Acosta, TransDigm break; Denny's dips on refinancing; Van Heusen, Edwards tweak deals

By Sara Rosenberg

New York, Feb. 15 - Acosta Sales & Marketing and TransDigm Inc. freed up for trading on Tuesday, with their term loans quoted above their par issue prices, and Denny's Corp.'s term loan was softer on repricing news.

Over in the primary, Phillips-Van Heusen Corp. made a number of changes to its multi-currency credit facility, including moving some funds from its U.S. term loan B into its U.S. term loan A, while also reducing pricing and Libor floor on all of its B loan debt, Edwards Ltd. trimmed pricing and discount on its loan, and AccentCare Inc. is expected to flex being that it is oversubscribed.

Also, Leslie's Poolmart Inc., JMC Steel Group and RBS International Direct Marketing released price talk as their new bank deals were presented to lenders during the session, and Fairway Market LLC, Petco Animal Supplies Inc. and Focus Brands Inc. launched as well.

Furthermore, Hertz Corp. revealed that its credit facility will include an ABL revolver, Ignite Restaurant Group released tranching on its facility but is waiting for launch to go out with price talk, and Capital Automotive, Visant Corp., Brock Group Inc. and Grande Communications are getting ready to bring deals to market later this week.

Acosta starts trading

Acosta's credit facility hit the secondary market in the morning, with the $985 million term loan quoted wrapped around 101 on the break and then it moved up to 101 bid, 101 3/8 offered, according to a market source. A second trader, meanwhile, was quoting the loan at 101 bid, 101¼ offered in the afternoon.

Pricing on the term loan is Libor plus 325 basis points with a 1.5% Libor floor, and, as mentioned above, it was sold at par. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $900 million, pricing was lowered from initial talk of Libor plus 350 bps to 375 bps, the guidance for a discount of 99 to 99½ was eliminated, and call protection was added.

Acosta getting revolver

Acosta's $1.075 billion facility, which is being led by Goldman Sachs and Barclays, also includes a $90 million revolver.

Proceeds will be used to help fund the acquisition of the company by Thomas H. Lee Partners from AEA Investors.

Other funds for the transaction will come from $525 million of mezzanine debt, which was downsized from $610 million when the term loan was upsized.

Acosta is a Jacksonville, Fla.-based sales and marketing agency in the consumer packaged goods industry.

TransDigm frees up

TransDigm's $1.55 billion covenant-light term loan (Ba2/BB-) due February 2017 also broke for trading, with levels quoted at par ¾ bid, 101¼ offered, according to a trader.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

Credit Suisse is the lead bank on the deal, which is being used to refinance a $1.55 billion term loan due Dec. 6, 2016 that is priced at Libor plus 350 bps with a 1.5% Libor floor and was sold at a discount of 99½ when it was obtained in December to fund the acquisition of McKechnie Aerospace Holdings Inc. The existing loan includes maintenance covenants.

TransDigm is a Cleveland-based designer, producer and supplier of engineered aircraft components.

Denny's retreats

Denny's saw its term loan drop to 101 bid, 101½ offered from 101¼ bid, 101¾ offered after plans for a repricing hit the market. Under the plans, lenders will get repaid at the current 101 soft call protection level, according to a trader.

The $240 million repricing term loan B, as well as a $50 million revolver, is set to launch with a lender call on Wednesday at 10 a.m. ET via Bank of America Merrill Lynch and Wells Fargo.

Price talk on the new term loan B is not yet available. The existing term loan that was obtained in September to refinance existing debt is priced at Libor plus 475 bps with a 1.75% Libor floor and was sold at an original issue discount of 981/2. It was originally sized at $250 million but has since been paid down.

Covenants and maturities will remain the same as the existing loan.

Denny's is a Spartanburg, S.C.-based restaurant franchise operator.

SeaWorld holds steady

In more trading happenings, SeaWorld Parks & Entertainment Inc.'s $900 million 61/2-year term loan B held firm at par 7/8 bid, 101 3/8 offered after moving there late Monday shortly after breaking for trading at par ½ bid, 101 offered, according to a trader.

Pricing on the B loan is Libor plus 300 bps with a step to Libor plus 275 bps at less than 2.25 times leverage. There is a 1% Libor floor and 101 soft call protection for six months, and it was sold at par.

The company's $1.19 billion senior secured facility (Ba2/BB+) also includes a $140 million five-year revolver and a $150 million five-year term loan A, both priced at Libor plus 275 bps with no floor.

During syndication, the term loan B was downsized from $925 million and the term loan A was upsized from $125 million. Also, the pricing step-down and call protection were added to the B loan, and the Libor floor was reduced from 1.25%.

Bank of America Merrill Lynch, Barclays, Deutsche Bank and Mizuho Bank are the leads on the refinancing deal for the Orlando, Fla.-based theme park operator.

Van Heusen reworks deal

Switching to the primary, Phillips-Van Heusen reworked its credit facility in the morning - revising U.S. term loan tranche sizes and trimming pricing and Libor floor on its institutional borrowings - and asked for recommitments by 5 p.m. ET on Tuesday, according to a market source.

Under the changes, the U.S. term loan A was upsized to $640 million from $600 million, while pricing was left intact at Libor plus 250 bps. As before, pricing is based on a leverage grid, there is no Libor floor and upfront fees are determined by commitment size.

On the flip side, the company's U.S. term loan B was downsized to $400 million from $440 million, pricing was lowered to Libor plus 275 bps from Libor plus 300 bps and the Libor floor tightened to 0.75% from talk of 1% to 1.25%, the source said. The tranche is still being offered at par.

Also, while size on the company's €260 million term loan B was left unchanged, pricing was moved to Euribor plus 300 bps from Euribor plus 325 bps and the Libor floor was trimmed to 0.75% from talk of 1% to 1.25%. The par offer price was left unchanged.

Van Heusen pro rata details

In addition to the U.S. term loan A and the term loan B debt, Phillips-Van Heusen's credit facility includes a $275 million revolver priced at Libor plus 250 bps, a €132 million revolver priced at Euribor plus 275 bps and an €87 million term loan A priced at Euribor plus 275 bps.

Like the U.S. term loan A, these pro rata tranches have pricing that is based on a leverage grid, no Libor floor and upfront fees set by commitment size.

Barclays, Deutsche Bank, Bank of America Merrill Lynch, Credit Suisse and RBC Capital Markets are the lead banks on the New York-based apparel company's credit facility (Ba2).

Timing on allocations is still to be determined.

Van Heusen refinancing debt

Proceeds from Phillips-Van Heusen's facility will be used to replace an existing bank deal that was completed in May 2010 and consisted of a roughly $450 million five-year revolver, a $500 million five-year term loan A, a $1 billion six-year term loan B and a €300 million six-year term loan B.

Pricing on the existing revolver and term loan A is Libor plus 300 bps on the U.S. pieces and Euribor plus 325 bps on the foreign pieces, and pricing on the existing term loan B is Libor plus 300 bps on the U.S. piece and Euribor plus 325 bps on the euro piece. The term loan A and the term loan B have a 1.75% Libor floor. The original issue discount on the term loan B was 991/2.

As of Oct. 31, there was about $480 million outstanding under the term loan A and about $1.34 billion outstanding under the term loan B. In December, the company made a voluntary repayment of $150 million of principal, and it will prepay another $150 million of principal this month that was previously anticipated to be made by Jan. 30.

Edwards flexes

Edwards lowered pricing on its roughly $695 million term loan (B+) due May 2016 to Libor plus 400 bps from Libor plus 425 bps, added a step-down to Libor plus 375 bps if net secured leverage is 2.0 times or less, trimmed the original issue discount to 99½ from 99 and added 101 soft call protection for one year, according to a market source. The 1.5% Libor floor was left unchanged.

Deutsche Bank and J.P. Morgan are the lead banks on the deal and are asking for commitments by 3 p.m. ET on Wednesday.

Proceeds will be used to refinance existing debt, including a term loan that is basically being amended and extended through this new deal, and to fund a dividend payment.

Edwards is a Crawley, England-based supplier of vacuum and abatement equipment and services.

AccentCare flex expected

AccentCare's $205 million senior secured credit facility is currently oversubscribed, creating the anticipation that pricing will tighten from the current talk of Libor plus 500 bps with a 1.5% Libor floor and an original issue discount of 981/2, according to a market source.

Tranching on the facility is a $25 million revolver and a $180 million term loan.

GE Capital, Bank of Ireland and CIT are the joint lead arrangers on the deal that will be used to help fund the buyout of the company by Oak Hill Capital Partners.

The company will then be merged with Guardian Home Care Holdings Inc., a Brentwood, Tenn.-based provider of homecare and hospice services that was recently acquired from Friedman Fleischer & Lowe.

AccentCare is an Irvine, Calif.-based provider of home health care services.

Leslie's sets guidance

Leslie's Poolmart held a conference call on Tuesday afternoon to launch a credit facility, and in connection with the event, price talk on the $310 million covenant-light term loan B surfaced as Libor plus 325 bps with a 1.25% Libor floor and a par offer price, according to a market source.

Bank of America Merrill Lynch and Wells Fargo are the lead banks on the $380 million deal, which also includes a $70 million revolver, that will be used to refinance existing debt.

Late last year, the company got a $70 million revolver and $310 million term loan to refinance existing bonds and an existing revolver and to pay off a shareholder that was exiting the investor group.

Pricing on the existing term loan is Libor plus 450 bps with a step-down to Libor plus 425 bps at less than 4.5 times leverage and a 1.5% Libor floor. The tranche was sold at an original issue discount of 99 and includes 101 soft call protection for one year.

Leslie's Poolmart is a Phoenix-based retailer of swimming pool supplies and related products.

JMC structure, talk emerge

Another deal to kick off syndication was JMC Steel and, along with its bank meeting, structure and price talk were announced, according to sources.

The deal came to market as a $400 million six-year term loan talked at Libor plus 375 bps with a 1.5% Libor floor and an original issue discount of 99, sources said.

J.P. Morgan is leading the financing and has asked for commitments by March 3.

Proceeds will be used to help refinance existing debt and fund the company's acquisition by the Zekelman family. Zekelman, a current minority owner, is purchasing the Carlyle Group's majority stake. Carlyle will maintain a minority stake in JMC and participation on the board of directors.

The transaction is expected to close by March 31, subject to financing,.

JMC Steel is a Beachwood, Ohio-based manufacturer of steel pipe and tubes that was formed through the combination of John Maneely Co. and Atlas Tube in December 2006.

RBS International pricing

RBS International Direct Marketing disclosed price talk of Libor plus 375 bps on its $40 million revolver and $75 million term loan A, and Libor plus 475 bps with a 1.5% Libor floor on its $145 million term loan B as the deal launched with a bank meeting, according to a market source.

Bank of America Merrill Lynch and Fifth Third Bank are the lead banks on the $260 million credit facility that will be used to refinance existing debt.

RBS International Direct Marketing is a direct marketing company.

Fairway launches

Continuing on the topic of launches, Fairway Market held a bank meeting on Tuesday for its proposed $175 million credit facility that consists of a $25 million five-year revolver and a $150 million six-year term loan. It has expected price talk of Libor plus 700 bps with a 1.5% Libor floor and an original issue discount of 98, according to a market source.

Credit Suisse, Bank of America Merrill Lynch and Jefferies are the lead banks on the deal that will be used to refinance an existing credit facility and provide some cash for future store expansion.

The facility includes a full covenant package.

Fairway is a supermarket chain with locations in New York, New Jersey and Connecticut.

Petco holds call

As planned, Petco Animal Supplies, a San Diego-based specialty retailer of pet food, supplies and services, held a lender call on Tuesday to launch a $1.225 billion term loan that will be used to reprice its existing term loan.

Indicative price talk on the term loan was announced on Monday at Libor plus 325 bps to 350 bps with a 1.25% Libor floor and a par offer price, and there is 101 soft call protection for six months.

By comparison, the existing loan that was obtained late last year to refinance existing debt and fund a dividend is priced at Libor plus 450 bps with a 1.5% Libor floor, was sold at an original issue discount of 99 and includes 101 soft call protection for one year.

All other terms on the loan will remain the same as the existing deal, including the covenant-light structure.

Credit Suisse, JPMorgan and Bank of America Merrill Lynch are leading the deal and are asking for commitments by Feb. 23.

Focus Brands repricing

Also launching a repricing deal was Focus Brands with its $251.3 million term loan talked at Libor plus 425 bps to 450 bps with a 1.5% Libor floor, a par offer price and 101 soft call protection for one year.

Price talk came out on Monday when plans for the repricing were announced.

The company's existing loan is priced at Libor plus 550 bps with a step-down to Libor plus 525 bps based on 3.5 times total leverage and a 1.75% Libor floor. The tranche was sold at an original issue discount of 99 and was used to help fund the acquisition of Auntie Anne's and refinance existing debt.

Credit Suisse is the lead bank on the deal and is asking for commitments by Feb. 22.

Focus Brands is an Atlanta-based franchisor and operator of ice cream stores, bakeries, restaurants and cafes.

Hertz getting revolver

Hertz plans on launching a $1.8 billion ABL revolving credit facility at its bank meeting on Wednesday in addition to the previously announced $1.35 billion seven-year term loan and a $250 million seven-year synthetic letter-of-credit facility, according to sources.

Proceeds from the $3.4 billion credit facility will be used to refinance existing debt.

Deutsche Bank, Wells Fargo, Barclays, Bank of America Merrill Lynch, Citigroup, Credit Agricole and J.P. Morgan are the lead banks on the deal.

Hertz is a Park Ridge, N.J.-based auto and equipment rental company.

Ignite Restaurant tranching

Ignite Restaurant Group disclosed that the senior secured credit facility it will be launching with a bank meeting on Wednesday will include a $30 million revolver and a $120 million term loan, according to a market source.

GE Capital and Golub Capital are leading the $150 million deal that will be used to refinance existing debt and fund a dividend.

Price talk on the deal is expected to emerge with launch, the source said.

Ignite Restaurant Group is a Houston-based owner of Joe's Crab Shack and Brick House Tavern & Tap restaurants.

Capital Automotive refi

Capital Automotive is scheduled to hold a bank meeting at 2 p.m. ET on Thursday to launch a proposed $1.7 billion senior secured credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of a $200 million five-year revolver and a $1.5 billion six-year term loan B, the source said, adding that price talk is not yet available.

Barclays Capital is the left lead bank on the deal.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

Visant repricing loan

Visant will hold a lender call on Wednesday afternoon to launch a new $1.25 billion senior secured term loan that will be used to reprice its existing term loan of the same size, according to a market source.

Indicative pricing on the new term loan is Libor plus 400 bps with a 1.25% Libor floor and a par offer price, compared to pricing on the existing loan of Libor plus 525 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 98.

The existing loan was obtained in September 2010 to fund a recapitalization and is being repaid at its 101 soft call protection level. This call protection will remain through its original term.

Credit Suisse is the left lead on the deal. There will be other arrangers as well.

Commitments are due on Feb. 24 and closing is expected to occur with in the next two weeks.

Visant is an Armonk, N.Y.-based marketing and publishing services enterprise servicing the school affinity, direct marketing, fragrance and cosmetics, and educational and trade publishing segments.

Brock coming soon

Brock Group is scheduled to hold a bank meeting on Thursday at 1:30 p.m. ET to launch $700 million in term loans via J.P. Morgan, Credit Suisse and Bank of America Merrill Lynch, according to a market source.

The debt consists of a $490 million six-year first-lien term loan B and a $210 million seven-year second-lien term loan, the source said, adding that price talk is not yet available.

Proceeds will be used to refinance existing debt, fund a dividend and for general corporate purposes.

Brock is a Houston-based provider of industrial specialty maintenance services, including painting, scaffolding and insulation.

Grande readies deal

Grande Communications has set a bank meeting for Thursday to launch a proposed $185 million credit facility that is being talked at Libor plus 400 bps, according to a market source.

The facility, led by Societe Generale and SunTrust, consists of a $20 million five-year revolver and a $165 million six-year term loan A.

Proceeds will be used to fund a dividend and refinance existing debt. In 2009, the company obtained an $18.7 million revolver and a $103.8 million term loan, with pricing of Libor plus 675 bps with a 3% Libor floor. The debt was sold at an original issue discount of 97.

At closing, net leverage will be 3.5 times.

Grande Communications is a San Marcos, Texas-based provider of high-speed internet, local and long-distance telephone and digital cable services.

Allegiant nets interest

In other news, Allegiant Travel Co.'s $125 million term loan (Ba3/BB-) is already about half filled out as the deal has been seeing some pre-marketing ahead of the Thursday bank meeting, according to a market source.

As was already reported, price talk on the term loan is Libor plus 425 bps with a 1.75% Libor floor and an original issue discount of 99, and there is 101 soft call protection for one year.

Commitments from lenders will be due on March 3.

Citadel Securities is leading the deal that will be used by the Las Vegas-based all-jet passenger airline company for general corporate purposes, including funding capital expenditures.

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