Ciena, AmSurg break; First Data revises rollover discount; Advantage Sales shutting early

By Sara Rosenberg

New York, July 8 – Ciena Corp. set pricing on its term loan at the tight end of guidance, trimmed the Libor floor and then freed up on Tuesday with trading levels seen above the original issue discount, and AmSurg Corp. hit the secondary market as well.

In more happenings, First Data Corp. tweaked original issue discount talk on its term loans, and Advantage Sales & Marketing LLC accelerated the commitment deadline on its credit facility.

Also, Key Safety Systems Inc., Drillships Ocean Ventures Inc. (Ocean Rig), MD America Energy, Cactus Wellhead LLC and iParadigms Holdings LLC, Ferro Corp. and Wausau Paper Corp. disclosed talk with launch.

In addition, Emerald Performance Materials LLC, Outerstuff LLC, National Financial Partners Corp., Osum Production Corp., Meritas School Holdings LLC and Emerald Expositions Holding Inc. emerged with deal plans.

Ciena revised, trades

Ciena finalized the spread on its $250 million five-year term loan B (Ba2/BB-) at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps talk, and cut the Libor floor to 0.75% from 1%, while keeping the original issue discount of 99½ and 101 soft call protection for six months intact, according to a market source.

Recommitments were due at noon ET on Tuesday and then the loan made its way into the secondary market in the afternoon, with levels quoted at par bid, par 3/8 offered, a trader remarked.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used for general corporate purposes and to add cash to the balance sheet.

Ciena is a Hanover, Md.-based supplier of communications networking equipment and software.

AmSurg frees up

AmSurg’s credit facility also began trading, with the $870 million seven-year covenant-light term loan B quoted at par ¼ bid, par ¾ offered, a trader said.

Pricing on the term loan B is Libor plus 300 bps with a step-down to Libor plus 275 bps when total leverage is less than 4.5 times. There is 0.75% Libor floor and 101 soft call protection for six months, and the debt was sold at an original issue discount of 99¾.

During syndication, the term loan B was downsized from $1.09 billion as the company’s senior unsecured notes offering was upsized to $1.1 billion from $880 million, the spread was reduced from Libor plus 325 bps, the step-down was added, the Libor floor was lowered from 1% and the discount was tightened from 99½.

The company’s $1.17 billion senior secured credit facility (BB-) also includes $300 million five-year revolver.

AmSurg buying Sheridan

Proceeds from AmSurg’s loan, notes, cash on hand, the issuance of common stock and a mandatory convertible preferred offering will be used to fund the $2.35 billion acquisition of Sheridan Healthcare from Hellman & Friedman LLC, to repay revolver borrowings and existing senior secured notes, for working capital and to add cash to the balance sheet.

Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Bank of America Merrill Lynch, Jefferies Finance LLC and Wells Fargo Securities LLC are leading the credit facility.

Closing is expected in mid-July, subject to customary conditions and regulatory approvals.

Amsurg is a Nashville-based acquirer, developer and operator of ambulatory surgery centers. Sheridan Healthcare is a Sunrise, Fla.-based provider of multi-specialty outsourced physician services to hospitals, ambulatory surgery centers and other health care facilities.

First Data adjusts OID

Back in the primary, First Data modified the original issue discount on its $4.25 billion first-lien term loan due March 2018, $1,008,000,000 first-lien term loan due September 2018 and €311 million term loan due March 2018 to 99½ for both rolled and new money commitments from 99½ for new money and 99¾ for rolled commitments, a market source said.

All of the loans continue to be talked at Libor/Euribor plus 350 bps with no Libor floor.

Commitments are due at 4 p.m. ET on Tuesday and amendment signature pages are due at 4 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to refinance existing term loans due March 2018 and September 2018 that are priced at Libor/Euribor plus 400 bps with no Libor floor.

First Data is a Greenwood Village, Colo.-based provider of electronic commerce and payment services.

Advantage Sales deadline

Advantage Sales & Marketing moved up the commitment deadline on its $2.76 billion credit facility to noon ET on Thursday from Friday, according to a market source.

The facility consists of a $200 million five-year revolver (B1/B), a $1.8 billion seven-year first-lien covenant-light term loan (B1/B) talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, and a $760 million eight-year second-lien covenant-light term loan (Caa1/CCC+) talked at Libor plus 700 bps with a 1% Libor floor, a discount of 99, and call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners LP and CVC Capital Partners from Apax Partners.

Closing is expected in the third quarter, subject to customary conditions.

Advantage Sales & Marketing is an Irvine, Calif.-based sales and marketing agency.

Key Safety launches

Also in the primary, Key Safety Systems revealed talk of Libor plus 375 bps to 400 bps on its $420 million seven-year first-lien term loan (Ba2/B+) and Libor plus 725 bps to 750 bps on its $100 million eight-year second-lien term loan (B2/B), with both tranches having a 1% Libor floor and an original issue discount of 99, according to a market source.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $600 million credit facility, which launched with a morning meeting and has a July 22 commitment deadline, also provides for an $80 million revolver (Ba2/B+).

UBS AG, Citigroup Global Markets Inc. and Nomura are leading the deal that will be used to fund the buyout of the company by FountainVest Partners from Crestview Partners.

Key Safety is a Sterling Heights, Mich.-based supplier of automotive safety restraint systems and components.

Drillships comes to market

Drillships Ocean Ventures launched with a bank meeting its $800 million senior secured term loan B (B2/B+) with talk of Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and hard call protection of 103 in year one, 102 in year two and 101 in year three, according to a market source.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used with $500 million of senior secured notes to repay a $1.35 billion senior secured term loan.

Based in Nicosia, Cyprus, Drillships is a subsidiary of Ocean Rig UDW Inc., a Greece-based international offshore drilling contractor.

MD America sets talk

MD America Energy came out with talk of Libor plus 850 bps with a 1% Libor floor, an original issue discount of 98 and call protection of non-callable for one year, then at 103 in year two and 101 in year three on its $525 million five-year second-lien term loan (Caa2/CCC+) that launched with a meeting during the session, a source remarked.

Commitments are due on July 18, the source added.

Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal, which will be used to refinance existing debt.

MD America is an upstream oil and gas company.

Cactus Wellhead guidance

Cactus Wellhead launched at its bank meeting its $350 million six-year first-lien covenant-light term loan (B3/B) with talk of Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

Commitments are due at 5 p.m. ET on July 22.

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and fund a dividend.

Cactus Wellhead is a Houston-based provider of wellhead services.

iParadigms holds meeting

iParadigms Holdings had its bank meeting in the morning, launching its $225 million seven-year first-lien covenant-light term loan with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a source said.

Also, the company’s $115 million eight-year second-lien covenant-light term loan was launched at Libor plus 750 bps with a 1% Libor floor, a discount of 99, and call protection of 102 in year one and 101 in year two, the source continued.

The company’s $356 million credit facility also includes a $16 million revolver.

Commitments are due at 5 p.m. ET on July 22.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the buyout of the company by Insight Venture Partners and GIC for $752 million.

iParadigms is an Oakland, Calif.-based provider of anti-plagiarism and online grading software.

Ferro terms emerge

Ferro launched during the session its $300 million seven-year term loan B with talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

The company’s $500 million credit facility (Ba3/B+) also includes a $200 million five-year revolver.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Ferro is a Mayfield Heights, Ohio-based supplier of technology-based performance materials, including glass-based coatings, pigments and colors, and polishing materials.

Wausau loan details

Wausau Paper released talk of Libor plus 550 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year on its $175 million six-year term loan (B) that launched with a call on Tuesday, according to a market source.

Bank of America Merrill Lynch and BMO Capital Markets are leading the loan that will be used to refinance notes.

The company is also in the process of negotiating a new $50 million secured revolver to replace its $80 million unsecured revolver.

Wausau Paper is a Mosinee, Wis.-based paper company.

Emerald Performance joins calendar

Emerald Performance Materials will hold a conference call at 1:30 p.m. ET on Thursday to launch an $830 million credit facility, according to a market source.

The facility consists of a $75 million revolver, a $525 million seven-year first-lien covenant-light term loan talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, and a $230 million eight-year second-lien covenant-light term loan talked at Libor plus 675 bps to 700 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the buyout of the company by American Securities LLC from Sun Capital Partners Inc.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Emerald is Cuyahoga Falls, Ohio-based manufacturer and marketer of specialty chemicals.

Outerstuff readies deal

Outerstuff scheduled a bank meeting for 1:30 p.m. ET in New York on Wednesday to launch a $255 million credit facility, according to a market source.

The facility consists of a $100 million ABL revolver (BB), and a $155 million seven-year first-lien covenant-light term loan (B2/B+) with 101 soft call protection for one year, the source said.

Commitments are due on July 23.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to help fund Blackstone’s purchase of a 49% equity interest in the company.

Outerstuff is a New York-based designer, manufacturer and marketer of licensed children’s sports apparel for all of the major sports leagues in North America.

National Financial on deck

National Financial Partners set a call for 10:30 a.m. ET on Wednesday to launch an $867 million covenant-light term loan B due July 2020 that has a 1% Libor floor, according to a market source.

Commitments are due on July 18, the source said.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., UBS AG, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, MCS Capital and RBC Capital Markets are leading the deal that will be used to reprice an existing first-lien term loan B from Libor plus 425 bps with a 1% Libor floor.

National Financial is a New York-based provider of insurance brokerage and wealth management services to middle market companies, financial advisors and high net worth individuals.

Osum sets launch

Osum Production scheduled a bank meeting for 12:30 p.m. ET on Thursday to launch a $210 million six-year senior secured first-lien term loan, according to a market source.

Barclays and Goldman Sachs Bank USA are leading the deal that will be used with cash on hand as well as from existing shareholders to fund the acquisition of Orion Oil Sands Project from Shell Canada for C$325 million.

Secured and total leverage is 2.7 times, the source added.

Closing is expected on or about July 31.

Osum Production is an indirectly wholly owned subsidiary of Osum Oil Sands Corp., a Calgary, Alberta-based private oil sands company.

Meritas coming soon

Meritas School Holdings plans to hold a conference call at 10 a.m. ET on Wednesday to launch an $80 million 6½-year second-lien term loan that is talked at Libor plus 900 bps to 925 bps with a 1.25% Libor floor, an original issue discount of 98½, and call protection of 103 in year one, 102 in year two and 101 in year three, a market source remarked.

Commitments are due on July 18.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to fund a dividend recapitalization.

With the second-lien loan, the company is seeking an amendment to its existing first-lien loan that will allow for the second-lien loan and dividend, and reset the 101 soft call protection for six months, and first-lien lenders are being offered a 15 bps amendment fee, the source added.

Meritas is a Northbrook, Ill.-based family of private college-preparatory schools.

Emerald Expositions plans call

Emerald Expositions set a call for 11 a.m. ET on Wednesday for credit facility lenders, according to a market source, who said details on the purpose of the call are not yet available.

Bank of America Merrill Lynch is leading the deal.

Emerald is a San Juan Capistrano, Calif.-based operator of large business-to-business tradeshows.

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