Deluxe, Playa break; Nine West, American Pacific, Asurion, ILFC, Alliance Laundry revised

By Sara Rosenberg

New York, Feb. 26 - Deluxe Entertainment Services Group Inc.'s credit facility emerged in the secondary market on Wednesday with the term loan trading above its original issue discount price, and Playa Resorts Holding BV freed up too.

Moving to the primary, Nine West Holdings Inc. modified price talk on its term loan B and added an unsecured term loan to its credit facility, and American Pacific Corp. finalized pricing on its term loan at the low end of talk, tightened the original issue discount and shortened the call protection.

Also, Asurion LLC firmed the spread on its second-lien term loan at the tight end of talk and revised original issue discounts on the second-lien tranche as well as on its add-on term loan B-1, International Lease Finance Corp. (ILFC) upsized its loan, and Alliance Laundry Holdings LLC modified the offer price on its incremental loan.

Additionally, IMS Health, IMG Worldwide Holdings Inc., EMI Music Publishing, Empire Generating Co. LLC, Steak n Shake Operations Inc. and National Response Corp. disclosed talk with launch, and Realogy Holdings Corp. and Interline Brands Inc. came out with deal plans.

Deluxe starts trading

Deluxe Entertainment's credit facility broke for trading on Wednesday, with the $605 million six-year first-lien term loan (B2/B) seen at par bid, par ½ offered and then it rose to par ¼ bid, 101 offered, a market source said.

Pricing on the term loan is Libor plus 550 basis points with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

Earlier this week, the term loan was upsized $570 million, the spread was trimmed from Libor plus 650 bps, the discount was revised from 99 and call protection was shortened from one year.

The company's $705 million credit facility also includes a $100 million five-year ABL revolver.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt, and because of the recent term loan upsizing, to fund a dividend and for general corporate purposes.

Deluxe is a Shoreview, Minn.-based provider of digital asset creation, management and distribution services.

Playa Resorts breaks

Playa Resorts' $375 million term loan (B2) due August 2019 hit the secondary market as well, with levels quoted at par ½ bid, 101 offered, according to a market source.

Pricing on the loan is Libor plus 300 bps, after firming during syndication at the low end of the Libor plus 300 bps to 325 bps talk. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was issued at par.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal that will be used to reprice an existing term loan from Libor plus 375 bps with a 1% Libor floor.

Existing lenders are getting paid out at 101 with the repricing due to current call protection.

Playa is an owner, operator and developer of all-inclusive resorts in the Dominican Republic, Mexico and Jamaica.

Fibertech holds steady

Also in trading, Fibertech Networks' $511.2 million term loan B was seen at par bid, par ½ offered, in line with where it broke for trading late Tuesday, a trader remarked.

The B loan, of which $135 million is add-on debt and the remainder for a repricing, is priced at Libor plus 300 bps with a step-down to Libor plus 275 bps based on leverage. There is a 1% Libor floor and 101 soft call protection for six months. The add-on was issued at a discount of 99¾ while the repricing was done at par.

During syndication, the pricing step-down was added and the offer price on the add-on portion finalized at the tight end of the 99½ to 99¾ talk.

TD Securities (USA) LLC is leading the deal that will result in pro forma net leverage of 4.1 times.

Proceeds from the add-on and cash on hand will be used by the Rochester, N.Y.-based provider of fiber optic bandwidth services to fund a dividend, and the repricing will take the existing term loan down from Libor plus 350 bps with a 1% Libor floor when the current call protection expires on March 7.

Curo trades atop par

Curo Health Services' $135 million term loan was quoted at par ¼ bid, par ¾ offered after freeing up in that same context on Tuesday evening, according to a trader.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor and it was sold a discount of 991/2. The debt includes 101 soft call protection for six months.

Recently, the spread on the term loan was reduced from Libor plus 400 bps and the discount was changed from 99.

The company's $160 million credit facility also includes a $25 million revolver.

SunTrust Robinson Humphrey Inc. and GE Capital Markets are leading the deal that will be used to refinance existing debt and fund a dividend.

Curo Health is a Mooresville, N.C.-based provider of home health care and hospice services.

Nine West restructures

Over in the primary, Nine West changed guidance on its $470 million 51/2-year term loan B to Libor plus 350 bps to 375 bps from talk of Libor plus 325 bps to 350 bps, while keeping the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for one year intact, according to a market source.

Also, a $250 million 53/4-year unsecured guaranteed term loan was added to the capital structure, and talk was outlined at Libor plus 525 bps with a 1% Libor floor, an original issue discount of 99 and call protection of non-callable for 18 months, then at 102 for a year and 101 for the following year, the source said.

The company's now $970 million credit facility also includes a $250 million asset-based revolver.

Commitments are due on March 3.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and MCS Capital Markets LLC are leading the term loans, and Wells Fargo Securities LLC and Bank of America Merrill Lynch are leading the revolver.

Nine West being acquired

Proceeds from Nine West's credit facility will be used to help fund the buyout of parent company Jones Group Inc. by Sycamore Partners for $15.00 per share in cash, or about $2.2 billion, including net debt.

With the buyout, Jones Group will transfer ownership of its Jones Apparel business, its Kurt Geiger business and its Stuart Weitzman business to separate Sycamore affiliates, leaving Jones Group to consist of the Nine West business and the Jeanswear business.

In addition to the credit facility, funds for the transaction are expected to come from equity, the amount of which is being reduced due to the addition of the unsecured term loan, the source added, and a $455 million senior unsecured bridge loan or senior notes.

Closing is expected in the second quarter, subject to shareholder and regulatory approvals and other customary conditions.

Nine West is a designer, marketer and wholesaler of apparel, footwear and accessories.

American Pacific reworks

American Pacific firmed the spread on its $330 million five-year term loan B at Libor plus 600 bps, the low end of the Libor plus 600 bps to 650 bps talk, moved the original issue discount to 99¼ from 99 and revised the call protection to 102 for one year then 101 for six months from 102 in year one and 101 in year two, according to a market source. The 1% Libor floor was unchanged.

The company's $365 million senior secured credit facility also includes a $35 million 41/2-year revolver.

Net leverage is 4.8 times.

Jefferies Finance LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used with up to $124.3 million in equity to help fund the buyout of the company by H.I.G. Capital LLC for $46.50 per share, or $392 million.

Completion of the transaction is subject to customary conditions.

American Pacific is a Las Vegas-based custom manufacturer of fine chemicals and specialty chemicals.

Asurion updates terms

Asurion finalized pricing on its $1.7 billion seven-year second-lien term loan (B3/CCC+) at Libor plus 750 bps, the low end of the Libor plus 750 bps to 800 bps talk and moved the discount to 98½ from 98, according to a market source, who said the debt still has a 1% Libor floor and is non-callable for one year, then at 103 in year two and 101 in year three.

Furthermore, the company's fungible $300 million add-on term loan B-1 (Ba3/B) due May 2019 saw its original issue discount tighten to 99¾ from talk of 99 to 991/2, while pricing was left at Libor plus 375 bps with a 1.25% Libor floor, the source said. This debt still has 101 soft call protection for one year.

Also unchanged were terms on the $250 million three-year term loan B-3 (Ba3/B), which is priced at Libor plus 300 bps with a 0.75% Libor floor and a discount of 991/2, and includes 101 soft call protection for one year.

Asurion lead banks

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading Asurion's $2.25 billion of covenant-light term loans.

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

Allocations are expected to go out later this week, another source added.

Asurion is a Nashville-based provider of technology protection services.

ILFC lifts loan size

International Lease Finance increased its seven-year term loan B (Ba2/BBB-/BB) to $1.5 billion from $1 billion and kept talk at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Commitments were due at 5 p.m. ET on Wednesday, the source said.

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used for general corporate purposes.

International Lease is a Los Angeles-based independent aircraft lessor.

Alliance Laundry tweaks loan

Alliance Laundry tightened the offer price on its $230 million incremental first-lien term loan to par ½ from 993/4, and kept pricing at Libor plus 325 bps with a 1.25% Libor floor, according to a market source.

BMO Capital Markets and Bank of America Merrill Lynch are leading the deal that will be used to help fund the acquisition of Primus Laundry Equipment Group, a Gullegem, Belgium-based marketer of commercial washer-extractors, tumbler dryers, ironers and feeding and folding equipment.

Closing is expected by the end of March, subject to customary conditions.

Alliance Laundry is a Ripon, Wis.-based designer, manufacturer and marketer of commercial laundry equipment.

IMS details emerge

IMS held its call on Wednesday, launching a $1,747,000,000 seven-year covenant-light term loan B with talk of Libor plus 275 bps with a 1% Libor floor and a €747 million seven-year covenant-light term loan B with talk of Euribor plus 300 bps with a 1.25% floor, according to a market source.

Both term loans have a 25 bps step-down in spread when net opco leverage is less than 5 times, 101 soft call protection for six months and original issue discount guidance of 99½ to 993/4, the source said.

Spreads and floors on the term loans match the company's existing U.S. and euro term loans.

Commitments are due by 5 p.m. ET on March 5, the source added.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal (BB-) that will be used to refinance existing debt.

IMS is a Danbury, Conn.-based provider of information, services and technology for the health care industry.

IMG holds meeting

IMG also held a bank meeting, launching its $1.9 billion seven-year covenant-light first-lien term loan (B) with talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99½ to 99¾ and 101 soft call protection for six months, according to sources.

Also, the $450 million eight-year covenant-light second-lien term loan (B-) was launched at Libor plus 675 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, sources said.

The company's $2.45 billion credit facility also includes a $100 million revolver (B).

J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal that will be used to help fund the acquisition of IMG by Silver Lake Partners and William Morris Endeavor Entertainment LLC from Forstmann Little & Co. and to refinance existing debt.

IMG is a New York-based sports, fashion and media business.

EMI reveals talk

EMI Music launched in the afternoon its roughly $1.08 billion term loan B with talk of Libor plus 275 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, a market source said.

Proceeds will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor.

Commitments are due on March 6, the source added.

UBS Securities LLC is leading the deal for the New York-based music publisher.

Empire Generating pricing

Empire Generating disclosed talk of Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99 on its $430 million seven-year term loan B and $30 million seven-year letter-of-credit term loan C that are being sold as a strip, according to a market source.

As previously reported, the loans, which launched with a bank meeting in the afternoon, have 101 soft call protection for six months.

The company's $480 million credit facility also includes a $20 million five-year revolver.

Commitments are due at noon ET on March 12, the source said.

Deutsche Bank Securities Inc., Barclays and Credit Agricole Securities (USA) Inc. are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Empire Generating is the owner of a combined cycle, natural gas fired power plant in Rensselaer, N.Y. with a seasonal weighted capacity of 645 megawatts.

Steak n Shake launches

Steak n Shake released talk on its $220 million covenant-light term loan B at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99 in connection with its bank meeting, according to a market source, who said the debt is non-callable for one year, then at par thereafter.

The company's $250 million credit facility also includes a $30 million revolver, the source remarked.

Commitments are due on March 12.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and fund a dividend to Biglari Holdings Inc.

Steak n Shake is a restaurant operator.

National Response guidance

National Response came out with talk of Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99½ on new money on its $145 million six-year term loan that launched with a bank meeting in the morning, a market source said. The debt has 101 soft call protection for six months.

Prior to launch, guidance on the loan was circulating in the Libor plus low 400 bps area with a 1% Libor floor.

The company's $160 million credit facility also includes a $15 million five-year revolver.

BNP Paribas Securities Corp. is leading the deal that will be used to fund two acquisitions.

National Response is a Great River, N.Y.-based provider of United States Oil Pollution Act of 1990 regulatory compliance and emergency response services.

Realogy readies call

Realogy set a call for noon ET on Thursday to launch a repricing of its roughly $1.9 billion senior secured term loan from Libor plus 350 bps with a 1% Libor floor, according to sources.

The repriced loan will have 101 soft call protection for six months, sources remarked.

J.P. Morgan Securities LLC is leading the deal for the Madison, N.J.-based provider of real estate brokerage, relocation and settlement services.

Interline coming soon

Interline Brands scheduled a bank meeting for 10 a.m. ET on Friday to launch a $350 million first-lien term loan B, according to a market source.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Keybanc Capital Markets are leading the deal that will be used to fund a tender offer that expires on March 25 for the company's 7½% notes due 2018, to repay some revolver borrowings and for working capital and general corporate purposes.

With the transaction, the company plans to amend its existing asset-backed revolver with Bank of America to allow for the new term loan and reduce pricing.

Interline is a Jacksonville, Fla.-based distributor and direct marketer of broad-line maintenance, repair and operations products to the facilities maintenance end-market.

Barbri wraps

In other news, Barbri's repricing of its $286 million credit facility to Libor plus 350 bps with a 1% Libor floor from Libor plus 425 bps with a 1% Libor floor is "done", according to a market source.

The facility consists of a $30 million revolver due July 2018 and a $256 million term loan B due July 2019.

The term loan has 101 soft call protection for six months and was issued at par.

By comparison, at launch, the term loan was talked with a 50 bps upfront fee for new money and at par for rollover commitments.

GE Capital Markets led the deal.

Barbri is a Dallas-based provider of bar review courses and law student support.

Revlon closes

Revlon Consumer Products Corp. completed its $675 million senior secured term loan B (Ba2) due Nov. 19, 2017, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the loan is Libor plus 250 bps with a 0.75% Libor floor and it was issued at par. There is 101 soft call protection for one year.

During syndication, the spread on the term loan firmed at the low end of the Libor plus 250 bps to 275 bps talk and the call protection was extended from six months.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC led the deal that was used to refinance an existing term loan B due 2017 priced at Libor plus 300 bps with a 1% Libor floor.

Revlon is a New York-based cosmetics and accessories company.

American Capital wraps refi

American Capital Ltd. closed on its $450 million term loan B (BB-) due August 2017 that is priced at Libor plus 275 bps with a 0.75% Libor floor, a news release said.

The loan has 101 soft call protection for six months and was sold at an original issue discount of 993/4.

During syndication, the spread on the loan firmed at the wide end of the Libor plus 250 bps to 275 bps talk.

J.P. Morgan Securities LLC led the deal that was used to refinance an existing $450 million senior secured term loan B due in 2016 and priced at Libor plus 300 bps with a 1% Libor floor.

American Capital is a Bethesda, Md.-based private equity firm and global asset manager.

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