HD Supply, Amaya Gaming term loans free to trade; Alion Science & Technology revisions surface

By Sara Rosenberg

New York, Aug. 7 – HD Supply Inc.’s term loan B made its way into the secondary market on Friday, with levels quoted above its original issue discount, and Amaya Gaming Group Inc.’s add-on term loan began trading as well.

Moving to the primary market, Alion Science & Technology Corp. (Dysart Merger Sub Inc.) trimmed pricing on its term loan, tightened the original issue discount and extended the call premium.

Additionally, SRS Distribution Inc. released price talk on its in-market term loan, and JBS USA LLC and Delta Air Lines Inc. joined the near-term new issue calendar.

HD Supply tops OID

HD Supply’s $850 million senior secured six-year covenant-light term loan B (B1/BB-) began trading on Friday, with levels seen by one trader at 99 5/8 bid, par offered, and by a second trader at 99½ bid, 99¾ offered.

Pricing on the term loan is Libor plus 275 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for six months.

During syndication, the spread on the term loan was reduced from Libor plus 300 bps.

Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, JPMorgan and Wells Fargo Securities are leading the deal that will be used with cash on hand and borrowings under the company’s existing revolver to refinance an existing senior secured term loan.

HD Supply is an Atlanta-based industrial distributor.

Amaya starts trading

Amaya Gaming’s add-on first-lien covenant-light term loan debt (B1/BB-) due August 2021 freed up for trading too, with the $325 million U.S. tranche quoted at 99¾ bid, par offered, a trader said.

Pricing on the U.S. loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The company’s $425 million-equivalent of add-on term loan debt also includes a €92 million tranche priced at Euribor plus 425 bps with a 1% floor and sold at a discount of 99.75. This piece has 101 soft call protection for six months as well.

Spreads and floors on the U.S. and euro add-on loans match pricing on the company’s existing U.S. and euro first-lien term loans.

Recently, the total amount of add-on debt was upsized from $400 million-equivalent, U.S. and euro tranching was outlined, and the discount on the euro price tightened from 99.5.

Amaya lead banks

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., Goldman Sachs Bank USA and Barclays are leading Amaya’s term loans.

Proceeds will be used with about $195 million of cash to repay $600 million of the company’s existing $800 million second-lien term loan, increased from a $575 million paydown due to the recent term loan upsizing.

Along with the add-on, the company sought an amendment to its existing first-lien term loan, for which lenders were offered a 25 bps consent fee.

Closing is expected on Wednesday, a source added.

The borrowers are Amaya Holdings BV and Amaya (US) Co-Borrower LLC.

Amaya is a Pointe-Claire, Quebec-based provider of gaming products and services.

Alion Science reworked

Switching to the primary market, Alion Science lowered pricing on its $300 million six-year term loan (B1) to Libor plus 450 bps from talk of Libor plus 500 bps to 550 bps, modified the original issue discount to 99.5 from 99 and shortened the 101 soft call protection to six months from one year, according to a market source.

The term loan still has a 1% Libor floor.

The company’s $340 million first-lien credit facility also includes a $40 million revolver (Ba3).

Commitments were due on Friday, the source added.

UBS AG is leading the deal that will be used to help fund the buyout of the company by Veritas Capital.

Alion is a McLean, Va.-based research and development, IT and operational services company.

SRS Distribution sets talk

SRS Distribution came out with price talk on its recently launched $325 million seven-year first-lien covenant-light term loan (B2/B), a market source said.

The loan is talked at Libor plus 425 bps with a step-down to Libor plus 400 bps when gross senior secured leverage is 4.5 times, a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source continued.

Commitments are due by noon ET on Aug. 19.

Barclays and UBS AG are leading the deal that launched with a call on Thursday.

Proceeds will be used to repay a roughly $215 million first-lien term loan, refinance $100 million of mezzanine notes, pay breakage on the existing mezzanine notes and pay related fees and expenses, the source said.

First-lien and total leverage are 4.9 times, and net leverage is 4.6 times.

SRS Distribution is a McKinney, Texas-based roofing distributor.

JBS readies loan

JBS USA emerged with plans to hold a lender call at 1 p.m. ET on Monday to launch a $1.2 billion first-lien term loan due August 2022 that is talked at Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The term loan has a ticking fee of half the spread from days 31 to 60, the full spread from days 61 to 90 and the full spread plus the Libor floor thereafter.

Commitments are due on Aug. 17, the source said.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Rabobank are leading the deal that will be used to help fund the acquisition of Cargill’s U.S.-based pork business for $1.45 billion.

Closing on the acquisition is subject to regulatory review and approval.

JBS is a Greeley, Colo.-based beef, pork and lamb processing company.

Delta on deck

Delta Air Lines scheduled a lender call for 11 a.m. ET on Monday to launch a $2 billion credit facility, a market source remarked.

The facility consists of a $1.5 billion five-year revolver and a $500 million seven-year term loan B, the source continued.

Barclays is leading the deal that will be used with $500 million of other new debt financing and cash from the balance sheet to refinance an existing revolver due 2016 and a term loan B due 2017, pay related fees and expenses, and for general corporate purposes.

Total adjusted debt to EBITDAR is 1.4 times, and net adjusted debt to EBITDAR is 1 times.

Delta is an Atlanta-based airline company.

Motor Fuel allocates

In other news, Motor Fuel Group allocated its £300 million seven-year covenant-light term loan B that is priced at Libor plus 500 bps with a 1% Libor floor and was issued at a discount of 99, according to a market source.

The term loan has 101 soft call protection for six months.

During syndication, pricing on the term loan was increased from Libor plus 475 bps, the discount was set at the wide end of the 99 to 99.5 talk and the call protection was added.

Barclays and BNP Paribas Securities Corp. are the coordinating lead arrangers on the deal, with ING, RBC Capital Markets, Societe Generale and Goldman Sachs mandated lead arrangers.

Proceeds will be used to help fund the buyout of the company by Clayton, Dubilier & Rice from Patron in a transaction valued at around £500 million.

Motor Fuel Group is a U.K.-based forecourt operator.

Navistar closes

Navistar International Corp. completed its $1.04 billion five-year senior secured term loan (Ba3/B-/B), a news release said.

The term loan is priced at Libor plus 550 bps with a 1% Libor floor and was issued at a discount of 98.5. The debt has hard call protection of 101 for two years.

During syndication, pricing on the loan was lifted from talk of Libor plus 475 bps to 500 bps, the discount was revised from 99, and the call protection was sweetened from a soft call of 101 for six months.

JPMorgan, Goldman Sachs and Credit Suisse led the deal that was used to refinance a $697.5 million senior secured term loan due August 2017 and provide additional liquidity.

With the new term loan, the maturity on the company’s $175 million ABL revolver was extended by one year to May 2018.

Navistar is a Lisle, Ill.-based manufacturer and seller of commercial and military trucks, buses, and diesel engines, and a provider of service parts for trucks and trailers.

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