Wabash, Osmose break; First Data inches up; Bausch & Lomb, Sophos, MSCI rework deals

By Sara Rosenberg

New York, May 2 - Wabash National Corp. lowered the coupon on its oversubscribed term loan and then freed up for trading on Wednesday above its original issue discount price, and Osmose Holdings Inc. made its way into the secondary as well.

Also in trading, First Data Corp.'s term loan due 2017 was stronger as the company released quarterly results that showed a year-over-year improvement in earnings, revenue and adjusted EBITDA, and Harland Clarke Holdings Corp.'s term loan softened after experiencing a run up during the prior session.

Over in the primary, Bausch & Lomb widened pricing on its U.S. and euro term loan Bs and has decided not to syndicate its delayed-draw term loan, which saw its maturity shortened and coupon firm at the low end of talk.

Additionally, Sophos Ltd. reworked tranche sizes on its credit facility and raised term loan B pricing, and MSCI Inc. increased the size of its term loan A due to strong demand, and as a result, the company will now take out all of its institutional term loan borrowings.

Furthermore, Arch Coal Inc. disclosed expected pricing on its upcoming term loan, Burlington Coat Factory Warehouse Corp. saw original issue discount talk surface, and Clearwater Seafoods Inc. came out with refinancing plans.

Wabash frees up

Wabash National's $300 million seven-year senior secured term loan (B1/B+) hit the secondary market on Wednesday, with levels quoted at par bid, par ¾ offered, according to a source.

Pricing on the loan is Libor plus 475 basis points after flexing down from Libor plus 500 bps, the source said. There is a 1.25% Libor floor and 101 soft call protection for one year, and it was sold at an original issue discount of 99.

Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are the lead banks on the deal that will be used with $150 million of convertible senior notes to fund the acquisition of Walker Group Holdings LLC for $360 million.

Closing is expected in the second quarter, subject to regulatory approval.

Wabash is a Lafayette, Ind.-based manufacturer of semi-trailers. Walker is a New Lisbon, Wis.-based manufacturer of liquid-transportation systems and engineered products.

Osmose starts trading

Osmose's credit facility freed up too, with the $255 million six-year first-lien term loan quoted at 99¾ bid, par offered on the open and then it moved up to par bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 525 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $240 million, pricing was reduced from Libor plus 550 bps and the discount tightened from 98.

The company's $300 million credit facility (B1/B+) also includes a $45 million five-year revolver that was upsized from $25 million.

Credit Suisse Securities (USA) LLC and Macquarie Capital are the lead banks on the deal that will be used with equity to fund the buyout of the company by Oaktree Capital Management.

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

On Assignment wraps

On Assignment Inc.'s credit facility broke for trading late in the day on Tuesday, and on Wednesday its $365 million seven-year term loan B was being quoted at 99¾ bid, par ¼ offered, according to a trader.

Pricing on the term loan B is Libor plus 375 bps with a 1.25% 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 $540 million senior secured credit facility (Ba3/BB-) also includes a $75 million five-year revolver and a $100 million five-year term loan A, both priced at Libor plus 325 bps.

During syndication, the term loan B was downsized from $490 million, the revolver was upsized from $50 million and the term loan A was added to the capital structure.

On Assignment lead banks

Wells Fargo Securities LLC, Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading On Assignment's credit facility.

Proceeds will be used to fund the purchase of Apex Systems Inc. for $383 million in cash and newly issued stock valued at $217 million, and to refinance debt at both companies.

Funded debt of the combined company will total about 3.75 times estimated pro forma adjusted EBITDA for the 12 months ended March 31.

Closing is expected in May, subject to approval by On Assignment's shareholders, regulatory approvals and other customary conditions.

On Assignment is a Calabasas, Calif.-based provider of professionals in the technology, health care and life sciences sectors. Apex is a Richmond, Va.-based information technology staffing and services firm.

First Data strengthens

In more trading news, First Data's term loan due 2017 was better following a first-quarter earnings announcement, with one trader seeing the debt jump up after the news to 96 1/8 bid, 96 5/8 offered and then settle in a bit to 96 bid, 96 3/8 offered. On Tuesday, the trader was quoting the loan at 95 ¾ bid, 96 1/8 offered.

A second trader had the 2017 loan at 96 3/8 bid, 96 7/8 offered, up from 96 bid, 96½ offered, and the non-extended loan at 96¼ bid, 96¾ offered, up from 95 7/8 bid, 96 ¼ offered.

For the first quarter, the company reported a net loss of $153 million, compared to a loss of $217 million in the previous year.

Consolidated revenue for the first quarter was $2.56 billion, up 1% from $2.54 billion in the first quarter of 2011.

And, adjusted EBITDA for the quarter was $551 million, up 18% from $468 million a year ago.

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

Harland retreats

Harland Clarke's term loan dropped down to 95 bid, 96½ offered from the 96 bid, 98 offered levels that it rallied to on Tuesday on amendment and extension news, according to a trader. Prior to the news, the loan had been seen at 95½ bid, 96½ offered.

As was previously reported, on Tuesday, the company launched a proposal to extend $1 billion of its $1.719 billion term loan by three years to June 2017, with the minimum term loan extension being 50%.

Pricing on the extended term loan is Libor plus 525 bps, versus non-extended pricing of Libor plus 250 bps. Lenders are offered a 5 bps amendment fee and a 20 bps extension fee.

With the amend and extend, the company will sell $300 million of senior secured notes and will use proceeds from the offering to repay 30% of the extended term loan borrowings

Lead bank, Credit Suisse Securities (USA) LLC, is seeking consents by May 7.

Harland Clarke is a San Antonio, Texas-based provider of integrated payment, marketing and security services and retail products.

Bausch updates pricing

Moving to the primary, Bausch & Lomb increased pricing on its $2.035 billion seven-year covenant-light term loan B to Libor plus 425 bps from talk of Libor plus 375 bps to 400 bps and on its $600 million seven-year covenant-light euro equivalent term loan B to Euribor plus 475 bps from talk of Euribor plus 400 bps to 425 bps, according to a market source.

Also, the company has decided not to syndicate its $350 million covenant-light delayed-draw term loan at this time, the source said, adding that the tranche saw its maturity shorten to three years from sevens years and pricing set at Libor plus 375 bps, the tight end of the Libor plus 375 bps to 400 bps guidance.

All of the term loans have a 1% floor and 101 soft call protection for one year, and the U.S. and euro term loan B are still being offered with an original issue discount of 99.

Bausch getting revolver

Bausch & Lomb's $3.485 billion credit facility (B1/B+), which is being led by Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Bank of America Merrill Lynch, also includes a $500 million five year revolver.

Recommitments are due from lenders at 2 p.m. ET on Thursday.

Proceeds will be used to refinance existing debt and fund the purchase of ISTA Pharmaceuticals Inc. for $9.10 per share in cash, or a total of about $500 million.

Closing is expected in the second quarter, subject to regulatory approval and other customary conditions, including the approval of ISTA's shareholders.

Bausch & Lomb is a Rochester, N.Y.-based eye health company. ISTA is an Irvine, Calif.-based branded prescription eye care business.

Sophos restructures

Sophos revised its credit facility too, cutting the seven-year term loan B to $300 million from $320 million and lifting the five-year term loan A to €80 million from €75 million, according to a market source.

Additionally, pricing on the term loan B was changed to Libor plus 525 bps with a 1.25% Libor floor and an original issue discount of 981/2, from earlier talk of Libor plus 450 bps with a 1.25% floor and a discount of 98½ to 99, and 101 soft call protection for one year was added, the source said.

Pricing on the term loan A is Euribor plus 450 bps, and the company's roughly $425 million equivalent credit facility (B2) also includes a $20 million five-year revolver that is priced at Libor plus 425 bps. Both of these tranches have no floor and a discount of 99.

Recommitments were due at the close of business on Wednesday, the source added.

J.P Morgan Securities LLC and RBC Capital Markets LLC are leading the refinancing deal for the IT security and data protection firm that has headquarters in Burlington, Mass., and Oxford, England.

MSCI ups loan

MSCI lifted its term loan A to $880 million from $600 million, while leaving pricing on the tranche, as well as on a $100 million revolver, at Libor plus 225 bps with step-downs based on a leverage grid, a source said.

Proceeds from the upsized credit facility and cash on hand will be used to refinance an existing revolver and repay a $1.079 billion senior secured term loan B in full, as opposed to just repaying up to $800 million of the B loan.

Morgan Stanley MUFG Loan Partners LLC (acting through Morgan Stanley Senior Funding Inc. and the Bank of Tokyo Mitsubishi UFJ Ltd.) and J.P. Morgan Securities LLC are leading the $980 million five-year credit facility (Ba1/BBB) that allocated on Wednesday and is expected to close in the next several days.

MSCI is a New York-based provider of investment decision support tools, including indexes, portfolio risk and performance analytics and corporate governance services.

Arch Coal expected terms

Arch Coal revealed that its $1 billion six-year covenant-light senior secured term loan (NA/NA/BB) is expected to have pricing of Libor plus 450 bps with a 1.25% Libor floor as well as call protection of 102 in year one and 101 in year two, according to 8-K filed with the Securities and Exchange Commission on Wednesday.

The term loan will launch with a bank meeting on Thursday via lead arrangers and bookrunners Bank of America Merrill Lynch, PNC Capital Markets LLC, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., RBS Securities Inc., BMO Capital Markets Corp. and Union Bank.

Proceeds will be used to fund the tender offer that expires on May 29 for $450 million of 6¾% senior notes due 2013 at Arch Western Finance LLC, to repay revolver debt and to provide liquidity.

Arch Coal is a St Louis-based coal producer and marketer.

Burlington OID talk

Original issue discount of 99¾ emerged on Burlington Coat's $950.5 million term loan B due February 2017 that was launched to investors on Tuesday, according to a market source, who said that commitments are due on May 8.

Price talk on the loan had been disclosed earlier at Libor plus 400 bps to 425 bps with a 1.25% Libor floor, and there is 101 soft call protection for one year.

J.P. Morgan Securities LLC, Goldman Sachs & Co., Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to refinance an existing $950.5 million term loan B due February 2017 priced at Libor plus 475 bps with a 1.5% Libor floor, and sold at an original issue discount of 99 when done last year.

Burlington Coat Factory is a Burlington, N.J.-based discount retailer.

Clearwater readies deal

Clearwater Seafoods surfaced with new deal plans, setting a bank meeting for Friday to launch a proposed C$275 million credit facility that is being marketed to U.S. and Canadian investors, according to sources.

The facility consists of a C$65 million asset-based revolver that is available in U.S. and Canadian dollars, a C$75 million term loan A (B1) and a C$135 million term loan B (B1), sources said.

One source added that the term loan B is primarily expected to be funded in U.S. dollars since the institutions being targeted in the syndication process are in the U.S. market.

GE Capital Markets and BMO Capital Markets are leading the deal that will be used to refinance existing debt facilities.

Closing is subject to syndication and the negotiation of satisfactory terms.

Clearwater is a Bedford, Nova Scotia-based seafood company and holder of shellfish licenses and quotas.

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