Blue Coat, Crestwood, Houghton Mifflin set talk; Alvogen Pharma upsizes; NCI sets bank meeting

By Paul A. Harris

Portland, Ore., May 15 - Blue Coat Systems Inc. talked its $675 million six-year covenant-light term loan at a 350 basis points spread to Libor, Crestwood Holdings LLC talked its $365 million six-year term loan B with a Libor spread of 625 basis points to 650 bps, and Houghton Mifflin Harcourt Publishers Inc. set talk on its $248 million senior secured term loan B due May 22, 2018 (B2//BB+) at a 450 basis points to 475 bps spread to Libor.

Meanwhile, NCI Building Systems Inc. announced plans to roll out a $240 million six-year first-lien covenant-lite term loan (B1/BB-) at a Thursday bank meeting.

And Alvogen Pharma U.S., Inc. USA upsized its five-year term loan B to $240 million from $225 million.

The LCDX 20 index of bank loan credit default swaps was flat on the day at 104 3/8% bid, 104 7/8 offered, according to a market source.

Blue Coat talks term loan

Blue Coat Systems announced structural details and price talk for its $700 million credit facility on Wednesday, according to a market source.

Jefferies Finance LLC is leading the deal.

The facility consists of a $675 million six-year covenant-light term loan talked at a 350 basis points spread to Libor with a 1% Libor floor, to price at 99.5. It comes with six-month soft call protection at 101.

The deal also has a $25 million five-year revolver.

Commitments are due on May 22.

Proceeds will be used to refinance existing debt and fund recent acquisitions.

The source remarked that most recent year-to-date performance has shown revenue up 16% and EBITDA up 34% over the comparable period. Since the company's original leveraged buyout financing was done in 2012, EBITDA has grown 46% to about $170 million.

Blue Coat is a Sunnyvale, Calif.-based web security company.

NCI bank meeting

NCI Building Systems said its $240 million term loan (B1/BB-) is talked to come at a Libor spread of 350 basis points to 375 bps with a 1% Libor floor at a reoffer price of 99.5.

Credit Suisse Securities (USA) LLC, RBC Capital Markets, UBS Investment Bank and Citigroup Global Markets are the joint lead arrangers.

The loan comes with 101 repricing protection for six months.

Commitments are due May 30.

Proceeds will be used to refinance the existing term loan.

The company said that it expects the refinancing to significantly reduce annual interest costs while also increasing overall financial flexibility.

The refinancing is being done in connection with the conversion of the company's preferred shares to common shares by Clayton, Dubilier & Rice LLC.

NCI is a Houston-based manufacturer of metal products for the nonresidential building industry.

Alvogen upsizes

Alvogen Pharma U.S. upsized its five-year term loan B to $240 million from $225 million on Wednesday, according to a market source.

Pricing tightened to 99. Earlier price talk was 98 to 99.

The Libor spread remains unchanged at 575 basis points with a 1.25% Libor floor and an original issue discount of 98 to 99, according to a market source.

The loan is non-callable for one year, then at 101 in year two, the source said.

Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are the joint lead arrangers on the deal.

Proceeds will be used to refinance existing debt.

Alvogen is a Pine Brook, N.J.-based pharmaceuticals company.

Crestwood sets talk

Crestwood Holdings set price talk and terms for its $365 million six-year term loan B on Wednesday, according to a market source.

The deal is talked with a Libor spread of 625 basis points to 650 bps with a 1.25% Libor floor at a price of 99.

There is an accordion feature set at the greater of $75 million and any amount up to pro forma leverage of less than or equal to 5.75 times, subject to a 50 bps most favored nation provision.

There is also a 1% per annum amortization.

Optional prepayments include 102, 101 soft call protection for debt pre-payments.

Mandatory prepayments include 100% of all non-ordinary course asset sales, 100% debt (subject to certain baskets), a 50% excess cash flow sweep if leverage greater than or equal to four times and a 25% excess cash flow sweep if leverage is greater than or equal to 3.5 times and less than four times.

Commitments are due on May 27.

Citigroup Global Markets Inc. is the left lead bank. BofA Merrill Lynch, J.P. Morgan Securities LLC, Barclays, Morgan Stanley & Co., RBC Capital Markets, SunTrust Robinson Humphrey and Wells Fargo Securities LLC are the joint bookrunners.

Proceeds will be used to refinance existing debt, the source added.

Crestwood Holdings is a Houston-based provider of midstream infrastructure services for the development of shale and unconventional resource basins.

Houghton talks term loan

Houghton Mifflin Harcourt Publishers set price talk for its $248 million senior secured term loan B due May 22, 2018 (B2//BB+), a market source said on Wednesday.

The deal is talked at a 450 basis points to 475 bps spread to Libor, with a 1.25% Libor floor, to price at par. It features a 101 soft call for six months.

Commitments are due by May 22.

The Boston-based publishing company plans to use the proceeds to refinance its existing facility.

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