Genworth Wealth, FHC break; Multi Packaging bounces on buyout; Jacobson revises loans

By Sara Rosenberg

New York, July 8 - Genworth Wealth Management and FHC Health Systems freed up for trading on Monday, and Multi Packaging Solutions' first-lien term loan moved lower and its second-lien term loan moved higher as the company announced that it is being acquired by Madison Dearborn Partners.

Over in the primary, Jacobson Cos. (JHCI Acquisition Inc.) moved some funds between its first- and second-lien term loans, firmed pricing on its first-lien debt at the wide end of talk and sweetened the spread, discount and call protection on its second-lien tranche.

Also, Media General Inc. released tranching information on its credit facility in preparation for its upcoming bank meeting, Springer Science + Business Media set talk on its loans, and Willbros Group Inc., Oxbow Carbon LLC, Hemisphere Media and Atlas Energy LP joined this week's calendar.

Genworth starts trading

Genworth Wealth Management's credit facility made its way into the secondary market on Monday, with the $230 million first-lien term loan due July 1, 2019 quoted at 98½ bid, 991/4, according to a market source.

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 98. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from Libor plus 475 bps, the discount was modified from 99 and the maturity was shortened from 2020.

The company's $255 million credit facility (B2/B) also includes a $25 million five-year revolver.

Credit Suisse Securities (USA) LLC is leading the deal that will help fund the $412.5 million buyout of the company by Genstar Capital LLC and Aquiline Capital Partners LLC from Genworth Financial Inc.

Genworth is a Richmond, Va.-based product provider in the wealth management industry.

FHC frees up

Another deal to break was FHC Health, with the $140 million 41/2-year term loan quoted at 99½ bid, par offered, a market source said.

Pricing on the term loan is Libor plus 475 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The company's $165 million credit facility (B1/BB-) also provides for a $25 million revolver.

UBS Securities LLC is the lead bank on the deal.

Proceeds will be used to refinance existing debt and for general corporate purposes.

FHC Health is a Norfolk, Va.-based behavioral health care and wellness company.

Multi Packaging moves

Also in trading, Multi Packaging Solutions' term loans headed closer to their call protection levels after news surfaced that the company is being bought out by Madison Dearborn Partners from Irving Place Capital, according to traders.

The first-lien term loan was quoted at par ¼ bid, 101¼ offered, down from par ¾ bid, 101¾ offered, and the second-lien term loan was quoted at 103 bid, 104 offered, up from 101 bid, 102 offered, traders said.

Currently, the first-lien term loan is covered by 101 soft call protection and the second-lien term loan has a call premium of 103.

Bank of America Merrill Lynch and Barclays advised Multi Packaging on the buyout and Moelis & Co. advised Madison Dearborn.

Terms of the transaction were not disclosed.

Multi Packaging Solutions is a New York-based manufacturer of printed folding cartons, labels, and inserts for customers in the health care, consumer and media end markets.

Jacobson reworks deal

Moving to the primary, Jacobson lifted its first-lien term loan (B1/B-) to $275 million from $250 million, set the spread at Libor plus 575 bps, the wide end of the Libor plus 550 bps to 575 bps talk and firmed the original issue discount at 981/2, the high side of the 98½ to 99 talk, according to a market source.

The first-lien loan still has a 1.25% Libor floor and 101 soft call protection for one year.

Meanwhile, the second-lien term loan (Caa1/CCC) was reduced to $110 million from $135 million, pricing flexed up to Libor plus 975 bps from Libor plus 950 bps, the discount moved to 97 from guidance of 98 to 98½ and the call protection was changed to non-callable for one year, then at 102 in year two and 101 in year three, from 103 in year one, 102 in year two and 101 in year three, the source said.

Unchanged on the second-lien loan was the 1.25% Libor floor.

Jacobson repaying debt

Proceeds from Jacobson's $410 million credit facility, which also includes a $25 million revolver (B1/B-), will be used to refinance existing debt.

J.P. Morgan Securities LLC is the lead bank on the deal.

Recommitments are due at noon ET on Tuesday, the source added.

Jacobson is a Des Moines, Iowa-based third party logistics company.

Media General structure

In more primary happenings, details on the structure of Media General's $960 million credit facility surfaced, with the debt broken down between a $60 million super-priority revolver (Ba1), a $35 million delayed-draw term loan A (B1) and an $865 million delayed-draw term loan B (B1), a source said.

RBC Capital Markets, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the transaction that will launch with a bank meeting on Wednesday.

Proceeds will be used to refinance around $765 million of debt at Media General and New Young Broadcasting Holding Co. Inc. in connection with their merger and pay a $50 million cash contribution to Media General's qualified pension plan.

Closing is expected late in the third or early in the fourth quarter, subject to Media General shareholder approval, Federal Communications Commission approval, clearance under the Hart-Scott-Rodino antitrust act and customary third-party consents.

Media General is a Richmond, Va.-based provider of news, information and entertainment. Young is a Nashville, Tenn.-based media company.

Springer reveals talk

Springer Science is talking its $1,553,000,000 seven-year first-lien covenant-light term loan at Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 99 ahead of its Tuesday bank meeting, according to a market source.

And, the company's €565 million seven-year first-lien covenant-light term loan, which launched to European investors last week, is being talked at Euribor plus 425 bps to 450 bps with a 1% floor and a discount of 99.

The company's credit facility also includes a €150 million revolver.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays, Nomura and UBS Securities LLC are leading the deal.

Springer being acquired

Proceeds from Springer's credit facility will be used with €640 million of subordinated debt that has been privately placed with Goldman Sachs Mezzanine fund to fund its buyout by BC Partners from EQT Partners and the Government of Singapore Investment Corp. for around €3.3 billion.

Commitments are due on July 23.

Senior leverage is about 5 times, and total leverage is just shy of 7 times.

Springer is a Berlin-based STM publisher that provides scientific, professional and academic media content.

Willbros readies loan

Willbros Group emerged with plans to hold a bank meeting at 2 p.m. ET on Tuesday to launch a $250 million six-year term loan B (Caa1/B-) that is being led by J.P. Morgan Securities LLC, according to a market source.

The company is also planning on getting a $150 million undrawn five-year asset-based revolver (B1) that is being led by Bank of America Merrill Lynch.

Proceeds will be used to refinance an existing credit facility.

The company said in a news release that the refinancing is expected to lower borrowing costs, extend maturities and increase flexibility under covenants.

Willbros is a Houston-based specialty energy infrastructure contractor serving the oil, gas, refining, petrochemical and power industries.

Oxbow on deck

Oxbow Carbon scheduled a bank meeting for 10 a.m. ET on Tuesday to launch a $1.7 billion credit facility that will be used to refinance existing debt, according to market sources.

The facility consists of a $600 million five-year revolver (Ba3/BB+), a $250 million five-year term loan A (Ba3/BB+), a $500 million six-year covenant-light term loan B (Ba3/BB+) and a $350 million 61/2-year second-lien term loan (B2/BB-), sources said.

The revolver and term loan A were already launched to investors and are being talked at Libor plus 250 bps, sources remarked.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal.

Oxbow Carbon is a West Palm Beach, Fla.-based recycler of refinery and natural gas byproducts.

Hemisphere plans deal

Hemisphere Media set a bank meeting for Wednesday morning to launch a $175 million seven-year covenant-light term loan that has 101 soft call protection for one year, according to sources.

Deutsche Bank Securities Inc. is the lead bank on the deal.

Proceeds will be used by the Miami-based Spanish-language media company to refinance existing debt and for general corporate purposes.

Atlas coming soon

Atlas Energy will host a bank meeting on Thursday to launch a $240 million six-year term loan B, according to a market source.

Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to help fund the $800 million acquisition of natural gas proved reserves in the Raton, New Mexico, Black Warrior, Ala., and Arkoma Basin, Okla., Basins from EP Energy E&P Co. LP.

Closing is expected in the third quarter, subject to purchase price adjustments.

Atlas Energy is a Pittsburgh-based master limited partnership that owns an interest in producing natural gas and oil wells.

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