Rite Aid, Weather tweak deals, break; Harvey Gulf, CTI Foods reworked; Yankee Candle pulled

By Sara Rosenberg

New York, June 13 - Rite Aid Corp. lowered the coupon on its second-lien term loan and then freed up for trading on Thursday, and Weather Co. (TWCC Holding Corp.) upsized its loan and tightened the original issue discount before breaking in the afternoon.

In more loan happenings, Harvey Gulf International Marine LLC reworked its deal, downsizing the term loan B while sweetening spread, original issue discount and call premiums, and adding a new term loan A to the capital structure.

Also, CTI Foods Holding Co. LLC modified the original issue discount on its second-lien term loan and added soft call protection to its first-lien tranche, and Yankee Candle Co. Inc. pulled its credit facility from market.

Furthermore, Technicolor (Tech Finance & Co S.C.A.), Four Seasons Hotels and Resorts, Oceania Cruises, FHC Health Systems and Polyconcept released talk as its deal was presented to investors during the session.

Rite Aid frees up

Rite Aid's $500 million eight-year second-lien term loan (B3/B-) hit the secondary market on Thursday, with levels seen at par ½ bid, 101¼ offered, according to a trader.

Pricing on the loan is Libor plus 387.5 basis points, after flexing down from Libor plus 425 bps. There is a 1% Libor floor and call protection of 102 in year one and 101 in year two, and the debt was issued at par.

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 with available cash and/or borrowings under the company's revolver to buyback $500 million of 7½% senior secured notes due 2017.

The notes tender offer will expire on July 5.

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

Weather starts trading

Weather Co.'s $625 million 71/2-year second-lien covenant-light term loan (B3/CCC+) also broke, with levels quoted at par ½ bid, 101½ offered, according to a market source.

Pricing on the loan is Libor plus 600 bps with a 1% Libor floor, and it was sold at a discount of 99. There is call protection of 102 in year one and 101 in year two.

Earlier in the day, the loan was upsized form $600 million and the discount was tightened from talk of 98 to 981/2.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp., Mizuho Securities USA Inc. and Natixis are leading the deal that will be used to fund a dividend.

Weather is an Atlanta-based media company devoted to bringing weather news via television, internet and mobile devices.

Harvey Gulf revises deal

Over in the primary, Harvey Gulf reduced the size of its seven-year covenant-light term loan B to $600 million from $750 million, lifted pricing to Libor plus 450 bps from guidance of Libor plus 325 bps to 350 bps and modified original issue discount guidance to 98 to 98½ from 99 to 991/2, according to a market source.

Additionally, the term loan B now has call protection of 102 in year one and 101 in year two, as opposed to just 101 soft call protection for one year.

As before, the B loan has a 1% Libor floor.

With the term loan B downsizing, a new $150 million five-year term loan A was added to the transaction, with talk on this tranche set at Libor plus 400 bps with a 1% Libor floor, the source said.

Amortization on the term loan B is 1% per annum, and amortization on the term loan A is 5% in year one, 10% in year two, 15% in year three, 20% in year four and 25% in year five.

Harvey Gulf sets deadline

Once the changes were announced to the market, Harvey Gulf gave lenders until 5 p.m. ET on Thursday to recommit to the deal, the source added.

Bank of America Merrill Lynch is leading the $750 million transaction (B1/B) that will be used to refinance existing debt and to fund the acquisition of vessels.

Harvey Gulf is a New Orleans-based marine transportation company that specializes in towing drilling rigs and providing offshore supply and multi-purpose support vessels for deepwater water operations.

CTI adjusts terms

CTI Foods widened the original issue discount on its $140 million eight-year second-lien term loan (Caa1/CCC+) to 98½ from 99, while keeping pricing at Libor plus 725 bps with a 1% Libor floor and the hard call protection at 102 in year one and 101 in year two, a market source said.

Also, the $345 million seven-year first-lien term loan B (B2/B) saw the addition of 101 soft call protection for six months, while pricing was left at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 991/2, the source continued.

Other changes to the deal included increasing the excess cash flow sweep, making the incremental term loan test more restrictive and removing the MFN sunset provision.

The company's $585 million credit facility also includes a $100 million ABL revolver.

Morgan Stanley Senior Funding Inc., Goldman Sachs Banks USA, Barclays and Sumitomo leading the deal that will help fund the buyout of the company by Thomas H. Lee Partners LP and Goldman Sachs & Co. from Littlejohn & Co. LLC.

Closing is expected this quarter.

CTI is a Wilder, Idaho-based provider of food products to national chain restaurants.

Yankee Candle withdrawn

Yankee Candle decided to pull its $1,125,000,000 senior secured credit facility from market, according to a source.

The facility consisted of a $175 million five-year amended ABL revolver, and a $950 million seven-year first-lien term loan (B1/B) talked at Libor plus 300 bps to 325 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Barclays and Bank of America Merrill Lynch were leading the deal that was going to be used with $450 million of notes to fund a distribution to equity holders and to refinance all existing debt.

The notes offering was withdrawn as well, the source added.

Yankee Candle is a South Deerfield, Mass.-based designer, manufacturer, wholesaler and retailer of scented candles.

Technicolor reveals talk

Also on the new deal front, Technicolor held its New York bank meeting on Thursday, launching its $645 million and €250 million seven-year term loan B (B3/B) with price talk of Libor/Euribor plus 475 bps to 500 bps with a 1.25% floor and an original issue discount of 99, according to a market source.

A London bank meeting for the deal will be taking place on Tuesday.

As previously reported, the term loan B has soft call protection of 102 for one year then 101 for an additional six months.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with $330 million of senior notes to refinance existing senior secured debt.

Commitments are due on June 25 and closing is targeted for July.

Technicolor is a technology company focused on the media and entertainment sector.

Four Seasons pricing

Four Seasons Hotels came out with structure on its $1.1 billion credit facility as the deal was presented to lenders in the afternoon, according to a market source.

The deal includes a $100 million revolver (B1/BB-), $750 million seven-year first-lien term loan (B1/BB-) talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and a $250 million 71/2-year second-lien term loan (Caa1/B-) talked at Libor plus 600 bps to 625 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source said.

Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the deal for which commitments are due on June 20.

Proceeds will be used to refinance existing debt.

Four Seasons is a Toronto-based luxury hotels company.

Oceania discloses guidance

Oceania Cruises launched its $300 million seven-year term loan B, and talk on the deal came out at Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 991/2, according to a market source.

Deutsche Bank Securities Inc., Barclays, UBS Securities LLC and HSBC Securities (USA) Inc. are leading the $375 million credit facility (B2/B), which also includes a $75 million revolver.

Proceeds will be used to refinance existing bank debt.

Oceania Cruises is a Miami-based upper premium cruise line.

FHC Health spread emerges

FHC Health Systems announced spread talk of Libor plus 475 bps on its $140 million 41/2-year term loan that launched during the session, according to a market source.

Prior to the bank meeting, it was already disclosed that the loan would have a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

The company's $165 million credit facility also includes a $25 million revolver.

Commitments are due on June 25, the source remarked.

UBS Securities LLC is leading the deal that 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.

Polyconcept holds call

Polyconcept launched with a call at 3:30 p.m. ET a $395 million credit facility (Ba3/B) that will be used to refinance an existing senior secured credit facility, according to a market source.

The facility consists of an $80 million revolver, and a $315 million six-year first-lien term loan talked at Libor plus 450 bps to 475 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

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

Polyconcept is a Netherlands-based promotional products supplier.

Jazz closes

In other news, Jazz Pharmaceuticals completed its $757,187,500 senior secured credit facility, according to an 8-K filed with the Securities and Exchange Commission.

The facility consists of a $200 million revolver (including a $100 million add-on) due June 2017 that is priced at Libor plus 225 bps with no Libor floor, and was offered with a 37.5 bps upfront fee on new money, and a $557,187,500 term loan (including a $100 million add-on) due June 2018 that is priced at Libor plus 275 bps with a 0.75% Libor floor, and was issued at par.

The term loan has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the high end of the Libor plus 250 bps to 275 bps talk.

Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC led the deal that was used to refinance an existing credit facility and for general corporate purposes.

Jazz Pharmaceuticals is a Dublin, Ireland-based specialty biopharmaceutical company.

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