First Data, Jazz trade lower; Dematic, SeaStar break; PharMEDium, AlixPartners update deals

By Sara Rosenberg

New York, Jan. 21 - First Data Corp.'s 2017 term loan headed lower in trading on Tuesday as the company launched a repricing and/or extension of the debt, Jazz Pharmaceuticals Inc. dipped with repricing news, and Dematic and SeaStar Solutions hit the secondary market.

Over in the primary, PharMEDium Healthcare Corp. upsized its first-lien term loan while cutting pricing and its second-lien term loan saw its spread and original issue discount tighten. AlixPartners LLP finalized the spread on its term loan B-2 at the low end of guidance.

In addition, Bob's Discount Furniture Inc., Tower Automotive Holdings USA LLC, DAE Aviation Holdings Inc., National Financial Partners Corp. and TCW Group set talk with launch, and Ikaria Inc. and PeroxyChem (FMC Peroxygens) revealed talk ahead of their bank meetings.

Furthermore, Southwire Co. revised its launch plans to a conference call from a bank meeting, and ExGen Renewables I LLC, Taminco Corp. and Mediacom LLC joined this week's calendar.

First Data slides

First Data's U.S. term loan due in March 2017 softened on news of a repricing/extension request that lenders can opt out of at par and be replaced by new commitments, according to a market source.

The term loan was quoted at par bid, par ½ offered, down from par 5/8 bid, 101 1/8 offered, the source said.

Under the proposal, the company is looking to reprice its $2,494,000,000 U.S. and $183 million euro March 2017 term loans at talk of Libor plus 325 basis points to 350 bps with no Libor floor and a par offer price from current pricing of Libor plus 400 bps with no Libor floor, or extend the term loan debt to March 2021 from March 2017 and keep the Libor plus 400 bps pricing plus get a 0 to 12.5 bps upfront fee, the source said. Lenders can choose either option.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal for which commitments are due at 4 p.m. ET on Thursday, the source added.

First Data is a Greenwood Village, Colo.-based provider of electronic commerce and payment services.

Jazz softens

Jazz Pharmaceuticals' term loan fell to par 1/8 bid, par 5/8 offered from par ¼ bid, par ¾ offered as the company revealed that it is now looking to reprice its existing $554.4 million term loan due June 12, 2018 to Libor plus 250 bps from Libor plus 275 bps, a trader said. The repricing is offered at par.

Also, it was announced that the company's incremental term loan due June 12, 2018 was decreased to $350 million from $400 million and the spread was trimmed to Libor plus 250 bps from Libor plus 275 bps, while the original issue discount was left at 991/2, a source remarked.

The fungible $904.4 million of term loan debt still has a 0.75% Libor floor and 101 soft call protection for six months.

Meanwhile, the company's incremental revolver due June 12, 2017 was increased to $225 million from $175 million. Pricing was left at Libor plus 250 bps with no Libor floor and the upfront fee is still 30 bps for a $20 million commitment and 20 bps for a commitment less than $20 million, a market source said.

Jazz deadline

Recommitments for Jazz's incremental loans and commitments for the repricing are due on Wednesday, the source added.

Barclays, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the deal (Ba3/BB+).

Proceeds from the incremental bank debt and cash on hand will fund the acquisition of Gentium SpA for $57.00 per share in a transaction that is valued at about $1 billion.

Closing is expected this quarter, subject to at least 66.67% of the fully diluted number of ordinary shares and ADS of Gentium being tendered in the offer, and customary conditions.

Jazz is a Dublin, Ireland-based specialty biopharmaceutical company. Gentium is a Como, Italy-based biopharmaceutical company.

Dematic frees up

Also in the secondary, Dematic's $585 million first-lien covenant-light term loan due Dec. 28, 2019 broke, with levels quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor and there is 101 soft call protection for six months. Of the total term loan amount, $50 million is a tack-on that was sold at a discount of 99½ and the remainder is a repricing of an existing term loan from Libor plus 400 bps with a 1.25% Libor floor that was sold at par.

Proceeds from the tack-on, which was upsized from $35 million during syndication, will be used for general corporate purposes.

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

Dematic is an engineering company that provides intelligent warehouse logistics and materials handling solutions.

SeaStar tops OID

SeaStar Solutions' credit facility began trading as well, with the $210 million seven-year term loan B quoted at par 5/8 bid, 101 1/8 offered, according to a trader.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

During syndication, the term loan was upsized from $200 million, pricing was decreased from talk of Libor plus 450 bps to 475 bps, the discount was tightened from 99 and amortization was changed to 2.5% per annum from 2.5% in years one and two, and 5% thereafter.

The company's $235 million credit facility (B2/B) also includes a $25 million revolver.

RBC Capital Markets and GE Capital Markets are leading the deal that will be used to help fund the buyout of the company by American Securities. The equity component was reduced with the term loan upsizing.

SeaStar is a manufacturer and distributor of marine steering and control systems and engine and drive parts.

PharMEDium reworked

Moving to the primary, PharMEDium raised its seven-year first-lien covenant-light term loan (B1/B) to $360 million from $320 million and reduced pricing to Libor plus 325 bps from talk of Libor plus 375 bps to 400 bps, while keeping the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months intact, according to a market source.

In addition, the $200 million eight-year second-lien covenant-light term loan (Caa2/CCC+) was reverse flexed to Libor plus 675 bps from talk of Libor plus 750 bps to 775 bps and the original issue discount was moved to 99½ from 99, the source said. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company's now $635 million credit facility also includes a $75 million revolver (B1/B).

Commitments are due at 5 p.m. ET on Wednesday.

PharMEDium being acquired

Proceeds from PharMEDium's credit facility will be used to help fund its buyout by Clayton, Dubilier & Rice, through which Oak Investment Partners and Baird Capital will exit their stakes in the company, while JVC Management will retain a stake.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the financing, with Credit Suisse as the left lead on the second-lien debt and JPMorgan as the left lead on the first-lien debt.

As a result of the first-lien term loan upsizing, the amount of equity being used for the buyout was reduced, the source added.

PharMEDium is a Lake Forest, Ill.-based provider of hospital pharmacy-outsourced sterile compounding services.

AlixPartners firms pricing

AlixPartners set the spread on its $672 million covenant-light term loan B-2 due July 2020 at Libor plus 300 bps, the tight end of the Libor plus 300 bps to 325 bps talk, while keeping the 1% Libor floor and par issue price unchanged, according to a market source.

The company is also getting an $80 million covenant-light term loan B-1 due June 2017 priced at Libor plus 275 bps with no Libor floor and a par offer price.

Both loans have 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing B-1 loan from Libor plus 325 bps with no Libor floor and an existing B-2 loan from Libor plus 400 bps with a 1% Libor floor.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

Bob's releases talk

Bob's Discount Furniture held its bank meeting on Tuesday, launching its $180 million first-lien term loan (B2/B) with talk of Libor plus 400 bps and its $80 million second-lien term loan (Caa1/CCC+) with talk of Libor plus 800 bps, according to a market source. Both tranches have a 1% Libor floor and a discount of 99.

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

The company's $300 million senior secured deal includes a $40 million asset-based revolver as well.

Commitments are due on Feb. 4, the source said.

RBC Capital Markets and UBS Securities LLC are leading the deal that will help fund the buyout of the company by Bain Capital.

Following completion of the transaction, which is expected this quarter, management will continue to own a significant stake in the Manchester, Conn.-based retailer of furniture and bedding.

Tower Auto details

Tower Automotive held its call, launching a $417 million senior secured term loan B due April 23, 2020 with talk of Libor plus 300 bps to 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Proceeds will be used to reprice an existing term loan from Libor plus 375 bps with a 1% Libor floor.

Cashless roll commitments are due at 5 p.m. ET on Monday and new and recommitting lender commitments are due at 5 p.m. ET on Jan. 28, the source continued.

Citigroup Global Markets Inc. is leading the deal.

Tower Automotive is a Livonia, Mich.-based supplier of automotive metal structural components and assemblies.

DAE Aviation terms

DAE Aviation launched its $300 million 51/2-year second-lien term loan (Caa2/CCC) with talk of Libor plus 750 bps with a 1% Libor floor, an original issue discount of 98½ to 99 and hard call protection of 103 in year one, 102 in year two and 101 in year three, according to a market source.

Furthermore, the company's roughly $540 million first-lien term loan (B2/B) due Nov. 2, 2018 was launched with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, a discount of 99½ and 101 soft call protection for six months, the source remarked.

The second-lien term loan will be used to refinance the company's existing 2015 senior notes and the first-lien loan will be used to reprice an existing first-lien term loan from Libor plus 500 bps with a 1.25% Libor floor.

Leads, Barclays, Bank of America Merrill Lynch and Goldman Sachs Bank USA, are seeking commitments by Feb. 4, the source added.

DAE is an aircraft MRO provider.

National Financial launches

National Financial Partners held a call at 2 p.m. ET to launch a $120 million add-on term loan that is talked at Libor plus 425 basis points with a 1% Libor floor, in line with the existing term loan, and is offered at par, according to a market source.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal.

Proceeds will be used to repay revolver debt and to add cash to the balance sheet, the source added.

National Financial Partners is a New York-based provider of benefits, insurance and wealth management services.

TCW holds call

TCW Group released talk of Libor plus 225 bps with a 0.75% Libor floor, an offer price of 99¾ to par and 101 soft call protection for six months on its roughly $350 million term loan B that launched with a call during the session, according to a market source.

J.P. Morgan Securities LLC is leading the deal.

Proceeds will be used to refinance an existing term loan B.

TCW is a Los Angeles-based asset management firm that specializes in fixed-income, world equity and alternative markets.

Ikaria floats guidance

Ikaria came out with price talk on its first- and second-lien term loans in preparation for its upcoming bank meeting at 10 a.m. ET in New York on Wednesday, according to a market source.

The $830 million seven-year covenant-light first-lien term loan is talked at Libor plus 450 bps with 101 soft call protection for one year, and the $415 million eight-year covenant-light second-lien term loan is talked at Libor plus 850 bps with call protection of 102 in year one and 101 in year two on the second-lien term loan, the source said. Both tranches have a 1% Libor floor and an original issue discount of 99.

The company's $1,295,000,000 credit facility also includes a $50 million revolver.

Ikaria lead banks

Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading Ikaria's deal that will be used to help fund its roughly $1.6 billion buyout by Madison Dearborn Partners. Existing Ikaria shareholders, including New Mountain Capital and certain members of the company's management team, will have a minority stake in the company.

Commitments are due on Feb. 5, and closing on the buyout is expected this quarter, subject to customary conditions.

Ikaria is a Hampton, N.J.-based provider of proprietary and innovative therapies for the critical care units in hospitals.

PeroxyChem discloses talk

PeroxyChem came out with talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year on its $135 million six-year first-lien term loan that will launch with a bank meeting at 10:30 a.m. ET on Wednesday, according to a market source.

The company's $155 million credit facility (B+) includes a $20 million five-year revolver as well.

Macquarie Capital is leading the deal that will be used to help fund the acquisition of FMC Corp.'s Peroxygens business by One Equity Partners for about $200 million.

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

PeroxyChem is a supplier of Hydrogen Peroxide, persulfate products, peracetic acid and other eco-friendly specialty oxidants.

Southwire moves to call

In more primary news, Southwire is now planning on hosting a conference call at 9:30 a.m. ET on Wednesday to launch its proposed $1.75 billion senior secured credit facility, as opposed to a bank meeting, as a result of the poor weather conditions, according to a market source.

The facility consists of a $1 billion five-year asset-based revolver and a $750 million seven-year covenant-light term loan.

Official price talk is not yet available, but recent filings with the Securities and Exchange Commission have said that the revolver is anticipated to have initial pricing of Libor plus 150 bps with a 30 bps unused fee, and the term loan is expected at Libor plus 275 bps with a 0.75% Libor floor.

Bank of America Merrill Lynch, BMO Capital Markets, Wells Fargo Securities LLC and Macquarie Capital are leading the deal.

Southwire buying Coleman

Proceeds from Southwire's credit facility will be used to help fund the acquisition of Coleman Cable Inc. for $26.25 per share in cash in a transaction valued at about $786 million, including the assumption of $294 million in net debt.

Closing is expected this quarter, subject to a majority of Coleman shares being tendered, the expiration or termination of the waiting period under the Hart Scott Rodino Antitrust Improvements Act and other customary conditions.

Southwire is a Carrollton, Ga.-based wire and cable producer. Coleman is a Waukegan, Ill.-based manufacturer of electrical and electronic wire and cable products.

ExGen readies loan

ExGen Renewables set a bank meeting for 12:30 p.m. ET on Wednesday to launch a $300 million first-lien HoldCo senior secured term loan, according to a market source.

Barclays is leading the deal that will be used to make a distribution to parent company Exelon Corp.

ExGen is an operator of a portfolio of 13 contracted wind energy assets.

Taminco on deck

Taminco scheduled a conference call for 9 a.m. ET on Wednesday to launch a new loan deal led by Citigroup Global Markets Inc., a market source said.

In December, the company said that it received a commitment for debt financing to use with cash on hand for its roughly $190 million acquisition of the formic acid business of Kemira Oyj.

Pro forma net leverage is around 3.5 times synergized EBITDA.

Closing on the acquisition is expected this quarter, subject to the fulfillment of customary conditions.

Taminco is an Allentown, Pa.-based producer of alkylamines and alkylamine derivatives.

Mediacom coming soon

Mediacom LLC plans to hold a call at 11 a.m. ET on Wednesday to launch a $250 million term loan F, according to sources.

Wells Fargo Securities LLC is the left lead on the deal that will be used to repay an existing term loan C.

Mediacom is a Middletown, N.Y.-based cable operator.

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