First Data, Cole Haan, PPD, DineEquity free up; primary sees slew of pricing changes

By Sara Rosenberg

New York, Jan. 30 - First Data Corp. brought to market an add-on term loan on Wednesday morning, tightened the offer price shortly thereafter and then freed it up for trading at par-plus levels by late afternoon, and Cole Haan LLC, Pharmaceutical Product Development LLC (PPD) and DineEquity Inc. broke as well.

Over in the primary, OneStopPlus Group made a number of changes to its credit facility, including increasing the size of the first-lien term loan while cutting the coupon, Libor floor and call protection tenor and reverse-flexing second-lien loan pricing.

Also, Genesys revised U.S. and euro tranche sizes and pricing, Healogics Inc. upsized its deal and reduced coupons and discounts, J. Crew Group Inc. added a step-down to its term loan, TransUnion Corp. and Hamilton Sundstrand Industrial reduced the Libor floors on their term loans, and ABB Concise Inc. increased its term loan B size.

Furthermore, Vantage Specialty Chemicals, Microsemi Corp., Intelligrated and Tank Holding Corp. details came out with their calls, Freescale Semiconductor Inc., WideOpenWest Finance LLC and CommScope Inc. announced and launched refinancings, and FairPoint Communications Inc., Dunkin' Brands Inc., iStar Financial Inc. and Party City Holdings Inc. joined the forward calendar.

First Data tack-on

First Data launched a $258 million first-lien tack-on term loan due September 2018 in the morning and gave lenders until 1 p.m. ET to place their orders, according to a market source.

The loan is priced at Libor plus 500 basis points with no Libor floor. Initially it was talked with an original issue discount of 993/4, but by late morning, the offer price tightened to par, the source said.

By late day, the loan had allocated and made its way into the secondary market, with levels quoted at par 1/8 bid, par 5/8 offered, the source added.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to refinance the company's existing bank debt due in 2014.

First Data is an Atlanta-based electronic commerce and payment processing company.

Cole Haan tops OID

Cole Haan's credit facility hit the secondary market, with its $290 million seven-year covenant-light term loan (B2/B) seen at par ½ bid on the break and then it moved to 101 bid, 102 offered, a trader remarked.

Pricing on the loan is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

During syndication, the loan was upsized from $270 million, pricing flexed from talk of Libor plus 500 bps to 525 bps, the discount was changed from 99 and the call premium was reduced from one year.

The company's $390 million credit facility also includes a $100 million asset-based revolver.

Jefferies & Co. is leading the deal that will be used with equity to fund the $570 million buyout of the company by Apax Partners from Nike Inc. The amount of equity being used was reduced when the term loan was upsized.

Closing is expected early this year.

Cole Haan is a New York-based designer and retailer of footwear, apparel and accessories.

Pharmaceutical Product breaks

Pharmaceutical Product Development's $1,455,000,000 first-lien covenant-light term loan (B+) due Dec. 5, 2018 was another deal to free up, with levels quoted at par ½ bid, 101 offered, according to a market source.

Pricing on the loan is Libor plus 325 bps with a step-down to Libor plus 300 bps at less than 3.25 times gross first-lien leverage. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was sold at par.

Earlier this week, the spread on the loan was flexed down from Libor plus 350 bps and the step-down was added.

Proceeds are being used to reprice the existing term loan from Libor plus 500 bps with a 1.25% Libor floor, and lenders are getting paid off at 101 as a result of existing call protection.

Credit Suisse Securities (USA) LLC is leading the deal.

Pharmaceutical Product Development is a Wilmington, N.C.-based product development and management services provider to the pharmaceutical research industry.

DineEquity frees up

DineEquity's credit facility allocated and broke for trading as well, with the $472 million term loan B due Oct. 19, 2017 quoted at par ½ bid, 101 offered on the open, and then it moved to par ¾ bid, 101½ offered, a source said.

Pricing on the term loan B is Libor plus 275 bps with a 1% Libor floor, and it was sold at par, after tightening recently from initial talk of a discount of 99 7/8. There is 101 soft call protection for one year

Barclays is the lead bank on the deal on the $547 million senior secured credit facility that also includes a $75 million revolver due Oct. 19, 2015 priced at Libor plus 275 bps.

Proceeds are being used to refinance the existing term loan due October 2017 that is priced at Libor plus 300 bps with a 1.25% Libor floor, and the existing revolver that is priced at Libor plus 450 bps with a 1.5% Libor floor.

Net senior secured leverage is 2.2 times and net total leverage is 5.1 times.

DineEquity is a Glendale, Calif.-based owner of Applebee's Neighborhood Grill & Bar and IHOP Restaurants.

OneStopPlus reworks deal

Switching to the primary, OneStopPlus lifted its seven-year first-lien term loan (B1) to $305 million from $280 million, trimmed pricing to Libor plus 450 bps from talk of Libor plus 475 bps to 500 bps, cut the Libor floor to 1% from 1.25% and shortened the 101 soft call protection to six months from one year, according to a market source. The original issue discount of 99 was left intact.

Furthermore, pricing on the $85 million 71/2-year second-lien term loan was reduced to Libor plus 900 bps from Libor plus 925 bps, the source said. The loan still has a 50 bps step-down when senior secured net leverage is less than 4 times, which would now bring pricing down to Libor plus 850 bps. And, the 1.25% Libor floor and original issue discount of 99 were unchanged.

The company's now $450 million credit facility also includes a $60 million five-year ABL revolver that is priced at Libor plus 200 bps.

OneStopPlus being acquired

Proceeds from OneStopPlus' credit facility will help fund the company's buyout by Charlesbank Capital Partners and Webster Capital.

Other funds will come from $132 million of equity, which was reduced from $157 million due to the first-lien term loan upsizing, the source added.

Recommitments were due by noon ET on Wednesday.

Goldman Sachs & Co. and Jefferies & Co. are leading the deal that is expected to close this quarter.

First-lien leverage is 3.4 time and total leverage is 4.4 times.

OneStopPlus is a New York-based catalog retailer and online marketplace for plus-size consumers.

Genesys tweaks deal

Genesys cut the size of the U.S. tranche under its $675 million equivalent first-lien term loan (B1) to $505 million, trimmed pricing to Libor plus 300 bps from talk of Libor plus 350 bps to 375 bps and lowered the Libor floor to 1% from 1.25%, according to a market source.

On the flip side, the euro tranche under the term loan was upsized to €125 million from €100 million, pricing was set at Euribor plus 375 bps, versus initial talk of 25 bps to 50 bps wide of the U.S. tranche, and the floor was cut to 1% from 1.25%, the source said.

As before, both tranches are offered at 99 and have 101 soft call protection for one year.

Recommitments are due at noon ET on Thursday.

Goldman Sachs & Co., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC are leading the deal that will be used to refinance existing debt.

Genesys is a Daly City, Calif.-based supplier of contact center technology software.

Healogics changes emerge

Healogics upsized its seven-year second-lien term loan (Caa1/CCC+) to $125 million from $110 million, cut pricing to Libor plus 800 bps from talk of Libor plus 825 bps to 850 bps, added a step-down to Libor plus 775 bps when total adjusted leverage is less than 5 times and revised the discount price to 99 from 981/2, according to a market source.

The second-lien loan still has a 1.25% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

As for the $290 million six-year first-lien term loan (B1/B), pricing was lowered to Libor plus 400 bps from talk of Libor plus 425 bps to 450 bps, a step-down was added to Libor plus 375 bps when total adjusted leverage is less than 5 times, and the discount moved to 99½ from 99, the source said.

There is still a 1.25% Libor floor and 101 soft call protection for one year on the first-lien loan.

Healogics lead banks

RBC Capital Markets, GE Capital Markets Corp., BMO Capital Markets and Jefferies & Co. are leading Healogics now $445 million credit facility, which also includes a $30 million revolver (B1/B).

Proceeds will be used to refinance existing debt and to fund a distribution to shareholders.

Healogics is a Jacksonville, Fla.-based provider of outpatient wound care management services.

J. Crew adds step

J. Crew firmed pricing on its roughly $1.18 billion term loan at initial talk of Libor plus 300 basis points, but added a step-down to Libor plus 275 bps when the issuer is upgraded by Moody's Investors Service to B1, according to a market source.

The loan still has a 1% Libor floor and 101 soft call protection for six months, and was sold at par.

Recommitments were due at noon ET on Wednesday.

Proceeds are being used to reprice/refinance an existing term loan that is priced at Libor plus 325 bps with a 1.25% Libor floor.

Bank of America Merrill Lynch is the lead bank on the deal.

J. Crew is a New York-based retailer of women's, men's and children's apparel, shoes and accessories.

TransUnion cuts floor

TransUnion reduced the Libor floor on its roughly $935 million term loan B to 1.25% from 1.5% and changed the leverage test for an incremental loan to 3.5 times from 3.25 times, a market source said.

Pricing on the loan is still Libor plus 300 basis points and there is still 101 soft call protection for one year.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Proceeds are being used to reprice an existing term loan from Libor plus 400 bps with a 1.5% Libor floor.

Deutsche Bank Securities Inc. and Goldman Sachs & Co. are the lead banks on the deal.

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

Hamilton revised

Hamilton Sundstrand Industrial trimmed the Libor floor on its $1.675 billion seven-year covenant-light term loan B to 1% from 1.25%, according to a market source. Pricing on the loan is still Libor plus 300 bps.

Proceeds are being used to reprice the existing term loan from Libor plus 375 bps with a 1.25% Libor floor.

Existing lenders will get paid out at 101, but going forward, optional prepayments will be done at par.

Deutsche Bank Securities Inc. is the lead bank on the deal.

Hamilton Sundstrand is a Windsor Locks, Conn.-based manufacturer of pumps and compressors for the industrial, infrastructure and energy markets.

ABB ups loan

ABB Concise increased its term loan B to $275 million from $260 million, according to a market source.

The company's now $345 million credit facility (B2/B) still includes a $70 million revolver.

Bank of America Merrill Lynch, RBC Capital Markets and GE Capital Markets are leading the deal that will be used to fund the purchase of Optical Distributor Group and refinance an existing credit facility.

ABB Concise is a Coral Springs, Fla.-based optical distributor, operating as an independent source of marketing and logistics services for eye care professionals, retailers and manufacturers. Optical Distributor Group is a Hawthorne, N.Y.-based distributor of optical products.

Vantage details surface

In more primary happenings, Vantage Specialty Chemicals held its call on Wednesday, at which time lenders were told that the company is seeking a repricing of its roughly $238 million term loan to Libor plus 425 bps with a 1.25% Libor floor from Libor plus 550 bps with a 1.5% Libor floor, according to a market source.

The repriced loan is being offered at par and has 101 soft call protection for one year, the source said.

Commitments are due on Feb. 6.

RBC Capital Markets is leading the deal for the Chicago-based specialty chemicals company.

Microsemi reveals talk

Microsemi Corp. launched its $726 million seven-year covenant-light term loan with talk of Libor plus 275 bps with a 1% Libor floor, a par offer price and 101 soft call protection for one year, according to a market source.

Proceeds will be used to reprice the existing term loan from Libor plus 300 bps with a 1% Libor floor, extend the maturity from Feb. 2, 2018 and remove financial covenants.

Consents for the amendment are due on Tuesday and closing is targeted for Feb. 19, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal for the Aliso Viejo, Calif.-based provider of semiconductor services.

Intelligrated repricing

Intelligrated told investors that it wants to reprice its roughly $214 million first-lien term loan to Libor plus 325 bps with a 1.25% Libor floor from Libor plus 550 bps with a 1.25% Libor floor, according to a market source.

The repriced loan is being offered at par and has 101 soft call protection for one year, and existing lenders are getting paid out at 102 as a result of current call protection, the source said.

Lead banks, RBC Capital Markets and Morgan Stanley Senior Funding Inc., are asking for commitments by Feb. 6.

Intelligrated is a Mason, Ohio-based provider of automated material handling services and products.

Tank holds call

Tank Holding told investors on its afternoon call that it wants to reprice its roughly $349 million term loan, and talk on the transaction is Libor plus 300 bps to 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

By comparison, current pricing on the loan is Libor plus 425 bps with a 1.25% Libor floor.

Commitments are due on Tuesday, the source added.

GE Capital Markets is the lead bank on the deal.

Tank Holding is a Lincoln, Neb.-based manufacturer of polyethylene and steel material handling products.

Freescale comes to market

Freescale Semiconductor held a call at 1:30 p.m. ET on Wednesday, launching a $2.73 billion senior secured term loan due 2020 with talk of Libor plus 375 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Lead banks, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC, are seeking commitments by Feb. 6, the source remarked.

Proceeds will be used to repay the company's existing term loans due in 2016 and 2019.

Freescale is an Austin, Texas-based designer and manufacturer of embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets.

WideOpenWest launches

WideOpenWest revealed early in the morning that it would be holding a call at 11 a.m. ET to launch a new $1.915 billion six-year term loan B that is being talked at Libor plus 350 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for six months, according to sources.

Proceeds will be used to refinance an existing term loan B that was done in 2012 at pricing of Libor plus 500 bps with a 1.25% Libor floor.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal.

WideOpenWest is a Denver-based provider of residential and commercial high-speed internet, cable television and telephone services.

CommScope refinancing

CommScope held a call at 1:15 p.m. ET on Wednesday to launch a roughly $985 million term loan B due January 2018 that will be used to refinance an existing term loan B, according to a market source.

The new loan is talked at Libor plus 275 bps with a 0.75% to 1% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months, the source said.

The existing term loan B was obtained in 2012 at pricing of Libor plus 325 bps with a 1% Libor floor.

J.P. Morgan Securities LLC is the lead bank on the deal.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

FairPoint readies deal

FairPoint Communications set a bank meeting for 9 a.m. ET on Thursday in New York to launch a $725 million senior secured credit facility (B2) that consists of a $75 million revolver and a $650 million term loan B, according to sources.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Jefferies & Co. are leading the deal.

Proceeds, along with $300 million of senior secured notes and cash on hand will be used to refinance existing bank debt, including a roughly $955 million term loan.

FairPoint is a Charlotte, N.C.-based communications provider of broadband Internet access, local and long-distance phone, television and other high-capacity data services.

Dunkin' plans call

Dunkin' Brands Inc. scheduled a lender call for 2 p.m. ET on Thursday regarding a $1.953 billion senior secured credit facility that consists of a $100 million revolver due Nov. 23, 2015 and a $1.853 billion term loan due Nov. 23, 2017, according to a market source.

Barclays is the administrative agent on the deal.

Dunkin' Brands is a Canton, Mass.-based franchisor of quick-service restaurants serving hot and cold coffee and baked goods as well as hard-serve ice cream.

iStar on deck

iStar Financial will hold a lender call at 2 p.m. ET on Thursday to launch a refinancing/repricing of its roughly $1.82 billion term loan due October 2017 to Libor plus 350 bps with a 1% Libor floor from Libor plus 450 bps with a 1.25% Libor floor, according to a market source.

The repriced loan is being offered at par and has 101 soft call protection through Dec. 31, 2013, the source said.

J.P. Morgan Securities LLC, Barclays and Bank of America Merrill Lynch are the joint lead arrangers and bookrunners on the deal.

Existing lenders will get paid out at 101.

iStar is a New York-based fully integrated finance and investment company focused on the commercial real estate industry.

Party City coming soon

Party City set a lender call on Thursday to launch a repricing of its roughly $1.1 billion term loan that is being led by Bank of America Merrill Lynch and Deutsche Bank Securities Inc., according to a market source.

The term loan was done last year at pricing of Libor plus 450 basis points with a 1.25% Libor floor.

Party City is a Rockaway, N.J.-based designer, manufacturer and distributor of party goods, including paper and plastic tableware, metallic balloons, accessories, novelties, gifts and stationery.

Alcatel-Lucent closes

In other news, Alcatel-Lucent USA Inc. said in a news release that it closed on its new covenant-light credit facility that was used to refinance existing debt and for general corporate purposes.

The facility consists of a $500 million 31/2-year term loan B priced at Libor plus 525 bps, a $1.75 billion six-year term loan C priced at Libor plus 625 bps, and a €300 million six-year term loan D priced at Euribor plus 650 bps. All tranches have a 1% floor and were sold at an original issue discount of 991/2.

The term loan B has 101 call protection for one year, and the term loan C and D have call protection of 102 in year one and 101 in year two.

During syndication, pricing on the term loan B was revised from Libor plus 600 bps, the term loan C was upsized from $1.275 billion and flexed from Libor plus 700 bps, and the term loan D was increased from €250 million and pricing was reduced from Euribor plus 700 bps. Also, the discounts on all of the loans were tightened from revised talk of 99 and initial talk of 98, the floors were trimmed from 1.25%, and the call protection on the six-year loans was changed from non-callable one, 102, 101.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. led the deal for the Paris-based telecommunications services and equipment company.

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