DaVita, Wayne Fueling, Shearer’s Foods, Alstom second-lien, Equinox, Custom Sensors break

By Sara Rosenberg

New York, June 19 – DaVita Healthcare Partners Inc., Wayne Fueling Systems LLC (Alfred Fueling Systems), Shearer’s Foods LLC, Alstom Auxiliary Components and Equinox Holdings Inc. all freed up for trading on Thursday, and Custom Sensors & Technologies hit the secondary market too, but only after pricing was trimmed and the original issue discount was tightened.

In more happenings, New Albertson’s Inc. cut the spread and revised the original issue discount on its term loan, Metro-Goldwyn-Mayer Inc. upsized its loan and lowered pricing, Akorn Inc. modified the offer price on its incremental term loan and Learfield Communications Inc. tightened the issue price on its add-on deal.

Also, Wencor Group LLC (Jazz Acquisition Inc.) and Husky International Ltd. accelerated the commitment deadlines on their credit facilities, TI Automotive and Tensar set price talk with launch, Ascend Learning released original issue discount guidance on its add-on loan, and Paragon Offshore and Blackbrush Oil & Gas (BBOG Borrower LP) joined the near-term calendar.

DaVita frees up

DaVita Healthcare’s credit facility broke for trading on Thursday, with the $3.5 billion seven-year term loan B quoted at par 5/8 bid, par 7/8 offered, the $1 billion five-year term loan A quoted at par bid, par ½ offered and the $1 billion five-year revolver quoted at 95½ bid, according to a trader.

Pricing on the B loan is Libor plus 275 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

Meanwhile, the term loan A and revolver are both priced at Libor plus 175 bps, subject to a grid.

Upfront fees payable on allocation on the revolver and term loan A were 30 bps for commitments of $75 million and up, 20 bps for commitments of $50 million and up, 12.5 bps for commitments of $25 million and up and 10 bps for commitments less than $25 million.

The other day, the spread on the term loan B was cut from talk of Libor plus 300 bps to 325 bps and the 50 bps MFN was set for life instead of for 18 months.

DaVita lead banks

Barclays, Wells Fargo Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading DaVita Healthcare’s $5.5 billion credit facility (Ba1/BB).

Proceeds from the credit facility and $1.75 billion of 5 1/8% 10-year senior notes will be used to refinance existing debt and for general corporate purposes.

DaVita Healthcare is a Denver-based provider of kidney and dialysis services.

Wayne hits secondary

Wayne Fueling Systems’ credit facility began trading too, with the $285 million seven-year covenant-light first-lien term loan (B1) quoted at par 1/8 bid, par 7/8 offered and the $100 million eight-year covenant-light second-lien term loan (Caa1) quoted at par bid, 101 offered, a source remarked.

Pricing on the first-lien term loan is Libor plus 375 bps with a step-down to Libor plus 350 bps at 5 times total leverage. The debt has a 1% Libor floor and 101 soft call protection for six months, and was sold at an original issue discount of 99½.

The second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor and was sold at a discount of 99. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

Recently, pricing on the first-lien term loan was lowered from Libor plus 400 bps and the step-down was added, and pricing on the second-lien loan firmed at the wide end of the Libor plus 725 bps to 750 bps talk while the call protection was sweetened from 102 in year one and 101 in year two.

Wayne getting revolver

Along with the first- and second-lien term loans, Wayne’s $460 million senior secured credit facility includes a $75 million five-year revolver (B1).

Proceeds will be used to help fund the buyout of the by Riverstone Holdings LLC from GE.

Citigroup Global Markets Inc., UBS AG, Credit Suisse Securities (USA) LLC and BNP Paribas Securities Corp. are leading the deal that is expected to close on June 20.

Wayne is an Austin, Texas-based designer, manufacturer and servicer of fuel dispensers and forecourt technologies.

Shearer’s levels emerge

Shearer’s Foods’ credit facility emerged in the secondary as well, with the $290 million seven-year first-lien covenant-light term loan (B1/B) seen at par ¼ bid, par 5/8 offered and the $225 million eight-year second-lien covenant-light term loan (Caa1/CCC+) seen at 99¾ bid, par ¾ offered, according to one market source. By early afternoon, a second source saw the second-lien term loan at par ¼ bid, 101¼ offered.

The first-lien term loan is priced at Libor plus 350 bps with a step-down to Libor plus 325 bps at 4 times net first-lien leverage and a 1% Libor floor. The debt was sold at a discount of 99¾ and has 101 soft call protection for six months.

Pricing on the second-lien loan is Libor plus 675 bps with a 1% Libor floor and it was issued at 99. There is call protection of 102 in year one and 101 in year two.

During syndication, the first-lien loan spread was cut from Libor plus 375 bps, the step-down was added and the discount was changed from 99½, and the second-lien loan spread was trimmed from Libor plus 700 bps.

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

Shearer’s funding acquisition

Proceeds from Shearer’s Foods’ credit facility will be used to finance the acquisition of Private Brands, a Massillon, Ohio-based provider of private label snacks, for $430 million, and two manufacturing facilities from Snyder’s-Lance Inc.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS AG are leading the deal.

Closing is expected this quarter, subject to regulatory approvals and financing as well as customary conditions.

Shearer’s Foods is a Massillon, Ohio-based national contract manufacturing and private label supplier in the snack industry.

Alstom second-lien trades

Another deal to start trading was Alstom Auxiliary Components’ $163 million eight-year covenant-light second-lien term loan (Caa2/CCC+), with levels seen at 97 bid, 98 offered, according to a trader.

The second-lien term loan is priced at Libor plus 850 bps with a 1% Libor floor and was sold at a discount of 96. There is call protection of 102 in year one and 101 in year two.

During syndication, pricing on the second-lien loan was increased from Libor plus 725 bps, the original issue discount widened from 99 and the incremental allowance was reduced to $55 million from $75 million.

The company’s credit facility also includes a €40 million five-year multicurrency revolver (B2/B), a €160 million five-year multicurrency letter-of-credit facility (B2/B), a $200 million seven-year covenant-light first-lien term loan B (B2/B) and a €163 million seven-year covenant-light first-lien term loan B (B2/B).

The U.S. first-lien term loan was trading at 99 1/8 bid, 99 /7/8 offered, unchanged from Wednesday but up from Tuesday’s breaking levels of 99 bid, 99¾ offered, the trader added.

Alstom first-lien terms

Pricing on Alstom’s U.S. term loan B and euro term loan B is Libor/Euribor plus 450 bps with a 1% floor and the debt was sold at an original issue discount of 99. There is 101 soft call protection for six months.

Last week, pricing on all of the first-lien term loan B was lifted from talk of Libor/Euribor plus 375 bps to 400 bps, and the excess cash flow sweep was changed to 75% from 50% with first-lien senior secured leveraged-based step-downs subject to carve outs.

Citigroup Global Markets Inc., Barclays, ING Financial Markets LLC, RBC Capital Markets and Societe Generale are leading the deal that will help fund the roughly €730 million buyout of the company by Triton from Alstom, which is expected to close before the end of the first half of fiscal year 2014/2015.

Alstom is a Mannheim, Germany-based company active in air preheaters and gas-gas heaters for thermal power plants, heat transfer products for petrochemical and industrial processes, and grinding mills for diversified industrial applications.

Equinox tops OID

Equinox’s fungible $100 million add-on term loan (Ba3) also broke, with levels quoted at par 1/8 bid, par 5/8 offered, a trader said.

The add-on is priced at Libor plus 325 bps with a 1.25% Libor floor, in line with the existing term loan, and was sold at an original issue discount of 99 7/8 after tightening the other day from 99½.

Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are leading the deal that will be used for general corporate purposes.

Equinox is a New York-based exercise and fitness company.

Custom Sensors revised

Custom Sensors & Technologies’ reduced pricing on its $590 million seven-year covenant-light first-lien term loan to Libor plus 350 bps from revised talk of Libor plus 375 bps and initial talk of Libor plus 375 bps to 400 bps talk, and changed the original issue discount to 99¾ from revised talk of 99½ and initial talk in the 99 area, according to a market source.

As before, the first-lien term loan has a 1% Libor floor, 101 soft call protection for one year, and a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Earlier in syndication, the first-lien term loan was upsized from $470 million and the call protection was extended from six months.

The $665 million credit facility also includes a $75 million five-year revolver.

Recommitments were due at noon ET on Thursday, the source added.

Custom Sensors breaks

With final terms in place, Custom Sensors’ credit facility freed up for trading in the afternoon, with the first-lien term loan quoted at par ¼ bid, 101 offered, according to a market source.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Mizuho are leading the deal that will be used with equity to fund the acquisition of a majority stake in the company by Carlyle Group and PAI Partners from Schneider Electric.

When the first-lien term loan was upsized earlier this week, the company cancelled a plans for a $120 million eight-year covenant-light second-lien term loan that was talked at Libor plus 725 bps to 750 bps with a 1% Libor floor, a discount in the 99 area, and hard call protection of 102 in year one and 101 in year two.

Custom Sensors is a designer and manufacturer of specialized high-end ultra-sensitive sensors, controls and actuation products.

V.Group rises

Also in trading, V.Group’s first- and second-lien term loans were an eighth to a quarter of a point better from levels of par 3/8 bid, par 7/8 offered on the first-lien and par bid, par ½ offered on the second-lien that were seen when the deal broke during the prior session, a trader remarked.

Pricing on the $275 million seven-year covenant-light first-lien term loan (B1/B) is Libor plus 400 bps with a step-down to Libor plus 375 bps when total net leverage is 4.5 times. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was issued at a discount of 99½.

The $110 million 7½-year covenant-light second-lien term loan (Caa1/CCC+) is priced at Libor plus 750 bps with a 1% Libor floor and was sold at 99. This debt has hard call protection of 102 in year one and 101 in year two on the second-lien term loan.

The company’s $420 million credit facility also includes a $35 million five-year revolver (B1/B).

V.Group recapitalizing

V.Group, a supplier of specialist outsourcing services to asset owners and operators in the shipping, offshore, leisure and defense sectors, will use the new credit facility to refinance existing debt and to pay a dividend.

Earlier in the week, the first-lien term loan was upsized from $260 million, pricing was flexed from talk of Libor plus 425 bps to 450 bps, the step-down was added and the discount tightened from 99, and the second-lien loan was trimmed from $125 million, pricing was lowered from talk of Libor plus 775 bps to 800 bps and the discount firmed at the low end of the 98½ to 99 talk.

RBC Capital Markets and Goldman Sachs Bank USA are leading the deal, with RBC left lead on the first-lien loan and Goldman left lead on the second-lien loan.

New Albertson’s flexes

Back in the primary, New Albertson’s lowered pricing on its $850 million senior secured seven-year covenant-light term loan (Ba3/B) to Libor plus 375 bps from talk of Libor plus 400 bps to 425 bps and changed the original issue discount to 99½ from 99, according to a market source.

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

Commitments are due at noon ET on Friday, revised from 5 p.m. ET on Friday, and closing is targeted for Wednesday.

Citigroup Global Markets Inc. is the lead arranger on the deal and a joint bookrunner with CIT.

Proceeds will be used to fund the acquisition of Safeway Inc.’s eastern division and to repay ABL borrowings.

New Albertson’s is a Spokane, Wash.-based food and drug retailer.

Metro-Goldwyn-Mayer reworked

Metro-Goldwyn-Mayer raised its fixed-rate second-lien term loan (Ba3/BB-) to $300 million from $200 million, cut pricing to 5 1/8% from talk of 5½% to 5¾% and pushed out the maturity to six years from five years, according to sources.

The loan still has a par offer price and is non-callable for one year, then at 102 in year two and 101 in year three.

J.P. Morgan Securities LLC and Goldman Sachs Bank USA are leading the deal that will be used for general corporate purposes.

Metro-Goldwyn-Mayer is a Los Angeles-based producer and distributor of motion pictures, television programming, home video, interactive media, music and licensed merchandise.

Akorn tweaks OID

Akorn changed the original issue discount on its fungible $445 million incremental term loan (B1) to 99¾ from talk of 99¼ to 99½, according to a market source.

The incremental term loan is priced at Libor plus 350 bps with a 1% Libor floor, in line with the existing term loan, and has 101 soft call protection through October.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to fund the acquisition of VPI Holdings Corp., the parent company of VersaPharm Inc., for $440 million in cash.

Closing is expected in the third quarter, subject to customary conditions, including termination of the waiting period under the provisions of the Hart-Scott-Rodino Antitrust Improvement Act of 1976.

Akorn is a Lake Forest, Ill.-based niche pharmaceutical company. VersaPharm is a Marietta, Ga.-based developer and marketer of multi-source prescription pharmaceuticals.

Learfield modifies issue price

Learfield Communications changed the offer price on its $45 million add-on first-lien term loan (B+) due Oct. 9, 2020 to par ¼ from par, a market source said.

Pricing on the add-on loan is Libor plus 350 bps with a 1% Libor floor, which matches the existing first-lien term loan, and there is 101 soft call protection through October.

Recommitments were due at the close of business on Thursday, allocations are expected on Friday and closing is targeted for July 1, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to fund the acquisition of Licensing Resource Group, a Holland, Mich.-based trademark management company, and for general corporate purposes.

Learfield is a Jefferson City, Mo.-based provider of collegiate sports multimedia rights administration and marketing services.

Wencor moves deadline

Wencor, a Springville, Utah-based designer, repair provider and distributor of aftermarket aerospace components, accelerated the commitment deadline on its $540 million credit facility to 5 p.m. ET on Friday from Monday, according to a market source.

The facility consists of a $65 million revolver (B2/B), a $320 million seven-year first-lien covenant-light term loan (B2/B) and a $155 million eight-year second-lien covenant-light term loan (Caa2/CCC+).

Talk on the first-lien term loan is Libor plus 375 bps and talk on the second-lien loan is Libor plus 700 bps, with both tranches having a 1% Libor floor and an original issue discount of 99.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will help fund the buyout of the company by Warburg Pincus from Odyssey Investment Partners LLC, which is expected to close this quarter, subject to customary regulatory approvals.

Husky shutting early

Husky moved up the commitment deadline on its $1,675,000,000 credit facility to Friday from Monday, according to a market source.

The facility consists of a $110 million five-year revolver (B1/B), a $1,265,000,000 seven-year covenant-light first-lien term loan (B1/B) talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and a $300 million eight-year covenant-light second-lien term loan (Caa1/CCC+) talked at Libor plus 625 bps to 650 bps with a 1% Libor floor, a discount of 99, and hard call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC are the joint lead arrangers on the deal and joint bookrunners with Barclays and RBC Capital Markets.

Proceeds will be used to refinance existing bank and mezzanine debt.

Husky is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry.

TI Automotive guidance

Also in the primary, TI Automotive held its call, launching its $1.25 billion term loan B with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99 to 99½, according to a market source.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

TI Automotive is an Auburn Hills, Mich.-based supplier of fluid storage, carrying and delivery technology.

Tensar launches

Tensar came out with talk on its first- and second-lien term loans with its morning bank meeting, according to a market source, who said commitments for the transaction are due on July 2.

The $230 million seven-year first-lien term loan is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and the $85 million eight-year second-lien term loan is talked at Libor plus 825 bps to 850 bps with a 1% Libor floor, a discount of 99, and call protection of 102 in year one and 101 in year two, the source remarked.

The company’s $345 million credit facility also includes a $30 million five-year revolver.

UBS AG and Societe Generale are leading the deal that will be used to help fund the buyout of the company by Castle Harlan.

Tensar is an Atlanta-based provider of specialty products and engineering services used in the development of commercial, residential, industrial and municipal sites as well as in transportation infrastructure.

Ascend Learning OID talk

Ascend Learning came out with original issue discount talk of 99½ on its $40 million add-on first-lien term loan that launched with a call on Thursday, a source remarked.

The add-on loan is priced at Libor plus 500 bps with a 1% Libor floor, in line with the existing first-lien term loan.

Bank of America Merrill Lynch, GE Capital Markets and Barclays are leading the deal that will be used to fund an acquisition.

Burlington, Mass., and Leawood, Kan.-based Ascend Learning is a provider of technology-based learning services focused on student training and testing results in health care and other vocational fields.

Paragon Offshore on deck

Paragon Offshore scheduled a bank meeting for Tuesday to launch a $545 million senior secured seven-year term loan B, according to a market source.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Barclays are leading the deal that will be used with about $1.2 billion in senior unsecured notes to help fund the company’s spin-off from Noble Corp.

Also, the company entered into an $800 million senior secured revolver due 2019 with various commercial and investment banks on June 17, a news release said.

The spin-off is expected to be completed in the third quarter.

Paragon Offshore is a London-based provider of standard specification offshore drilling rigs.

Blackbrush readies loan

Blackbrush Oil & Gas emerged with plans to hold a bank meeting at 10:30 a.m. ET in New York on Wednesday to launch a $275 million seven-year second-lien term loan, according to a market source.

UBS AG is leading the deal that will be used to help fund the buyout of the company by Ares Management LP from EIG Management Co. LLC and Tailwater Capital LLC.

Closing is expected in the third quarter, subject to customary conditions.

BlackBrush is a San Antonio, Texas-based oil and gas exploration and development company.

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