Revlon, Mitel, Waste Industries, Arizona Chemical, NEP break; Clear Channel up with paydown

By Sara Rosenberg

New York, Feb. 21 - Revlon Consumer Products Corp., Mitel Networks Corp., Waste Industries USA Inc., Arizona Chemical Inc. and NEP Broadcasting LLC all made their way into the secondary during Thursday's market hours.

Also in trading, Clear Channel Communications Inc.'s term loan B was better as the company disclosed that it will be repaying some bank debt with notes proceeds, Avis Budget Car Rental LLC's term loan C softened on refinancing news, and Revel AC Inc.'s term loan B retreated.

Switching to the primary, Aramark Corp. upsized its term loan, and Albertson's LLC increased its term loan size, while trimming the coupon as well as the original issue discount and shortening the call protection.

Furthermore, Epicor Software Corp. set talk with launch, and Schaeffler AG (INA Beteiligungs GmbH) and Sorenson Communications Inc. announced new deal plans.

Revlon frees up

Revlon's $675 million senior secured term loan B due Nov. 19, 2017 hit the secondary market on Thursday, with levels quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the loan is Libor plus 300 basis points with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Citigroup Global Markets Inc. led the deal that was used with some proceeds from a $500 million senior notes offering to refinance a $788 million term loan priced at Libor plus 350 bps with a 1.25% Libor floor.

The notes are also being used to fund a tender for the company's 9¾% senior secured notes due 2015 and to repay all the contributed portion of a senior subordinated term loan at maturity in October 2013.

Revlon is a New York-based cosmetics and accessories company.

Mitel emerges in secondary

Mitel Networks' credit facility broke for trading, with the $200 million six-year first-lien term loan (B1/B+) quoted at 99½ bid, par offered, a trader said.

Pricing on the first-lien loan is Libor plus 575 bps, after firming at the tight end of the Libor plus 575 bps to 600 bps talk. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 99, following a tightening from 981/2.

The company's $320 million credit facility also provides for a $40 million five-year revolver (B1/B+), and an $80 million seven-year second-lien term loan (Caa1/CCC+) that is priced at Libor plus 975 bps with a 1.25% Libor floor, and is non-callable for one year then at 102 in year two and 101 in year three.

Bank of America Merrill Lynch, RBC Capital Markets LLC and KKR Capital are leading the deal.

Mitel, a Kanata, Ont.-based provider of business communications and collaboration software and services, will use the new credit facility to refinance existing debt.

Waste tops par

Waste Industries' $515 million term loan (B1/B+) due March 2017 freed up too, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

The loan is priced at Libor plus 300 bps with a 1% Libor floor, and was issued at par. There is 101 soft call protection for six months.

Bank of America Merrill Lynch is the lead bank on the deal that is being used to reprice a $415 million term loan from Libor plus 350 bps with a 1.25% Libor floor, and the remaining $100 million is being used to pay down revolver borrowings.

Waste Industries is a Raleigh, N.C.-based solid waste services company.

Arizona Chemical breaks

Arizona Chemical's $533 million term loan also began trading, with levels quoted at par ¾ bid, 101¾ offered, according to a market source.

Pricing on the term loan is Libor plus 400 bps with a 1.25% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Goldman Sachs & Co. is leading the deal that is being used to reprice an existing term loan from Libor plus 575 bps with a 1.5% Libor floor.

Existing lenders are getting paid out at 101 with this transaction.

Arizona Chemical is a Jacksonville, Fla., supplier of pine chemicals to the adhesives, inks and coatings and oleochemicals markets.

NEP begins trading

Another deal to break was NEP Broadcasting's $530 million covenant-light seven-year first-lien term loan (B1/B), with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the loan is Libor plus 350 bps with a 1.25% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

Barclays and Morgan Stanley Senior Funding Inc. lead the deal that is being used to reprice the existing $470 million first-lien term loan from Libor plus 400 bps with a 1.25% Libor floor and pay down $60 million of second-lien term loan borrowings.

First-lien leverage is 4.6 times and total leverage is 5.2 times.

NEP is a Pittsburgh-based provider of outsourced teleproduction services critical to the delivery of live sports and entertainment events.

Clear Channel rises

In more trading happenings, Clear Channel's term loan B moved up to 86½ bid, 87½ offered from 86¼ bid, 87¼ offered after the company said that it will be repaying its $847 million term loan A in full, according to a trader.

Funds for the term loan A paydown will come from a new $575 million notes offering, which was upsized from $500 million, cash on hand and borrowings under the company's receivables-based credit facility.

With the news, the term loan A was bid higher with levels quoted at 99½ bid, par offered, versus 99¼ bid, par offered previously, the trader added.

Clear Channel is a San Antonio-based media and entertainment company.

Avis C loan slides

Avis' term loan C fell to 99¾ bid, par ½ offered from par ¾ bid, 101¼ offered as word emerged in the morning that the company would be taking the debt out with a new term loan B, according to a trader.

The new $900 million term loan B due March 2019 will also be used to fund a portion of the Zipcar Inc. purchase price of $12.25 per share. The total transaction value is about $500 million.

Price talk on the B loan, which launched with a call in the afternoon, is Libor plus 275 bps with a 1% Libor floor and a par offer price, and the debt includes 101 soft call protection for one year.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the deal.

Closing on the acquisition is expected in the spring, subject to approval by Zipcar shareholders and other customary conditions.

Avis is a Parsippany, N.J.-based provider of vehicle rental services. Zipcar is a Cambridge, Mass.-based car sharing network. Following the acquisition, Zipcar will move its headquarters to Boston.

Revel loses ground

Revel's term loan B dropped during Thursday's market hours to 34½ bid, 36½ offered from 36 bid, 38 offered, according to a market source.

The company recently announced plans for a pre-packaged Chapter 11 filing that has been approved by a majority of its lenders. Prior to the late Tuesday news, the loan was quoted at 37 bid, 39 offered, and first thing Wednesday morning levels moved up to 41 bid, 43 offered, but they started falling from those highs shortly thereafter.

Under the bankruptcy plan, credit facility lenders will convert their claims on a pro rata basis into a new secured super-priority priming debtor-in-possession credit facility that will be repaid in full by an exit facility, and term loan lenders will receive their pro rata share of 100% of new common equity to be issued by the reorganized company.

Also, holders of the company's 12% second-lien notes will receive their pro rata share of $70 million of new notes.

Revel is an Atlantic City, N.J.-based gaming and entertainment company.

Aramark lifts size

Over in the primary, Aramark increased its senior secured term loan (B1/BB-) due August 2019 to $1.4 billion from $1 billion, while keeping the Libor plus 300 bps with a 1% Libor floor and original issue discount of 99½ pricing and the 101 soft call protection for six months intact, according to a market source.

In addition, the secured leverage test for spin off of "designated business" was revised to 4.9 times from 4.75 times, the source remarked.

Lead banks, J.P. Morgan Securities LLC, Goldman Sachs & Co., Barclays, Bank of America Merrill Lynch and Wells Fargo Securities LLC, were seeking recommitments by 3 p.m. ET on Thursday.

Proceeds will be used to repurchase all of OpCo's 8½% senior notes due February 2015, instead of just some as was previously expected, and now a portion of its floating-rate notes due February 2015 will be retired as well.

The company is also looking to amend its $550 million revolver to extend the maturity, change the maximum senior secured leverage ratio and gain flexibility with respect to restricted payments.

Aramark is a Philadelphia-based professional services company that provides food, hospitality and facility management services as well as uniform and work apparel.

Albertson's reworks deal

Albertson's raised its term loan B (BB-) to $1.15 billion from $1.05 billion, cut pricing to Libor plus 450 bps from Libor plus 500 bps, revised the original issue discount to 99½ from 99 and shortened the 101 soft call protection to six months from one year, according to a market source. The 1.25% Libor floor was unchanged.

Commitments are due at noon ET on Friday, moved up from 5 p.m. ET on Friday, the source said.

The food and drug retailer's now $2.15 billion credit facility also includes a $1 billion ABL revolver, and as a result of the term loan upsizing, less will be drawn on the revolver at close.

Citigroup Global Markets Inc., BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that will be used to help fund the acquisition of 877 Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores from SuperValu Inc. for $100 million in cash plus the assumption of about $3.2 billion in debt.

Closing is expected this quarter, subject to customary closing conditions and financing.

Epicor reveals talk

Epicor Software launched on Thursday a repricing of its $860 million term loan due May 16, 2018 that is talked at Libor plus 325 bps with a 1.25% Libor floor, versus current pricing of Libor plus 375 bps with a 1.25% Libor floor, according to a market source.

The repriced loan is talked with an offer price of 99¾ to par and has 101 soft call protection for six months, the source said.

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

Epicor is a Dublin, Calif.-based provider of enterprise business software services.

Schaeffler on deck

Schaeffler set a lender call for 10 a.m. ET on Friday to launch a U.S. and euro term loan C due January 2017 that will be used to refinance a $1.5 billion term loan B2 and a €500 million term loan B2, according to a market source.

Talk on the U.S. term loan C is Libor plus 325 bps and the euro term loan C is talked at Euribor plus 375 bps, with both having a 1% floor, an original issue discount of 99½ and 101 soft call protection for six months, the source said.

Commitments are due on March 1.

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

Lenders are invited to a cashless roll-over of their existing commitments under the term loan B2 into the new term loan C, and if there is enough demand, the company will increase the size of the term loan C and use the extra proceeds to prepay its term loan A and/or term loan B1.

Schaeffler is a Herzogenaurach, Germany-based manufacturer of bearings for autos & industrial OEMs.

Sorenson readies loan

Sorenson Communications scheduled a call for 11 a.m. ET on Friday to launch a $500 million term loan B due Oct. 31, 2014 that will be used to repay an existing term loan, according to a market source.

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

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.

Rite Aid closes

In other news, Rite Aid Corp. completed its $3,426,000,000 credit facility that consists of a $1,161,000,000 seven-year first-lien tranche 6 term loan (B1/B+), a $470 million 71/2-year second-lien term loan (B3/B-) and a $1,795,000,000 five-year revolver (B1), according to a news release.

Pricing on the first-lien term loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at par. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 475 bps with a 1% Libor floor, and was sold at par. The debt has hard call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien term loan was upsized from $900 million and pricing was flexed from Libor plus 325 bps with a 1.25% and a discount of 991/2. Also, the second-lien term loan saw pricing reduced from Libor plus 500 bps with a 1.25% floor and a discount of 99. And, the revolver was upsized from $1,725,000,000.

Rite Aid lead banks

Wells Fargo Securities LLC, Citigroup Global Markets Inc., Bank of America Merrill Lynch, GE Capital Markets, Goldman Sachs & Co. and Morgan Stanley Senior Funding Inc. were the bookrunners on Rite Aid's deal, with Wells Fargo the left lead on the revolver and first-lien term loan, and Citigroup the left lead on the second-lien term loan. Citigroup is the administrative agent on the entire deal.

Proceeds are being used to refinance an existing $1.04 billion term loan due 2014 and a $331.7 million tranche 5 term loan due 2018 and fund cash tender offers for $410 million of 9¾% senior secured notes due 2016, $470 million of 10 3/8% senior secured notes due 2016 and $180.3 million of 6 7/8% senior debentures due 2013.

Rite Aid is a Camp Hill, Pa.-based drugstore chain.

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