Rite Aid, EMI Music, Merrill break; Neiman, PRA, PVH revise deals; Rexnord withdrawn

By Sara Rosenberg

New York, March 10 - Rite Aid Corp.'s term loan tranche 7 freed up for trading on Monday above its issue price, and EMI Music Publishing and Merrill Communications LLC made their way into the secondary market as well.

Over in the primary, Neiman Marcus Group LLC firmed the spread on its term loan at the high end of guidance and revised the call protection, PRA International lifted pricing on its term loan, PVH Corp. reduced the amount of incremental term loan B debt it is getting and upsized its add-on term loan A, and Rexnord LLC withdrew its repricing request from market.

Furthermore, MultiPlan Inc. and Nord Anglia Education Inc. released price talk with launch, and Entegris Inc., Atkore International Inc., TransUnion LLC, Planet Fitness and Progrexion joined this week's calendar.

Rite Aid frees up

Rite Aid's $1.15 billion senior secured first-lien term loan tranche 7 due Feb. 21, 2020 emerged in the secondary market on Monday, with levels seen at par 1/8 bid, par 7/8 offered, according to a trader.

Pricing on the loan is Libor plus 275 basis points with a 0.75% Libor floor and it was issued at par. There is 101 soft call protection for six months.

Citigroup Global Markets Inc., Wells Fargo Securities LLC, Bank of America Merrill Lynch, GE Capital Markets, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance the company's existing senior secured first-lien term loan tranche 6 priced at Libor plus 300 bps with a 1% Libor floor.

Closing is targeted for March 13.

Rite Aid is a Camp Hill, Pa.-based drugstore chain.

EMI starts trading

EMI Music Publishing's roughly $1.08 billion term loan B also began trading during the session (although allocations went out late Friday), with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 275 bps with a 1% Libor floor and it was issued at par. There is 101 soft call protection for one year that was extended recently from six months.

UBS Securities LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor.

EMI Music is a New York-based music publisher.

Merrill hits secondary

Another deal to break was Merrill Communications, with its $394 million first-lien term loan (B+) due March 2018 quoted at par ½ bid, 101 offered on the open and then it moved up to par 5/8 bid, 101 1/8 offered, a market source said.

Pricing on the loan is Libor plus 475 bps with a 1% Libor floor and it was issued at par. The debt includes 101 soft call protection for six months.

During syndication, the spread on the loan was decreased from Libor plus 500 bps.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 625 bps with a 1% Libor floor.

Merrill is a St. Paul-based provider of technology-enabled services for the financial, legal, health care, real estate and other corporate markets.

Neiman updates deal

Moving to the primary, Neiman Marcus set pricing on its $2,943,000,000 first-lien covenant-light term loan due October 2020 at Libor plus 325 bps, the wide end of the Libor plus 300 bps to 325 bps talk, and pushed out the 101 soft call protection to one year from a previous expiration date in October 2014, according to a market source.

The loan still has a 25 bps step-down at 4 times net first-lien leverage, a 1% Libor floor and a par issue price.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 400 bps with a 1% Libor floor.

Neiman Marcus is a Dallas-based luxury retailer.

PRA ups pricing

PRA International raised the spread on its roughly $888 million term loan to Libor plus 350 bps from talk of Libor plus 300 bps to 325 bps, and kept the 1% Libor floor, par offer price and 101 soft call protection for six months intact, according to a market source.

UBS Securities LLC, KKR Capital Markets, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and Citigroup Global Markets Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 400 bps with a 1% Libor floor.

PRA is a Raleigh, N.C.-based contract research organization, providing outsourced clinical development services to the biotechnology and pharmaceutical industries.

PVH restructures

PVH changed its financing plans to include a $250 million fungible add-on term loan B due Feb. 13, 2020 as opposed to a $400 million non-fungible incremental term loan B due Feb. 13, 2020, and a $350 million fungible add-on term loan A due Feb. 13, 2019, increased from $200 million, according to a market source.

The add-on term loan B is priced at Libor plus 250 bps with a 0.75% Libor floor (in line with the existing B loan) and an original issue discount of 993/4, unchanged from talk when the loan was structured as a non-fungible tranche, but a step-down was added to the add-on and the existing roughly $939 million term loan B to Libor plus 225 bps when net total leverage is 2.75 times, the source said.

Additionally, the add-on B loan has 101 soft call protection for six months, same as the talk when it was a non-fungible tranche, however, now the existing term loan B will also get that call protection, the source continued.

PVH pro rata details

PVH's $3.925 billion credit facility (Ba1) also provides for a $750 million multicurrency revolver due Feb. 13, 2019 and an existing $1.636 billion existing term loan A due Feb. 13, 2019, both of which are seeing a one-year maturity extension from 2018 for which lenders are offered a 10 bps extension fee.

Pricing on all of the revolver and term loan A debt is Libor plus 175 bps, subject to a grid, unchanged from existing pricing, and investors will get a 25 bps upfront fee on the add-on term loan A, as initially planned.

Recommitments and consents are due by 5 p.m. ET on Tuesday, the source added.

Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and RBS Securities Inc. are leading the deal that will be used to refinance existing debt, including the Bridgewater, N.J.-based apparel company's 7 3/8% notes due 2020.

Rexnord pulled

Rexnord removed its $1.95 billion first-lien covenant-light term loan due August 2020 repricing from market despite making some investor friendly changes last week as some felt the deal was priced too tight, a market source remarked.

The repricing was talked at Libor plus 300 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for one year. The spread had been changed from Libor plus 275 bps and the call protection had been extended from six months recently.

By comparison, current pricing on the term loan is Libor plus 300 bps with a step-down based on leverage and a 1% Libor floor.

Credit Suisse Securities (USA) LLC was leading the deal for the Milwaukee-based industrial company.

MultiPlan sets talk

In more primary news, MultiPlan held its bank meeting on Monday afternoon, launching its $2.2 billion seven-year term loan B with talk of Libor plus 300 bps to 325 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, a market source said.

The company's $2,275,000,000 credit facility (B1) also includes a $75 million five-year revolver.

Commitments are due by 5 p.m. ET on March 18, the source continued.

Senior secured leverage is 5 times and total leverage is 7.3 times.

Barclays and J.P. Morgan Securities LLC are leading the deal that will help fund the company's buyout by Starr Investment Holdings and Partners Group from Silver Lake and BC Partners and refinance existing debt.

Closing is subject to regulatory approvals and customary conditions.

MultiPlan is a New York-based provider of health care cost management services.

Nord Anglia guidance

Nord Anglia Education released talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $515 million seven-year covenant-light term loan that launched during the session, according to a market source.

The company's $590 million credit facility also includes a $75 million revolver.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used with proceeds from an initial public offering of ordinary shares to refinance 10¼% senior secured notes due 2017 and 8½%/9½% senior PIK toggle notes due 2018, and, if there are any remaining proceeds, to partially redeem preference shares held by Premier Education Holdings and members of management or for general corporate purposes.

Nord Anglia Education is a Hong Kong-based operator of premium schools.

Entegris timing surfaces

Entegris emerged with plans to hold a bank meeting on Wednesday to launch its previously announced $545 million senior secured credit facility, according to a market source.

The facility consists of an $85 million asset-based revolver and a $460 million covenant-light term loan B.

Goldman Sachs Bank USA is leading the deal that will be used with an expected $360 million senior unsecured notes offering to fund the acquisition of ATMI Inc. for $34 in cash, or about $1.15 billion on a fully diluted basis.

Closing is expected in the second quarter, subject to the regulatory approvals, approval by ATMI shareholders and other customary conditions.

Entegris is a Billerica, Mass.-based provider of products for purifying, protecting and transporting critical materials used in processing and manufacturing in semiconductor and other high-tech industries. ATMI is a Danbury, Conn.-based provider of specialty semiconductor materials and high-purity materials handling and delivery services.

Atkore readies loans

Atkore set a bank meeting for 1:30 p.m. ET in New York on Wednesday to launch $670 million in covenant-light term loans, according to a market source.

The debt consists of a $420 million seven-year first-lien term loan and a $250 million 71/2-year second-lien term loan, the source said.

Deutsche Bank Securities Inc., UBS Securities LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to finance the acquisition of the remaining 37% of Atkore by Clayton, Dubilier & Rice and to refinance existing debt.

Atkore is a Harvey, Ill.-based manufacturer of primarily non-residential building products.

TransUnion coming soon

TransUnion scheduled a call for 3 p.m. ET on Tuesday to launch $1,862,000,000 in seven-year covenant-light term loan debt that has 101 soft call protection for six months, according to a market source.

The debt consists of a $1,175,000,000 term loan B and a $687 million delayed-draw term loan B, the source said.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Bank of America Merrill Lynch, RBC Capital Markets and Credit Suisse Securities (USA) LLC are leading that will be used to refinance existing debt.

TransUnion is a Chicago-based provider of information management and risk management services.

Planet Fitness on deck

Planet Fitness will hold a meeting at 10 a.m. ET on Tuesday to launch a $430 million credit facility (B1/B+) consisting of a $40 million five-year revolver and a $390 million seven-year term loan, according to market sources.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt, purchase some clubs and fund a dividend.

Planet Fitness is an operator of health clubs.

Progrexion joins calendar

Progrexion set a bank meeting for Wednesday to launch a $330 million credit facility, according to a market source.

The facility consists of a $5 million revolver and a $325 million seven-year term loan, the source said.

Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt and fund a dividend.

Progrexion is a provider of credit repair services.

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