Local TV breaks; Cannery, Sheridan shutting early; ADS, Ollie's, Burger King tweak deals

By Sara Rosenberg

New York, Sept. 24 - Local TV Finance LLC's incremental term loan freed up for trading on Monday above its original issue discount price, Terex Corp. was down on refinancing news and Allison Transmission Inc. was a touch weaker as an add-on loan was launched.

Over in the primary, Cannery Casino Resorts LLC and Sheridan Production Partners moved up the commitment deadlines on their well-received credit facilities, ADS Waste Holdings Inc. upsized and reverse flexed its term B, and Ollie's Bargain Outlet and Burger King Corp. lowered the coupon on their term loans.

Additionally, Univar Inc., Savers Inc. and RPI Finance Trust (Royalty Pharma) set talk on their loans with launch, Rexnord LLC, National Mentor Holdings Inc., Tank Holding Corp. and Harron Communications LP announced repricing plans, and Cricket Communications Inc. and Gray Television Inc. revealed that they will be bringing new deals to market.

Local TV hits secondary

Local TV's $70 million incremental covenant-light term loan broke for trading on Monday, with levels quoted at par ½ bid, 101 offered, according to a trader. The add-on debt trades with the existing term loan.

Pricing on the new debt is Libor plus 400 basis points, in line with existing term loan pricing, and it was sold at an original issue discount of 993/4.

UBS Securities LLC is leading the deal that will be used to fund a dividend.

Local TV is a Fort Wright, Ky.-based television station operator.

Terex retreats

Also in trading, Terex's U.S. term loan fell to par bid, par ¾ offered, from par ¾ bid, 101¼ offered, following the launch of a refinancing in which lenders will get repaid at par, according to a market source.

The company held a call in the afternoon to launch a roughly $460 million term loan that is talked at Libor plus 350 bps with a 1% Libor floor and a roughly €200 million term loan that is talked at Euribor plus 400 bps with a 1% floor.

The debt will reprice an existing U.S. term loan that is priced at Libor plus 400 bps with a 1.5% Libor floor and an existing euro term loan that is priced at Euribor plus 450 bps with a 1.5% floor.

Lead bank, Credit Suisse Securities (USA) LLC, is seeking commitments for the refinancing/repricing by 5 p.m. ET on Oct. 1, the source added.

Terex is a Westport, Conn.-based diversified manufacturer.

Allison softens

Allison Transmission's non-extended and extended term loans were quoted at par bid, par ½ offered, down about an eighth of a point on the day as the company launched a $250 million add-on term loan B-3, according to a trader.

Proceeds will be used to repay some non-extended term loan borrowings, which is why the non-extended loan moved closer to par in trading, the trader said, adding that the extended debt was lower because of the addition of the new fungible debt.

The add-on is priced at Libor plus 325 bps with a 1% Libor floor, in line with existing term loan pricing, and, like the existing, has 101 soft call protection through August 2013.

Investors are being offered the add-on term loan at an original issue discount of 993/4.

Commitments for the Bank of America Merrill Lynch-led deal are due on Tuesday.

Allison is an Indianapolis-based automatic transmission company.

Infor trades atop par

Infor (US) Inc.'s $2.79 billion term loan B-2 due April 5, 2018 was seen at par 1/8 bid, par 5/8 offered in the secondary market on Monday, after breaking late Friday at par bid, par ½ offered, according to a trader.

The loan, which was upsized from $750 million last week, is priced at Libor plus 400 bps with a 1.25% Libor floor, and was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, Barclays and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds will be used to refinance the company's existing U.S. term loan B debt that is priced at Libor plus 500 bps with a 1.25% Libor floor. Initially, only a portion of the existing loan was going to be repaid, as a result of the upsizing, the entire loan is getting taken out.

Infor is a New York-based provider of business software.

Cannery revises deadline

Moving to the primary, Cannery Casino, a Las Vegas-based owner and operator of hotels and casinos, accelerated the commitment deadline on its $565 million credit facility to Tuesday from end of day Thursday, a market source said.

The facility consists of a $40 million five-year revolver (B2/BB-), a $350 million six-year first-lien term loan (B2/BB-) and a $175 million seven-year second-lien term loan (Caa2/CCC+).

With its Sept. 13 bank meeting, talk on the first-lien term loan came out at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99, and talk on the second-lien term loan came out at Libor plus 900 bps with a 1.25% floor and a discount of 98.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three, the source added.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Macquarie Capital are leading the deal that will be used to repay bank debt and some PIK preferred stock.

Sheridan moves up timing

Sheridan Production Partners also revised its commitment deadline, moving it to Monday from Tuesday, according to a market source.

The deal includes an $800 million seven-year term loan priced at Libor plus 400 bps and a $100 million six-year term loan priced at Libor plus 350 bps, with both tranches having a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Last week, pricing on the seven-year loan firmed at the low end of the Libor plus 400 bps to 425 bps guidance, and the six-year loan was added to the capital structure.

UBS Securities LLC, Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the $900 million deal that will be used to refinance existing debt.

Allocations are expected on Tuesday and closing is targeted for Thursday, the source added.

Sheridan Production Partners is a Houston-based oil and gas production company.

ADS reworks loan

ADS Waste upsized its seven-year covenant-light term loan B to $1.8 billion from $1.65 billion and reduced pricing to Libor plus 400 basis points from Libor plus 450 bps, according to sources, who said the 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were left unchanged.

Recommitments are due at noon ET on Tuesday, versus the prior deadline of this coming Thursday, sources continued.

The $2.1 billion credit facility (B1/B+) also provides for a $300 million revolver that is being offered with a 100 bps upfront fee for orders of $15 million.

Deutsche Bank Securities, Inc., Macquarie Capital, UBS Securities LLC, Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are leading the deal.

ADS buying Veolia

Proceeds from ADS Waste's credit facility, along with $550 million of senior notes that were downsized from $700 million, will fund the roughly $1.9 billion acquisition of Veolia ES Solid Waste Inc. from Veolia Environmental Services North America Corp.

Through this transaction, Star Atlantic Waste Holdings LP, a Highstar Capital portfolio company, will combine its existing investments in Advanced Disposal Services Inc. and Interstate Waste Services Inc. with the acquired Veolia operations, and the combined business will operate as Advanced Disposal Services.

Secured leverage is 4.3 times and total leverage is 5.6 times, sources added.

Closing is expected this fall, subject to customary regulatory approvals.

ADS Waste is a Jacksonville, Fla.-based provider of integrated, non-hazardous solid waste collection, transfer, recycling and disposal services.

Ollie's flexes

Ollie's Bargain Outlet revised pricing on its $225 million term loan (B2/B) to Libor plus 500 bps from Libor plus 550 bps, while leaving the 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a source.

The company is also getting a $75 million asset-based revolver as part of its $300 million senior secured credit facility.

Jefferies Finance LLC, M&T Bank and KeyBanc Capital Markets are leading the deal that is expected to allocate later this week, the source remarked.

Proceeds from the term loan, $25 million drawn under the revolver and about $465 million in new and rollover equity, will fund the roughly $700 million buyout of the company by CCMP Capital Advisors LLC's from KarpReilly LLC.

Ollie's Bargain Outlet, a Harrisburg, Pa.-based retailer of closeouts, excess inventory and salvage merchandise, will have total leverage in the low-to-mid 4 times area.

Burger King cuts spread

Burger King reduced pricing on its term loan B due 2019 to Libor plus 275 bps from Libor plus 300 bps and added 101 soft call protection for one year, according to a market source. The 1% Libor floor and original issue discount of 99¾ are unchanged.

The company's credit facility (Ba3/BB) also provides for a term loan A due 2017 and a revolver due Oct. 19, 2015.

Sizes on the term loan A and term loan B will be finalized prior to close, the source said.

Commitments are due at noon ET on Tuesday.

J.P. Morgan Securities LLC, Barclays and Bank of America Merrill Lynch are leading the deal that will be used to refinance about $1.73 billion of existing term loan B borrowings.

Burger King is a Miami-based fast food hamburger chain.

Univar discloses talk

In more primary happenings, Univar held a call on Monday to launch a $500 million to $550 million covenant-light term loan, and price talk came out at Libor plus 350 bps with a 1.5% Libor floor and an original issue discount of 99.01, sources said.

The coupon and Libor floor are in line with existing term loan pricing.

Bank of America Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Univar is a Redmond, Wash.-based distributor of industrial and specialty chemicals.

Savers launches

Savers launched with a call its $715 million covenant-light term loan C with talk of Libor plus 375 bps with a 1.25% Libor floor and 101 soft call protection for one year, according to a market source.

The $655 million that is being used to refinance an existing term loan is offered at par and the $60 million that will fund a small acquisition is offered at a discount of 991/2, the source said.

Pricing on the existing term loan that is being repaid at 101 is Libor plus 500 bps with a 1.25% Libor floor.

Goldman Sachs & Co., the lead bank on the deal, is asking for commitments by 10 a.m. ET on Friday.

Savers is a Bellevue, Wash.-based thrift-store chain.

RPI Finance guidance

RPI Finance Trust launched a repricing of its $840.1 million 51/4-year term loan that is talked at Libor plus 250 bps to 275 bps with a 0.75% Libor floor, versus current pricing of Libor plus 275 bps with a 1% Libor floor, a source said.

Also, the company is asking to reprice its $1.878 billion 63/4-year term loan at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, compared to current pricing of Libor plus 300 bps with a 1% Libor floor, the source remarked.

Both repriced loans are being offered at par and commitments are due by 5 p.m. ET on Thursday.

Bank of America Merrill Lynch, Goldman Sachs & Co. and Citigroup Global Markets Inc. are leading the deal.

RPI Finance is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

Rexnord deal surfaces

Rexnord scheduled a call for Tuesday to launch a repricing of its $950 million covenant-light first-lien term loan that will take the spread down to Libor plus 350 bps from Libor plus 400 bps, while leaving the 1% Libor floor intact, according to a market source.

The repriced loan will have 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal.

With the repricing, existing lenders are getting paid off at par, the source added.

Rexnord is a Milwaukee-based industrial company comprised of two strategic platforms: process & motion control and water management.

National Mentor meeting

National Mentor scheduled a bank meeting for 10:30 a.m. ET on Thursday in New York to launch a repricing of its roughly $530 million term loan that currently carries a rate of Libor plus 525 bps with a 1.75% Libor floor, according to a market source.

UBS Securities LLC is leading the deal.

National Mentor is a Boston-based provider of home and community-based health and human services.

Tank readies call

Tank Holding emerged with plans to hold a conference call on Tuesday to launch a repricing of its $355 million covenant-light term loan down from current pricing of Libor plus 550 bps with a 1.25% Libor floor, according to a market source.

GE Capital Markets is the lead bank on the deal.

Tank Holding is a Lincoln, Neb.-based manufacturer of polyethylene and steel material handling products.

Harron repricing

Harron Communications LP will also host a call on Tuesday to launch a repricing, under which the company is looking to take down pricing on its roughly $250 million term loan B to Libor plus 375 bps with a 1.25% Libor floor from Libor plus 400 bps with a 1.5% Libor floor, according to a market source.

When first done in 2011, the loan was priced at Libor plus 375 bps, but upon doing a bond deal in March 2012, pricing was raised to Libor plus 400 bps because of the leverage increase, the source said.

SunTrust Robinson Humphrey Inc. is the lead bank on the repriced loan, which will be offered to investors at par.

Harron Communications is a Frazer, Pa.-based provider of digital television, high speed internet, digital phone and business services.

Cricket coming soon

Cricket Communications scheduled a bank meeting for Thursday to launch a $400 million term loan (Ba2/B+) that will be used to refinance $300 million of outstanding 10% senior notes due 2015 and for general corporate purposes, according to sources.

Deutsche Bank Securities Inc., UBS Securities LLC and Bank of America Merrill Lynch are leading the deal that is expected to close in October.

Cricket is a subsidiary of Leap Wireless International Inc., a San Diego-based provider of digital wireless services.

Gray plans refinancing

Gray Television scheduled a conference call for Thursday to launch a proposed $665 million senior secured credit facility that consists of a $40 million revolver and a $625 million term loan, according to a market source.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are leading the deal.

Proceeds, along with a $300 million senior notes offering that was upsized from $250 million, will be used to refinance existing bank debt, repurchase up to $225 million of 10½% senior secured second-lien notes due 2015 and redeem Series D perpetual preferred stock.

The tender offer for the notes will expire on Oct. 22.

Gray Television is an Atlanta-based television broadcast company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.