American Stock, Genpact, Contech, ABB break; Rite Aid shutting early; Quicksilver reworked

By Sara Rosenberg

New York, June 11 - American Stock Transfer & Trust Co. LLC's credit facility freed up for trading on Tuesday, with levels on the first-lien term loan quoted above its original issue discount price, and Genpact International Inc., Contech Engineered Solutions LLC and ABB Concise Inc. broke as well.

Over in the primary, Rite Aid Corp. moved up the commitment deadline on its term loan, and Quicksilver Resources Inc. lifted the size of its second-lien term loan and widened the original issue discount.

Also, Federal-Mogul Corp. and Nine Entertainment Group Pty Ltd. released price talk as their deals were presented to lenders during the session.

Furthermore, Genworth Wealth Management came out with the timing and structure on its buyout deal, Fotolia LLC is getting ready to market its loans in the United States, and FHC Health Systems and American Casino & Entertainment Properties LLC joined this week's calendar.

American Stock tops OID

American Stock Transfer & Trust's credit facility broke for trading on Tuesday, with the $300 million seven-year first-lien term loan (B2) quoted at 99¾ bid, par ½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 450 basis points, after finalizing at the wide end of the Libor plus 425 bps to 450 bps talk. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was issued at 99.

The company's $578 million credit facility also includes a $20 million five-year revolver (B2), a $180 million 71/2-year second-lien term loan (Caa1) priced at Libor plus 900 bps with a 1.25% Libor floor and a $78 million eight-year PIK holdco term loan priced at 15%.

The second-lien loan was issued at 98 and is non-callable for two years, then at 104 in year three and 102 in year four, and the PIK loan was issued at 96 and is non-callable for three years, then at 103 in year four.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are leading the deal that is being used by the Brooklyn, N.Y.-based provider of stock transfer and employee plan services to refinance existing debt.

Genpact frees up

Genpact' credit facility began trading too, with the $675 million covenant-light term loan B due Aug. 30, 2019 quoted at par ½ bid, 101 offered, according to a market source.

Pricing on the B loan is Libor plus 275 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99½ on new money only. There is 101 soft call protection for six months.

During syndication, the term B was downsized from $875 million and pricing was lifted from Libor plus 250 bps.

The company's $925 million senior secured credit facility also includes a $250 million revolver due Aug. 30, 2017 that is priced at Libor plus 250 bps and was issued at par.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Agricole CIB, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will used to refinance existing debt. The funds that were taken out of the term loan B were going to be used for general corporate purposes.

Closing is expected to take place on Friday.

Genpact is a Hamilton, Bermuda-based provider of business process management services.

Contech starts trading

Contech Engineered Solutions' $150 million six-year term loan (B3/BB-) also hit the secondary market, with levels seen at 99 bid, par offered, according to a market source.

Pricing on the loan is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 981/2. There is 101 soft call protection for one year.

During syndication, the discount on the term loan firmed at the middle of the 98 to 99 guidance.

Goldman Sachs Bank USA is leading the deal that will be used to refinance existing debt.

Contech is a West Chester, Ohio-based provider of engineering and site services for the residential, commercial and infrastructure markets.

ABB Concise breaks

Another deal to free up was ABB Concise's $275 million term loan B, with levels quoted at par bid, par 3/8 offered, according to a trader.

Pricing on the loan is Libor plus 350 bps, after firming at the wide end of the Libor plus 325 bps to 350 bps talk. There is a 1% Libor floor and the debt was issued at par.

Bank of America Merrill Lynch is leading the deal that is being used to reprice an existing term loan B from Libor plus 425 bps with a 1.25% Libor floor.

ABB Concise is a Coral Springs, Fla.-based optical distributor, operating as an independent source of marketing and logistics services for eye care professionals, retailers and manufacturers.

Rite Aid revises deadline

Moving to the primary, Rite Aid accelerated the commitment deadline on its $500 million eight-year second-lien term loan (B3/B-) to 5 p.m. ET on Wednesday from Thursday, a market source said.

The loan is talked at Libor plus 425 bps with a 1% Libor floor, a par offer price and call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC, GE Capital Markets and Goldman Sachs Bank (USA) are leading the deal that will be used by the Camp Hill, Pa.-based drugstore chain to fund a tender offer for its $500 million 7½% senior secured notes due 2017.

Other funds for the refinancing will come from available cash and/or borrowings under the company's revolving credit facility.

The tender offer will expire on July 5.

Quicksilver tweaks deal

Quicksilver Resources raised its six-year second-lien covenant-light term loan (B2/CCC+) to $625 million from $600 million and changed the original issue discount to 97 from 99, while leaving pricing at Libor plus 575 bps with a 1.25% Libor floor, according to a market source.

The loan still has soft call protection of 102 in year one and 101 in year two.

Recommitments were due at 5 p.m. ET on Tuesday, the source said.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners on the deal, with Credit Suisse and JPMorgan the co-lead arrangers.

Proceeds, along with new notes, will be used to fund a tender for 2015 and 2016 notes, and for general corporate purposes.

The notes offering was downsized to $525 million, split between $200 million second-lien notes and $325 million senior notes, from an original plan of $875 million, split between $200 million second-lien notes and $675 million senior notes.

Quicksilver is a Fort Worth, Texas-based natural gas and oil exploration and production company.

Federal-Mogul guidance

Also on the new deal front, Federal-Mogul held its bank meeting on Tuesday morning, launching its $1.75 billion seven-year covenant-light term loan B with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

The company's $2.3 billion senior secured credit facility also includes a $550 million asset-based revolver.

Lead bank, Citigroup Global Markets Inc., is asking for commitments by June 19.

Proceeds, along with $750 million of senior notes, will be used to refinance existing debt.

Federal-Mogul is a Southfield, Mich.-based supplier of powertrain and safety technologies.

Nine Entertainment sets talk

Nine Entertainment revealed guidance of Libor plus 275 bps with a 0.75% Libor floor and an original issue discount of 99¾ on its U.S. equivalent of an A$100 million senior secured term loan due Feb. 5, 2020 that launched with a call in the morning, according to a market source.

UBS Securities LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Nomura are leading the deal.

Proceeds will be used by the Australian diversified media and entertainment group for general corporate purposes and to fund the acquisition of WIN Adelaide.

Home Loan launches

Home Loan Servicing Solutions Ltd. held its bank meeting in the morning to launch its $350 million seven-year senior secured covenant-light term loan B (Ba3) and asked lender to get their commitments in by June 20, according to an 8-K filed with the Securities and Exchange Commission.

As previously reported, talk on the loan is Libor plus 300 bps to 325 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to acquire mortgage servicing assets and fund advance reserves.

Closing is targeted for June 27.

Home Loan Servicing is a Cayman Islands-based acquirer of high-quality mortgage servicing assets.

Genworth details emerge

Genworth Wealth Management scheduled a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $255 million credit facility that is now known to include a $25 million five-year revolver and a $230 million seven-year first-lien term loan, according to a market source.

The term loan has 101 soft call protection for one year, the source said. Price talk is not yet available.

Commitments are due on June 26.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the company's $412.5 million buyout by Genstar Capital LLC and Aquiline Capital Partners LLC from Genworth Financial Inc.

Genworth is a Richmond, Va.-based product provider in the wealth management industry.

Fotolia coming soon

Fotolia set a bank meeting in New York on Wednesday to launch $300 million in term loans, according to a market source. A London bank meeting already took place on Tuesday.

The debt consists of a $200 million seven-year first-lien term loan (Ba3/B) and a $100 million 71/2-year euro equivalent second-lien term loan (Caa1/CCC+), the source said.

Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to refinance existing debt, fund a dividend and put cash on the balance sheet.

Fotolia is a New York-based provider of royalty-free images, vectors, illustrations and video footage clips.

FHC Health readies

FHC Health Systems is planning on holding a bank meeting at 10:30 a.m. ET on Thursday to launch a $165 million credit facility that is being led by UBS Securities LLC, according to a market source.

The facility consists of a $25 million revolver and a $140 million 41/2-year term loan talked with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

Guidance on the term loan spread has not yet been revealed, the source added.

Proceeds will be used to refinance existing debt and for general corporate purposes.

FHC Health is a Norfolk, Va.-based behavioral health care and wellness company.

American Casino on deck

American Casino & Entertainment Properties set a bank meeting for 1:30 p.m. ET on Wednesday to launch a $350 million credit facility, which will be used to refinance $337.5 million of outstanding 11% senior secured notes due 2014 in a tender offer that expires on July 5, according to a market source.

The facility consists of a $15 million five-year revolver (B1/BB), a $215 millions seven-year first-lien term loan (B1/BB) with 101 soft call protection for one year, and a $120 million 71/2-year second-lien term loan (Caa2/B-) that is non-callable for one year, then at 102 in year two and 101 in year three, the source remarked.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the transaction.

American Casino is a Las Vegas-based owner and operator of gaming and entertainment properties.

Integra closes

In other news, Integra Telecom completed the repricing of its $585 million first lien term loan due 2019 to Libor plus 400 bps with a 1.25% Libor floor and its $60 million revolver to Libor plus 375 bps, according to a news release.

The repricing brought spreads on both tranches down by 75 bps.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey Inc. led the deal.

Integra Telecom is a Portland, Ore., fiber-based telecommunications carrier.

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