Technicolor updates deal terms, breaks; Media General, TrudentUSA, Hemisphere set talk

By Sara Rosenberg

New York, July 10 - Technicolor (Tech Finance & Co SCA) finalized sizes and pricing on its U.S. and euro term loans and then freed up for trading on Wednesday, with the U.S. tranche seen above its original issue discount price.

In more loan happenings, Media General Inc., TridentUSA Health Services and Hemisphere Media Group Inc. released price talk on their deals with launch, and ClubCorp Club Operations Inc. surfaced with plans for a lender call.

Technicolor frees up

Technicolor's loans hit the secondary market on Wednesday, with the $830 million seven-year term loan B quoted at 97¼ bid, 97¾ offered, according to a trader.

The company is also getting a €200 million seven-year euro term loan B.

In the morning, sizes on the term loans firmed up, with the U.S. tranche coming slightly smaller than the recently revised amount of $835 million but up from an initial amount of $645 million, and the euro tranche coming larger than the revised amount of €175 million but down from original talk of €250 million, a source said.

Also, pricing on the U.S. term loan firmed at Libor plus 600 basis points, the wide end of the revised Libor plus 575 bps to 600 bps guidance and up from earlier talk of Libor plus 475 bps to 500 bps, pricing on the euro term loan finalized at Euribor plus 625 bps, up from revised talk of Euribor plus 575 bps to 600 bps and initial guidance of Euribor plus 475 bps to 500 bps, and the original issue discounts on both loans was widened to 97 from recent talk of 98 and initial talk of 99, the source continued.

Technicolor call protection

Technicolor's U.S. and euro term loans have hard call protection of 102 in year one and 101 in year two. This was revised earlier from soft call protection of 102 for one year then 101 for an additional six months.

The loans have a 1.25% Libor/Euribor floor, and have since launch.

Included in the deal is a leverage-based maintenance covenant, which was added earlier in the syndication process.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal (B3/B) that will be used to refinance existing senior secured debt.

With the refinancing, the company was originally planning on selling $330 million of senior notes, but that offering was recently pulled.

Technicolor is a technology company focused on the media and entertainment sector.

Media General guidance

Back in the primary, Media General held its bank meeting on Wednesday, and with the event, talk on the $865 million seven-year delayed-draw term loan B (B1/BB-) emerged at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The delayed-draw for 12 months term B has a ticking fee of 50 bps from days 31 to 105, half the spread from days 106 to 165 and the full spread thereafter, the source remarked.

With the term loan B, the company is getting a $60 million five-year super-priority revolver (Ba1/BB), and there is also a $35 million delayed-draw term loan A (B1/BB-) at a separate borrower that is spoken for already.

RBC Capital Markets, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the $960 million deal, and are asking for commitments by July 24.

Media General repaying debt

Proceeds from Media General's credit facility will be used to refinance around $765 million of debt at Media General and New Young Broadcasting Holding Co. Inc. in connection with their merger and pay a $50 million cash contribution to Media General's qualified pension plan.

The source said that the delayed-draw term loan B will fund in two steps - about $540 million will be drawn upon receipt of regulatory and Media General shareholder approval, which is expected by early fourth quarter, and the rest will be drawn to repay Media General's 11¾% 2017 senior secured notes upon the expiration of the non-call period in February 2014.

Closing is expected late in the third or early in the fourth quarter, subject to Media General shareholder approval, Federal Communications Commission approval, clearance under the Hart-Scott-Rodino antitrust act and customary third-party consents.

Media General is a Richmond, Va.-based provider of news, information and entertainment. Young is a Nashville, Tenn.-based media company.

TridentUSA details emerge

TridentUSA disclosed tranching on its $570 million credit facility and revealed price talk on the term loan tranches in connection with its afternoon bank meeting, according to a market source.

The facility consists of a $75 million revolver (B1), a $340 million seven-year first-lien term loan (B1) talked at Libor plus 450 bps to 475 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and a $155 million 71/2-year second-lien term loan (Caa1) talked at Libor plus 850 bps with a 1.25% Libor floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Citigroup Global Markets Inc., GE Capital Markets and RBC Capital Markets are leading the deal for which commitments are due on July 19.

Proceeds will be used to refinance existing debt, fund the acquisition of Life Choice Hospice, and monetize existing shareholders for the dilution of their ownership stakes via a new equity infusion from a group of new and existing investors, the source added.

TridentUSA is a Burbank, Calif.-based provider of bedside diagnostics services.

Hemisphere reveals talk

Hemisphere Media Group came out with talk of Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 99 on its $175 million seven-year covenant-light term loan B (B2/B) that also launched with a bank meeting in the morning, according to a market source.

As previously reported, the term loan has 101 soft call protection for one year.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance term loans at the company's subsidiaries, Cine Latino Inc. and InterMedia Español Inc., and for general corporate purposes.

Commitments are due on July 24 and closing is expected to occur on July 30.

Hemisphere Media, a Miami-based Spanish-language media company, will have pro forma total leverage of 4.3 times and net leverage of 0.3 times.

ClubCorp plans call

In more primary news, ClubCorp set a call for 11 a.m. ET on Thursday for credit facility lenders, according to a market source, who said details on what the call is regarding are not yet available.

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

ClubCorp is a Dallas-based owner and operator of golf courses, country clubs, private business and sports clubs and resorts.

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