Electronic Funds, Tallgrass break; Swift, Gray, EFIH; Phillips-Medisize, Peak 10 set talk

By Sara Rosenberg

New York, May 29 - Electronic Funds Source LLC's (WP Mustang Holdings LLC) credit facility freed up for trading on Thursday, with both the first- and second-lien term loans quoted above their original issue discount prices, and Tallgrass Operations LLC broke too.

Moving to the primary, Swift Transportation Co., Gray Television Inc., Energy Future Intermediate Holding Co. LLC (EFIH Finance Inc.), Phillips-Medisize Corp., Peak 10 Inc., Ameriforge Group Inc. and Schrader International Inc. disclosed talk with launch.

Also, the Hillman Group Inc. revealed timing on its credit facility, structure and launch date was disclosed on Shearer's Foods LLC debt transaction, and DaVita Healthcare Partners Inc., Brickman Group Ltd. LLC and Mergermarket USA Inc. emerged with new deal plans.

Electronic Funds frees up

Electronic Funds Source's credit facility began trading on Thursday, with the $500 million seven-year first-lien covenant-light term loan (B) quoted at par ¼ bid, 101 offered and the $250 million eight-year second-lien covenant-light term loan (CCC+) quoted at 98 bid, 99 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 450 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor and was issued at a discount of 97. There is call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien term loan was upsized from $495 million, pricing was increased from talk of Libor plus 375 bps to 400 bps and the call protection was extended from six months, and the spread on the second-lien term loan was lifted from talk of Libor plus 700 bps to 725 bps, the discount widened from 99 and the call protection was sweetened from 102 in year one and 101 in year two.

Electronic Funds revolver

In addition to the term loans, Electronic Funds Source's $850 million credit facility includes a $100 million revolver (B).

Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal, with Goldman the left lead on the first-lien and Credit Suisse left lead on the second-lien.

Proceeds will be used to help fund the buyout of the company by Warburg Pincus from an investor group including First Data Transportation Services Inc., CTP Holdings LLC and FJ Management Inc.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

Electronic Funds Source is a provider of payments services.

Tallgrass starts trading

Tallgrass' repriced $206 million delayed-draw term loan due Nov. 13, 2017 hit the secondary too, with levels seen at par ½ bid, 101 offered, a trader remarked.

Pricing on the delayed-draw loan is Libor plus 300 bps with a 0.75% Libor floor and it was issued at par. There is 101 soft call protection for one year after being extended from six months during syndication.

Pricing on this loan is being reduced from Libor plus 400 bps with a 0.75% Libor floor.

The company is also getting a repriced $200 million revolver due Nov. 13, 2017 at Libor plus 300 bps that was issued at par. Pricing on this tranche is being taken down from Libor plus 400 bps.

Initially, the company was also looking to reprice its $718.4 million term loan B due Nov. 13, 2018, but that part of the transaction was withdrawn. The term B repricing was talked at Libor plus 300 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, versus current pricing of Libor plus 325 bps with a 1% Libor floor.

Barclays is leading the deal for the Overland Park, Kan.-based midstream energy assets company.

US Ecology trades

In more secondary news, US Ecology Inc.'s $415 million seven-year term loan was quoted at par 3/8 bid, par 5/8 offered, after breaking for trading during the previous session, according to a market source.

The term loan is priced at Libor plus 300 bps with a 0.75% Libor floor and was issued at 993/4. The debt includes 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from Libor plus 325 bps and the discount was tightened from 991/2.

The company's $540 million credit facility (Ba3/BB+) also provides for a $125 million five-year revolver.

Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal that allocated on Wednesday.

US Ecology buying EQ

Proceeds from US Ecology's credit facility will be used to help fund the $465 million acquisition of EQ-The Environmental Quality Co. from Kinderhook Industries LLC.

Closing is expected this quarter or next quarter, subject to customary conditions, and a purchase price adjustment based on working capital.

Leverage will be around 3.3 times 2013 pro forma combined company EBITDA.

US Ecology is a Boise, Idaho-based provider of radioactive, hazardous, PCB and non-hazardous industrial waste management and recycling services. EQ is a Wayne, Mich.-based fully integrated environmental services and waste management company.

Swift releases talk

Over in the primary, Swift Transportation had its call on Thursday morning, and with the event, talk on its $1.35 billion senior secured credit facility (Ba2/BB-) was announced, according to a market source.

Talk on the $450 million revolver and $450 million delayed-draw term loan A emerged at Libor plus 200 bps, and talk on the $450 million term loan B is Libor plus 300 bps with a 1% Libor floor and an original issue discount of 991/2, the source remarked.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., RBC Capital Markets, Citigroup Global Markets Inc. and PNC Capital Markets LLC are leading the deal that will be used to refinance an existing senior secured credit facility and the delayed-draw loan will be used to redeem 10% senior secured second-lien notes on or before Dec. 31.

Commitments are due on June 5 and closing is targeted for June 9.

Swift is a Phoenix-based transportation services company and truckload carrier.

Gray reveals pricing

Gray Television set talk on its $500 million term loan at Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99½ in connection with its afternoon lender call, a source said.

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

Commitments for the company's $550 million senior secured credit facility (Ba3), which also includes a $50 million revolver, are due on June 6, the source added.

Wells Fargo Securities LLC, Bank of America Merrill Lynch and RBC Capital Markets are leading the deal that will be used to refinance existing debt and complete pending acquisitions.

Closing is expected on or before June 30.

Gray Television is an Atlanta-based owner and operator of television stations and digital assets.

EFIH holds call

Energy Future Intermediate Holding held its call on Thursday, launching its $1,325,000,000 24-month superpriority first-lien debtor-in-possession term loan with talk of Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., RBC Capital Markets and Union Bank are leading the deal that will be used to fund Chapter 11 expenses, to refinance existing first-lien notes, for adequate protection payments, working capital and general corporate purposes and to comply with any legal and/or regulatory requirements.

Energy Future is a Dallas-based power generation company and utility operator.

Phillips talk emerges

Phillips-Medisize launched its $365 million first-lien covenant-light term loan (B2/B) with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Also, the company's $170 million second-lien covenant-light term loan (Caa2/CCC+) was launched at Libor plus 750 bps to 775 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company's $605 million credit facility also provides for a $70 million revolver (B2/B).

Goldman Sachs Bank USA, UBS Securities LLC and Jefferies Finance LLC are leading the deal that will be used to help fund the buyout of the company by Golden Gate Capital from Kohlberg & Co. LLC.

The acquisition is subject to customary regulatory approvals and is expected to close in the coming months.

Phillips-Medisize is a Hudson, Wis.-based provider of design and manufacturing services to the pharmaceutical, medical device, diagnostic and specialty commercial markets.

Peak 10 launches

Peak 10 came out with talk of Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99 on its $330 million seven-year first-lien covenant-light term loan (B), and talk of Libor plus 750 bps with a 1% Libor floor and a discount of 99 on its $130 million eight-year second-lien covenant-light term loan (CCC+) that launched with a bank meeting during the session, according to a market source.

As previously reported, the first-lien term loan has 101 soft call protection for six months, and the second-lien loan has call protection of 102 in year one and 101 in year two.

The company's $525 million credit facility also includes a $65 million revolver (B).

Commitments are due on June 12.

Peak 10 lead banks

Credit Suisse Securities (USA) LLC, RBC Capital Markets and Jefferies Finance LLC are leading Peak 10's credit facility, with Credit Suisse left lead on the first-lien and RBC left lead on the second-lien.

Proceeds will be used to help fund the buyout of the company by GI Partners from Welsh, Carson, Anderson & Stowe.

Closing is expected this quarter, subject to regulatory approvals and customary conditions.

Peak 10 is a Charlotte, N.C.-based IT infrastructure and cloud provider.

Ameriforge guidance

Ameriforge held its call in the morning, launching its $65 million add-on first-lien covenant-light term loan due Dec. 19, 2019 with talk of Libor plus 375 bps with a 1.25% Libor floor and an original issue discount in the 99½ area, and its $35 million add-on second-lien covenant-light term loan due Dec. 19, 2020 with talk of Libor plus 750 bps with a 1.25% Libor floor and a premium in the 101 area, a source said.

Spreads and floors on the add-on debt are in line with the existing first- and second-lien term loans.

The company is also seeking an amendment to its credit facility and offering lenders a 12.5 bps consent fee.

Consents are due at 5 p.m. ET on June 5 and new money commitments are due at noon ET on June 9.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, RBC Capital Markets LLC, UBS AG and BNP Paribas Securities Corp. are leading the $100 million deal that will fund the acquisition of VerdErg.

Ameriforge is a Houston-based manufacturer of highly engineered products, subassemblies and integrated systems for the oil and gas, midstream, downstream, power generation, aerospace, transportation and industrial markets. VerdErg is a UK-based supplier of diverless connector systems.

Schrader OID

Schrader launched in the morning its fungible $80 million incremental covenant-light first-lien term loan due April 27, 2018 with original issue discount talk of 991/2, according to a market source.

Pricing on the incremental loan is talked at Libor plus 400 bps with a 1% Libor floor and step-downs in spread after Dec. 31 to Libor plus 375 bps when net first-lien leverage is 4 times and Libor plus 350 bps when net first-lien leverage is 3.5 times. The company is also seeking an amendment that would add the pricing step-downs to its existing $256.2 million first-lien term loan that is currently priced at Libor plus 400 bps with a 1% Libor floor, the source said.

In addition, the incremental loan is talked with 101 soft call protection for six months, which will also pertain to the existing first-lien term loan.

Proceeds from the incremental debt will be used to refinance the company's existing $75 million second-lien term loan.

Schrader amendment

Along with adding the pricing grid to the existing first-lien term loan, Schrader's proposed credit facility amendment would allow for the second-lien refinancing and permit unlimited incremental loans if net first-lien leverage is 4 times, the source continued.

Lenders are being offered a 25 bps amendment fee.

Commitments are due on June 5, the source added.

Barclays is leading the deal.

Schrader is a manufacturer of tire pressure monitoring systems, valve products and tire hardware and related accessories for both original equipment manufacturers and aftermarket customers.

Hillman sets meeting

Hillman came out with timing on its $680 million senior secured credit facility, setting the bank meeting to launch the deal for 1 p.m. ET on Monday, a market source said.

The facility includes a $70 million five-year revolver and a $610 million seven-year covenant-light term loan.

Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with $270 million of eight-year senior unsecured notes and about $545 million of equity to fund the $1,475,000,000 buyout of the company by CCMP Capital Advisors LLC from Oak Hill Capital Partners.

Senior secured leverage is 4.6 times and total opco leverage is 6.5 times, the source added.

Closing is expected this quarter or next quarter, subject to regulatory approvals and customary conditions.

Hillman is a Cincinnati-based distributor of fasteners, key duplication systems, engraved tags and related hardware items.

Shearer's details surface

Shearer's Foods set a bank meeting for 1 p.m. ET in New York on Monday to launch a $590 million credit facility that consists of a $75 million ABL revolver, a $290 million seven-year first-lien covenant-light term loan and a $225 million eight-year second-lien covenant-light term loan, according to a market source.

Commitments are due on June 16, the source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS AG are leading the deal that will fund the $430 million acquisition of Private Brands and two manufacturing facilities from Snyder's-Lance Inc.

Previously, the company said that it had a debt commitment in place to fund the acquisition, but specifics were unavailable.

Closing is expected this quarter, subject to regulatory approvals, financing and customary conditions.

Shearer's Foods is a Massillon, Ohio-based national contract manufacturing and private label supplier in the snack industry. Private Brands is a Massillon, Ohio-based provider of private label snacks.

DaVita coming soon

DaVita Healthcare Partners scheduled a bank meeting for 10 a.m. ET on Tuesday to launch a $5.5 billion credit facility, according to a market source.

The facility consists of a $1 billion five-year revolver, a $1 billion five-year term loan A and a $3.5 billion seven-year term loan B, the source said.

Barclays and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt and for general corporate purposes.

DaVita Healthcare is a provider of kidney and dialysis services.

Brickman readies deal

Brickman Group plans to hold a bank meeting at 11 a.m. ET on Wednesday to launch $825 million of bank debt, according to a market source.

The debt consists of a $100 million revolver and a $725 million incremental first-lien term loan that will be fungible with the company's existing $735 million covenant-light first-lien term loan due in 2020 and priced at Libor plus 300 bps with a 1% Libor floor, the source said.

Jefferies Finance LLC, Macquarie Capital (USA) Inc., Mizuho Bank, Sumitomo Mitsui Banking Corp., Nomura, and KKR Capital Markets are leading the deal.

Proceeds will be used to help fund the acquisition of ValleyCrest Cos. LLC, a Calabasas, Calif.-based landscape services company, from MSD Capital LP.

Brickman is a Rockville, Md.-based provider of landscape maintenance and snow removal services that is owned by KKR. Following the close, which is expected mid-year, KKR will have majority ownership of the combined company and MSD Capital will retain a significant minority ownership interest.

Mergermarket on deck

Mergermarket will hold a call on Monday to launch a roughly $45 million add-on first-lien term loan due Feb. 4, 2021, according to a market source.

Pricing on the add-on matches the existing first-lien term loan at Libor plus 350 bps with a 1% Libor floor, the source said, adding that the original issue discount is still to be determined.

UBS AG is leading the deal that will be used to fund the acquisition of Perfect Information Ltd., a provider of workflow solutions and financial information to the corporate finance market.

Mergermarket is a provider of corporate financial news, intelligence and analysis with headquarters in New York, London and Hong Kong.

Choice Cable allocates

In other news, Choice Cable's $41.5 million five-year second-lien term loan allocated on Thursday, a market source said.

Pricing on the second-lien loan, which was recently upsized from $33.5 million, is Libor plus 850 bps with a 1% Libor floor and it was sold at an original issue discount of 981/2. There is call protection of 102 in year one and 101 in year two.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to fund a dividend.

Leverage is 5.45 times.

With this transaction, the Puerto Rico-based cable operator sought an amendment to its existing credit facility to allow for the new second-lien term loan and to revise covenants, and, in exchange, lenders received a 25 bps amendment fee.

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