Custom Building breaks; MGM, Stallion, Heartland, Houghton, Cinemark, Nomacorc revise

By Sara Rosenberg

New York, Dec. 12 - Custom Building Products' credit facility freed up for trading on Wednesday, with the term loan B quoted above its original issue discount price.

Moving to the primary market, MGM Resorts International cut pricing on its term loan B, and Stallion Oilfield Holdings Inc. reduced the size of its term loan, increased the coupon and added a covenant to the previously covenant-light structure.

In addition, Heartland Dental Care Inc. moved some funds between its term loans and sweetened pricing, and Houghton International Inc. also revised its first- and second-lien term loan sizes, but it lowered the spread on its first-lien debt.

Also, Sage Products Inc. reverse flexed its first- and second-lien term loans, and tightened the discount price on its second-lien debt, Cinemark Holdings Inc. firmed the spread on its term loan at the tight end of guidance and changed the original issue discount, FLY Leasing Ltd. finalized the coupon on its repricing, Nomacorc LLC downsized its term B tranche and Citadel Plastics Holdings Inc. pulled its deal from market.

Furthermore, Biomet Inc. disclosed discount guidance on its add-on loan, Sorenson Communications Inc. released talk on its deal, United Surgical Partners International Inc. and RE/MAX International Inc. announced incremental loan plans, and TransFirst LLC rejoined the calendar.

Custom Building trading

Custom Building Products' credit facility emerged in the secondary market on Wednesday, with the $315 million seven-year term loan B quoted at 99 ½ bid, par ¼ offered, according to a trader.

Pricing on the loan is Libor plus 475 basis points 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 $345 million credit facility also includes a $30 million five-year revolver.

Bank of America Merrill Lynch and RBC Capital Markets LLC are leading the deal that will be used to refinance existing debt and to fund a dividend.

Custom Building Products is a Seal Beach, Calif., provider of installation products for tile and stone.

MGM flexes lower

Over in the primary, MGM Resorts trimmed the coupon on its $1.5 billion seven-year term loan B to Libor plus 325 bps from Libor plus 375 bps, while leaving the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for one year intact, according to a market source.

The company's $4 billion senior secured credit facility (Ba2/BB) also provides for a $1.25 billion five-year revolver and a $1.25 billion five-year term loan A, with both of these tranches priced at Libor plus 300 bps with no Libor floor.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are the joint physical books on the deal and joint lead arrangers with Barclays Capital Inc. and J.P. Morgan Securities LLC.

Proceeds, along with $1.25 billion of notes and cash on hand, will fund a tender offer for the company's existing notes and repay existing credit facility borrowings.

The notes were upsized, so the amount to be borrowed under the new revolver is being reduced.

MGM Resorts is a Las Vegas-based operator of destination resort brands.

Stallion tweaks loan

Stallion Oilfield made a round of changes to its five-year senior secured first-lien term loan (B3/B), including cutting the size to $450 million from $500 million. raising pricing to Libor plus 750 bps from Libor plus 650 bps and adding a maximum total leverage ratio so that the debt is no longer covenant-light, according to a market source.

As before, the loan has a 1.25% Libor floor and an original issue discount of 98, and is still non-callable for one year, then at 102 in year two and 101 in year three.

Recommitments are due at noon ET on Thursday, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to redeem senior secured notes due 2015, fund a dividend, fund transaction costs and for other corporate purposes.

Stallion is a Houston-based provider of wellsite support, completion, production and logistics services to oil and gas exploration and production companies, drilling contractors and other service companies.

Heartland restructures

Heartland Dental reduced its six-year first-lien term loan to $400 million from $450 million, lifted pricing to Libor plus 500 bps from Libor plus 450 bps, added 101 soft call protection for one year and revised the maturity to six years from seven years, according to market sources. The 1.25% Libor floor and original issue discount of 99 were left intact.

Meanwhile, the second-lien term loan was increased to $250 million from $200 million, pricing was raised to Libor plus 850 bps from talk of Libor plus 800 bps to 825 bps and the maturity was shortened to 6½ years from eight years, sources said. This tranche still has a 1.25% Libor floor, a discount of 98½ and hard call protection of 103 in year one, 102 in year two and 101 in year three.

All-in yield is 6½% on the first-lien loan and 10 1/8% on the second-lien loan.

In addition, for incremental first- and second-lien debt, the MFN sunset provision was removed and the starter basket was reduced to $100 million from $125 million. Also, for second-lien incremental loans, the leverage test was reduced to 6 times from 6.25 times, sources continued.

Heartland lead banks

RBC Capital Markets LLC, BMO Capital Markets Corp. and Jefferies & Co. are leading Heartland Dental's $750 million credit facility, which also includes a $100 million revolver.

Recommitments are due at noon ET on Thursday, sources remarked.

Proceeds will help fund the roughly $1.3 billion buyout of the company by Teachers' Private Capital. At close, Heartland Dental founder and chief executive officer Rick Workman will retain a significant minority position along with management and employees.

With the revised financing package, Heartland Dental, an Effingham, Ill.-based provider of office support services to dental offices, will have first-lien leverage of 3.6 times, sources added.

Houghton reworks deal

Houghton International upsized its first-lien term loan to $585 million from $535 million (split between a $455 million tranche and a €100 million tranche), reduced pricing on its U.S. loan to Libor plus 400 bps from Libor plus 450 bps and cut pricing on its euro loan to Euribor plus 450 bps from Euribor plus 500 bps, a market source said. The debt still has a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

On the flip side, the company's second-lien term loan was downsized to $200 million from $250 million, the source continued. Pricing is unchanged at Libor plus 825 bps with a 1.25% Libor floor and an original issue discount of 98, and there is still call protection of 103 in year one, 102 in year two and 101 in year three.

Recommitments for the company's $835 million senior secured credit facility, which also provides for a $50 million revolver (B), were due at 5 p.m. ET on Wednesday.

Houghton being acquired

Proceeds from Houghton International's credit facility will be used to help fund its purchase by Gulf Oil Corp. Ltd. for $1.05 billion.

RBC Capital Markets LLC, Deutsche Bank Securities Inc. and UBS Securities LLC are the lead banks on the deal.

First-lien leverage is 4.3 times, down from 3.9 times because of the term loan size changes, the source added. Total leverage is 5.8 times.

The transaction is subject to customary closing conditions.

Houghton is a Norristown, Pa.-based developer, producer and manager of specialty chemicals, oils and lubricants. Gulf Oil is a Hyderabad, India-based diversified company with business activities in lubricants, industrial explosives, mining and infrastructure services and property development.

Sage revises terms

Sage Products cut pricing on its $380 million seven-year first-lien term loan (B1/B) to Libor plus 400 bps from talk of Libor plus 425 bps to 450 bps and added 101 soft call protection for one year, according to a market source. The 1.25% Libor floor and original issue discount of 999 were unchanged.

Also, the company reduced the coupon on its $200 million 71/2-year second-lien term loan (Caa1/CCC+) to Libor plus 800 bps from Libor plus 825 bps and revised the discount to 98½ from talk of 97½ to 98, the source said. This debt still has a 1.25% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

In addition, the MFN sunset on both the first- and second-lien loans was removed, the source remarked.

The company's $640 million senior secured credit facility also includes a $60 million five-year revolver (B1/B).

Sage readies allocations

After the changes were announced to Sage's credit facility, investors were given until 5 p.m. ET on Wednesday to recommit to the transaction, and the expectation is that allocations could go out as soon as Thursday, the source added.

Barclays Capital Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by Madison Dearborn Partners.

Closing is expected by year-end.

Leverage on a senior secured basis is 4.3 times and total leverage is 6.5 times.

Sage Products is a Cary, Ill.-based healthcare products manufacturer specializing in skin hygiene products to help prevent or stop infections in medical settings.

Cinemark updates pricing

Cinemark finalized pricing on its $700 million seven-year covenant-light term loan at Libor plus 300 bps, the tight end of the Libor plus 300 bps to 325 bps talk, with no Libor floor, and modified the original issue discount to 99½ from 99, according to a market source. There is still 101 soft call protection for one year.

Also included in the company's $800 million senior secured credit facility (Ba1/BB+) is a $100 million undrawn five-year revolver.

Recommitments were due at 5 p.m. ET on Wednesday and allocations are expected on Thursday.

Barclays, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used with $400 million of senior notes to refinance an existing $73.5 million revolver and a $900 million term loan and to fund the purchase of 32 theatres from Rave Cinemas for $240 million.

Cinemark, a Plano, Texas-based motion picture exhibitor, will have senior secured leverage of 1.5 times, senior leverage of 3 times and total leverage of 3.3 times.

FLY finalizes coupon

FLY Leasing firmed pricing on its roughly $390 million term loan at Libor plus 450 bps, the tight end of the Libor plus 450 bps to 475 bps talk, and left the 1.25% Libor floor, par offer price and 101 soft call protection for one year unchanged, according to a market source.

Citigroup Global Markets Inc. is the leading the deal that is expected to allocate eon Thursday.

Proceeds will be used to reprice the existing term loan from Libor plus 550 bps with a 1.25% Libor floor.

FLY is an aircraft lessor with corporate offices in Dublin, Ireland, and San Francisco.

Nomacorc cuts size

Nomacorc reduced its term loan B to $112 million from $115 million and revised amortization to 2.5% per year from 1%, according to a market source.

Pricing on the term loan B and on a $20 million revolver is still Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99.

GE Capital Markets is leading the now $132 million five-year credit facility that will be used to refinance existing debt and fund a dividend.

Nomacorc is a Zebulon, N.C.-based manufacturer of the wine closures and synthetic wine corks.

Citadel Plastics pulled

Citadel Plastics withdrew its GE Capital Markets-led $271 million credit facility from the primary, according to a market source.

The facility consisted of a $30 million revolver, a $172 million first-lien term loan talked at Libor plus 450 bps to 475 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and a $69 million second-lien term loan talked at Libor plus 850 bps to 875 bps with a 1.25% floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three.

Proceeds were going to be used to refinance existing debt and fund a dividend,

Citadel Plastics is a Chicago-based provider of thermoset and thermoplastic compounds.

Biomet OID guidance

Biomet held a call on Wednesday to launch its $250 million add-on term loan, which investors were told is being marketed with original issue discount talk of 99½ to 993/4, according to a source.

Pricing on the add-on matches existing term loan pricing at Libor plus 375 bps.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Barclays, Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to take out non-extended term loan debt.

Biomet is a Warsaw, Ind.-based designer, manufacturer and marketer of products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy.

Sorenson talk surfaces

Sorenson Communications revealed that its $200 million seven-year term loan B (B3/B) is being talked at Libor plus 725 bps with a 1.5% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments are expected to be due on Friday or Monday.

J.P. Morgan Securities LLC, Goldman Sachs & Co. and Deutsche Bank Securities Inc. are leading the deal that will be used with $400 million of first-lien senior secured notes to repay an existing term loan and fund the cash portion of a notes exchange offer.

As previously reported, the company is looking to exchange up to $635 million of 12% 11/2-lien notes due 2020 for its $735 million 10½% second-lien notes due 2015, and will make a $100 million cash payment on a pro-rata portion of the notes exchanged at par.

Sorenson is a Salt Lake City-based provider of Video Relay telecommunication and interpreting and CaptionCall telephone service for deaf and the hard-of-hearing.

United Surgical sets call

United Surgical Partners emerged with plans to host a conference call at 11 a.m. ET on Thursday to launch a $150 million add-on term loan B due 2019 that is being talked at Libor plus 475 bps with a 1.25% Libor floor and an original issue discount that is still to be determined, according to market sources.

The loan has 101 soft call protection through April 2013.

J.P. Morgan Securities LLC and Barclays are leading the deal.

Proceeds will be used to repay revolver drawings, pre-fund a pending acquisition and fund a dividend.

United Surgical is an Addison, Texas-based owner and operator of ambulatory surgery centers and surgical hospitals.

RE/MAX plans loan

RE/MAX scheduled a conference call for 10 a.m. ET on Thursday to launch a $45 million incremental term loan to existing lenders, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal.

RE/MAX is a Denver-based real estate company.

TransFirst coming to market

TransFirst will be holding a call on Thursday afternoon to launch $600 million in term loans that will be used to refinance existing debt, fund a dividend and redeem equity, according to a market source.

The company was originally expected to bring a deal to market in November for the same purposes, but the transaction was postponed.

The facility consists of $400 million first-lien term loan B and a $200 million second-lien term loan, the source said.

Bank of America Merrill Lynch and GE Capital Markets are leading the deal.

TransFirst is a Hauppauge, N.Y.-based provider of transaction processing services and payment enabling technologies.

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