Chesapeake, Milk, nTelos break; Phoenix, Bass Pro, Multi Packaging, NewPage set talk

By Sara Rosenberg

New York, Nov. 7 - Chesapeake Energy Corp.'s term loan made its way into the secondary market on Wednesday, with levels seen a little higher than its original issue discount price, and Milk Specialties Global freed up too.

Additionally, nTelos Inc. lifted the size of its term loan A, lowered the size of its term loan B, firmed pricing on both tranches at the high end of talk and then broke for trading late in the day.

In more happenings, Phoenix Services LLC (Metal Services LLC), Bass Pro Group LLC, Multi Packaging Solutions Inc. and NewPage Corp. revealed talk, and Osmose Holdings Inc. and Town Sports International Holdings Inc. disclosed discounts with launch.

Furthermore, Wesco Distribution Inc., Pharmaceutical Research Associates Inc. (PRA), Intrawest and Atlas Iron Ltd. are getting ready to bring new deals to market.

Chesapeake frees up

Chesapeake Energy's $2 billion unsecured five-year covenant-light term loan (Ba3) broke for trading on Wednesday, with levels quoted at 98 3/8 bid, 98 5/8 offered, according to a trader.

Pricing on the loan is Libor plus 450 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 98. The loan is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the discount on the term loan widened from talk in the 99 area.

Bank of America Merrill Lynch, Goldman Sachs & Co. and Jefferies Finance LLC are leading the deal that will be used to repay an existing term loan and revolver borrowings.

Chesapeake Energy is an Oklahoma City-based oil and natural gas exploration and production company.

Milk Specialties tops OID

Milk Specialties' credit facility also hit the secondary market, with the $250 million funded term loan B quoted at 99½ bid, par offered, according to a trader.

Pricing on the term loan B, as well as on a $30 million delayed-draw term loan, is Libor plus 575 bps, after firming at the low end of the Libor plus 575 bps to 600 bps guidance. There is a 1.25% Libor floor and 101 soft call protection, and the debt was sold at an original issue discount of 99.

RBC Capital Markets LLC is the lead bank on the $315 million credit facility (B2/B), which also includes a $35 million revolver.

Proceeds will be used to refinance existing debt.

Milk Specialties is an Eden Prairie, Minn.-based manufacturer of nutrition products.

nTelos reworks deal

Also in the loan market, nTelos upsized its term loan A due August 2015 to $150 million from $100 million and set pricing at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, according to a market source. The 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months were unchanged.

Meanwhile, the seven-year term loan B was cut to $350 million from $375 million, and pricing firmed at Libor plus 475 bps, the high end of revised talk of Libor plus 450 bps to 475 bps and wide of initial talk of Libor plus 400 bps to 425 bps, the source said. The 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year remained intact.

Initially, the company was only planning on getting a $475 million term loan B, but the tranche was reduced when the term loan A was added to the capital structure earlier this week.

nTelos begins trading

With the final structure in place, nTelos' $500 million of new term loan debt (B1/BB-) freed up, with the term loan A quoted at 99¾ bid, par offered and the term loan B quoted at 99 bid, 99½ offered, a trader said.

J.P. Morgan Securities LLC, UBS Securities LLC and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds will be used to refinance an existing term loan and enhance liquidity.

nTelos is a Waynesboro, Va.-based provider of wireless and wireline communications services.

Phoenix guidance emerges

Back in the primary, Phoenix Services held a bank meeting on Wednesday afternoon to launch its credit facility, and a few hours before the event kicked off, price talk on the $275 million 41/2-year first-lien term loan was announced, according to a market source.

The term loan is talked at Libor plus 525 bps with a 1.25% Libor floor and a discount of 99, the source said. As previously reported, the tranche has 101 repricing protection for one year.

Also included in the company's $305 million credit facility is a $30 million four-year revolver.

Lead banks, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc., are seeking commitments by Nov. 20.

Proceeds will be used to refinance existing debt.

Phoenix Services is a Kennett Square, Pa.-based provider of steel mill services and a processor of slag and co-products from steel mills and foundries.

Bass Pro sets talk

Bass Pro Group came out with talk of Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99¾ and 101 soft call protection for one year on its $900 million term loan B due 2019 that launched with a conference call in the afternoon, according to a market source.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to refinance an existing term loan B.

Bass Pro is a Springfield, Mo.-based retailer of outdoor sports and recreation products.

Multi Packaging launches

Multi Packaging Solutions revealed talk on its first-and second-lien terms loans with its Wednesday afternoon bank meeting, and lenders are being asked to place their orders by Nov. 20, according to a market source.

The $330 million six-year covenant-light first-lien term loan (B1/B) is talked at Libor plus 400 bps to 425 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 $60 million 61/2-year covenant-light second-lien term loan (Caa1/CCC+) is talked at Libor plus 825 bps to 850 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. The call premium has an initial public offering/sale exception.

Multi Packaging revolver

Multi Packaging's $420 million senior secured credit facility, which is being led by Barclays and UBS Securities LLC, also includes a $30 million five-year revolver (B1/B).

Proceeds will be used to refinance existing debt, redeem preferred stock and pay dividends/other distributions to shareholders.

First-lien leverage is 4.1 times and total leverage is 4.8 times.

Multi Packaging Solutions is a New York-based manufacturer of specialty print-based packaging products for the pharmaceutical, multi-media and consumer markets.

NewPage pricing

NewPage launched on Wednesday its $500 million six-year term loan with talk of Libor plus 675 bps to 700 bps with a 1.25% Libor floor and an original issue discount of 98, according to a market source, who said the debt is non-callable for one year, then at 102 in year two and 101 in year three.

The company's $850 million exit financing credit facility also provides for a $350 million five-year asset-based revolver that is talked at Libor plus 200 bps with a 37.5 bps unused fee.

Goldman Sachs & Co., J.P. Morgan Securities LLC, Barclays, Wells Fargo Securities LLC and UBS Securities LLC are the lead banks on the deal.

Proceeds will be used to fund distributions under the company's Chapter 11 plan and for working capital needs.

NewPage is a Miamisburg, Ohio-based producer of printing and specialty papers.

Osmose discloses discount

Osmose Holdings announced original issue discount talk of 99 on its $315 million six-year first-lien covenant-light term loan and $40 million delayed-draw for three months term loan, a market source said.

Talk on the loans came out prior to Wednesday's conference call launch at Libor plus 550 bps with a 1.25% Libor floor and 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC is the lead bank on the $400 million credit facility, which also includes a $45 million five-year revolver.

Proceeds will be used to refinance existing debt, and to fund a dividend and an acquisition.

Osmose is a Buffalo, N.Y.-based provider of wood preservation technology as well as utility and railroad asset management.

Town Sports reveals OID

Town Sports disclosed with its morning call that its $75 million add-on term loan is being shopped with an original issue discount in the 99½ area, and that pricing will match existing term loan pricing at Libor plus 450 bps with a 1.25% Libor floor, according to a market source.

Also, the add-on will have 101 soft call protection for one year and the existing loan will see its 101 soft call reset for the year, the source said.

Deutsche Bank Securities Inc. is leading the deal that, along with cash on hand, will fund a roughly $92 million, or about $3.75 per share, special one-time cash dividend to stockholders.

With the add-on, the company is also amending its credit facility to waive any required excess cash flow prepayment for the period ending Dec. 31, revise the restricted payments covenant to allow for the dividend and adjust the calculation of consolidated EBITDA.

Commitments and consents are due on Nov. 14, and lenders are being offered a 25 bps amendment fee, the source continued. Closing is expected to take place this month.

Town Sports is a New York-based owner and operator of fitness clubs.

Wesco plans meetings

Wesco Distribution expects to host a bank meeting at 4 p.m. ET in Toronto on Thursday and a bank meeting at 9:30 a.m. ET in New York on Friday to launch roughly $755 million in seven-year covenant-light term loans, and talk on the debt began circulating ahead of the launches, sources said.

The $605 million term loan is talked at Libor plus 300 bps and the C$150 million term loan is talked at BA plus 350 bps, with both tranches having a 1% floor, an original issue discount of 99 and 101 soft call protection for one year, sources remarked.

Credit Suisse Securities (USA) LLC, Barclays, UBS Securities LLC and Goldman Sachs & Co. are leading the deal that will fund the purchase of EECOL Electric Corp. for around C$1.14 billion.

With the transaction, the company is upsizing its ABL credit facility with J.P. Morgan Securities LLC, sources added.

Closing is expected this quarter, subject to approval under the Canadian Competition Act.

Wesco is a Pittsburgh-based provider of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced supply chain management and logistics services. EECOL is a Calgary, Alta.-based full-line distributor of electrical equipment, products and services.

PRA readies deal

Pharmaceutical Research Associates set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $535 million senior secured credit facility, according to a market source.

The facility consists of a $40 million five-year revolver with a 50 bps unused fee, a $360 million six-year first-lien term loan and a $135 million seven-year second-lien term loan.

Talk on the first-lien term loan emerged at Libor plus 400 bps to 425 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source remarked.

And, the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1.25% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two.

Commitments will be due on Nov. 27, the source continued.

UBS Securities LLC, Wells Fargo Securities LLC and GE Capital Markets are leading the deal that will be used to refinance existing debt and fund a dividend.

Pharmaceutical Research Associates is a Raleigh, N.C.-based clinical research organization.

Intrawest joins calendar

Intrawest surfaced with plans to hold a bank meeting on Thursday morning to launch a $650 million credit facility that is being led by Goldman Sachs & Co., according to a market source.

The facility consists of a $20 million five-year super-priority revolver, a $55 million five-year first-lien letter-of-credit facility, a $425 million five-year first-lien term loan B and a $150 million six-year second-lien term loan, the source said, adding that price talk is not yet available.

Proceeds will be used to refinance existing debt.

Intrawest, an operator of ski resorts and luxury adventure travel brands, including Abercrombie & Kent, will have first-lien leverage of 4.1 times and total leverage of 5.8 times.

Atlas coming soon

Atlas Iron will hold a conference call on Thursday and a bank meeting on Nov. 14 to launch a $325 million five-year first-lien term loan that is being led by Credit Suisse Securities (USA) LLC, according to a market source.

The source said that the loan will have call protection of 102 in year one and 101 in year two, and a company presentation said that it will be covenant-light.

Proceeds will be used for general corporate purposes and to fund the company's Horizon 1 expansion, which includes completion of the Mt. Dove mine, the Abydos mine, the Mt. Webber mine and the Yard 2 expansion at Utah Point Port.

Atlas is an Perth, Australia-based iron ore company.

Hillman wraps

In other news, Hillman Group Inc. completed syndication of its $76.8 million delayed-draw term loan at initial talk of Libor plus 350 bps with a 1.5% Libor floor and an original issue discount of 991/2, according to a market source.

The spread and floor match that of the existing term loan B, and once the delayed-draw loan is funded, it will be fungible with the existing B loan.

The delayed-draw tranche has an unused fee of 50 bps for the first 30 days, half the spread for the next 60 days, and the full spread thereafter.

The delayed-draw period expires March 31, 2013 and the term loan matures on May 31, 2016.

Barclays is the lead bank on the deal that is being used for general corporate purposes.

Hillman is a Cincinnati-based distributor of fasteners, key duplication systems, engraved tags and related hardware items.

© 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.