Kloeckner, BSN break; Harland Clarke up with paydown; Tribune rises on bankruptcy progress

By Sara Rosenberg

New York, July 16 - Kloeckner Holdings SCA's credit facility freed up for trading on Monday, with the U.S. term loan B-1 quoted above its original issue discount, and BSN Medical made its way into the secondary market as well.

In more trading news, Harland Clarke Holdings Corp.'s extended term loan rose with paydown news, and Tribune Co.'s bank debt was stronger on Monday on the back of news that the judge overseeing its bankruptcy case said that he would confirm the plan of reorganization once final changes are made.

Meanwhile, over in the primary, Arctic Glacier USA Inc. lifted pricing on its credit facility, Blue Buffalo Co. and the Pantry Inc. released price talk on their term loans with their bank meeting, and RedPrairie Corp. announced new deal plans.

Kloeckner begins trading

Kloeckner's credit facility emerged in the secondary market on Monday, with the $435 million term loan quoted at 98½ bid on the break and then it moved up to 99 bid, 99¾ offered, a trader said.

Pricing on the term loan ended up at Libor plus 550 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 98, compared to initial talk of Libor plus 575 bps with a 1.25% floor and a discount of 98 to 981/2.

Jefferies & Co. is leading the $500 million deal (Ba3/B) that also includes a $65 million revolver.

Proceeds are being used with €255 million of 11 5/8%second-lien notes to fund the company's recently completed recapitalization, under which it got €190 million of cash equity from a group of investors led by Strategic Value Partners LLC, and refinanced €800 million of first-lien bank debt.

Leverage is about 4.5 times.

Kloeckner is a Montabaur, Germany-based producer of films for pharmaceutical, medical device, food, electronics and general-purpose thermoform packaging, as well as printing and specialty applications.

BSN Medical hits secondary

Another deal to break was BSN Medical's credit facility, with the $280 million term loan B-1 quoted at par bid, par 3/8 offered, according to a trader.

Pricing on the term loan B-1 is Libor plus 475 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the coupon firmed at the tight end of the Libor plus 475 bps to 500 bps talk and the discount tightened from guidance of 97 to 98.

The company's roughly €865 million credit facility (B+/BB) also includes a €50 million revolver, a €75 million capex/acquisition facility A and a €514.5 million term loan B-2.

BSN lead banks

Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading BSN Medical's credit facility.

Proceeds, along with mezzanine debt, will be used to help fund the buyout of the company by EQT VI from Montagu Private Equity for an enterprise value of around €1.8 billion.

The transaction is subject to statutory regulatory clearances.

BSN is a Hamburg, Germany-based supplier of wound care, compression therapy and orthopedic products to hospitals, pharmacies and sanitary shops.

Harland Clarke strengthens

Also in trading, Harland Clarke's extended term loan moved higher on the bid side in trading as the company announced plans for a new $250 million senior secured notes offering that will be used to repay some term loan borrowings, according to a trader.

In addition, the company will use cash on hand for the paydown.

With the news, the extended term loan was quoted by at 93½ bid, 94½ offered, versus 92½ bid, 94½ offered previously, the trader said.

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

Tribune trades up

Tribune's bank debt was better on Monday on the heels of a ruling that its reorganization plan will be confirmed once some final modifications are completed, and any remaining objections to the plan were overruled, according to a trader.

The term loan B was quoted at 69½ bid, 70½ offered, up from 68¾ bid, 69¾ offered, the incremental loan and term loan X were quoted at 69 bid, 70 offered, up from 67¾ bid, 68¾ offered, and the revolver was quoted at 74 bid, 76 offered, up from 73 bid, 75 offered, the trader remarked.

Under the reorganization plan, the Chicago-based media company would transfer its broadcast licenses to a new ownership group that includes senior creditors Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase.

Tribune believes that it will be able to emerge from Chapter 11 by the end of the year and that creditors will get about $7 billion in recoveries.

Arctic Glacier flexes

Moving to the primary, Arctic Glacier raised the coupon pricing on its $225 million credit facility (B1/B) to Libor plus 700 bps from Libor plus 675 bps, while leaving the 1.5% Libor floor and original issue discount of 97 intact, according to a market source.

The now fully subscribed facility consists of a $200 million six-year first-lien term loan that has 101 soft call protection for one year and a $25 million five-year revolver.

Recommitments are due at 5 p.m. ET on Tuesday and allocations are expected later this week, the source continued.

Credit Suisse Securities (USA) LLC is leading the deal that, along with $85 million of mezzanine debt, will fund the buyout of the Winnipeg, Man.-based packaged ice company by H.I.G. Capital.

Closing is expected by July 31, subject to approval of the U.S. Bankruptcy Court for the District of Delaware, pre-merger clearance in the U.S. and the satisfaction of certain customary conditions.

Blue Buffalo discloses talk

Blue Buffalo held a bank meeting on Monday morning to launch its credit facility, and with the event, investors were told that the $430 million seven-year term loan B is being talked at Libor plus 525 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Initially it was thought that the term loan would total $400 million, but at the meeting, the lareger-than-expected size was announced.

The company's $470 million credit facility (B1), for which commitments are due on July 27, also includes a $40 million five-year revolver.

Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used by the Wilton, Conn.-based pet food company primarily to fund a dividend.

Net leverage, based on trailing 12 month EBITDA, is 4.6 times, and based on annualized first half 2012 adjusted EBITDA, is 3.4 times, the source remarked.

Pantry reveals guidance

Pantry held a bank meeting too, and talk on its $255 million term loan B surfaced at Libor plus 475 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments are due on July 25.

The $480 million senior secured credit facility (B1/BB) also includes a $225 million revolver that is done at Libor plus 425 bps after launching with a meeting a few weeks ago, the source said.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are leading the deal that will be used with $250 million of senior notes and available cash to repay outstanding term loans and senior subordinated notes, the aggregate outstanding amount of which is about $598 million.

Pantry is a Cary, N.C.-based operator of a chain of convenience stores.

RedPrairie readies deal

Continuing on the topic of new deals, RedPrairie set a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch a proposed $380 million credit facility that is being led by Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC, according to market sources.

The facility consists of a $40 million five-year revolver and a $340 million six-year first-lien term loan, with price talk not yet available, sources said. The term loan has 101 soft call protection for one year.

Proceeds will be used to refinance existing bank debt and fund a dividend.

With this transaction, RedPrairie, an Alpharetta, Ga.-based provider of supply chain software services, will have leverage of 4.2 times, sources added.

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