ClubCorp, Michigan Power break; Varsity Brands restructures; AMC moves up deadline

By Sara Rosenberg

New York, Dec. 8 – ClubCorp Club Operations Inc. firmed pricing on its term loan B at the tight end of guidance, then the debt began trading on Tuesday afternoon above its original issue discount, and Michigan Power LP LLC’s credit facility freed up as well.

Over in the primary market, Varsity Brands Inc. increased the size of its add-on first-lien term loan and trimmed the size of its pre-placed second-lien term loan, AMC Entertainment Inc. accelerated the commitment deadline on its term loan B, and TI Group Automotive Systems LLC released original issue discount talk with launch.

ClubCorp sets spread, trades

ClubCorp finalized pricing on its $675 million seven-year senior secured covenant-light term loan B (Ba3/BB-) at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

Last week, the term loan B was upsized from $625 million when the company’s senior unsecured notes offering was downsized to $350 million from $400 million.

With final terms in place, the term loan B freed up for trading on Tuesday, and levels were seen at 99¾ bid, 100¼ offered, a trader remarked.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used with the notes to refinance an existing credit facility and for general corporate purposes, including the execution of ClubCorp’s growth strategy.

ClubCorp, a Dallas-based owner and operator of private golf and country clubs and business, sports and alumni clubs, expects to close on the new loan on Dec. 15.

Michigan Power hits secondary

Michigan Power’s credit facility broke too, with the $216 million seven-year term loan B quoted at 99 bid, par offered before moving up to 99¼ bid, 100¼ offered, a trader said.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 call protection for one year.

During syndication, the spread on the loan firmed at the low end of the Libor plus 375 bps to 400 bps talk.

The company’s $263 million credit facility (Ba2/BB+) also includes a $47 million revolver.

BNP Paribas Securities Corp. is leading the deal that will be used to help fund the acquisition of Michigan Power by Rockland Capital LLC from ArcLight Capital Partners LLC.

Michigan Power is the owner of a cogeneration facility located in Ludington, Mich.

BWIC emerges

Also in trading, a roughly $324 million Bid Wanted In Competition surfaced on Tuesday, with bids from investors due at noon ET on Wednesday, a trader remarked.

Some of the debt in the portfolio is Alliance Healthcare Services Inc.’s first-lien term loan B, Fairmount Santrol Inc. first-lien term loan B-2, Getty Images Inc.’s first-lien term loan B, Michaels Stores Inc.’s first-lien term loan B and term loan B-2, Neiman Marcus Group Ltd. LLC’s first-lien term loan, Seadrill Operating LP’s first-lien term loan B and WP CPP Holdings LLC’s first-lien term loan B-3 and second-lien term loan.

There are almost 100 issuers in the portfolio, the trader added.

Varsity Brands retranches

Moving to the primary market, Varsity Brands lifted its add-on first-lien term loan to $100 million from $75 million and left pricing at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99, a market source said.

The spread and floor on the add-on loan matches existing first-lien term loan pricing, and, as before, all of the first-lien term loan debt is getting 101 soft call protection for six months.

Due to the first-lien loan upsizing, the company downsized its pre-placed second-lien term loan to $25 million from $50 million, the source continued.

Goldman Sachs Bank USA is leading the debt that will be used to fund tuck-in acquisitions.

Varsity Brands is a Memphis, Tenn.-based portfolio of brands that promote student participation while celebrating academic and athletic achievement.

AMC revises deadline

AMC Entertainment moved up the commitment deadline on its $881 million seven-year senior secured term loan B (Ba1/BB) to noon ET on Wednesday from 5 p.m. ET on Wednesday, according to a market source.

Allocations are expected on Wednesday afternoon, the source said.

The term loan is talked at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, HSBC Securities (USA) Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance an existing term loan and for general corporate purposes.

Closing is targeted for Dec. 11.

AMC is a Leawood, Kan.-based movie exhibitor.

TI Group reveals OID

TI Group Automotive Systems held its lender call on Tuesday, launching its fungible $100 million add-on term loan with original issue discount talk of 98, according to a market source.

The add-on is priced at Libor plus 350 bps with a 1% Libor floor, in line with the existing term loan, and all of the debt is getting 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes.

TI Group is an Oxford, U.K.-based provider of fluid storage, carrying and delivery systems to automotive manufacturers.

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