Dupont, Laureate break; Cole Haan moves deadline; Ameriforge, Capital Safety, Renfro revised

By Sara Rosenberg

New York, Jan. 17 - Dupont Performance Coatings' credit facility freed up for trading during Thursday's market hours, with the U.S. term loan quickly rising above its original issue discount price, and Laureate Education Inc.'s incremental term loan broke too.

Also in the secondary market, Revel AC Inc.'s term loan headed lower on the heels of a rating downgrade by Standard & Poor's, and two new Bid-Wanted-In-Competitions were announced.

Moving to the primary, Cole Haan LLC moved up the commitment deadline on its term loan due to overwhelming demand, and Ameriforge Group Inc. upsized its first-lien term loan while trimming the coupon and original issue discounts on its first-and second-lien debt.

In addition, Capital Safety reduced pricing on its loan, and Renfro Corp. lowered the spread on its term loan while also tightening the original issue discount.

Furthermore, Ocwen Loan Servicing LLC, Michaels Stores Inc., Bombardier Recreational Products and SurveyMonkey released talk with their launches, and Arris Group Inc. nailed down timing for its bank meeting.

Dupont hits secondary

Dupont Performance Coatings' credit facility began trading on Thursday, with the $2.3 billion seven-year covenant-light U.S. term loan quoted at 101 bid, 101½ offered on the open, and then it moved up to 101¼ bid, 101¾ offered, according to one trader. Shortly thereafter, a second trader was quoting the loan at 101 5/8 bid, 102 1/8 offered.

Pricing on the U.S. term loan is Libor plus 350 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.

During syndication, the spread on the U.S. term loan was reduced to Libor plus 375 bps from Libor plus 425 bps and then reduced again to its final level, and the discount was moved to 99½ from 99 and then returned to 99.

Dupont revolver, euro loan

Dupont Performance Coatings' roughly $3.23 billion senior secured credit facility (B1/B+) also includes a $400 million five-year revolver and a €400 million seven-year covenant-light term loan.

Pricing on the revolver is Libor plus 350 bps, after flexing from revised talk of Libor plus 375 bps and initial talk of Libor plus 400 bps. The debt was sold with a 100 bps upfront fee.

The euro loan is expected to allocate and free up for trading at the open in Europe on Friday, a source said. Pricing is Euribor plus 400 bps with a 1.25% floor, and was sold at an original issue discount of 991/2. This tranche includes 101 soft call protection for one year.

As a result of the syndication process, the euro term loan was upsized from a revised amount of €390 million and an initial amount of €150 million, the discount was tightened from 99, and pricing ended up differently than initial talk of 25 bps wide of the U.S. term loan.

With the change to the euro term loan size, the company increased its euro bond deal to €250 million from €230 million and decreased its U.S. bond deal to $750 million from $1.1. billion.

Dupont lead banks

Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., UBS Securities LLC, Jeffries Finance LLC and SMBC are leading Dupont Performance Coatings' credit facility.

Proceeds from the debt transactions and equity will fund Dupont Performance Coatings' buyout by the Carlyle Group from DuPont for $4.9 billion.

Net senior secured leverage is 4.5 times and net total leverage is 5.6 times.

Closing is expected on Feb. 1, subject to customary conditions and regulatory approvals.

DuPont Performance Coatings is a Wilmington, Del.-based supplier of vehicle and industrial coating systems.

Laureate starts trading

Laureate Education's $250 million incremental senior secured term loan B (B) due June 16, 2018 also emerged in the secondary market, with levels quoted at par ¼ bid, 101 offered, according to a source.

Pricing on the add-on is Libor plus 400 bps with a 1.25% Libor floor, in line with existing term loan pricing, and it was sold at an original issue discount of 991/2. The tranche includes 101 soft call protection for six months.

During syndication, the original issue discount was tightened from the 99 area, and shortly after that, the call protection was shortened from one year.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., KKR Capital Markets and Morgan Stanley Senior Funding Inc. are leading the loan that will be used for general corporate purposes, including funding potential acquisitions.

Laureate is a Baltimore-based provider of higher educational services.

Revel slides

In more trading happenings, Revel's term loan dropped to 42½ bid, 44½ offered, from 45½ bid, 46½ offered, according to a trader.

On Wednesday, the term loan was downgraded by Standard & Poor's to CC from CCC and the recovery rating was revised to 6, indicating 0% to 10% expected recovery in a default, from 3, which indicates 50% to 70% recovery.

The rating agency said that the downgrade was a result of the company's recent $25 million revolver increase and new $125 million term loan that are senior in priority to the rated term loan, and that the additional debt only provides near-term operating liquidity.

Revel is a gaming and entertainment company in Atlantic City, N.J.

BWIC's announced

A $56.9 million loan Bid-Wanted-In-Competition surfaced on Thursday, and market participants are being asked to gets their bids in by 11 a.m. ET on Friday, according to a trader.

The portfolio includes about 25 issuers.

Some of the larger pieces of debt being offered include Cablevision's extended term loan B-3, Education Management's term loan C-2, Univision's first-lien term loan B and Windstream Corp.'s term loan B-2, the trader added.

Also, a $44 million BWIC emerged, with bids due at 11 a.m. ET on Friday as well, another trader said.

This portfolio includes about 35 issuers, with the larger pieces of debt being El Paso Energy Corp.'s 8.05% bond, Golden Nugget Inc.'s second-lien term loan, Sun Products Corp.'s term loan B and Texas Competitive Electric Holdings Co. LLC's 2014 term loan.

Cole shutting early

Cole Haan accelerated the commitment deadline on its $270 million seven-year covenant-light term loan (B2/B) to noon ET on Tuesday from Jan. 24 as the deal is "massively oversubscribed," according to a market source.

The term loan is talked at Libor plus 500 bps to 525 bps with a 1.25% Libor floor and an original issue discount of 99 and includes 101 soft call protection for one year.

In addition to the term loan, the company is getting a $100 million asset-based revolver.

Jefferies & Co. is leading the $370 million credit facility that will be used with $300 million in equity to fund the buyout of the company by Apax Partners from Nike Inc. for $570 million in cash.

Leverage is around 4.25 times.

Cole Haan, a New York-based designer and retailer of men's and women's footwear, apparel and accessories, expects the transaction to close early this year.

Ameriforge revises deal

Ameriforge increased its seven-year first-lien covenant-light term loan (B1) to $375 million from $350 million, cut pricing to Libor plus 375 bps from Libor plus 400 bps and changed the original issue discount to 99½ from 99, according to a market source. The 1.25% Libor floor and 101 soft call protection for one year were unchanged.

Furthermore, the company reverse flexed pricing on its $150 million eight-year second-lien term loan (Caa1) to Libor plus 750 bps from Libor plus 775 bps and moved the discount price to 99 fro 98, the source said. This tranche still has a 1.25% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

The company's now $607.5 million facility also includes an $82.5 million five-year revolver (B1).

Commitments were due on Thursday. Allocations are expected either on Friday or early next week, the source remarked.

Ameriforge acquired

Proceeds from Ameriforge's credit facility will be used to back its already completed purchase by First Reserve Corp. from Tanglewood Investments Inc. and, as a result of the first-lien term loan upsizing, the amount of equity used for the transaction is being reduced.

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

Ameriforge is a Houston-based manufacturer of highly engineered products, subassemblies and integrated systems for the oil and gas, midstream, downstream, power generation, aerospace, transportation and industrial markets.

Capital Safety cuts spread

Capital Safety lowered the coupon on its $421.8 million term loan B to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps, while leaving the 1.25% Libor floor and par offer price intact, according to a market source. The loan has 101 soft call protection for six months.

Also, the commitment deadline on the deal was moved up to 5 p.m. ET on Thursday from Friday, the source remarked.

Proceeds are being used to reprice the existing term loan B from Libor plus 500 bps with a 1.25% Libor floor.

UBS Investment Bank, Morgan Stanley Senior Funding Inc., Mizuho Securities USA Inc. and KKR Capital Markets are leading the deal.

Capital Safety is a Red Wing, Minn.-based provider of fall protection, confined space and rescue equipment.

Renfro flexes

Renfro cut pricing on its $220 million term loan B (B2/B) to Libor plus 450 basis points from Libor plus 500 bps and revised the original issue discount to 99½ from 99, according to a market source. The loan still has a 1.25% Libor floor and 101 soft call protection for one year.

With the pricing change, the commitment deadline was moved up to 5 p.m. ET on Friday from Jan. 24, the source remarked.

RBC Capital Markets is leading the deal that will be used to refinance an existing term loan and fund a distribution to shareholders.

Renfro is a Mount Airy, N.C.-based designer, manufacturer and marketer of socks.

Ocwen sets talk

Ocwen Loan Servicing held a bank meeting on Thursday to kick off syndication on its $1.3 billion five-year senior secured term loan, and with the event, talk came out at Libor plus 425 bps with a 1.25% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, according to an 8-K filed with the Securities and Exchange Commission.

Lead banks, Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC, are seeking commitments by Jan. 28, with closing targeted for Jan. 31.

Proceeds will help fund the $2.45 billion acquisition of private label, Freddie Mac, Ginnie Mae and master servicing, as well as certain subservicing, mortgage assets from Residential Capital LLC and to refinance existing term loan debt.

Closing is expected for Jan. 31, subject to approval of Freddie Mac, Fannie Mae and various government agencies.

Ocwen, an Atlanta-based provider of residential and commercial loan servicing, special servicing and asset management services, will have pro forma corporate debt to LTM Adjusted EBITDA of 1.7 times and total debt to total net worth of 3.6 times.

Michaels Stores pricing

Michaels Stores' $1.64 billion seven-year covenant-light term loan (BB-) launched with talk of Libor plus 300 bps to 325 bps with a 1% Libor floor and an original issue discount of 993/4, according to a market source.

Commitments are due on Jan. 24.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Barclays, Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

Michaels Stores is an Irving, Texas-based retailer of arts, crafts, framing, floral, wall decor and seasonal merchandise for the hobbyist and do-it-yourself home decorator.

Bombardier comes to market

Bombardier Recreational Products held a call to launch a $1.05 billion six-year covenant-light term loan B (B1) with talk of Libor plus 400 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

The company had approached lenders with this term B late last year, but the deal was then pulled.

Price talk on that pulled deal had been Libor plus 375 bps to 400 bps with a 1.25% Libor floor and an original issue discount of 99, and there was 101 soft call protection for one year.

RBC Capital Markets LLC and BMO Capital Markets Corp. are the joint lead arrangers on the deal and bookrunners with UBS Securities LLC and Bank of America Merrill Lynch.

Commitments are due on Wednesday, the source added.

Proceeds will be used to refinance existing debt and pay a dividend to sponsors Bain Capital, Beaudier Group and Caisse De Depot.

Bombardier is a Valcourt, Quebec-based designer manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

SurveyMonkey guidance

SurveyMonkey released talk of Libor plus 450 bps to 475 bps with a 1.25% Libor floor and an original issue discount of 98½ on its $300 million six-year term loan B that launched with a bank meeting on Thursday, according to a market source.

The company's $350 million credit facility (B2/B) also includes a $50 million five-year revolver.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs & Co. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt, fund share buybacks and for general corporate purposes.

SurveyMonkey is a provider of online survey tools.

Arris discloses timing

Arris Group set a bank meeting for Tuesday to launch its $2.175 billion senior secured credit facility that was announced late last year, according to market sources.

As previously reported, the facility consists of a $250 million five-year revolver, a $1 billion five-year term loan A and a $925 million seven-year term loan B.

The term loan B has 101 soft call protection for one year, sources remarked.

Bank of America Merrill Lynch and RBC Capital Markets are leading the deal that will be used to help fund the acquisition of the Motorola Home IP business from Motorola Mobility for $2.35 billion in a cash-and-stock transaction.

Specifically, Google Inc., the parent of Motorola Mobility, will receive $2.05 billion in cash and about $300 million in newly issued Arris shares, representing a roughly 15.7% ownership interest in Arris post-closing.

Arris, a Suwanee, Ga.-based communications technology company, expects to close on the transaction by the second quarter, subject to customary approvals and conditions.

Pinafore readies wrap

Pinafore Holdings BV (Tomkins Ltd.) is expected to have its repricing go effective on Friday, with the transaction done at initial terms, according to a market source.

Under the repricing, the spread on the company's $99 million term loan A and $1.34 billion term loan B is being reduced to Libor plus 275 basis points from Libor plus 300 bps and the Libor floor on both tranches is being cut to 1% from 1.25%. The repriced loans were offered at par.

As part of the transaction, the term loan B is seeing the addition of 101 soft call protection for one year.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, UBS Securities LLC and RBC Capital Markets LLC are the lead banks on the deal.

Pinafore is a London-based engineering and manufacturing group.

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