Milacron breaks; Allison, MetroPCS, Revlon slide; Frac tweaks deal; Sensata, OneLink set talk

By Sara Rosenberg

New York, May 2 - Milacron LLC's term loan freed up for trading on Monday, and Allison Transmission Inc.'s term loan was a touch softer as the company's lender call turned out to be for an extension of its revolving credit facility.

Also, MetroPCS Wireless Inc. and Revlon Consumer Products Corp. saw their term loans head lower as both companies revealed refinancing plans.

Moving to the primary, Frac Tech International LLC added a step-down in spread to its term loan debt, while leaving all other terms unchanged, and Sensata Technologies BV and OneLink Communications came out with pricing guidance in connection with their launches.

Additionally, Rentech Energy Midwest Corp. began circulating talk on its upcoming deal, Chrysler Group LLC released details on size and tranching on its facility, and Metaldyne LLC emerged with plans to bring a new loan to market.

Milacron starts trading

Milacron's $140 million term loan (B1/B) hit the secondary market on Monday, with levels quoted at 99½ bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 600 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Bank of America Merrill Lynch is the lead bank on the deal that is being used to refinance notes, repay ABL revolving credit facility borrowings and fund an $85 million dividend payment.

Milacron is a Cincinnati-based company involved in plastics-processing technologies, metalworking fluids and precision machining.

Allison dips with call

Allison Transmission's term loan slid to 99¾ bid, par offered from 99 7/8 bid, par 1/8 offered as the company held its lender call in the morning, revealing that it is only looking to extend its revolver maturity at this time, according to a trader.

The revolver would be extended to August 2016 from 2013, sources said. The tranche is sized at $400 million, but as a result of the Lehman Brothers Holdings Inc. bankruptcy in 2008, the effective amount is $317.5 million due to Lehman's inability to fund its portion of the commitment.

While there is no extension to the term loan being proposed, the amendment would allow for the term loan's 2014 maturity to be extended at a later date and would reset the term loan buyback basket at $750 million.

Citigroup Global Markets Inc. is leading the deal for the Indianapolis-based automatic transmission company and is offering lenders a 15 bps amendment fee.

MetroPCS slips with add-on

MetroPCS' term loans were weaker as the company launched a $600 million incremental term loan due March 2018 via IntraLinks on Monday that is being led by J.P. Morgan Securities LLC, according to traders.

One trader had the term loan B-1 quoted at par bid, par 1/8 offered versus par bid, par ½ offered, the term loan B-2 quoted at par ¼ bid, par ¾ offered versus par 5/8 bid, 101 offered and the term loan B-3 quoted at par 3/8 bid, par 7/8 offered versus par ½ bid, par 7/8 offered.

A second trader, meanwhile, had the term loan B-1 quoted at par bid, par 1/8 offered, compared to par bid, par ½ offered, the term loan B-2 quoted at par ¼ bid, par 5/8 offered, compared to par 5/8 bid, 101 offered, and the term loan B-3 quoted at par 3/8 bid, par ¾ offered, compared to par ½ bid, par 7/8 offered.

MetroPCS add-on details

MetroPCS' add-on to its term loan B-3 was presented to lenders with talk Libor plus 375 bps with an original discount of 99 7/8 to par, and commitments are being sought by 3 p.m. ET on Thursday.

The $500 million B-3 loan was originally done in March at pricing of Libor plus 375 bps with no Libor floor and an original issue discount of 991/2, after being downsized from $1.5 billion, flexed up from Libor plus 350 bps and seeing the offer price widen from par.

Proceeds from the add-on will be used to repay the company's existing term loan B-1 due 2013 and for general corporate purposes, including opportunistic spectrum acquisitions. The repayment of the B-1 was supposed to happen when the B-3 was done in March, but was eliminated due to the downsizing.

Pricing on the B-1 was Libor plus 225 bps, but it was moved to Libor plus 382 bps due to Most Favored Nation language when the original term loan B-3 was completed.

MetroPCS, a Dallas-based provider of unlimited wireless communications service for a flat rate with no annual contract, expects to close on the add-on in mid-May.

Revlon softens with refi

Revlon Consumer Products' term loan dropped to par 1/8 bid, par 5/8 offered from par 3/8 bid, par 7/8 offered as the company scheduled a bank meeting for Wednesday to launch a refinancing of the debt, according to a trader.

The company will be launching a new $800 million term loan to replace the existing $800 million five-year term loan that was obtained in early 2010 at pricing of Libor plus 400 bps with a 2% Libor floor and sold at an original issue discount of 981/4.

Price talk on the new deal is not yet available.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC and Natixis are leading the new loan.

Revlon is a New York-based cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirants/deodorants and beauty care products company.

CHS steady with new offer

Community Health Systems Inc.'s extended and non-extended strip of debt held firm as the company increased its all-cash offer to acquire all outstanding shares of common stock of Tenet Healthcare Corp to $7.25 per share from $6 per share, according to traders.

The extended was quoted by one trader at 98 1/8 bid, 98 5/8 offered and the non-extended at 97 1/8 bid, 97 5/8 offered, and a second trader had the extended at 98 ¼ bid, 98 ¾ offered and the non-extended at 97 3/8 bid, 97 7/8 offered, with both claiming levels were flat from Friday.

The company said that the new offer is its best and final one, and if Tenet does not begin good-faith discussions regarding the proposal by May 9, the offer will expire.

As before, the company said that Credit Suisse and Goldman Sachs are highly confident that financing for the offer can be obtained in the capital markets.

CHS offer revised before

Community Health has already changed its buyout offer for Tenet once before with no success. In April, the company moved its offer to $6 per share in cash, from the $5 per share in cash and $1 per share in common stock that was proposed in November 2010.

The buyout bid has turned somewhat ugly over the past few months, with Tenet announcing in April that it was suing Community Health over allegations of overbilling Medicare and likely other payers as well by causing patients to be admitted to its hospitals unnecessarily when these patients should have been treated in outpatient observation status.

In response to the lawsuit, Community Health said that the allegations were without merit.

Community Health is a Franklin, Tenn.-based hospital company. Tenet is a Dallas-based health care services company.

Frac Tech adds step

Over in the primary market, Frac Tech International's $1.7 billion of term loans (B2/B+) now include a pricing step-down to Libor plus 450 bps, subject to the repayment of $500 million of the debt with initial public offering proceeds and leverage being under 2.0 times, according to a market source.

Other terms of the loans were left unchanged, including the Libor plus 475 basis points with a 1.5% Libor floor pricing and the 101 soft call protection for one year, the source said.

The debt is comprised of a $1.5 billion five-year funded term loan B and a $200 million delayed-draw term loan.

The funded term loan is offered at an original issue discount of 99, and the delayed-draw loan is being offered at 99¾ and includes a 250 bps unused fee. The delayed-draw will be sold at 99 if it's funded at closing.

Frac Tech shuts books

After announcing the changes in the morning, Frac Tech asked lenders to get their recommitments in by 1 p.m. ET on Monday, the source remarked.

Allocations are expected to go out on Tuesday, the source added.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of a controlling stake in Frac Tech Services LLC by an investor group including Temasek Holdings Ltd. and RRJ Capital from the Wilks family and to fund a dividend payment to Chesapeake Energy Corp., which owns 30% of Frac Tech.

Frac Tech is a Cisco, Texas-based oilfield service company.

Sensata reveals talk

Sensata Technologies held a bank meeting on Monday morning to kick off syndication on its proposed $1.45 billion credit facility, and with the event, price talk was disclosed, according to a market source.

The $250 million five-year revolver is being talked at Libor plus 325 bps to 350 bps with no Libor floor and an original issue discount of 991/2, and the $1.2 billion seven-year covenant-light term loan is being talked at Libor plus 350 bps to 375 bps with a 1% Libor floor and a par offer price, the source said.

When asked about some positives working in the deal's favor, allowing for the par price talk on a covenant-light loan, the source responded that aside from a large existing lender group, it's a "very strong credit story, well known [and] investors love the name."

Also on the list of positives is the company's "big market cap, lots of [free cash flow], moderate leverage, performed very well in downturn [and] great management team," the source added.

Sensata lead banks

Morgan Stanley & Co. Inc. and Barclays Capital Inc. are the joint lead arrangers on Sensata's credit facility, with Goldman Sachs & Co., BMO Capital Markets Corp. and RBC Capital Markets LLC bookrunners.

Proceeds will be used to repay existing term loans, 8% senior notes due 2014 and 9% senior subordinated notes due 2016 as well as for general corporate purposes. The tender offers for the notes expire on May 25.

Other funds for the refinancing will come from $600 million of new senior notes expected to price this week.

Sensata is an Attleboro, Mass.-based designer and manufacturer of sensors and controls.

OneLink guidance

OneLink Communications also launched with a bank meeting on Monday, at which time price talk on its first- and second-lien term loans surfaced as well, according to a market source.

The $345 million six-year first-lien term loan is being talked at Libor plus 375 bps to 400 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, and the $150 million seven-year second-lien term loan is being talked at Libor plus 650 bps to 700 bps with a 1.5% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company's $520 million credit facility also includes a $25 million five-year revolver.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. Inc. are the lead banks on the deal, with Citi the left lead on the revolver and fist-lien term loan, and J.P. the left lead on the second-lien loan.

OneLink Communications, a provider of cable services in the San Juan area in Puerto Rico, will used the new credit facility to refinance existing debt and fund a dividend.

Rentech floats pricing

Rentech Energy Midwest started telling lenders that its $170 million six-year term loan is being talked at Libor plus 650 bps with a 1.5% Libor floor, an original issue discount of 98 and call protection of 102 in year one and 101 in year two, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal that is set to launch with a bank meeting on Tuesday.

Proceeds will be used to refinance the company's 2010 senior secured credit facility and fund a dividend.

Rentech Energy is an East Dubuque, Ill.-based manufacturer and seller of nitrogen fertilizer products, and is a subsidiary of Los Angeles-based Rentech Inc., a provider of clean energy services.

Chrysler size emerges

Chrysler said in an 8-K filed with the Securities and Exchange Commission on Monday that its proposed senior secured credit facility will total $5 billion, consisting of a $3.5 billion six-year term loan and a $1.5 billion five-year revolver.

Timing on the deal surfaced last week as a bank meeting was scheduled for this Wednesday.

Morgan Stanley & Co. Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and Bank of America Merrill Lynch are the lead banks on the deal, with Morgan Stanley the left lead on the term loan and Citi the left lead on the revolver.

The company also said that it plans on issuing $2.5 billion of secured notes with eight- and 10-year maturities, proving prior rumors correct that there would be $6 billion of term loan and bond debt.

Chrysler repaying loans

Proceeds from Chrysler's credit facility and notes will be used to pay down all of its loans provided by the U.S. Department of the Treasury and the Canadian federal and Ontario governments.

Other funds for the repayment will come from $1.3 billion of proceeds from the recently announced exercise by Fiat of an option to acquire an incremental ownership interest in Chrysler.

Closing of the credit facility, debt offering and equity investment by Fiat are expected to occur concurrently in the second quarter.

Chrysler releases earnings

Also on Monday, Chrysler came out with preliminary financial results for the first quarter, including net Income of $116 million, compared to a net loss of $197 million in the previous year.

Net revenues for the quarter increased 35% to $13.124 billion, compared to $3.437 billion in the first quarter of 2010.

Modified EBITDA for the quarter was $1.171 billion, compared to $384 million last year.

And, free cash flow for the quarter totaled $2.5 billion.

Chrysler is an Auburn Hills, Mich.-based producer of Chrysler, Jeep, Dodge, Ram, Mopar and Fiat vehicles and products.

Metaldyne sets call

Metaldyne scheduled a lender call for 10 a.m. ET on Wednesday to launch a $355 million six-year term loan B that will include 101 soft call protection for six months, according to a market source, who said that price talk is not yet available.

Deutsche Bank Securities Inc. is the sole lead bank on the deal, which will be used to refinance existing debt, for general corporate purposes and for potential shareholder actions.

Commitments are due on May 12.

Metaldyne is a Plymouth, Mich.-based designer and supplier of metal-formed components and assemblies for engine and transmission applications.

Sourcecorp closes

In other news, Sourcecorp Inc., a Dallas-based provider of business process outsourcing and consulting services, completed its merger with HOV Services Inc., a Troy, Mich.-based end-to-end business process outsourcing company, according to a news release.

Funds for the transaction came from a new $625 million credit facility, consisting of a $75 million revolver (B1), a $350 million six-year first-lien term loan (B1) and a $200 million seven-year second-lien term loan (Caa2).

UBS Securities LLC, Credit Suisse Securities (USA) LLC and Jefferies & Co. acted as the lead banks on the deal.

Sourcecorp pricing

Sourcecorp's first-lien term loan (B1) is priced at Libor plus 537.5 bps with a 1.25% Libor floor and was sold at a discount of 97, while its second-lien term loan is priced at Libor plus 925 bps with a 1.25% floor and was sold at 96.

The first-lien has 101 soft call protection for one year and the second-lien is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, pricing on the first-lien term loan was lifted from revised talk of Libor plus 500 bps and from initial talk of Libor plus 425 bps, the discount widened from 991/2, the call protection and a 75% cash flow sweep were added, and the maturity was shortened from seven years.

As for the second-lien, pricing raised from revised talk of Libor plus 900 bps and initial talk of Libor plus 800 bps, the discount widened from 99, call protection moved from 102 in year one and 101 in year two, and the maturity shortened from eight years.

LNR wraps refi

LNR Property LLC completed its $365 million senior secured credit facility (Ba2/BB+) that was used to refinance existing bank debt, according to a news release.

The facility consists of a $40 million three-year revolver, and a $325 million five-year term loan B priced at Libor plus 350 bps with a 1.25% Libor floor that was sold at a discount of 99 3/8. The term loan includes 101 soft call protection for one year.

During syndication, pricing on the term loan was lowered from Libor plus 375 bps and the discount firmed from talk of 99 to 991/2.

Goldman Sachs & Co. and Bank of America Merrill Lynch acted as the joint lead arrangers and joint bookrunners on the deal.

LNR is a Miami-based diversified real estate, investment, finance and management company.

Verint completes loan

Verint Systems Inc. closed on its $770 million senior secured credit facility (B1/B+), consisting of a $600 million 61/2-year term loan and a $170 million five-year revolver, according to an 8-K filed with the SEC on Monday.

Pricing on the term loan and the revolver is Libor plus 325 bps with a 1.25% Libor floor. The term loan was sold at an original issue discount of 99½ and has 101 soft call protection for one year.

During syndication, the term loan was upsized from $580 million, pricing was lowered from talk of Libor plus 350 bps to 375 bps, the discount was tightened from 99 and the call protection was added. Also, the revolver was downsized from $200 million.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc. and HSBC acted as leads on the deal that was used by the Melville, N.Y., provider of actionable intelligence and value-added services to refinance existing debt.

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