Windstream tweaks deal, breaks; ION flexes; Nine Entertainment, Renfro, Laureate set talk

By Sara Rosenberg

New York, Jan. 10 - Windstream Corp. finalized the size on its term loan B-4 at the high end of revised guidance and the offer price at the low end of modified talk and then freed up for trading late in the day Thursday.

In other news, ION Media Networks Inc. (Media Holdco LP) lifted the coupon on its term loan, and Nine Entertainment Group, Renfro Corp. and Laureate Education Inc. released price talk in connection with their launches.

Additionally, Taminco revealed that it is seeking a repricing of its term debt, BWAY Corp. set original issue discount guidance on its add-on loan, ATI Physical Therapy Inc. firmed timing on its credit facility, and OneStopPlus Group emerged with new deal plans.

Windstream sets terms

Windstream firmed its seven-year term loan B-4 at $1.345 billion with pricing of Libor plus 275 basis points with a 0.75% Libor floor and a par offer price, according to a market source. The loan has 101 soft call protection for one year.

Initially, the loan was launched with a size of $300 million and talk of Libor plus 275 bps with a 0.75% to 1% floor and a discount of 991/2. Then, on Wednesday, the size was changed to talk of $1 billion to $1.345 billion, the floor firmed at the tight end of guidance, and the offer price was revised to talk of 99¾ to par.

With the size and pricing on the term loan B-4 finalized, the debt was able to break for trading late in the session, with levels quoted at par ¾ bid, 101¼ offered, and then it moved to 101 bid, 101 3/8 offered, a trader remarked.

Windstream refinancing

Proceeds from Windstream's new term loan B-4 will be used to pay down a term loan A-2 due July 17, 2013 that had a balance of $20.8 million at June 30, 2012, a term loan B-1 due July 17, 2013 that had a balance of $282.4 million at June 30, 2012, and a term loan B-2 due Dec. 17, 2015 that had a balance of $1.048 billion at June 30, 2012.

The term loan B-2 repayment is only happening because of the upsizing to the term loan B-4.

Bank of America Merrill Lynch, Barclays, Wells Fargo Securities LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc., Bank of Tokyo-Mitsubishi UFJ, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading the deal. J.P. Morgan Securities LLC is the agent.

Windstream, a Little Rock, Ark.-based provider of advanced network communications, including cloud computing and managed services, to businesses, expects to close on the loan by the end of January.

ION reworks pricing

In more loan happenings, ION Media Networks raised the spread on its $255 million 51/2-year term loan B (B2/BB-) to Libor plus 600 basis points from talk of Libor plus 550 bps to 575 bps, but left the 1.25% Libor floor, original issue discount of 98½ and 101 soft call protection for one year intact, according to a market source.

Recommitments for the deal, which came to market in early December, are due by 5 p.m. ET on Friday.

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

ION, a television broadcast network, will use the term loan to fund an equity repurchase of minority investors.

Nine guidance emerges

Nine Entertainment held a bank meeting in New York on Thursday morning to kick of syndication on its proposed A$800 million senior secured credit facility, and shortly before the event started, price talk on the transaction was announced, according to a market source.

The A$100 million five-year revolver and the A$700 million seven-year covenant-light term loan (Ba2/BB) are both being talked at Libor plus 325 bps, with the term loan having a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year and the revolver having a 50 bps undrawn fee.

Lead banks, UBS Securities LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Nomura, are asking for commitments by Jan. 24, the source added.

Proceeds will pay A$600 million cash consideration to previous senior and mezzanine lenders and Red Earth, pay transaction and advisory costs and for general corporate purposes. The revolver is expected to be undrawn at close.

Nine Entertainment is an Australian diversified media and entertainment group.

Renfro pricing

Renfro also revealed talk with its morning bank meeting, launching its $220 million term loan B (B2/B) at Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments are due on Jan. 24, the source added.

RBC Capital Markets is leading the deal that will be used to refinance an existing term loan and fund a distribution to shareholders.

Renfro is a Mount Airy, N.C.-based designer, manufacturer and marketer of socks.

Laureate launches

Laureate Education Inc. launched with a call on Thursday its $250 million add-on term loan with talk of Libor plus 400 bps with a 1.25% Libor floor, an original issue discount in the 99 area and 101 soft call protection for one year, according to sources.

The spread and floor on the add-on matches existing term loan pricing.

Commitments are due on Jan. 17, sources remarked.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., KKR Capital Markets and Morgan Stanley Senior Funding Inc. are leading the deal that will be used for general corporate purposes.

Laureate is a Baltimore-based provider of higher educational services.

Taminco holds call

Taminco held its lender call in the morning, at which time the company launched a repricing of its roughly $345 million term loan with talk of Libor plus 325 bps to 350 bps with a 1% Libor floor and 101 soft call protection for six months, versus current terms of Libor plus 400 bps with a 1.25% floor and no call protection, according to a market source.

Furthermore, the company is seeking a repricing of its roughly €120 million term loan that is talked 25 bps to 50 bps wider than the U.S. loan with a 1% floor, compared to current pricing of Euribor plus 425 bps with a 1.25% floor, the source continued. This tranche will also see the addition of 101 soft call protection for six month.

Commitments are due at 9 a.m. ET on Jan. 18, the source added.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Nomura, UBS Securities LLC, Goldman Sachs & Co. and Apollo Global Securities are leading the transaction.

Taminco is a Belgium-based producer of alkylamines and their derivatives.

BWAY OID talk

Also in the primary, BWAY revealed that its $261 million add-on senior secured term loan B is being guided with an original issue discount in the context of 993/4, according to a market source.

The loan launched with a call on Wednesday, but discount talk didn't come out until Moody's Investors Service rated the debt at B1 on Thursday, the source said.

Pricing on the add-on will match existing term loan B pricing at Libor plus 325 bps with a 1.25% Libor floor, and the add-on and existing loan are fungible.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs & Co. are leading the loan that will fund the $265 million purchase of Ropak Packaging from the Linpac Group.

In addition, the company will upsize its ABL revolver to $200 million from $150 million and use $20 million of borrowings for the acquisition that is expected to close in the second half of this month.

Secured leverage is 3.3 times, total OpCo leverage is 4.2 times and HoldCo leverage is 5.6 times.

BWAY is an Atlanta-based supplier of general line rigid containers. Ropak is a Fountain Valley, Calif.-based producer of rigid plastic shipping containers.

ATI nails down timing

ATI Physical Therapy set a bank meeting for Wednesday afternoon to launch its proposed $335 million secured credit facility (Ba3), according to a market source. Previously, the deal was just being labeled as next week's business.

As previously reported, the facility consists of a $50 million revolver and a $285 million seven-year term loan B.

Jefferies & Co. and Ally Commercial Finance are leading the deal that will be used with $160 million of mezzanine debt from Crescent Mezzanine Partners and equity to back the purchase of the company by KRG Capital Partners from GTCR. The buyout was completed in December.

ATI Physical Therapy is a Bolingbrook, Ill.-based operator of physical therapy clinics.

OneStopPlus coming soon

OneStopPlus scheduled a bank meeting for Friday morning to launch a $425 million credit facility that is being led by Goldman Sachs & Co. and Jefferies & Co., according to sources.

The facility consists of a $60 million five-year revolver, a $280 million seven-year first-lien term loan and an $85 million 71/2-year second-lien term loan that has already been placed, sources said.

Proceeds from the credit facility and equity will fund the purchase of the company by Charlesbank Capital Partners and Webster Capital.

OneStopPlus, a New York-based catalog retailer and online marketplace for plus-size consumers, expects its buyout to close this quarter.

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