Insight Global breaks; Rock Ohio tweaks deal, frees up; SNL Financial sweetens pricing

By Sara Rosenberg

New York, Aug. 11 - Insight Global Inc.'s credit facility allocated and made its way into the secondary market on Thursday afternoon, with the term loan quoted above its new money original issue discount price.

In more loan happenings, Rock Ohio Caesars LLC raised the spread and discount on its term loan and, as a result of the larger-than-expected expenses, increased the loan size. After firming the new structure, the debt broke for trading right around its revised discount price.

Another deal to come out with modifications to its term loan was SNL Financial LC, as it beefed up pricing, the Libor floor and original issue discount and added some more call protection.

Insight Global hits secondary

Insight Global's credit facility freed up for trading on Thursday, with the $157 million term loan B quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the B loan is Libor plus 500 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 99½ on new money.

The company's $177 million credit facility (B1/B+) also includes a $20 million revolver.

The deal was oversubscribed, but remained at initial terms. At one point, it was thought that some issuer-friendly changes might be made, but those never came to fruition as a result of market conditions.

BNP Paribas Securities Corp. is the lead bank on the deal that will be used to refinance senior and mezzanine debt.

Pro forma leverage at the Atlanta-based information technology employment firm is 2.95 times.

Rock Ohio ups size

Rock Ohio Caesars revised its term loan size to $150 million from $125 million to account for an increase in interest expense and original issue discount that resulted from a concurrent pricing flex, according to a market source.

Pricing on the term loan is now Libor plus 700 bps with a 1.5% Libor floor and an original issue discount of 97, compared to initial talk of Libor plus 650 bps with a 1.5% floor and a discount of 98, the source said.

As before, the term loan is non-callable for two years, then at 102 in year three and 101 in year four were left unchanged.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Citadel Securities LLC are the lead banks on the deal.

Rock Ohio breaks

Once the revised structure on Rock Ohio firmed up, the term loan emerged in the secondary market with levels of 97 bid, 98 offered, according to a trader.

In addition to the new term loan, Rock Ohio sold $380 million of 12 1/8% second-lien notes that priced on Thursday at 98.266 to yield 12½%.

Also, the company is getting a $62.5 million 12-month delayed-draw term loan and a $62.5 million 18-month delayed-draw term loan, both of which were not syndicated.

Proceeds from the debt financing will be used to help fund the development of casinos in Cleveland and Cincinnati.

Rock Ohio is a joint venture formed by Rock Gaming LLC and Caesars Entertainment Corp.

Clement holds steady

Clement Pappas and Co. Inc.'s $230 million six-year term loan B (B2) held at 99 bid, 99½ offered, in line with where it broke for trading late Wednesday, according to a market source.

Pricing on the term loan is Libor plus 525 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The company's $280 million facility also includes a $50 million five-year ABL revolver.

Jefferies & Co. and BMO Capital Markets Corp. are the lead banks on the deal that will be used to help fund the buyout of the company by Lassonde Industries Inc. for $390 million.

Pro forma for the transaction, senior leverage is around 4.25 times.

Clement Pappas is a Carneys Point, N.J.-based producer of store brand ready-to-drink fruit juices, drinks and sauces. Lassonde is a Quebec-based developer, manufacturer and marketer of fruit and vegetable juices and drinks as well as specialty food products.

SNL Financial reworks deal

Back over in the primary, SNL Financial revised pricing, the Libor floor, original issue discount and call protection on its $175 million seven-year covenant-light term loan to make it more appealing to investors in this market, according to a source.

The term loan is now priced at Libor plus 700 bps with a 1.5% Libor floor and an original issue discount of 97 versus initial talk of Libor plus 600 bps with a 1.25% floor and a discount of 99, the source said. And, the 101 soft call protection has been extended to two years from one year.

Credit Suisse Securities (USA) LLC is the lead bank on the $205 million credit facility (B2/B+), which also includes a $30 million five-year revolver and will be used to help fund the buyout of the company by New Mountain Capital LLC.

SNL is a Charlottesville, Va.-based provider of sector-focused information services on the banking, financial services, insurance, real estate, energy and media & communications industries.

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