Capsugel breaks; Revel weakens with revenue results; Graton Resort sweetens loan terms

By Sara Rosenberg

New York, Aug. 13 - Capsugel's repriced term loan freed up for trading during Monday's market hours, with levels quoted in the par to par-plus context, and Revel Entertainment Group LLC's term loan softened on the back of July revenue results.

Moving to the primary, Graton Resort & Casino made some changes to its term loan ahead of its commitment deadline, raising the coupon and beefing up the call protection, and Live Nation Entertainment Inc. announced plans for an incremental term loan B.

Capsugel frees up

Capsugel's repriced $875 million term loan hit the secondary market on Monday, with levels quoted at par bid, par ¼ offered, according to a market source.

Pricing on the loan is Libor plus 350 basis points with a step-down that was added during syndication to Libor plus 300 bps if a B1 rating is achieved. Currently, the company is at B2/BB-. There is a 1.25% Libor floor and 101 soft call protection for one year.

The company is also repricing its $150 million revolver at Libor plus 350 bps.

Prior to the repricing, the term loan and revolver carried a spread of Libor plus 400 bps.

UBS Securities LLC is the leading the deal for the Morristown, N.J.-based manufacturer of hard capsules and drug-delivery systems.

Total leverage as of April 1 was 5.1 times last 12 months adjusted EBITDA.

Revel retreats

Revel Entertainment's term loan B fell to 78 bid, 79 offered, from 79 bid, 81 offered, as July revenue results were announced at the end of last week, a trader said.

For the month of July, the company had total revenue of $17.54 million and year-to-date revenue of $60 million, according to the New Jersey Division of Gaming Enforcement

By comparison, in June the company had total revenue of $14.93 million.

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

Graton reworks loan

Switching to the primary, Graton Resort & Casino revised its $350 million six-year term loan, lifting pricing to Libor plus 750 bps from the Libor plus 700 bps area and changing the call protection to non-callable for two years, then at 103 in year three and 101 in year four, from non-callable for one and a half years, then at 102 and 101, according to a market source.

As before, the term loan has a 1.5% Libor floor, an original issue discount of 98 and a commitment deadline that expired on Monday. Allocations are targeted to go out this week, the source added.

The company's $375 million credit facility also provides for a $25 million five-year revolver that is priced at Libor plus 475 bps with no Libor floor.

Wells Fargo Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies & Co. are leading the deal that will be used to back the development of the Graton Resort & Casino in Sonoma County, Calif.

Live Nation readies deal

Live Nation Entertainment has set a lender call for 11 a.m. ET on Tuesday to launch a $100 million incremental term loan B due November 2016 that is talked at Libor plus 300 bps with a 1.5% Libor floor and an original issue discount that is still to be determined, according to a market source.

The maturity, coupon and floor on the new debt matches that of the existing term loan B.

J.P. Morgan Securities LLC is leading the deal that will be used to redeem some of the 10¾% senior unsecured notes due 2016 at Ticketmaster.

Live Nation is a West Hollywood, Calif.-based provider of live music concerts and live entertainment ticketing sales and marketing services.

Town Sports launches

Town Sports International Holdings Inc. launched its $271 million term loan repricing as planned on Monday with talk of Libor plus 450 bps with a 1.25% Libor floor versus current pricing of Libor plus 550 bps with a 1.5% floor, according to a market source.

The repriced loan will have 101 soft call protection for one year.

Lenders were told on the conference call that commitments for the deal are due on Thursday, the source said.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and KeyBanc Capital Markets LLC are leading the transaction.

Town Sports is a New York-based owner and operator of fitness clubs.

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