Asurion term loans react to new debt launch; Booz Allen dips; Revel down with numbers

By Sara Rosenberg

New York, July 10 - Asurion LLC's first-lien term loan was lower in the secondary market on Tuesday as the company brought some new first-lien debt to market, but its second-lien term loan was higher since those investors will get a partial paydown.

Also, Booz Allen Hamilton Inc.'s term loan softened in trading as word hit that the company will be bringing a new loan this week, Revel Entertainment Group LLC's term loan fell with the release of June revenue results and Hawker Beechcraft Inc.'s strip of bank debt retreated over the course of the day.

In other news, WideOpenWest Finance LLC (WOW!) announced changes to its first-lien term loan B, sweetening the original issue discount price and shortening the maturity, and covenants were restructured as well.

Additionally, Party City Holdings Inc., Paradigm Holdco Sarl, Panolam Industries International Inc. and Integrated Power Services came out with pricing guidance in connection with their launches.

Furthermore, Liberty Cablevision of Puerto Rico LLC set discount talk on its term loan, and Drew Marine, IPS Corp. and Pexco all surfaced with new credit facility plans.

Asurion moves around

Asurion's term loans saw a half point change in trading on Tuesday as the company launched with a call $700 million in new covenant-light senior secured first-lien term loan debt that will be used to repay some of the existing second-lien term loan, according to a trader.

The first-lien term loan was quoted at 99½ bid, par offered, down from par bid, par ½ offered, while the second-lien term loan was quoted at 102¾ bid, 103¾ offered, up from 102¼ bid, 103¼ offered, the trader said.

The Nashville-based provider of technology protection services' second-lien term loan that is being paid down currently carries 103 call protection, the trader added. It is priced at Libor plus 750 basis points with a 1.5% Libor floor.

Asurion new debt details

Asurion's new first-lien debt includes a $400 million add-on to the existing first-lien term loan due May 2018 that is talked at Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 99 and is prepayable at par. The spread and floor match the existing first-lien loan, as does the 1% per year amortization.

There is also a $300 million new first-lien five-year term loan (BB-) that is expected to appeal to CLOs that is talked at talked at Libor plus 350 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year. This tranche amortizes at a rate of 12.5% in year one, 15% in year two, 20% in year three, 22.5% in year four and 25% in year five.

Commitments are due on July 17.

Bank of America Merrill Lynch, Barclays Capital Inc., Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs & Co. are the lead banks on the deal.

Booz Allen retreats

In more secondary happenings, Booz Allen's term loan weakened after news came out that the company will be launching a new loan with a bank meeting on Thursday, according to a trader.

The term loan was quoted at 99¾ bid, par ¼ offered, down from par bid, par ½ offered, the trader said.

Details on the new debt, such as size and structure, have not yet emerged.

Bank of America Merrill Lynch is the lead bank on the deal.

Booz Allen Hamilton is a McLean, Va.-based provider of management and technology consulting services to the U.S. government in the defense, intelligence and civil markets.

Revel slides

Revel Entertainment's term loan B dropped to 80 bid, 81 offered, from 80½ bid, 82 offered, in connection with the emergence of June revenue results, according to a trader.

For the month of June, the company had total revenue of $14.93 million, and year-to-date revenue is $42.5 million, the New Jersey Division of Gaming Enforcement reported on Tuesday.

By comparison, in May, the company had total revenue of $13.93 million.

Revel, a gaming and entertainment company, commenced operations on March 28 and opened to the public on April 2.

Hawker seesaws

Hawker Beechcraft's strip of debt started the day with one trader seeing it trade at 77, then he had it at 75 bid, 78 offered early in the day, and by late afternoon, he put the debt at 74½ bid, 76½ offered.

A second trader, had the strip at 75¾ bid, 76¾ offered in the afternoon. He wasn't sure where it was in the morning but said it went out really wide on Monday at 72 bid, 77 offered.

On Monday, the company announced that it executed an exclusivity agreement with Superior Aviation Beijing Co. Ltd., a Beijing-based aerospace manufacturer, regarding a strategic combination. The transaction would not include Hawker Beechcraft Defense Co.

Under the agreement, Superior would buy Hawker Beechcraft for $1.79 billion. However, if Hawker Beechcraft Defense is sold, up to $400 million of the purchase price will be refundable to Superior.

If negotiations with Superior are not successful, Hawker Beechcraft, a Wichita, Kan.-based aircraft manufacturer, will proceed with seeking confirmation of its plan of reorganization.

WideOpenWest tweaks OID

Moving to the primary, WideOpenWest revealed the changes to its $1.92 billion first-lien term loan B, which have been expected for a while now, and lenders were asked to recommit to the restructured deal by 5 p.m. ET on Wednesday, according to market sources.

Under the new terms, the term B is being offered at an original issue discount of 95, revised from 981/2, and will mature in six years as opposed to seven years, sources said.

Pricing remained at Libor plus 500 bps with a 1.25% Libor floor, and the 101 soft call protection for one year was left intact.

The company's 2.12 billion credit facility (B1/B), led by Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Bank of Tokyo-Mitsubishi-UFJ Ltd., also provides for a $200 million five-year revolver.

WideOpenWest covenant changes

With the term loan B revisions, WideOpenWest reworked the covenants under its credit agreement, setting the total leverage ratio at 6.75 times, compared to 7 times before, and reducing the debt basket to $2.35 billion from $2.47 billion, sources remarked.

Also, the company now has a two year blackout on certain sponsor dividends and restricted payments, versus no blackout previously, and dividends/distributions from unrestricted subsidiaries after two years are subject to a 6.5 times total leverage ratio, down from 7 times previously.

Furthermore, the general restricted payments basket was reduced to $25 million from $75 million, sources continued.

WideOpenWest reworks bonds

In addition to modifying its credit facility, WideOpenWest split its $1.02 billion eight-year senior notes offering into a $700 million seven-year senior tranche and a $320 million 71/4-year senior subordinated tranche.

Proceeds from the new debt and around $200 million of equity will be used to fund the acquisition of Knology Inc., a West Point, Ga.-based provider of interactive communications and entertainment services, for $19.75 per share in cash. The total transaction value is around $1.5 billion.

Closing is subject to stockholder approval, regulatory approvals and customary conditions.

WideOpenWest, an Avista Capital Partners portfolio company, is a Denver-based provider of residential and commercial high-speed internet, cable television and telephone services.

Party City talk emerges

Also on the new deal front, Party City held a bank meeting on Tuesday morning to present its credit facility to investors, and with the event, talk on the $1.05 billion term loan (B1/B) was released as Libor plus 500 bps to 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.

The guidance is fairly in line with what the market was expecting. Last week, sources were saying that the Party City deal is a pretty solid comp to the Savers Inc. $655 million seven-year term loan B that priced late last month at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99.

Party City is a Rockaway, N.J.-based designer, manufacturer and distributor of party goods, and Savers is a Bellevue, Wash.-based thrift store chain.

Party City lead banks

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc. and Barclays Capital Inc. are leading Party City's $1.45 billion credit facility, which also includes a $400 million ABL revolver.

Commitments towards the term loan, which is heard to be going pretty well, are due on July 19, the source remarked.

Proceeds, along with $700 million of notes, will help fund the company's buyout by Thomas H. Lee Partners LP in a transaction valued at $2.69 billion. Advent International Corp., Berkshire Partners LLC, Weston Presidio and management, which currently own Party City, will continue to hold significant minority stakes following the recapitalization.

The notes are backed by a bridge loan has already been successfully syndicated.

Paradigm discloses guidance

Paradigm also held a bank meeting on Tuesday, and shortly before the launch kicked off, price talk on its $290 million seven-year first-lien term loan (B+) and $130 million eight-year second-lien term loan (CCC+) was announced, a market source said.

The covenant-light first-lien term loan is talked at Libor plus 525 bps, and the covenant-light second-lien term loan is talked at Libor plus 925 bps, with both having a 1.25% Libor floor and an original issue discount of 98, the source remarked.

Also, the first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

The company's $460 million credit facility also includes a $40 million five-year revolver (B+).

Paradigm funding buyout

Proceeds from Paradigm's credit facility will be used to help fund its acquisition by Apax Partners and JMI Equity from Fox Paine & Co. for around $1 billion in cash.

Lead banks, UBS Securities LLC and RBC Capital Markets LLC, are seeking commitments for the buyout deal by July 19, the source added.

Paradigm is a software vendor focused on the oil and gas exploration and production space with a significant presence across Europe, the Americas, the Middle East, Africa, China and Australasia.

Panolam pricing surfaces

Panolam Industries set price talk of Libor plus 550 bps with a 1.25% Libor floor and an original issue discount of 99 on its $147 million five-year credit facility that launched as well, according to sources.

The facility consists of a $15 million revolver and a $132 million term loan.

GE Capital Markets is the left lead on the deal that will be used to refinance existing debt.

Panolam is a Shelton, Conn.-based producer of decorative laminates that is majority owned by Apollo Capital Management.

Integrated Power meeting

Integrated Power Services revealed talk on its $133.8 million senior credit facility as it too launched during market hours, with guidance being Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99, according to a source.

The facility consists of a $25 million five-year revolver and a $108.8 million six-year term loan, the source said.

GE Capital Markets, BNP Paribas Securities Corp. and BMO Capital Markets Corp. are leading the deal that will help fund the purchase of the company by Odyssey Investment Partners LLC from Riverside Co.

Integrated Power Services is a Greenville, S.C.-based provider of electrical and mechanical motors.

Liberty reveals OID

Liberty Cablevision of Puerto Rico launched its $175 million term loan on Tuesday with original issue discount guidance of 98½ to 99, a market source said. Price talk came out prior to launch at Libor plus 450 bps with a 1.5% Libor floor.

The $185 million five-year credit facility (B+) also includes a $10 million revolver.

Scotia Capital (USA) Inc. is the lead on the deal that will be used to help fund the company's merger with San Juan Cable LLC (OneLink Communications).

LGI Broadband Operations Inc., a subsidiary of Englewood, Colo.-based cable company Liberty Global Inc., and Searchlight Capital Partners LP are buying San Juan Cable in a transaction that values the company at about $585 million.

Closing is expected in the fourth quarter, subject to customary conditions including regulatory approval, and, upon completion, the combined business will be 60%-owned by Liberty Global and 40%-owned by Searchlight.

Drew Marine readies deal

In more primary news, Drew Marine joined this week's calendar, setting a bank meeting for 10 a.m. ET on Wednesday to launch a proposed $135 million credit facility that is being led by BNP Paribas Securities Corp., according to a market source.

The facility consists of a $20 million five-year revolver and a $115 million six-year term loan, the source said, adding that price talk is not yet available.

Proceeds will be used to refinance existing debt and fund the acquisition of Chemring Group plc's maritime interests for £32 million, which will be named Drew Marine Signal and Safety.

Closing is expected by the end of this month, subject to regulatory approvals.

Drew Marine is a Whippany, N.J.-based provider of technical solutions and services to the marine industry. The Chemring maritime business is a Hampshire, U.K.-based supplier of marine distress signals.

IPS coming soon

IPS will be holding a bank meeting on Wednesday to launch a proposed $115 million five-year credit facility that is talked at Libor plus 525 bps with a 1.25% Libor floor, according to a market source.

The GE Capital Markets-led facility consists of a $20 million revolver and a $95 million term loan, with both tranches, the source said.

Proceeds will be used to refinance existing debt.

IPS is a Compton, Calif.-based manufacturer of adhesive cements, structural adhesives and niche plumbing products primarily for residential, commercial, industrial and international markets.

Pexco plans loan

Pexco set a meeting for Thursday to launch a $138 million credit facility that is being talked at Libor plus 475 bps with a 1.25% Libor floor and an original issue discount of 99, a source said.

The facility is comprised of a $20 million five-year revolver and a $118 million six-year term loan.

GE Capital Markets, BMO Capital Markets Corp. and PNC Capital Markets LLC are leading the deal that will help fund the company's buyout by Odyssey Investment Partners LLC from Saw Mill Capital Partners LP.

Pexco is an Alpharetta, Ga.-based designer and fabricator of custom plastic extrusion.

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