricing

By Sara Rosenberg

New York, Sept. 24 - Dell Inc. firmed up term loan tranche sizes and then made its way into the secondary market in the later afternoon on Tuesday, and Spotless Holdings Ltd., CPG International Inc. and Nexstar Broadcasting Inc. began trading as well.

Over in the primary, Information Resources Inc. tightened the spread and the original issue discount on its term loan, Hudson's Bay Co. and Level 3 Financing Inc. released talk with launch, Digital Insight, Britax, El Pollo Loco and MCS AMS emerged with new deal plans, and Immucor Inc. scheduled a call for loan lenders.

Dell hits secondary

Dell finalized sizes on its term loans and then began trading on Tuesday, with the U.S. term loan B quoted by one trader at 99 5/8 bid, 99 7/8 offered, by a second trader at 99½ bid, par offered on the open and then he saw it soften to 99¼ bid, 99¾ offered and by a third trader at 99 3/8 bid, 99¾ offered and then he saw it go down to 99 1/8 bid, 99 5/8 offered.

The term loan C was quoted by one trader at 99¾ bid, par ¼ offered and by a second trader at 99¾ bid, par ¼ offered and then he saw it retreat to 99 5/8 bid, par offered.

The 61/2-year term loan B size firmed at $4.66 billion, versus recent talk of $4,625,000,000 to $4,675,000,000 and initial talk of $4 billion, sources said. Pricing is Libor plus 350 basis points, after flexing earlier from Libor plus 375 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, which was extended from six months at the time of the spread change.

Meanwhile, the five-year term loan C size firmed at $1.5 billion, compared to recent talk of $1.5 billion to $1.55 billion and initial talk of $1.5 billion. This tranche is priced at Libor plus 275 bps, after firming recently at the tight end of the Libor plus 275 bps to 300 bps talk, with a 1% Libor floor and was sold at 991/2. There is 101 soft call protection for six months.

Dell euro term loan

As part of its $7.1 billion covenant-light term loan debt package (Ba2/BB+/BB+), Dell is also getting a 61/2-year euro term loan that firmed at €700 million, compared to revised talk of €650 million to €700 million and talk of a minimum of €500 million when the tranche was added to the capital structure last week, sources remarked.

Pricing on the euro term loan is Euribor plus 375 bps, after flexing recently from Euribor plus 400 bps, with a 1% floor and it was sold at a discount of 99. There is 101 soft call protection for one year that was extended from six months earlier this week.

The company's senior secured credit facility also provides for a $2 billion asset-based revolver, of which about $750 million will be drawn.

Proceeds will be used to help fund the company's buyout by Michael Dell, founder, chairman and chief executive officer, and Silver Lake for $13.75 per share plus a special dividend of $0.13 per share.

Other funds will come from $1.5 billion of first-lien notes, downsized from $2 billion when the term loan sizes were reworked. Also, a $1.25 billion tranche of second-lien notes was eliminated.

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, RBC Capital Markets and UBS Securities LLC are leading the deal.

Dell is a Round Rock, Texas-based provider of technology and business products and services.

Spotless frees up

Spotless Holdings' credit facility also broke for trading, with the $825 million five-year first-lien term loan (B1/B) seen at par bid, par ½ offered and then it moved to par 1/8 bid, par 5/8 offered, and the $225 million 51/2-year second-lien term loan (B3/CCC+) seen at par ½ bid, 101½ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at a discount of 991/2. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 775 bps with a 1% Libor floor, and it was sold at 99. This tranche has call protection of 102 in year one and 101 in year two.

Recently, pricing on the first-lien term loan firmed at the low end of the Libor plus 400 bps to 425 bps range and the discount was changed from 99, and pricing on the second-lien loan firmed at the low end of the Libor plus 775 bps to 800 bps guidance and the discount was revised from 981/2.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, UBS Securities LLC and Barclays are leading the $1.05 billion in covenant-light loans that will refinance existing debt and fund a dividend.

Spotless is an Australia-based provider of integrated facility management services.

CPG tops OID

CPG International's credit facility freed up too, with the $625 million seven-year covenant-light term loan B (B2/B) quoted at 99¾ bid, par ½ offered, according to a market source.

Pricing on the B loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

Earlier in the week, pricing on the term B was reduced from Libor plus 400 bps, the discount was tightened from 99 and the 18-month MFN sunset provision was removed.

Barclays, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., RBS Capital Markets and UBS Securities LLC are leading the $750 million credit facility that also includes a $125 million five-year ABL revolver.

Proceeds, along with $315 million of notes, will be used to help fund the buyout of the company by Ares Management LLC and Ontario Teachers' Pension Plan from AEA Investors LP.

Senior secured leverage is 4.5 times, and total leverage is 6.7 times.

CPG is a Scranton, Pa.-based manufacturer of highly engineered low-maintenance building materials.

Nexstar starts trading

Another deal to hit the secondary was Nexstar's $150 million term loan B-2 (Ba3/BB), with levels seen at par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the B-2 loan is Libor plus 275 bps with a 1% Libor floor, and it was issued at par, after the spread firmed at the tight end of the Libor plus 275 bps to 300 bps talk and the offer price tightened from 991/2, a source said.

Bank of America Merrill Lynch, RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal.

Proceeds from the loan and $275 million of notes will be used to help repurchase 8 7/8% senior secured second-lien notes due 2017, to fund the acquisition of five television stations from Citadel Communications LP and Stainless Broadcasting LP and for general corporate purposes.

Nexstar is an Irving, Texas-based diversified media company.

Information cuts pricing

Moving to the primary, Information Resources lowered pricing on its $617.5 million seven-year covenant-light term loan B (B2/B+) to Libor plus 375 bps from Libor plus 400 bps and moved the original issue discount to 99½ from 99, according to a market source.

As before, the loan has a 1% Libor floor and 101 soft call protection for six months.

Bank of America Merrill Lynch, Jefferies Finance LLC and BMO Capital Markets are leading the deal that will be used to refinance existing debt and back the acquisition of Aztec, a provider of market measurement and related services for consumer packaged goods, liquor and pharmaceutical manufacturers and retailers, from Aegis Media.

Information Resources is a Chicago-based provider of solutions and services for consumer, retail and over-the-counter health care companies.

Hudson's Bay discloses talk

Hudson's Bay held its bank meeting on Tuesday, launching its $1.9 billion senior secured term loan B (B1/BB) with talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Oct. 3, the source remarked.

The company's roughly $3.6 billion credit facility also includes a C$750 million ABL revolver and a $950 million ABL revolver.

Bank of America Merrill Lynch and RBC Capital Markets are leading the deal that will be used with $400 million in senior notes, $1 billion of equity, including $500 million from Ontario Teachers' Pension Plan and $250 million from West Face Capital Inc., and cash on hand, to refinance existing debt and to fund the acquisition of Saks Inc. for $16.00 per share. The transaction is valued at about $2.9 billion.

Closing is expected by year-end, subject to approval by Saks shareholders, regulatory approvals and other customary conditions.

Leverage will be around 5.7 times.

Hudson's Bay is an Ontario-based operator of department stores. Saks is a New York-based retailer of clothes and accessories for men, women, children and the home.

Level 3 launches

Level 3 Financing held a call at 2 p.m. ET to launch a $1.2 billion term loan B-2 (Ba3/BB-/BB) due Jan. 15, 2020 that is talked at Libor plus 300 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and J.P. Morgan Securities LLC are leading the deal.

Proceeds will be used to repay the company's term loan B-2 due in 2019 that is priced at Libor plus 325 bps with a 1.5% Libor floor.

Level 3 is a Broomfield, Colo.-based provider of fiber-based communications services.

Digital Insight coming soon

Digital Insight revealed that it will be holding a bank meeting at 11 a.m. ET on Thursday to launch a $620 million credit facility, according to a market source.

The facility consists of a $20 million revolver, a $385 million covenant-light first-lien term loan and a $215 million covenant-light second-lien term loan, the source said.

Jefferies Finance LLC is leading the deal that will be used with about 47% in equity to back the already completed buyout of Intuit Financial Services (renamed Digital Insight) by Thoma Bravo from Intuit Inc. for $1,025,000,000.

Digital Insight is a Menlo Park, Calif.-based provider of technology solutions to financial institutions.

Britax plans meeting

Britax will host a bank meeting at 1 p.m. ET on Thursday to launch a $370 million term loan that will be used to refinance existing debt, according to sources.

Goldman Sachs Bank USA and HSBC Securities (USA) Inc. are leading the deal.

Britax is an England-based designer, manufacturer and marketer of child car seats, strollers, baby carriers and accessories.

El Pollo readies deal

El Pollo Loco set a bank meeting for Wednesday to launch a $305 million credit facility, according to a market source.

The facility consists of a $15 million five-year revolver, a $175 million five-year first-lien term loan and a $115 million 51/2-year second-lien term loan, the source said.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt.

El Pollo Loco is a Costa Mesa, Calif.-based restaurant operator.

MCS AMS joins calendar

MCS AMS scheduled a bank meeting for Wednesday to launch a $360 million credit facility that consists of a $20 million five-year revolver and a $340 million six-year term loan B, according to a market source.

Bank of America Merrill Lynch, HSBC Securities (USA) Inc., RBS and ING Financial Markets LLC are leading the deal.

In August, Concentric Equity Partners and TDR Capital announced the formation of a new holding company to establish a suite of mortgage field services companies comprising Mortgage Contracting Services LLC, Asset Management Specialists Inc. and Vacant Property Specialists LLC.

The holding company expects to close the transaction effective Oct. 1.

MCS AMS is a provider of property inspections, preservation, maintenance, rental management, software solutions and mobile applications.

Immucor readies call

Immucor will hold a call at 1 p.m. ET on Wednesday for new and existing credit facility lenders, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

No further details on the transaction were available prior to press time, the source said.

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

PRA closes

In other news, the buyout of PRA Holdings Inc. by KKR from Genstar Capital LLC and ReSearch Pharmaceutical Services Inc. from Warburg Pincus and the merger of the two companies has been completed, according to a news release.

For the transaction, PRA got a new $950 million credit facility (B1/B) consisting of a $125 million five-year revolver and an $825 million seven-year first-lien term loan.

Pricing on the term loan is Libor plus 400 bps 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.

During syndication, the spread on the loan was cut from talk of Libor plus 425 bps to 450 bps.

UBS Securities LLC, Jefferies Finance LLC, Credit Suisse Securities (USA) LLC, KKR Capital Markets and Citigroup Global Markets Inc. led the deal.

PRA is a Raleigh, N.C.-based contract research organization. ReSearch Pharmaceutical is a Fort Washington, Pa.-based provider of outsourced clinical development services.

Peabody wraps

Peabody Energy Corp. closed on its $2.85 billion senior secured credit facility (Ba1/BB+/BB+) that includes a $1.65 billion five-year revolver and a $1.2 billion seven-year covenant-light term loan B, a news release said.

Pricing on the term loan B is Libor plus 325 bps with a 1% Libor floor and 101 soft call protection for six months. The debt was sold at an original issue discount of 99.

During syndication, the spread on the B loan was lifted from Libor plus 275 bps and the revolver was upsized from $1.5 billion.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc., PNC Capital Markets LLC and RBS Securities Inc. led the deal that was used to refinance existing bank debt.

Peabody is a St. Louis-based coal producer.

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