Nuveen up on buyout; Avago, Millennium Laboratories, Time, Men's Wearhouse update deals

By Sara Rosenberg

New York, April 14 - Nuveen Investments' first- and second-lien term loans were stronger in the secondary market on Monday following news that the company will be acquired by TIAA-CREF.

Moving to the primary, Avago Technologies Ltd. trimmed pricing on its term loan B, tightened the original issue discount, extended the call protection and added a ticking fee, and Millennium Laboratories upsized its B loan while widening the spread and offer price.

In addition, Time Inc. downsized its term loan B as its bond offering was upsized, and The Men's Wearhouse Inc. finalized the spread on its term loan B at the low end of guidance.

Furthermore, Pier 1 Imports Inc. released talk with launch, and Hoffmaster Group Inc., Technicolor (Tech Finance & Co. SCA), IPC Systems Inc., Momentive Performance Materials Inc. and Sterling Infosystems Inc. joined this week's calendar.

Nuveen rises

Nuveen's first- and second-lien term loans were better in trading as the company announced that it is being purchased by TIAA-CREF from an investor group led by Madison Dearborn Partners for an enterprise value of $6.25 billion, including outstanding debt, according to a market source.

The first-lien term loan was quoted at 99 7/8 bid, par 3/8 offered, up from 99¾ bid, par 1/8 offered and the second-lien term loan was quoted at par bid, par ¾ offered, up from 99½ bid, par offered, the source said.

Closing is expected by year-end, subject to customary conditions.

Nuveen is a Chicago-based investment management company. TIAA-CREF is a financial services organization.

Avago changes emerge

Switching to the primary, Avago Technologies cut pricing on its $4.6 billion seven-year term loan B to Libor plus 300 bps from Libor plus 325 bps, moved the original issue discount to 99½ from 99, pushed out the 101 soft call protection to one year from six months and added a ticking fee of half the spread starting on June 1 and the full spread starting on July 1, a market source said.

Furthermore, the term loan saw the addition of a 24-month MFN sunset provision and LuxCo as a co-borrower, the source continued.

As before, the B loan has a 0.75% Libor floor.

The company's $5.1 billion facility (Ba1/BBB-/BBB-) also includes a $500 million five-year revolver.

Recommitments were due by the close of business on Monday and allocations are expected on Wednesday, the source added.

Avago lead banks

Deutsche Bank Securities Inc., Barclays, Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading Avago's credit facility that will be used with $1 billion of cash and a $1 billion investment by Silver Lake Partners to fund the purchase of LSI Corp. for $11.15 per share in an all-cash transaction valued at $6.6 billion.

Closing is expected in the first half of this year, subject to regulatory approvals in various jurisdictions, LSI stockholder approval and customary conditions.

Avago is a Singapore-based designer, developer and supplier of analog semiconductor devices. LSI is a San Jose, Calif.-based designer of semiconductors and software that accelerate storage and networking in datacenters, mobile networks and client computing.

Millennium Laboratories reworked

Millennium Laboratories increased its seven-year term loan B to $1,775,000,000 from $1,765,000,000, lifted pricing to Libor plus 425 bps from talk of Libor plus 350 bps to 375 bps and modified the original issue discount to 99 from 991/2, according to a market source.

The 1% Libor floor and 101 soft call protection for one year on the term loan were unchanged.

The company's now $1,825,000,000 credit facility (B1/B+) also includes a $50 million five-year revolver.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BMO Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Millennium Laboratories is a San Diego-based specialty diagnostics laboratory.

Time downsizes

Time cut the size of its seven-year covenant-light term loan B to $700 million from $900 million and left talk at Libor plus 275 bps to 300 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, a market source said. The term loan has a ticking fee of half the spread starting on day 46 and ending on the earlier of the closing date and June 30.

The company's now $1.2 billion credit facility (Ba1/BBB-) also includes a $500 million five-year revolver.

Citigroup Global Markets Inc., Barclays, BNP Paribas Securities Corp., Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal, for which commitments are due on Wednesday and closing is expected next week.

Proceeds from the credit facility and $700 million of senior notes, upsized from $500 million, will be used by the New York-based media company to fund the acquisition of Time Inc.'s U.K. publishing business, which is owned by a wholly owned subsidiary of Time Warner Inc., and to pay a special cash dividend to Time Warner Inc.

Men's Wearhouse firms spread

Men's Wearhouse set pricing on its $1.1 billion seven-year covenant-light term loan B (Ba2/B+) at Libor plus 350 bps, the tight end of the Libor plus 350 bps to 375 bps talk, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, according to a market source.

The company's $1.6 billion senior secured deal also includes a $500 million five-year asset-based revolver.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are leading the credit facility that will be used with an expected $600 million senior notes offering to fund the acquisition of JoS. A Bank Clothiers Inc. for $65.00 per share in cash, or total consideration of $1.8 billion.

Closing is expected by the third quarter, subject to the satisfaction of customary conditions, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and the tender of a majority of JoS. A Bank shares.

Men's Wearhouse is a Houston-based specialty retailer of men's apparel. JoS. A. Bank is a Hampstead, Md.-based designer, manufacturer and retailer of men's apparel, footwear and accessories.

Pier 1 sets talk

In more primary happenings, Pier 1 Imports held its bank meeting on Monday morning, launching its $200 million senior secured term loan B (B1/B+) due in 2021 with talk of Libor plus 300 bps with a 1% Libor floor and an original issue discount of 991/2, according to a market source.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used for general corporate purposes, including for working capital needs and capital expenditures, and share repurchases and dividends permitted under the debt agreement.

Pier 1, a Fort Worth, Texas-based importer of home décor and furniture, expects to close on the term loan this month.

Hoffmaster coming soon

Hoffmaster set a bank meeting for 11:30 a.m. ET on Tuesday to launch a $404 million credit facility, according to a market source.

The facility consists of a $35 million revolver, a $265 million six-year first-lien covenant-light term loan talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and a $104 million seven-year second-lien covenant-light term loan talked at Libor plus 825 bps with a 1% Libor floor, a discount of 99, and call protection of 103 in year one and 101 in year two, the source said.

Commitments are due on April 30.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and Macquarie Capital are leading the deal that will be used to refinance existing debt.

Hoffmaster is an Oshkosh, Wis.-based producer of specialty disposable tabletop products.

Technicolor readies repricing

Technicolor scheduled a lender call at 10 a.m. ET on Tuesday to launch a repricing of its roughly $883.7 million senior secured term loan and roughly €321.2 million senior secured term loan, a market source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will take the U.S. term loan down from Libor plus 600 bps with a 1.25% Libor floor.

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

IPC joins calendar

IPC Systems will host a bank meeting on Wednesday to launch a $900 million credit facility, according to a market source.

The facility consists of a $25 million revolver, a $525 million 61/2-year first-lien term loan and a $350 million seven-year second-lien term loan, the source said.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt.

IPC is a Jersey City, N.J.-based provider of specialized voice and data communications and trading collaboration services for the financial markets.

Momentive on deck

Momentive Performance Materials plans to hold a bank meeting on Thursday to launch a $570 million debtor-in-possession financing facility, according to sources.

The facility consists of a $270 million asset-based revolver, and a $300 million term loan talked at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 991/2, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the company's Chapter 11 restructuring process.

Momentive is an Albany, N.Y.-based silicones and advanced materials company.

Sterling plans deal

Sterling Infosystems scheduled a bank meeting in New York on Thursday to launch a $315 million credit facility, according to a market source.

The facility consists of a $25 million revolver and a $290 million term loan, the source said.

GE Capital Markets and RBS Citizens are leading the deal that will be used to repay existing debt and fund a distribution to shareholders.

Sterling Infosystems is a New York-based provider of comprehensive employment and background screening services.

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