Supervalu up on amend, extend; Reynolds, Hubbard, Sprouts, Ameristar, J. Jill tweak deals

By Sara Rosenberg

New York, April 6 - Supervalu Inc.'s term loans headed higher in trading on Wednesday as the company approached lenders with a request to push out the maturity on its non-extended term loan B-1, and Triumph Group Inc.'s term loan B was fairly steady with paydown news as people were expecting this to take place.

Over in the primary, Reynolds and Reynolds Co. and Hubbard Broadcasting Inc. reworked tranching and pricing on their credit facilities, and Sprouts Farmers Market lifted the pricing and discount on its deal while adding call protection.

Also, Ameristar Casinos Inc. tightened the original issue discount on its B loan, and J. Jill officially came out with revisions to its term loan B, including raising the spread - a move anticipated by the market for a few days now - increasing the original issue discount price and adding hard call protection.

In more happenings, NuSil Technology accelerated the commitment deadline on its deal, and Tank Intermediate is zeroing in on where pricing will firm up on its credit facility as the deal is oversubscribed in the current guidance range.

Furthermore, Sourcecorp Inc. set timing on its proposed credit facility and came out with tranching details, Town Sports International Holdings Inc. emerged with refinancing plans, and LNR Property LLC released price talk on its B loan that was launched to lenders during the session.

Supervalu rises

Supervalu's term loan B-1 rose to 99½ bid, par offered from 99¼ bid, 99¾ offered, and its term loan B-2 moved to par ¼ bid, par ¾ offered from par bid, par ½ offered as the company held a lender call in the morning to launch a amendment and extension proposal, according to a trader.

Specifically, the company is looking to extend its $497 million term loan B-1 to April 2018 from June 2012 at pricing of Libor plus 300 basis points. By comparison, non-extended pricing is Libor plus 125 bps.

Lenders are being offered a 10 bps amendment fee.

RBS Securities Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal that is expected to be completed late this month.

Supervalu is an Eden Prairie, Minn.-based supermarket operator.

Triumph holds steady

Triumph Group's term loan B was quoted at par bid, par ¼ offered, compared to par bid, par ½ offered on Tuesday, as the company revealed that it is repaying the debt in full, according to a trader.

Funds for the repayment are coming from the company's revolver, which was just amended to increase the size to $850 million from $535 million and extend the maturity to April 5, 2016.

The trader said that investors were anticipating this paydown for a little while now, which is why the term loan B was trading so close to par previously.

Triumph Group is a Wayne, Pa.-based designer, engineer, manufacturer, repairer and overhauler of a broad portfolio of aerostructures, aircraft components, accessories, subassemblies and systems.

Reynolds retranches

Moving to the primary, Reynolds and Reynolds downsized its seven-year term loan B to $875 million from $950 million and reduced pricing to Libor plus 275 bps from Libor plus 300 bps, while keeping the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for one year, according to sources.

As a result of the B loan size change, a €50 million term loan C was added to the capital structure, sources said.

Recommitments are due at noon ET on Thursday.

The company's roughly $1.55 billion credit facility (Ba2/BB+) still includes a $600 million term loan A priced in line with initial talk at Libor plus 250 bps with no Libor floor.

Reynolds replacing debt

Proceeds from Reynolds and Reynolds' new term loan borrowings will be used to refinance existing debt, and pro forma for the transaction, total leverage is 3.0 times.

In 2010, the company obtained a $1.82 billion seven-year term loan as part of a refinancing transaction that is priced at Libor plus 350 bps with a step-down to Libor plus 325 bps at 3.0 times net total leverage and a 1.75% Libor floor. The loan was sold at an original issue discount of 99¼ and includes 101 soft call protection for one year.

Deutsche Bank Securities Inc. is the lead bank on the new deal.

Reynolds and Reynolds is a Dayton, Ohio-based dealer services company.

Hubbard changes emerge

Hubbard Broadcasting made a number of changes to its credit facility as well, including upsizing its six-year first-lien term loan to $270 million from $255 million and reducing pricing on both its first- and second-lien loans, according to a market source.

The first-lien term loan (Ba3/B+) is now priced at Libor plus 375 bps, down from Libor plus 400 bps to 425 bps, and 101 soft call protection for one year was added, the source said. The 1.5% Libor floor and original issue discount of 99½ were left intact.

As for the $140 million seven-year second-lien term loan (Caa1/CCC+), that is now priced at Libor plus 725 bps with a 1.5% Libor floor and an original issue discount of 99, compared to initial talk of Libor plus 750 bps to 775 bps with a 1.75% floor and a discount of 981/2, the source continued. The tranche still includes call protection of 103 in year one, 102 in year two and 101 in year three.

Hubbard lead banks

Morgan Stanley & Co. Inc. and Goldman Sachs & Co. are the lead banks on the Hubbard Broadcasting's now $420 million credit facility, up from $405 million, which still provides for a $10 million five-year revolver (Ba3/B+).

Proceeds will be used to help fund the acquisition of 17 radio stations from Bonneville International Corp. in a transaction valued at about $505 million.

The acquisition is expected to be completed upon FCC approval and other customary conditions.

Hubbard Broadcasting is a St. Paul, Minn.-based television and radio broadcasting company.

Sprouts reworks deal

Sprouts Farmers Market increased pricing on its $370 million senior secured credit facility (B2/B+) to Libor plus 475 bps from Libor plus 450 bps and raised the original issue discount to 98 from 99, while leaving the 1.25% Libor floor intact, according to a market source.

The deal consists of a $60 million five-year revolver and a $310 million seven-year covenant-light term loan.

Also, the term loan saw the addition of hard call protection of 102 in year one and 101 in year two, but this call protection has a carve-out for IPO proceeds, so the company can use 50% of IPO proceeds to pay down the loan at a price of 101 in year one and par thereafter.

Sprouts shuts books

After making the changes early on in the day, Sprouts Farmers Market asked lenders to get their recommitments in by 2 p.m. ET on Wednesday, the source remarked.

Jefferies & Co. and BMO Capital Markets Corp. are the lead banks on the deal that will be used to help fund the buyout of the company by Apollo Management LP and the merger with Henry's Farmers Market, an Irvine, Calif.-based grocer.

The transaction is expected to close early in the second quarter.

Sprouts Farmers Market is a Phoenix-based grocer that operates in the farmers market specialty segment of the retail food industry.

Ameristar cuts OID

Ameristar Casinos revised the original issue discount on its $700 million seven-year term loan B to 99¾ from 991/2, according to a market source. Pricing is Libor plus 300 bps, after flexing on Tuesday from Libor plus 325 bps, with a 1% Libor floor, and there continues to be 101 soft call protection for one year.

The company's $1.4 billion credit facility (Ba3/BB+) also includes a $200 million five-year term loan A and a $500 million five-year revolver, both talked at Libor plus 275 bps.

Commitments were due at the end of the day on Wednesday.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the lead banks on the deal.

Ameristar buying shares

Proceeds from Ameristar's credit facility, along with $800 million of senior notes, will be used to fund a share repurchase, to retire $1.5 billion of existing loan borrowings and senior notes, and for general working capital.

Under the share repurchase, the company is buying 26.15 million shares of its common stock held by the Craig H. Neilsen Estate at a price of $17.50 per share, for a total price of roughly $457.6 million. This represents about 45% of Ameristar's outstanding shares and 83% of the Neilsen Estate's current ownership in the company.

Closing is expected in the second quarter, subject to financing and customary conditions, including receipt of any necessary gaming and other regulatory approvals.

Ameristar is a Las Vegas-based gaming and entertainment company.

J. Jill ups pricing

J. Jill raised pricing on its $120 million six-year term loan B (B) to Libor plus 850 bps from Libor plus 550 bps, widened the original issue discount to 97 from 98 and added hard call protection of 102 in year one and 101 in year two, according to a market source. The 1.5% Libor floor was left unchanged.

The pricing change has been anticipated for a few days now, and, as was previously reported, rumors had been that the spread could end up at this Libor plus 850 bps levels before syndication was done.

In addition, as part of the changes to the term loan, amortization was moved to 1.25% per quarter, with the first payment being in the quarter ending October 2011, and there is now a 75% excess cash flow sweep, the source said.

The changes were officially announced in the morning and recommitments were due from lenders by 5 p.m. ET on Wednesday.

J. Jill getting revolver

J. Jill's $160 million senior secured credit facility also provides for a $40 million five-year ABL revolver with pricing that can range from Libor plus 225 bps to 275 bps based on a grid.

Proceeds will be used to refinance an existing loan and help fund the acquisition of a majority position in the company by Arcapita Bank BSC from Golden Gate Capital.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

J. Jill is a Quincy, Mass.-based women's apparel retailer.

NuSil moves deadline

NuSil Technology revised the commitment deadline on its $305 million senior secured credit facility to Thursday from this coming Monday due to strong investor interest, according to a market source.

The facility consists of a $10 million five-year revolver and a $295 million six-year covenant-light term loan B, with both tranches talked at Libor plus 450 bps with a 1.5% Libor floor. The term loan is being offered at 99 and includes 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC and Jefferies & Co. are the lead banks on the deal that will be used, along with $264 million of equity, to fund the buyout of the company by New Mountain Capital from Quad-C Management Inc. and to refinance existing debt.

Total and senior leverage for the transaction is 4.5 times.

NuSil is a Carpinteria, Calif.-based manufacturer of silicone-based materials for the healthcare, aerospace, electronics and photonics industries.

Tank firming soon

Tank Intermediate is expected to set pricing on its $285 million credit facility as early as Thursday being that the books on the transaction were scheduled to close on Wednesday, according to a market source.

The deal was oversubscribed ahead of the commitment deadline, and the thought was that pricing will settle at Libor plus 375 bps, the midpoint of the Libor plus 350 bps to 400 bps talk, the source said.

It is also being contemplated that the Libor floor might end up at 1.25%, although it could come at 1.5% as well, depending on certain factors, the source continued, which is in line with the 1.25% to 1.5% guidance.

Lastly, the original issue discount is likely to firm at 991/2, the source remarked, the tight end of the 99 to 99½ talk.

Tank structure

Tank Intermediate's senior secured credit facility, which launched with a bank meeting on March 23, consists of a $20 million revolver and a $265 million term loan B.

The pricing discussed above is for both the revolver and the term loan B.

GE Capital Markets is the lead bank on the deal that will be used to refinance existing debt.

Tank Intermediate is a manufacturer of polyethylene and steel tanks.

Sourcecorp details surface

Sourcecorp scheduled a bank meeting for 2:30 p.m. ET at the InterContinental Hotel in New York on Thursday to launch its proposed credit facility, which is now known to carry a total size of $625 million, according to a market source.

Specifically, the facility consists of a $75 million revolver, a $350 million seven-year first-lien term loan and a $200 million eight-year second-lien term loan, the source said.

Previously all that was known on the transaction was that the company would be getting a new first- and second-lien credit facility and that timing was expected in the early April timeframe.

There is some chatter that the first-lien term loan will be talked in the Libor plus 425 bps area with a 1.25% Libor floor and an original issue discount of 991/2, and the second-lien term loan will be talked in the Libor plus 800 bps area with a 1.25% floor and discount of 99, however, official talk has not yet been announced.

Sourcecorp funding merger

Proceeds from Sourcecorp's credit facility will be used to help fund the company's merger with HOV Services Inc., following which shareholders of Sourcecorp and HOV will each control and receive 50% ownership of the combined company.

The combined company is expected to have about $480 million in revenue.

Closing is subject to customary conditions including expiration of the antitrust waiting period.

UBS Securities LLC, Credit Suisse Securities (USA) LLC and Jefferies & Co. are the lead banks on the credit facility.

Sourcecorp, a portfolio company of Apollo Management, is a Dallas-based provider of business process outsourcing solutions and consulting services. HOV is a Troy, Mich.-based end-to-end business process outsourcing company.

Town Sports readies deal

Town Sports has set a bank meeting for 2 p.m. ET on Thursday at the W Hotel in New York to launch a $300 million seven-year term loan B that will be used to refinance existing debt, according to a market source.

Deutsche Bank Securities Inc. and KeyBanc Capital Markets LLC are the lead banks on the deal.

Town Sports is a New York-based owner and operator of fitness clubs.

LNR sets talk

LNR Property held a bank meeting on Wednesday afternoon to launch its proposed $325 million five-year term loan B, and with the event, price talk was announced, according to a market source.

The term loan B is being talked at Libor plus 375 bps with a 1.25% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, the source said. There is mandatory amortization of 10% per year.

Commitments are due on April 20.

The company's $365 million senior secured credit facility (Ba2/BB+) also provides for a $40 million three-year revolver. This tranche is already fully subscribed, the source said.

LNR refinancing debt

Proceeds from LNR's credit facility, along with cash on hand, will be used to replace existing bank debt. Since July 2010, the company has been paid down roughly $100 million of its bank borrowings using free cash flow.

Leverage is 2.0 times on a gross basis and 1.4 times on a net basis, and there is $150 million of cash pro forma for the deal.

Goldman Sachs & Co. and Bank of America Merrill Lynch are the joint lead arrangers and joint bookrunners on the new credit facility, and Credit Suisse Securities (USA) LLC and RBS Securities Inc. are the documentation agents.

LNR is a Miami-based diversified real estate, investment, finance and management company.

Verint launches

Also launching Wednesday was Verint Systems Inc., and its $780 million credit facility (B1/B+) came as expected with price talk of Libor plus 350 bps to 375 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The facility consists of a $200 million revolver, which includes a 50 bps unused fee, and a $580 million 61/2-year term loan.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are the lead banks on the deal that will be used to refinance existing debt.

Total leverage is less than 3 times.

Verint Systems, a Melville, N.Y.-based provider of actionable intelligence and value-added services, is asking for commitments by April 25.

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