Knology, Burlington, Edwards, U.S. TelePacific break; AccentCare revises size, pricing

By Sara Rosenberg

New York, Feb. 18 - Knology Inc. increased the size of its bank deal and then proceeded to free up for trading, and Burlington Coat Factory Warehouse Corp., Edwards Ltd. and U.S. TelePacific hit the secondary market as well.

In more loan happenings, AccentCare Inc. made some changes to its credit facility, including upsizing the revolver, adding a delayed-draw tranche and reducing the spread and original issue discount, and Global Cash Access Inc. increased its deal size.

Furthermore, Rock-Tenn Co. firmed timing on the launch of its multi-billion credit facility and some pricing guidance began circulating on the transaction, and Universal Health Services Inc. and Sinclair Television Group Inc. surfaced with plans for new deals.

Knology ups A loan

Knology made its upsizing official, lifting the size of its term loan A to $195 million from $175 million, according to a market source. Talk of the size increase emerged a few days ago when pricing updates went out, but it was still just a contemplated change at that time and it was unknown which tranche would be upsized.

Pricing on the term loan A due February 2016 is Libor plus 300 bps, following a recent flex from Libor plus 325 bps, with no Libor floor and a par offer price.

The company is also getting a $545 million term loan B due August 2017 priced at Libor plus 300 bps, with a 1% Libor floor, that was recently tightened from 1.5%, a par offer price and 101 soft call protection for one year.

Knology starts trading

With tranche sizes established, Knology was able to break its deal for trading, with the term loan B quoted at par ½ bid, 101 offered on the open and then it moved to par ½ bid, par ¾ offered, according to a trader.

Proceeds from the new term loan debt will be used to refinance the company's existing $545 million term loan B and $175 million term loan A that are priced at Libor plus 400 bps. The existing B loan has a 1.5% Libor floor and was sold at an original issue discount of 99 when it was obtained in October to fund the acquisition of Sunflower Broadband and to refinance existing debt.

Additionally, the proceeds from the incremental funds that are being raised through the A loan upsizing will be used to add cash to the balance sheet.

Credit Suisse is the lead bank on the new deal (B1).

Knology is a West Point, Ga.-based provider of interactive communications and entertainment services.

Burlington frees up

Burlington Coat Factory's $1 billion term loan (B3/B-/B-) also made its was into the secondary market on Friday, with levels quoted at par 1/8 bid, par ½ offered on the open and then it moved up to par 5/8 bid, par 7/8 offered, according to traders.

Pricing on the term loan is Libor plus 475 bps 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.

Proceeds, along with $450 million of senior notes (upsized from $400 million), will be used to repay a term loan that had about $853 million outstanding at Oct. 30, to repurchase $305 million of 11 1/8% senior notes and roughly $99 million of 14½% senior discount notes, to fund a dividend and for general corporate purposes.

As a result of the change in the size of the bond deal, the dividend payment is being increased by $50 million.

Burlington lead banks

J. P. Morgan, Goldman Sachs, Bank of America Merrill Lynch and Wells Fargo are the lead banks on Burlington Coat Factory's credit facility

The company had already tried to get a $1 billion term loan and $500 million notes offering done in November, but that financing was pulled because of changing market conditions and less favorable pricing.

Price talk on the loan last year had been Libor plus 525 bps with a 1.75% Libor floor and an original issue discount of 981/2.

Burlington Coat Factory is a Burlington, N.J.-based discount retailer.

Edwards breaks

Yet another deal to start trading was Edwards' roughly $695 million term loan (B3/B+) due May 2016, with levels quoted at par 7/8 bid, 101 3/8 offered on the break and then it moved to par ¾ bid, 101¼ offered, according to traders.

Pricing on the term loan is Libor plus 400 bps with a step-down to Libor plus 375 bps at net secured leverage of 2.0 times. The loan includes a 1.5% Libor floor and 101 soft call protection for one year and was sold at an original issue discount of 991/2.

During syndication, pricing was reduced from Libor plus 425 bps, the step-down and call protection were added, and the discount tightened from 99.

Deutsche Bank and J.P. Morgan are leading the deal that is being used to refinance debt, including a term loan that is basically being amended and extended through this new deal, and to fund a dividend.

Edwards is a Crawley, England-based supplier of vacuum and abatement equipment and services.

U.S. TelePacific tops par

In addition, Los Angeles-based competitive local exchange carrier U.S. TelePacific saw its $435 million six-year term loan break on Friday, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the loan is Libor plus 450 bps, after flexing from Libor plus 500 bps, with a 1.25% Libor floor, and it was sold at par, after tightening from the initially proposed discount of 991/2. There is 101 soft call protection for one year.

Credit Suisse, Deutsche Bank and Bank of America Merrill Lynch are the lead banks on the $460 million credit facility (B3/B-) that also includes a $25 million five-year revolver and will be used to refinance existing debt.

Early last year, the company got a $25 million revolver and a $370 million 51/2-year first-lien term loan priced at Libor plus 725 bps with a 2% Libor floor. The revolver was sold at an original issue discount of 98. The term loan is being repaid at par since the 101 soft call is expiring.

AccentCare reworks deal

Moving back to the primary, AccentCare upsized its revolving credit facility to $30 million from $25 million, added a $15 million delayed-draw term loan and changed the pricing and discount, according to a market source.

The revolver, new delayed-draw term loan and a $180 million funded term loan, which was always part of the capital structure, are priced at Libor plus 425 bps with a 1.5% Libor floor and an original issue discount of 991/2, the source said. By comparison, at launch, the revolver and funded term loan were talked at Libor plus 500 bps with a 1.5% floor and a discount of 981/2.

Furthermore, in connection with the flex, the term loan saw the addition of 101 soft call protection for one year, the source remarked.

And, there were also some minor covenant tweaks made to the credit facility, the source added.

AccentCare being acquired

Proceeds from AccentCare's credit facility will be used to help fund the acquisition of the company by Oak Hill Capital Partners, and the delayed-draw term loan will be available for acquisitions.

Following the buyout, the company will be merged with Guardian Home Care Holdings Inc., a Brentwood, Tenn.-based provider of homecare and hospice services that was recently acquired by Oak Hill from Friedman Fleischer & Lowe.

GE Capital, Bank of Ireland and CIT are the joint lead arrangers on the $225 million senior secured credit facility, up from $205 million, and are asking for recommitments by Tuesday.

AccentCare is an Irvine, Calif.-based provider of home health care services.

Global Cash lifts size

Global Cash Access Inc. upsized its term loan B to $210 million from $205 million and its revolving credit facility to $35 million from $30 million, according to a market source.

As was previously reported, pricing on the term loan B is Libor plus 550 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

Earlier in syndication, pricing on the B loan was reduced from talk of Libor plus 600 bps to 625 bps, the Libor floor was trimmed from 1.75%, the original issue discount was moved to 99 to 99½ from just 99 before firming at the tight end of that revised guidance, and call protection was added.

Deutsche Bank and Wells Fargo are the lead banks on the now $245 million credit facility (B1/BB-), up from $235 million, that will be used to refinance existing debt.

Global Cash Access is a Las Vegas-based provider of cash access services to the gaming industry.

Rock-Tenn sets launch

Rock-Tenn has scheduled a bank meeting for Thursday to launch its proposed $3.7 billion senior credit facility that consists of a $1.2 billion five-year revolver, a $1.25 billion five-year term loan A and a $1.25 billion six-year term loan B, according to a market source.

Of the total revolver amount, $632 million is expected to be drawn at close.

The deal has already gone through a senior managing agent round, which was expected to wrap up by the end of the day Friday.

Wells Fargo, SunTrust, Rabobank, Bank of America Merrill Lynch and J.P. Morgan are the lead banks on the deal, with Wells Fargo the left lead.

By comparison, when the company first announced the commitment for the credit facility, only Wells Fargo, SunTrust and Rabobank were names as leads on the deal.

Rock-Tenn floats guidance

Rock-Tenn's revolver and term loan A are being talked at Libor plus 200 bps, the source remarked, and while official talk is not yet available on the term loan B, all in pricing is expected to come in the sub-4% area, he added.

Proceeds will be used to help fund the acquisition of Smurfit-Stone Container Corp. in a transaction valued at $3.5 billion, consisting of $1.8 billion of cash and the issuance of 30.9 million shares of common stock, and to refinance Smurfit-Stone and some Rock-Tenn debt.

Pro forma leverage will be 2.76 times.

Closing is expected in the second quarter, subject to customary conditions, regulatory approvals, and approval by both Rock-Tenn and Smurfit-Stone stockholders.

Rock-Tenn is a Norcross, Ga.-based manufacturer of paperboard, containerboard and consumer and corrugated packaging. Smurfit-Stone is a Chicago-based containerboard and corrugated packaging producer, and a paper recycler.

Universal Health readies deal

Universal Health Services is set to hold a lender call at 2 p.m. ET on Tuesday to launch a $3.45 billion credit facility that is being led by J.P. Morgan, according to a market source.

The facility consists of an $800 million revolver due Nov. 15, 2015, a $1.05 billion term loan A due Nov. 15, 2015 and a $1.6 billion term loan B due Nov. 15, 2016, the source said, adding that price talk is not yet available.

Proceeds will be used to refinance existing debt.

Universal Health is a King of Prussia, Pa.-based health care management company.

Sinclair coming soon

Sinclair Television Group has scheduled a lender call for Tuesday to launch a $100 million term loan A and a $240 million term loan B, according to a market source.

J.P. Morgan is the lead bank on the $340 million deal that will be used to refinance existing debt.

In August 2010, the company got a $270 million term loan B priced at Libor plus 400 bps with a 1.5% Libor floor, that was sold at an original issue discount of 99½ and includes 101 soft call protection for one year. It was used to repay an existing B loan.

As of Sept. 30, there was about $264 million outstanding under the term loan B.

Sinclair is a Hunt Valley, Md.-based television broadcasting company.

NBTY nets interest

In other news, NBTY Inc.'s $1.9 billion credit facility was heard to be "going very well" ahead of Friday's commitment deadline, according to a market source.

The facility, which consists of a $150 million revolver due Oct. 1, 2015 and a $1.75 billion covenant-light term loan due Oct. 1, 2017, is talked at Libor plus 325 bps with a 1.5% Libor floor.

The revolver is being offered with a 50 bps upfront fee for commitments of $20 million or more and a 37.5 bps upfront fee for commitments of less than $20 million, and the term loan is being offered at par and includes 101 soft call protection for six months.

Barclays, Bank of America Merrill Lynch and Credit Suisse are the lead banks on the deal.

NBTY refinancing debt

Proceeds from NBTY's credit facility will be used to refinance an existing $250 million revolver, a $1.5 billion term loan B and a $250 million term loan A.

The existing credit facility was obtained in October to help fund the company's buyout by the Carlyle Group.

Pricing on the existing B loan, which is not covenant-light, is Libor plus 450 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 99. There is a step-down to Libor plus 425 bps upon a leverage test being met. Pricing on the existing revolver and term loan A is Libor plus 425 bps with a 1.75% Libor floor.

NBTY, a Ronkonkoma, N.Y.-based manufacturer and marketer of nutritional supplements, expects to close on the refinancing during its second fiscal quarter.

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