E.W. Scripps, Western Refining, Internap, Progressive break; deal updates abound in primary

By Sara Rosenberg

New York, Nov. 22 - E.W. Scripps Co.'s credit facility emerged in the secondary market on Friday with the term loan B seen trading above its original issue discount price, and Western Refining Inc., Internap Network Services Corp. and Progressive Waste Solutions Ltd. began trading as well.

Moving to the primary, Reynolds Group Holdings Inc. finalized pricing on its U.S. and euro term loans at the tight side of guidance, Go Daddy Operating Co. LLC raised the spread on its term loan B but added a rating-based step-down, and Intelsat Jackson Holdings SA upsized its term loan B-2.

Also, Grosvenor Capital Management Holdings LLLP lifted the size of its term loan and trimmed pricing, TNT Crane & Rigging Inc. (North American Lifting Services Holdings Inc.) widened guidance on its first- and second-lien term loans, while also updating the second-lien discount and call protection, and Sealed Air Corp. set pricing on its loans at the low end of talk.

Furthermore, North Atlantic Trading Co. Inc. disclosed price talk on its first- and second-lien term loans with launch.

E.W. Scripps starts trading

E.W. Scripps' credit facility freed up on Friday with the $200 million covenant-light seven-year term loan B quoted at par bid, par ½ offered, according to a market source.

Pricing on the B loan is Libor plus 250 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 993/4. There is 101 soft call protection for six months.

During syndication, pricing on the term loan B was cut from Libor plus 275 bps and the discount was tightened from 991/2.

The company's $275 million senior secured credit facility (Ba2/BB+) also provides for a $75 million five-year revolver.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt.

Senior and total pro forma leverage is expected to be 1.9 times.

E.W. Scripps is a Cincinnati-based media company.

Western Refining frees up

Western Refining's $550 million seven-year senior secured term loan B (B1/BB-) also broke, with levels seen at par ½ bid, par ¾ offered, according to a trader.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor and it was issued at par. There is 101 soft call protection for one year.

Recently, the spread on the loan was trimmed from Libor plus 350 bps and the discount was changed from 99.

Bank of America Merrill Lynch and UBS Securities LLC are leading the deal that is being used with $245 million in cash on hand to fund the already completed acquisition of ACON Investments' and TPG's ownership interests in Northern Tier Energy LP for $775 million.

As a result of the acquisition, Western Refining owns Northern Tier Energy's general partner and 35,622,500 limited partner units, or about 38.7% of Northern Tier Energy.

Western Refining is an El Paso, Texas-based refining and marketing company. Northern Tier Energy is a Ridgefield, Conn.-based downstream energy company.

Internap tops OID

Another deal to begin trading was Internap Network Services' credit facility, with the $300 million six-year term loan B seen at 99½ bid, par ½ offered, a trader said.

Pricing on the B loan is Libor plus 500 bps, following a flex from talk of Libor plus 425 bps to 450 bps, a source remarked. The debt has a 1% Libor floor and 101 soft call protection for one year, and was issued at a discount of 99.

The company's $350 million senior secured credit facility (B3/B) also includes a $50 million five-year revolver.

Jefferies Finance LLC and PNC Capital Markets LLC are leading the deal that will be used to fund the roughly $145 million acquisition of iWeb, to refinance existing debt, and for working capital and general corporate purposes.

Closing is expected in December, subject to customary conditions.

Internap is an Atlanta-based provider of IT Infrastructure solutions. iWeb is a Montreal-based hosting and cloud provider.

Progressive Waste breaks

Progressive Waste Solutions' $496,250,000 term loan hit the secondary too, with levels quoted at par bid, par 3/8 offered, a trader remarked.

The loan is priced at Libor plus 225 bps with a 0.75% Libor floor, was issued at par, after firming at the tight end of the 99 7/8 to par talk, and has 101 soft call protection for six months.

Proceeds are being used to reprice the existing term loan from Libor plus 275 bps with a 0.75% Libor floor.

Bank of America Merrill Lynch is leading the deal for the Vaughan, Ont.-based full-service, vertically integrated waste management company.

Reynolds finalizes pricing

Over in the primary, Reynolds set pricing on its $2,213,000,000 term loan due December 2018 at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, and on its €297 million term loan due December 2018 at Euribor plus 325 bps, the low end of the Euribor plus 325 bps to 350 bps talk, a market source said.

As before, the loans have a 1% floor, a par offer price and 101 soft call protection for six months.

Proceeds will be used to refinance an existing U.S. term loan due October 2018 priced at Libor plus 375 bps with a 1% Libor floor and an existing euro term loan due October 2018 priced at Euribor plus 400 bps with a 1% floor.

Credit Suisse Securities (USA) LLC is the lead arranger on the deal (B1) that is expected to allocate early in the week of Nov. 25, and HSBC Securities (USA) Inc. is a co-arranger.

With the term debt repricings, the company is looking to reprice its $120 million and €80 million senior secured revolvers, and extend their maturities to five years from the amendment effective date.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

Go Daddy flexes up

Go Daddy lifted the coupon on its $835 million senior secured covenant-light term loan due Dec. 17, 2018 to Libor plus 300 bps from Libor plus 275 bps, but added a step-down to Libor plus 275 bps when the Standard & Poor's rating is B+ and the recovery rating is 2, according to a market source.

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

Recommitments were due at 5 p.m. ET on Friday, the source said.

Barclays, KKR Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor.

Go Daddy is a Scottsdale, Ariz.-based provider of web hosting and domain names.

Intelsat lifts size

Intelsat Jackson increased its term loan B-2 due June 30, 2019 to $3.1 billion from $1.75 billion, while keeping pricing at Libor plus 275 bps with a 1% Libor floor and a par offer price, according to a market source. The debt still has 101 soft call protection for six months.

The company's now $3.6 billion credit facility (BB-) also includes a $500 million revolver due July 12, 2017.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance the company's term loan B-1 due April 2018 priced at Libor plus 300 bps with a 1.25% Libor floor and its revolver due in 2016 so as to lower pricing and extend maturities.

Intelsat is a Luxembourg-based provider of satellite services.

Grosvenor revisions emerge

Grosvenor Capital Management raised its seven-year first-lien covenant-light term loan to $460 million from $435 million, cut the spread to Libor plus 275 bps from Libor plus 325 bps and removed the MFN sunset, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

The company's now $510 million credit facility also includes a $50 million five-year revolver.

Recommitments were due at 5 p.m. ET on Friday, the source continued.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BMO Capital Markets and J.P. Morgan Securities LLC are leading the deal that is expected to have a 5-B private ratings profile.

Proceeds will be used to fund the acquisition of the Customized Fund Investment Group, a private equity infrastructure and real estate investment management company, from Credit Suisse Group AG.

Grosvenor is a Chicago-based private equity and alternate investments fund-of-funds manager.

TNT reworks deal

TNT Crane & Rigging lifted price talk on its $400 million seven-year first-lien term loan B (B1) to Libor plus 425 bps to 450 bps from Libor plus 375 bps, and kept the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a market source.

Also, talk on the $170 million eight-year second-lien term loan (Caa1) was flexed to Libor plus 850 bps to 875 bps from Libor plus 775 bps, the discount was changed to 98 from talk of 98½ to 99 and the call protection was sweetened to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said. This debt still has a 1% Libor floor.

Other revisions included decreasing the incremental allowance on the first-lien loan to $75 million from $100 million and on the second-lien loan to $25 million from $50 million, removing the 18 months MFN sunset provision, and resetting the excess cash flow sweep step-downs to 4.5 times and 3.5 times net secured leverage, from steps at 5 times and 4.5 times net secured leverage, the source continued.

TNT lead banks

Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., RBC Capital Markets LLC and Stifel, Nicolaus & Co. Inc. are leading TNT's $645 million credit facility, which also provides for a $75 million five-year revolver (B1).

Recommitments are due on Monday, the source added.

Proceeds will be used to help fund the buyout of the company by First Reserve and management from Odyssey Investment Partners.

Closing is expected by year-end, subject to certain regulatory approvals.

TNT is a Houston-based provider of lifting services and equipment to customers in the energy and industrial infrastructure end markets.

Sealed Air firms terms

Sealed Air finalized pricing on its $524.5 million term loan B due Oct. 3, 2018 at Libor plus 225 bps, the tight end of the Libor plus 225 bps to 250 bps talk, and on its €127.5 million term loan B due Oct. 3, 2018 firmed at Euribor plus 275 bps, the low end of the Euribor plus 275 bps to 300 bps guidance, according to a market source.

Unchanged on both term loans was the 0.75% floor, par offer price and 101 soft call protection for six months.

Allocations are targeted Monday, and closing and funding is expected on Wednesday.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp. and RBS Securities Inc. are leading the deal that will reprice the existing U.S. term B from Libor plus 300 bps with a 1% Libor floor, and the existing euro term loan B from Euribor plus 350 bps with a 1% floor.

Sealed Air is an Elmwood Park, N.J.-based food safety and security, facility hygiene and product protection company.

North Atlantic talk

In more primary happenings, North Atlantic Trading held its bank meeting on Friday morning, and in connection with the event, talk on its $255 million of first- and second-lien term loans was announced, according to a market source.

The $165 million six-year first-lien term loan B is talked at Libor plus 650 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

And, the $90 million 61/2-year second-lien term loan is talked at Libor plus 1,050 bps with a 1.25% Libor floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

Commitments are due on Dec. 10.

Wells Fargo Securities LLC and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt.

North Atlantic Trading is a Louisville, Ky.-based manufacturer and marketer of tobacco products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.