Cincinnati Bell, Allison Transmission, Moxie Liberty, Revlon Consumer Products free to trade

By Sara Rosenberg

New York, Aug. 20 - Cincinnati Bell Inc.'s term loan B made its way into the secondary market on Tuesday, with levels quoted above its original issue discount price, and Allison Transmission Inc., Moxie Liberty and Revlon Consumer Products Corp. began trading as well.

Over in the primary, Bally Technologies Inc.'s term loan B has been well met by investors, resulting in oversubscription.

Cincinnati Bell breaks

Cincinnati Bell's $540 million seven-year term loan B freed up for trading on Tuesday, with levels seen at 99½ bid, par offered, according to a trader.

Pricing on the loan is Libor plus 300 basis points with a 1% Libor floor and it was sold at an original issue discount of 991/4. There is 101 soft call protection for six months.

Recently, the loan was upsized from $400 million, the spread was reduced from talk in the Libor plus 325 bps area and the discount firmed at the midpoint of the 99 to 99½ guidance.

Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to repay a portion of the company's 8¼% senior notes due 2017 and for general corporate purposes.

Cincinnati Bell is a Cincinnati-based provider of integrated communications services.

Allison hits secondary

Another deal to begin trading was Allison Transmission's $1.139 billion senior secured term loan B-3 due Aug. 23, 2019, with levels quoted at par 1/8 bid, par 5/8 offered on the open and then it moved up to par ¼ bid, par ¾ offered, a market source said.

Pricing on the loan is Libor plus 275 bps with a 25 bps step-down at 3.25 times total leverage and a 1% Libor floor, and the debt was issued at par. There is 101 soft call protection for six months.

Shortly prior to breaking, it was revealed that the Libor floor firmed at the wide end of the 0.75% to 1% talk, a source remarked.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice the existing term loan B-3 from Libor plus 325 bps with a 1% Libor floor.

Closing is expected to take place on Monday.

Allison Transmission is an Indianapolis-based automatic transmission company.

Moxie tops OID

Moxie Liberty's bank debt hit the secondary as well, with the $435 million funded term loan quoted at 99½ bid, par ½ offered, according to a trader.

Pricing on the funded term loan, as well as on a $150 million delayed-draw term loan, is Libor plus 650 bps with a 1% Libor floor and they were sold at an original issue discount of 99. All of the debt is non-callable for 2½ years, then at 102 for one year and at 101 for another year.

During syndication, the funded term loan was increased from $358 million and the delayed-draw term loan was decreased from $200 million.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Ares Capital and Union Bank are leading the $585 million deal (B+) that will be used to help fund the construction of the 829-megawatt natural gas fired power plant owned by Panda Power Funds.

Revlon frees up

Revlon's $700 million incremental six-year senior secured term loan (B+) broke too, with levels quoted at par bid, par ½ offered, a source remarked.

The term loan is priced at Libor plus 300 bps with a 1% floor, has 101 soft call protection for six months and includes a ticking fee of half the spread for days 31 to 60 and the full spread thereafter. The debt was sold at a discount of 99¾ after tightening the other day from 991/2.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will help fund the $660 million acquisition of the Colomer Group, a beauty care company, from CVC Capital Partners.

Pro forma for the acquisition, net leverage is anticipated to be 4.8 times.

The New York-based cosmetics and accessories company expects to close on the acquisition in the fourth quarter, subject to customary conditions and regulatory approvals.

BWIC emerges

Also in the secondary, a $41 million Bid-Wanted-In-Competition surfaced and market players are being asked to get their bids in by 11 a.m. ET on Wednesday, according to a trader.

There are six issuers in the portfolio, some of which have more than one tranche of debt on offer, the trader said.

The issuers include Bashas Inc., Dark Castle Holdings, El Pollo Loco, Medical Card System, Pods Fund and U.S. Shipping Corp.

Bally nets interest

Switching to the primary, Syndication of Bally Technologies' $1.1 billion seven-year covenant-light term loan B (Ba3/BB) went very well, with the deal oversubscribed by Tuesday's commitment deadline, according to a market source.

The loan is talked at Libor plus 325 bps with a 1% Libor floor, an original issue discount of 991/2, 101 soft call protection for six months and a ticking fee of half the spread for days 31 to 60 and the full spread thereafter.

Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA and Union Bank are leading the deal.

Bally buying SHFL

Proceeds from Bally's term loan will be used to fund the acquisition of SHFL Entertainment Inc. for $23.25 in cash for total consideration of about $1.3 billion, including debt of $8 million and cash of $41 million as of April 30.

Prior to launch, the term loan was expected to be sized at $1.3 billion, but the company decided to go out with a smaller B loan and draw more on its revolver for the acquisition.

Pro forma total leverage is expected to be around 4 times.

Closing is anticipated to occur by the second quarter of 2014, subject to SHFL shareholder approval, antitrust approval and gaming regulatory approvals.

Bally is a Las Vegas-based gaming company that designs, manufactures, distributes, and operates gaming devices and computerized monitoring, accounting and player-tracking systems for gaming devices. SHFL is a Las Vegas-based gaming supplier.

Booz Allen closes

In other news, Booz Allen Hamilton Inc. closed on its $1,017,000,000 term loan B that is priced at Libor plus 300 bps with a 0.75% Libor floor, a news release said. The debt has 101 soft call protection for six months and was sold at an original issue discount of 993/4.

During syndication, pricing on the loan was increased from Libor plus 275 bps.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are led the deal that was used to reprice an existing term loan from Libor plus 350 bps with a 1% Libor floor.

Booz Allen Hamilton is a McLean, Va.-based provider of management and technology consulting services to the U.S. government in the defense, intelligence and civil markets.

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