Camping World, American Airlines break; Ascena dips with earnings news; Versum cuts spread

By Sara Rosenberg

New York, Sept. 20 – Camping World Good Sam increased the size of its add-on first-lien term loan B and finalized the original issue discount at the tight end of guidance, and then the debt freed up for trading on Tuesday afternoon.

In more secondary market happenings, American Airlines Group Inc.’s repriced term loan broke above par, and Ascena Retail Group Inc.’s term loan was softer on the back of disappointing quarterly numbers and full year guidance.

Back in the primary market, Versum Materials LLC reduced the spread for a second time on its term loan B and removed the leverage-based pricing step-down, and Redbox Automated Retail LLC made changes to amortization and the excess cash flow sweep under its term loan.

Also, American Builders & Contractors Supply Co. Inc., Mohegan Tribal Gaming Authority, Jo-Ann Stores Inc. and Zest Holdings LLC disclosed price talk with launch, and Vantiv Inc. surfaced with new deal plans.

Camping revised, trades

Camping World raised its fungible add-on first-lien term loan B (B2/BB) due Feb. 20, 2020 to $135 million from $110 million and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

As before, the add-on term loan is priced at Libor plus 475 basis points with a 1% Libor floor.

Recommitments were due at noon ET, and with final terms in place, the debt made its way into the secondary market on Tuesday with levels quoted at 99¾ bid, 100½ offered, the source said.

Goldman Sachs Bank USA is leading the deal that will be used to fund a dividend and for acquisitions of dealerships.

Camping World is a Lincolnshire, Ill.-based seller of RVs and supplier of RV parts, supplies and accessories.

American Airlines frees up

American Airlines’ $742.5 million senior secured term loan B due Oct. 10, 2021 began trading too, with levels seen at 100 1/8 bid, 100 3/8 offered, a trader said.

Pricing on the term loan B is Libor plus 250 bps with a 0.75% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 275 bps with a 0.75% Libor floor.

Closing is expected on Thursday.

American Airlines is a Fort Worth-based airline company.

Ascena retreats

Also in trading, Ascena Retail Group’s term loan dropped to 96½ bid, 97½ offered from 97½ bid, 98½ offered on the heels of the company’s late Monday release of fiscal fourth quarter results that were below expectations and full year guidance that was also lower than expected, a source remarked.

For the fourth quarter of fiscal 2016, the company reported net income of $13.8 million, or $0.07 per share, compared to a net loss of $323.4 million, or $1.98 per share, in the previous year. The company said that the increase was driven by the acquisition of ANN, which closed during the first quarter, and prior year items including the impairment of goodwill and an intangible asset at Lane Bryant and an expense related to Justice pricing lawsuits.

Net sales for the quarter were $1.81 billion, versus $1.17 billion in the fiscal 2015 fourth quarter.

Regarding guidance for fiscal 2017, sales are anticipated to be between $6.9 billion to $7 billion and earnings per share are expected in the range of $0.46 to $0.51.

For fiscal 2016, net sales were $7 billion and net loss per share was $0.06.

Ascena is a Mahwah, N.J.-based specialty retailer of clothing, shoes and accessories.

Versum flexes again

Returning to the primary market, Versum Materials cut pricing on its $575 million seven-year covenant-light term loan B to Libor plus 250 bps, from revised talk of Libor plus 275 bps and initial talk of Libor plus 300 bps to 325 bps, and removed the 25 bps step-down in pricing when total net leverage is less than 2.5 times, according to a market source.

As before, the term loan B has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year.

Commitments were due at 5 p.m. ET on Tuesday and allocations are targeted for Wednesday, the source added.

The company’s $775 million senior secured credit facility (Ba1/BB+) also includes a $200 million five-year revolver.

Versum lead banks

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities LLC are leading Versum’s credit facility.

The new bank debt and $425 million of senior unsecured notes are being obtained in connection with the company’s spin-off from Air Products and Chemicals Inc. and will be used to help fund a distribution to Air Products.

Versum Materials is a Tempe, Ariz.-based producer of critical materials, including high purity process materials, cleaners and etchants, slurries, organosilanes and organometallics and equipment for the semiconductor and display industries.

Redbox tweaks deal

Redbox Automated Retail modified amortization on its $400 million five-year first-lien term loan to 17.5% in year one and 15% per annum thereafter, from 15% per annum, and changed the excess cash flow sweep to 85% in year one, 75% in year two and 50% thereafter, from starting at 75% and then stepping down, a market source said.

In addition, the 12 month MFN sunset was removed and some baskets were revised, the source continued.

Price talk on the term loan is still Libor plus 725 bps to 750 bps with a 1% Libor floor and an original issue discount of 98.5, and there is still 101 soft call protection for one year.

The company’s $440 million senior secured credit facility (Ba3/B+) also includes a $40 million 4.5-year revolver.

Commitments are due on Wednesday.

Redbox being acquired

Redbox’s credit facility is being done in connection with the buyout of its parent company, Outerwall Inc., by Apollo Global Management LLC for $52 per share in cash. The transaction has a total enterprise value of about $1.6 billion, including net debt.

Jefferies Finance LLC, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the loan deal.

Closing on the buyout is expected during the third quarter, subject to satisfaction of a minimum tender condition, the receipt of regulatory approvals and other customary conditions.

Redbox is a provider of DVD, Blu-ray and video game rentals via automated retail kiosks.

American Builders sets talk

American Builders & Contractors Supply held its bank meeting on Tuesday morning, launching its $1,875,000,000 seven-year covenant-light term loan B (B1/BB+) with talk of Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Deutsche Bank Securities Inc. and RBC Capital Markets LLC are leading the deal that will be used to fund the acquisition of L&W Supply from USG Corp., to refinance/extend an existing term loan and to pay a $150 million distribution for estate tax planning.

Cashless roll signatures are due at noon ET on Thursday and new money orders are due at 5 p.m. ET on Thursday, the source said.

Closing on the acquisition is expected in the fourth quarter, subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

American Builders is a Beloit, Wis.-based building products distributor. L&W Supply is a Chicago-based distributor of drywall, ceiling tiles, steel framing and other building materials.

Mohegan releases terms

Mohegan Tribal Gaming Authority announced talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $935 million seven-year term loan B in connection with its afternoon bank meeting, a source remarked.

Commitments are due on Sept. 28, the source added.

The company’s $1.4 billion senior secured credit facility (B) also includes a $170 million five-year revolver and a $295 million five-year term loan A.

Bank of America Merrill Lynch, Citizens Bank, Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc., Goldman Sachs Bank USA, KeyBanc Capital Markets and CIT Bank are leading the deal, with Bank of America left on the term B and Citizens left on the pro rata debt.

Proceeds will be used to repay and terminate some existing debt, including an existing credit facility.

Mohegan Tribal is an Uncasville, Conn.-based operator of gaming and entertainment enterprises.

Jo-Ann Stores launches

Jo-Ann Stores launched during the session its $850 million seven-year covenant-light term loan B (B1/B) with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on Sept. 27, the source said.

Bank of America Merrill Lynch is leading the deal that will be used to refinance existing debt.

Jo-Ann is a Hudson, Ohio-based specialty retailer of fabrics and crafts.

Zest reveals guidance

Zest Holdings came out with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $70 million add-on first-lien term loan B (B3) due August 2020 that lunched with a late-morning call, sources said.

With this transaction, pricing on the existing term loan B will be revised from Libor plus 425 bps with a 1% Libor floor to match the add-on pricing. The first-lien term loan B will total $218 million including the add-on loan.

Amendment signatures are due at noon ET on Sept. 28 and commitments for the add-on are due at noon ET on Sept. 30, sources added.

Deutsche Bank Securities Inc. and Citizens Bank are leading the add-on that will be used to refinance an existing second-lien term loan.

Zest is a Carlsbad, Calif.-based developer, manufacturer and supplier of solutions to treat natural teeth and implant supported restorations.

Vantiv readies loan

Vantiv set a lender call for 11 a.m. ET on Thursday to launch a $515 million seven-year term loan B that is talked at Libor plus 250 bps to 275 bps with a 0.75% Libor floor and an original issue discount of 99.75, a market source remarked.

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

Proceeds will be used to refinance existing debt.

Vantiv is a Symmes Township, Ohio-based provider of payment processing services and related technology solutions for merchants and financial institutions.

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