Brickman, Taminco break; Arch Coal, Grohe rework deals; Wolverine, Data Device set talk

By Sara Rosenberg

New York, May 11 - Brickman Group Ltd.'s term loan B made its way into the secondary market on Friday, with levels quoted above the original issue discount price, and Taminco Group Holdings began trading as well.

Moving to the primary, Arch Coal Inc. came out with updates on its term loan, lifting the size as a result of strong oversubscription, and setting the original issue discount at the low side of guidance, and Grohe AG upsized too while tightening the discount on its U.S. tranche.

Also, Wolverine Healthcare Analytics (formerly Thomson Reuters Healthcare) released price talk on its term loan B as the debt was presented to investors during the session, and Data Device Corp. started circulating guidance on its upcoming deal.

Furthermore, Kronos Worldwide Inc. and Patriot Coal Corp. set timing on the launch of their loans, and SMG surfaced with refinancing plans.

Brickman frees up

Brickman's $539 million term loan B broke for trading on Friday, with levels seen at par bid, 101 offered, according to a source.

Pricing on the loan is Libor plus 425 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 993/4, after firming recently at the low end of the 99½ to 99¾ guidance. There is soft call protection for one year.

Proceeds will be used to reprice an existing $526.7 million term loan B from Libor plus 550 bps with a 1.75% Libor floor, and the $12.3 million of incremental borrowings will be used to fund a 101 paydown to existing lenders and fees and expenses associated with the repricing.

Barclays Capital Inc. and Bank of America Merrill Lynch are the lead banks on the deal.

Brickman is a Gaithersburg, Md.-based commercial landscaping company.

Taminco tops par

Also hitting the secondary was Taminco, with its $350 million U.S. term loan B quoted at par ¼ bid, par ¾ offered, according to a trader.

The U.S. loan is priced at Libor plus 400 bps, after firming recently from talk of Libor plus 375 bps to 400 bps. There is a 1.25% floor and 101 soft call protection for six months, and it was sold at par.

In addition, the company is getting a €120 million term loan B priced at Euribor plus 425 bps, after firming from Euribor plus 400 bps to 425 bps talk. This tranche also has a 1.25% floor and 101 soft call protection for six months and was sold at par.

Proceeds are being used to reprice existing term loan B borrowings from Libor/Euribor plus 500 bps with a 1.25% floor. Existing investors are getting paid down at 101 as a result of call protection.

Citigroup Global Markets Inc. is the left lead on the deal.

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

SuperMedia softens

In more trading news, SuperMedia Inc.'s term loan fell to 57¾ bid, 58¾ offered from 58 bid, 59 offered ahead of the Monday deadline for its term loan buyback offer, according to a trader.

Under the proposal, the company is tendering for its term loan in a price range of 55 to 59, and the cash size of the offer is $33 million.

JPMorgan Chase Bank is the administrative agent on the deal.

SuperMedia is a Dallas-based directory publisher.

Arch Coal upsizes

Over in the primary, Arch Coal raised the size of its six-year covenant-light senior secured term loan (Ba2/BB/BB) to $1.4 billion from $1 billion and set the original issue discount at 99, the tight end of the 98½ to 99 talk, while leaving pricing at Libor plus 450 bps with a 1.25% Libor floor, sources said.

As before, the loan has call protection of 102 in year one and 101 in year two, but up to $500 million of asset sales will be allowed to repay the term loan at par within 18 months from closing.

Recommitments were due by 3 p.m. ET on Friday and allocations are expected on Monday, sources added.

Bank of America Merrill Lynch, PNC Capital Markets LLC, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., RBS Securities Inc., BMO Capital Markets Corp. and Union Bank are leading the deal.

Arch Coal repaying debt

Proceeds from Arch Coal's term loan will help finance a tender offer for $450 million of 6¾% senior notes due 2013 at Arch Western Finance LLC, with the offer expiring on May 29.

Additionally, the loan will also be used to repay revolver borrowings and to provide additional liquidity for ongoing business needs.

Arch Coal is a St Louis-based coal producer and marketer.

Grohe revises deal

Another company to make changes was Grohe, as it upsized its first-lien covenant-light term loan due 2017 to €375 million from €300 million - setting the split at €175 million and $260 million, compared to €100 million and $250 million previously, according to a market source.

Also, the original issue discount on the U.S. piece was revised to 99 from 981/2, while the discount on the euro piece was left at 981/2, the source said.

As before, the entire deal is priced at Libor/Euribor plus 550 bps with a 1.25% floor, and includes 101 soft call protection for one year.

Lead banks, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc., are asking for recommitments by the close of business on Monday.

Grohe, a Dusseldorf, Germany-based manufacturer and supplier of sanitary fittings, will use proceeds to refinance floating-rate notes, and, as a result of the upsizing some 8 5/8% notes due 2014.

Wolverine talk surfaces

Wolverine Healthcare Analytics held a bank meeting on Friday morning to launch its proposed credit facility, and shortly before the event took place, price talk on the term loan B was announced, according to a market source.

The $525 million seven-year term loan B is being talked at Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 981/2, and includes 101 soft call protection for one year, the source remarked.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and UBS Securities LLC are the lead banks on the $575 million credit facility, which also includes a $50 million five-year revolver.

Wolverine being acquired

Proceeds from Wolverine Healthcare's credit facility will be used to help fund its purchase by Veritas Capital from Thomson Reuters for $1.25 billion in cash.

Closing is expected in the next few months, subject to regulatory approval and customary conditions. The sale is not subject to any financing condition.

Wolverine Healthcare is a provider of data, analytics and performance benchmarking services to hospitals, health systems, employers, health plans, government agencies and health care professionals.

Data Device pricing

Data Device released price talk on its $410 million credit facility in preparation for an upcoming bank meeting that is set for 2 p.m. ET on Monday, a source said. Commitments will be due on May 29.

The $30 million five-year revolver (B1/BB-) and $260 million six-year first-lien delayed-draw term loan (B1/BB-) are talked at Libor plus 600 bps, and the $120 million seven-year second-lien delayed-draw term loan (Caa1/B-) is talked at Libor plus 950 bps, with all tranches having a 1.5% Libor floor and an original issue discount of 98, the source said.

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

Credit Suisse Securities (USA) LLC is leading the deal that will help fund the purchase of the company by Behrman Capital.

Data Device is a Bohemia, N.Y.-based supplier of defense electronics components.

Kronos reveals timing

Kronos Worldwide disclosed timing on the launch of its $600 million senior secured term loan B (Ba3) as a bank meeting has been scheduled for 10:30 a.m. ET on Tuesday, according to a market source.

The loan is being guided ahead of the launch in the 5% area including coupon, Libor floor and original issue discount, the source said.

The company's $725 million credit facility also provides for a $125 million ABL revolver that is not being syndicated.

Wells Fargo Securities LLC is leading deal that will be used to refinance existing debt, including 6½% senior secured notes due April 2013, and for general corporate purposes, which could include an up to $1.00 per share special dividend.

Kronos is a Dallas-based producer of titanium dioxide products.

Patriot schedules meeting

Patriot Coal nailed down its launch date, setting a bank meeting for 1:30 p.m. ET on Tuesday to launch its $625 million senior secured credit facility, a market source said.

The facility consists of a $250 million revolver due June 30, 2016 and a $375 million second-lien term loan due Dec. 31, 2017.

Official talk is not yet out, but, according to a recent 8-K filing, the revolver is expected at Libor plus 475 bps with a 75 bps unused fee, and the term loan is expected at Libor plus 800 bps with a 1.5% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

Citigroup Global Markets Inc., Barclays Capital Inc. and Natixis are leading the deal that will refinance an existing credit facility and repay $200 million of convertible notes due April 2013.

Patriot Coal is a St. Louis-based miner, producer and seller of thermal coal primarily to electricity generators.

SMG coming soon

SMG joined the forward calendar, setting a bank meeting for 2 p.m. ET on Tuesday to launch a $390 million credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of a $25 million five-year revolver (Ba3/B+), a $240 million six-year first-lien term loan (Ba3/B+) that has 101 repricing protection for one year and a $125 million 61/2-year second-lien term loan (Caa1/CCC+) that has call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Price talk is not yet out, the source added.

Credit Suisse Securities (USA) LLC and GE Capital Markets are leading the deal.

SMG is a West Conshohocken, Pa.-based venue management company.

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