Armacell, Oceania, AMF break; Water Pik, AlixPartners, Ikaria, Aspect, Data, Boulder revised

By Sara Rosenberg

New York, June 28 - Armacell's credit facility hit the secondary market on Friday, with levels on the term loans seen above their original issue discount prices, and Oceania Cruises and AMF Bowling Centers Inc. (Bowlmor AMF) began trading, too.

In the primary, Water Pik Inc. raised spreads, widened original issue discounts and beefed up call protection on its first- and second-lien term loans, and AlixPartners LLP revised tranche sizes for a second time while firming pricing at the wide end of talk.

Also, Ikaria Acquisition Inc. adjusted term loan sizes, pricing and call premiums, Aspect Software Inc. increased pricing on its delayed-draw loan and terminated plans for a repricing, Data Device Corp. once again tweaked the size of its add-on term loan, Boulder Brands Inc. opted to increase the amount of its B loan, and U.S. Silica Holdings Inc. announced new deal plans.

Armacell tops OIDS

Armacell's credit facility broke for trading on Friday, with the $185 million U.S. seven-year first-lien covenant-light term loan (B2/B) quoted at 99 bid, par offered and the $85 million 71/2-year second-lien covenant-light term loan (Caa2/CCC+) quoted at 97½ bid, 98½ offered, according to a market source.

Pricing on the U.S. first-lien term loan is Libor plus 450 basis points with a 1% Libor floor and it was sold at an original issue discount of 981/2. There is 101 repricing protection for one year.

The second-lien term loan is priced at Libor plus 850 bps with a 1% Libor floor and was sold at a discount of 97. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the U.S. first-lien loan was downsized from $210 million, pricing was increased from talk of Libor plus 350 bps to 375 bps and the discount was revised from 991/2. Also, pricing on the second-lien loan was lifted from talk of Libor plus 725 bps to 750 bps, the discount was sweetened from 99 and call protection was changed from 102 in year one and 101 in year two.

Armacell euro loan

Armacell's credit facility provides for a €120 million seven-year first-lien covenant-light term loan (B2/B) as well that is priced at Euribor plus 475 bps with a 1% floor and was sold at a discount of 981/2. There is 101 repricing protection for one year.

The euro tranche was upsized from €100 million when the U.S. first-lien term loan was downsized. Furthermore, pricing on this euro debt was increased from talk of Euribor plus 375 bps to 400 bps and the discount widened from 991/2.

With the size changes and pricing adjustments, Armacell increased the excess cash flow sweep to 75% from 50%, with step-downs to 50% at 4½ times total net leverage, 25% at 4 times net leverage and 0% at 3½ times net leverage, the 18-month MFN sunset was eliminated and the incurrence ratio for unlimited first-lien incremental facilities was reduced to 3½ times first-lien net leverage from 4 times.

In addition to the term loans, the company's credit facility includes a $65 million revolver.

Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp. and HSBC Securities (USA) Inc. are leading the deal that will fund Charterhouse Capital Partners' buyout of the engineered foams company.

Oceania starts trading

Oceania Cruises credit facility freed up too, with the $300 million seven-year term loan B quoted at 99¼ bpd, par ¼ offered, according to a market source.

Pricing on the B loan is Libor plus 575 bps with a 1% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

During syndication, pricing on the term loan B was increased from talk of Libor plus 400 bps to 425 bps and the discount was modified from 991/2.

The company's $375 million credit facility (B2/B) also includes a $75 million revolver.

Deutsche Bank Securities Inc., Barclays, UBS Securities LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing bank debt.

Oceania Cruises is a Miami-based upper premium cruise line.

AMF Bowling breaks

AMF Bowling's credit facility made its way into the secondary market as well, with the $245 million five-year term loan quoted at 97½ bid, 98½ offered, a market source said.

The term loan is priced at Libor plus 750 bps with a 1.25% Libor floor, and was sold at a discount of 97. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

Recently, the term loan was upsized from $230 million, pricing was flexed from Libor plus 550 bps, the discount was moved from 99, the call protection was changed from just 101 soft call for one year, and the maturity was shortened from 5¾ years.

The company's $265 million credit facility (B2/B) also includes a $20 million five-year revolver that was downsized from $30 million with the term loan upsizing.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay a debtor-in-possession financing facility and existing bank debt and for general corporate purposes.

Through the reorganization, AMF Bowling and Strike Holdings LLC (Bowlmor) agreed to merge operations under a joint plan filed by AMF and sponsored by AMF's second-lien lenders.

AMF is a Richmond, Va.-based bowling center operator.

Water Pik reworked

Moving to the primary, Water Pik lifted pricing on its $215 million seven-year first-lien covenant-light term loan (B2/B) to Libor plus 475 bps from Libor plus 400 bps, revised the discount to 98 from 99 and extended the 101 repricing protection to one year from six months, according to a market source. The 1% Libor floor was unchanged.

Meanwhile, the $95 million 71/2-year second-lien covenant-light term loan (Caa2/CCC+) saw pricing widen to Libor plus 875 bps from Libor plus 800 bps, the original issue discount move to 96½ from 98½ and call protection sweetened to non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, from just 102 in year one and 101 in year two, the source remarked. This tranche also still has a 1% Libor floor.

Recommitments for the $335 million credit facility, which also includes a $25 million revolver (B2/B), were due at 4 p.m. ET on Friday, the source added.

Credit Suisse Securities (USA) LLC, GE Antares and Macquarie Capital are leading the deal that will be used to help fund the company's buyout by MidOcean Partners LP.

Water Pik is a Fort Collins, Colo.-based provider of branded oral health and replacement showerhead products.

AlixPartners tweaked again

AlixPartner lifted its seven-year term loan B-2 to $680 million from $655 million and set pricing at Libor plus 400 bps, the wide end of the Libor plus 375 bps to 400 bps talk, according to a market source. Talk on this tranche still includes a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months.

On the flip side, the company reduced its second-lien term loan to $225 million from $250 million and set the spread at Libor plus 800 bps, the high end of the Libor plus 775 bps to 800 bps guidance, the source said. The 1% Libor floor, discount of 99 and call protection of 102 in year one and 101 in year two were left intact.

In addition, the company is getting a $95 million four-year first-lien term loan B-1 that was added the other day when the term loan B-2 was downsized from an originally proposed amount of $750 million. The B-1 tranche is priced at Libor plus 325 bps with no Libor floor and an original issue discount of 991/2, and is basically a roll of the company's existing $95 million term loan B-1.

AlixPartners lead banks

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA, Jefferies Finance LLC and UBS Securities LLC are leading AlixPartner's credit facility that will be used for a recapitalization.

Leverage is 4.5 times through the first-lien, up from 4.3 times under the prior structure, and 5.7 times total.

Recommitments were due at 2 p.m. ET on Friday, the source added.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

Ikaria restructures

Ikaria downsized its first-lien term loan (B1/B) to $525 million from $550 million, increased pricing to Libor plus 600 bps from Libor plus 525 bps, widened the Libor floor to 1.25% from 1%, changed the discount to 98½ from 99, shortened the maturity to five years from six years and beefed up call protection to 102 for six months and 101 for a year thereafter from 101 soft call protection for one year, according to a market source.

Also, the second-lien term loan (Caa1/CCC+) was upsized to $325 million from $300 million, pricing was changed to Libor plus 975 bps from Libor plus 925 bps, the floor was lifted to 1.25% from 1%, the maturity was changed to six years from seven years and the debt is now non-callable for six months, then at 104 for six months, 102 for a year and 101 for a year, versus call protection of 103 in year one, 102 in year two and 101 in year three previously, the source said. The discount was left at 981/2.

Furthermore, pre-capitalization language was removed, the source added.

Recommitments are due at 5 p.m. ET on Monday.

Credit Suisse Securities (USA) LLC is leading the $850 million deal that will be used to fund a dividend, refinance existing debt and pre-fund research and development.

Ikaria is a Hampton, N.J.-based biotherapeutics company in the critical care market.

Aspect revises plans

Aspect Software lifted pricing on its $85 million delayed-draw term loan due May 2016 to Libor plus 525 bps with a step-up to Libor plus 550 bps if ratings are B3/B- and a 1.75% Libor floor, from talk of Libor plus 400 with a 1.25% Libor floor, according to a market source.

Also, the company cancelled plans to reprice its existing $403 million term loan B due May 2016 to Libor plus 400 bps with a 1.25% Libor floor from Libor plus 525 bps with a 1.75% Libor floor, the source said.

Under the original financing plans, the term loan B was expected to have 101 call protection for one year and an original issue discount of 991/2.

J.P. Morgan Securities LLC is the lead bank on the deal (B1/B).

Proceeds from the delayed-draw loan will be used to help fund a future acquisition.

Aspect Software is a Chelmsford, Mass.-based provider of customer contact and enterprise workforce optimization solutions.

Data Device lifts add-on

Data Device increased its add-on first-lien term loan due June 2018 to $20 million from a recently revised size of $15 million, bringing it back to its originally proposed amount, according to a market source.

The add-on loan and the existing $300 million first-lien loan are priced at Libor plus 650 bps with a step-down to Libor plus 600 bps when first-lien leverage is below 3.75 times. There is a 1.5% Libor floor and 101 soft call protection through Dec. 31, 2013, and the add-on debt was sold at an original issue discount of 98.

Earlier in syndication, pricing on the add-on was raised from Libor plus 600 bps, causing the company to lift the spread on its existing first-lien term loan from Libor plus 600 bps to match the add-on pricing. Also, the discount on the add-on widened from 981/2.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds from the add-on will be used by the Bohemia, N.Y.-based supplier of defense electronics for acquisition financing.

Boulder Brands upsizes

Boulder Brands lifted its seven-year covenant-light senior secured term loan B to $250 million from $245 million, while keeping pricing at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99, according to a market source. There is 101 soft call protection for six months.

This is the second change to the deal as the spread on the loan had recently been raised from Libor plus 350 bps.

The company's now $325 million credit facility also includes a $75 million five-year revolver.

Proceeds will be used to refinance existing debt and the funds raised through the upsizing will be put on the balance sheet, the source added.

Comments on documentation are due at noon ET on Monday and allocations are expected shortly thereafter.

Citigroup Global Markets Inc., BMO Capital Markets and Barclays are leading the deal for the Paramus, N.J.-based health and wellness food company.

U.S. Silica readies deal

U.S. Silica revealed plans for new $425 million senior secured credit facility that is scheduled to launch with a conference call on Monday, a market source said.

The facility consists of a $50 million revolver due July 2018 and a $375 million term loan due May 2020.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing senior debt, including a $50 million assert-based revolver and a $255 million term loan.

Closing is expected in the third quarter.

U.S. Silica is Frederick, Md.-based producer of ground and unground silica sand, kaolin clay, aplite and related industrial minerals.

Navios closes

In other news, Navios Maritime Partners LP completed its $250 million five-year term loan B (Ba3), according to a news release.

Pricing on the loan is Libor plus 425 bps, after flexing during syndication from talk of Libor plus 375 bps to 400 bps, and it was sold at a discount of 98, after widening from 99. The loan has a 1% Libor floor.

With the pricing change, the loan gained hard call protection of 102 in year one and 101 in year two, instead of having 101 soft call protection for one year as initially proposed.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. led the deal that was used to refinance an existing credit facility and fund the acquisition of new vessels.

Navios is a Piraeus, Greece-based owner and operator of tanker vessels.

Appvion wraps

Appvion closed on its $435 million senior secured credit facility consisting of a $335 million six-year first-lien term loan and a $100 million five-year revolver, according to a news release.

Pricing on the term loan is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at an original issue discount at 99. There is 101 soft call protection for one year.

During syndication, the first-lien loan was downsized from $375 million, pricing was lifted from talk of Libor plus 400 bps to 425 bps and the discount firmed at the wide end of the 99 to 99½ guidance.

Also, when the first-lien term loan changes came out, the company cancelled plans for a $200 million seven-year second-lien term loan that was talked at Libor plus 775 bps to 800 bps with a 1.25% Libor floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three.

Proceeds were used to refinance the company's 10½% secured notes due 2015. As a result of the first-lien term loan downsizing and the cancellation of the proposed second-lien term loan, the company terminated tender offers for its 9¾% subordinated notes due 2014 and 11¼% second-lien notes due 2015.

Jefferies Finance LLC, Fifth Third Securities Inc. and KeyBank led the deal for the Appleton, Wis.-based producer of thermal, carbonless and security papers and Encapsys products.

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