Univision loans trade up; Microsemi, Radio Systems revise deals; Prestige Brands sets talk

By Sara Rosenberg

New York, Oct. 22 - Univision Communications Inc.'s extended term loan and non-extended term loan were higher in the secondary market on Friday as news emerged that the company significantly increased the size of its extended tranche because it was so heavily oversubscribed.

Over in the primary market, Microsemi Corp. modified its term loan B by flexing the spread lower as a result of strong demand, and Radio Systems Corp. added a leverage-based pricing step-down to its term loan.

Also, Prestige Brands Holdings Inc. came out with price talk on its incremental term loan as the deal was launched to investors.

Furthermore, Fibertech Networks' credit facility has been getting a good reception from lenders with a bunch of orders already in, and there's still another week left before the books are scheduled to shut down, and Auto Europe is still working on filling out its second-lien loan.

Univision rises

Univision's extended and non-extended term loans were both better in trading after word surfaced that the extended term loan was upsized to $5.6 billion from the originally contemplated $2.5 billion size, according to traders.

The extended term loan was quoted by one trader at 94 bid, 94½ offered, up from 93¾ bid, 94¼ offered, by a second trader at 94 bid, 94 3/8 offered, up on the bid side from 93 7/8 bid, 94¼ offered, and by a third trader at 94 bid, 94½ offered.

And, the non-extended term loan was quoted by one trader at 94 3/8 bid, 94¾ offered, up from 92¾ bid, 93¼ offered, by a second trader at 94 bid, 94¾ offered, up from 93¾ bid, 94¼ offered, by a third trader at 94 bid, 94 3/8 offered, up from 93 bid, 93½ offered, and by a fourth trader at 94 bid, 94 3/8 offered, up from 92 7/8 bid, 93¼ offered.

The extended term loan matures in March 2017 and is priced at Libor plus 425 basis points with a step-down to Libor plus 400 bps when net leverage is 8.5 times, while the non-extended term loan matures in September 2014 and is priced at Libor plus 225 bps.

Univision oversubscribed

Univision's extended term loan was only so well received by lenders after the company came out with a few changes to its proposal on Oct. 14, including increasing pricing on the extended term loan from Libor plus 400 bps with the addition of the step-down.

Also, the company agreed to use $1.1 billion of the pending $1.2 billion investment by Grupo Televisa SAB to repay PIK toggle notes, as opposed to that cash going to the sponsors.

And, a springing maturity was added to the extended term loan to up to 45 days before the PIK toggle notes expire if there is more than $250 million of those notes outstanding and the Televisa transaction has not closed.

Univision repaying debt

Univision's amendment and extension is conditioned on the company selling at least $750 million of notes to repay term loan borrowings.

To meet that requirement, on Oct. 18, the company priced $750 million of senior secured notes at par to yield 7 7/8%.

Deutsche Bank is the lead bank on the amendment and extension, which, in addition to extending the term loan, was also looking to push out the maturity on the company's $750 million revolver due March 2014 by two years to 2016.

Lenders were offered a 5 bps amendment fee to approve the transaction.

Univision is a Los Angeles-based Spanish-language media company.

Microsemi trims pricing

Switching to the primary, Microsemi reduced pricing on its $375 million seven-year term loan B to Libor plus 350 bps from initial talk at launch of Libor plus 375 bps to 400 bps, while leaving the 1.5% Libor floor and original issue discount of 99 unchanged, according to a market source.

The $425 million senior credit facility (Ba1), which is being led by Morgan Stanley, also includes a $50 million five-year revolver that is priced at Libor plus 350 bps as well.

By comparison, the credit facility commitment letter had expected pricing on the term loan B outlined at Libor plus 400 bps with a 1.5% floor and a discount of 99, and expected pricing on the revolver outlined at Libor plus 375 bps.

The credit facility commitment letter also had the term loan split into a $125 million five-year term loan A and a $250 million seven-year term loan B, but the option was chosen to roll the debt into one institutional tranche prior to launch.

Microsemi buying Actel

Proceeds from Microsemi's credit facility will be used to help fund the acquisition of Actel Corp. for $20.88 per share through a cash tender offer and to refinance an existing revolver.

The total acquisition value is about $430 million, net of Actel's projected cash balance at closing.

Closing is expected in Microsemi's fiscal first quarter ending Jan. 2, subject to customary conditions, including the tender of a majority of the outstanding shares of Actel's common stock and regulatory approvals.

Microsemi is an Irvine, Calif.-based designer, manufacturer and marketer of analog and mixed-signal integrated circuits, semiconductors and RF subsystems. Actel is a Mountain View, Calif.-based supplier of low-power, mixed-signal and radiation-tolerant field programmable gate arrays.

Radio Systems adds step

Radio Systems added a step-down to Libor plus 425 bps at less than 2.5 times leverage to its oversubscribed $150 million term loan, while leaving initial pricing unchanged at Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

The company's $225 million senior secured credit facility (B1/B+) also includes a $75 million revolver that is priced at Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 99 as well.

Commitments were due on Friday and allocations are hoped to go out on Monday, the source said.

Fifth Third Bank and BMO are the lead banks on the deal that will be used to refinance existing debt.

Radio Systems is a Knoxville, Tenn.-based provider of electronic pet containment products, pet training products and pet doors.

Prestige Brands reveals talk

Prestige Brands announced price talk of Libor plus 325 bps with a 1.5% Libor floor and an original issue discount of 99½ on its proposed $115 million incremental term loan (Ba2/BB) as the deal was launched to lenders on Friday, according to a market source.

Bank of America and Deutsche Bank are the lead banks on the deal that will be used, along with $100 million of senior notes, to fund the acquisition of Blacksmith Brands Holdings Inc.

Under the agreement, Prestige is paying $190 million in cash to buy Blacksmith, a portfolio company of Charlesbank Capital Partners that owns five consumer over-the-counter brands.

Closing is expected in the fourth quarter, subject to customary conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act of 1976.

Prestige Brands is an Irvington, N.Y.-based marketer of branded over-the-counter health care products, household cleaning products and personal care products.

Fibertech well received

Syndication of Fibertech's $260 million credit facility (B2/B) has been "going great" with a number of commitments in since the deal launched with a bank meeting on Oct. 13, a market source told Prospect News.

And, as of now, lenders still have until the end of the Oct. 25 week to place their orders.

The facility consists of a $25 million revolver and a $235 million term loan B.

Price talk on the term loan B is Libor plus 500 bps to 550 bps with a 1.5% to 1.75% Libor floor and an original issue discount of 981/2.

TD Securities is the lead bank on the deal.

Fibertech being acquired

Proceeds from Fibertech's credit facility will be used to help fund its buyout by Court Square Capital Partners from Nautic Partners and Ridgemont Equity Partners.

Other funding for the transaction will come from equity contributed by investment funds managed by Court Square, as well as investments by the senior management of Fibertech.

Closing is expected later this year, subject to customary conditions, including all required regulatory approvals.

Fibertech is a Rochester, N.Y.-based provider of fiber optic bandwidth services.

Auto Europe second-lien

Auto Europe is working on syndicating its $70 million second-lien term loan, while the $150 million first-lien term loan is filled out already, according to a market source.

Price talk on the first-lien term loan is Libor plus 500 bps to 550 bps with a 1.75% Libor floor and an original issue discount that is still to be determined, and price talk on the second-lien term loan has yet to be revealed.

The company's $235 million credit facility also includes a $15 million revolver that is talked at Libor plus 500 bps to 550 bps with a 1.75% Libor floor.

Oppenheimer & Co. and KeyBanc Capital Markets are the lead banks on the deal that will be used to refinance existing debt and to fund a dividend payment.

Auto Europe is a Portland, Maine-based distributor of car rental services for Europe-bound leisure travelers.

Genco closes

In other news, Genco Distribution Systems Inc. completed its acquisition of ATC Technology Corp. for $25 per share in cash on Friday, according to a news release.

To help fund the transaction, Genco got a new $450 million revolver priced at Libor plus 300 bps.

PNC Bank and Wells Fargo acted as the lead banks on the deal.

Genco Distribution is a Pittsburgh-based third-party provider of logistics services for retailers, manufacturers and U.S. government agencies. ATC is a Downers Grove, Ill.-based provider of comprehensive engineered products for logistics and refurbishment services.

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