Reynolds breaks; Manitowoc dips on refi; Nusil, Tank revise deals; MoneyGram ups deadline

By Sara Rosenberg

New York, April 8 - Reynolds and Reynolds Co.'s credit facility made its way into the secondary market on Friday, with the term loan B quoted well above its original issue discount price, and Manitowoc Co. Inc.'s term loans headed lower on refinancing news.

Over in the primary, Nusil Technology came out with a number of changes to its deal, including reducing term loan pricing while adding step-downs, trimming the Libor floor, eliminating the original issue discount and adding soft call premiums.

Also, Tank Intermediate firmed pricing and the Libor floor on its credit facility within the initial guidance while tightening the original issue discount, and MoneyGram International Inc. accelerated the commitment deadline on its deal.

Additionally, Global Defense Technology & Systems Inc.'s recent pricing flex did the trick as the credit facility more than filled out by the time books were closed, and PaperWorks Industries firmed up timing on the launch of its credit facility.

Reynolds starts trading

Reynolds and Reynolds' credit facility broke into the secondary market late on Friday, with the $875 million seven-year term loan B quoted at par ½ bid, par ¾ offered on the open and then one trader saw it move up to par 5/8 bid, 101 offered, while a second trader saw it move to par ¾ bid, 101¼ offered.

Pricing on the term loan B is Libor plus 275 basis points with a 1% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the term loan B was downsized from $950 million as a €50 million term loan C was added to the capital structure, and pricing was reduced from Libor plus 300 bps.

The company's roughly $1.55 billion credit facility (Ba2/BB+) also includes a $600 million term loan A that 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.

Manitowoc softens

Also in trading, Manitowoc's term loan A and term loan B headed lower after word came out that company will be refinancing the debt with a new credit facility, according to a trader.

Both the A and the B loans were quoted at par bid, par 3/8 offered after the news hit, the trader said. By comparison, on Thursday, the term loan A was quoted at par 5/8 bid, 101 3/8 offered and the term loan B was quoted at par 7/8 bid, 101 5/8 offered.

The new credit facility is set to launch with a bank meeting on Thursday morning and will be led by J.P. Morgan Securities LLC.

Details on the structure of the refinancing deal have not yet surfaced.

Manitowoc is a Manitowoc, Wis.-based manufacturer and seller of cranes and related products and foodservice equipment.

Nusil reworks pricing

Switching to the primary, Nusil Technology revised the spread, Libor floor, offer price can call protection on its oversubscribed $295 million six-year covenant-light term loan B and asked for recommitments by 5 p.m. ET on Friday, according to a market source.

The term loan B is now priced at Libor plus 400 bps with a 1.25% Libor floor and a par offer price, compared to initial talk of Libor plus 450 bps with a 1.5% floor and an original issue discount of 99, the source said.

Also, pricing step-downs were added to the term loan, under which the spread will drop to Libor plus 375 bps at 3.75 times leverage and to Libor plus 350 bps at 3.25 times leverage, the source continued.

And, the term loan now includes soft call protection of 102 in year one and 101 in year two.

Nusil lead banks

Credit Suisse Securities (USA) LLC and Jefferies & Co. are the lead banks on Nusil's $305 million senior secured credit facility, which also provides for a $10 million five-year revolver.

Proceeds, along with $264 million of equity, will be used 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 health care, aerospace, electronics and photonics industries.

Tank firms pricing

Tank Intermediate set pricing on its $285 million credit facility at Libor plus 375 bps with a 1.25% Libor floor and an original issue discount of 993/4, according to a market source. The deal had been talked at Libor plus 350 bps to 400 bps talk with a 1.25% to 1.5% floor and a discount of 99 to 991/2.

The facility consists of a $20 million revolver and a $265 million term loan B.

As part of the updates, the term loan B saw the addition of a step-down to Libor plus 350 bps when leverage is less than 3.25 times and 101 soft call protection for one year.

Previously, rumors were that pricing would firm at Libor plus 375 bps with likely a 1.25% floor, and it was thought that the discount would come at 99½ based on the fact that the transaction was oversubscribed.

GE Capital Markets is the lead bank on the deal that will be used by the polyethylene and steel tanks manufacturer to refinance existing debt.

MoneyGram shutting early

MoneyGram accelerated the commitment deadline on its $540 million senior secured credit facility (Ba1/BB-) to 5 p.m. ET on Monday from Wednesday due to strong investor demand, according to a source.

The Dallas-based payment services company's facility consists of a $390 million term loan and a $150 million revolver.

Price talk on the term loan is Libor plus 350 bps with a 1.25% Libor floor and an original issue discount of 991/2, and there is 101 soft call protection for one year.

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

MoneyGram funding recap

Proceeds from MoneyGram's credit facility will be used to help fund a recapitalization, including the repayment of roughly $140 million of outstanding bank debt and a $218 million payment inducement payment to Thomas H. Lee Partners and Goldman Sachs.

Under the recapitalization agreement, Thomas H. Lee will convert all of its series B preferreds into common stock, and Goldman Sachs will convert all of its series B-1 preferreds into shares of series D participating convertible preferred stock.

Thomas H. Lee will receive about 28.2 million additional shares of common stock and $140.8 million in cash, and Goldman Sachs will receive about 15,504 additional shares of series D preferreds and $77.5 million in cash as consideration for completing the recapitalization.

Closing is expected mid-year, subject to shareholder approval and completion of financing.

Global Defense fills out

Global Defense Technology & Systems' $157.5 million credit facility (B3/B) was oversubscribed ahead of Friday's commitment deadline, a market source told Prospect News.

The facility is comprised of a $132.5 million six-year term loan B talked at Libor plus 550 bps with a 1.5% Libor floor and an original issue discount of 99 and a $25 million five-year revolver talked at Libor plus 500 bps with a 1.5% Libor floor.

On April 1, pricing on the term loan B had been flexed up from Libor plus 500 bps as a result of ratings coming in lower than expected. Revolver pricing had been left unchanged.

Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

Global Defense backing buyout

Proceeds from Global Defense Technology's credit facility will be used to help fund its acquisition by Ares Management LLC through a cash tender offer at $24.25 per share. The transaction is valued at about $315 million, including the assumption of debt and prior to expenses.

The buyout has already been completed with the sponsor using equity to fund the deal. Once the credit facility closes, proceeds will be used to pay back some of that equity.

With the completion of the acquisition, the company became wholly owned by Sentinel Acquisition Holdings Inc., an affiliate of Ares.

Global Defense Technology is a McLean, Va.-based provider of mission-critical, technology-based systems and services for national security agencies and programs of the U.S. government.

PaperWorks sets launch

PaperWorks Industries will indeed be holding a bank meeting on Tuesday to launch its proposed $250 million credit facility, according to a market source. Previously it was known that the date had been targeted, but timing was still fluid.

As was already reported, the facility consists of a $40 million revolver and a $210 million term loan, with both tranches guided at Libor plus 450 bps with a 1.5% Libor floor based on expected ratings of B2/B. Original issue discount guidance is not yet available, the source said.

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

PaperWorks is a Philadelphia-based integrated coated-recycled board and folding carton company.

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