Templar Energy dips with incremental launch; LA Fitness, Wencor, Liberty Cablevision tweaked

By Sara Rosenberg

New York, June 23 – Templar Energy LLC’s second-lien term loan weakened in the secondary market on Monday as details on the company’s proposed fungible incremental debt were revealed to investors.

Switching to the primary market, LA Fitness International LLC reduced the size of its term loan B while lifting pricing, widening the offer price and extending the call protection, and it raised the size of its term loan A.

In addition, Wencor Group LLC (Jazz Acquisition Inc.) increased the size of is first-lien term loan and tightened the spread as well as original issue discount on both its first- and second-lien tranches, Liberty Cablevision of Puerto Rico LLC cut pricing and offer prices on its first- and second-lien debt, and Hilex Poly LLC emerged with new deal plans.

Templar slides

Templar Energy’s existing second-lien term loan retreated in trading on Monday to 99 bid, 99¾ offered from 99 3/8 bid, par 1/8 offered following the release of pricing details on a fungible $200 million incremental senior secured second-lien covenant-light term loan due Nov. 15, 2020, according to a trader.

The incremental loan launched with a call in the afternoon with talk of Libor plus 700 basis points with a 1% Libor floor, in line with the existing loan, and an original issue discount in the 99 area, another source said.

Like the existing, the incremental loan has call protection of 102 through Nov. 25 and 101 through Nov. 25, 2015.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, Morgan Stanley Senior Funding Inc. and Natixis are leading the deal that will be used to purchase acquired assets and repay revolver borrowings.

Commitments are due at 2 p.m. ET on Friday, allocations are expected on June 30 and closing is targeted for July 1, the source added.

Templar Energy is an Oklahoma City-based exploration and production company.

LA Fitness restructures

Over in the primary, LA Fitness cut its six-year covenant-light term loan B to $1 billion from $1.5 billion, raised the spread to Libor plus 450 bps from Libor plus 400 bps, set the original issue discount at 99, the wide end of the 99 to 99½ talk, and extended the 101 soft call protection to one year from six months, according to a market source, who said the 1% Libor floor was left intact.

Another change made to the deal was that the term loan A was upsized to $250 million from $150 million, the source continued.

The Irvine, Calif.-based health club chain’s now $1.6 billion facility also includes a $350 million revolver.

Recommitments are due at 2 p.m. ET on Tuesday.

Bank of America Merrill Lynch, BNP Paribas Securities Corp. and Barclays are leading the deal that will be used to refinance existing debt and for general corporate purposes, and, because of the downsizing of the credit facility, the one-time repurchase of equity interests is being revised, the source added.

Wencor reworks deal

Wencor Group upsized its seven-year first-lien covenant-light term loan (B2/B) to $330 million from $320 million, cut pricing to Libor plus 350 bps from Libor plus 375 bps and moved the original issue discount to 99¾ from 99, according to market sources, who said the 1% Libor floor and 101 soft call protection for six months were unchanged.

Meanwhile, pricing on the $155 million eight-year second-lien covenant-light term loan (Caa2/CCC+) was lowered to Libor plus 675 bps from Libor plus 700 bps and the discount was changed to 99½ from 99, sources said. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s now $550 million credit facility also includes a $65 million revolver (B2/B).

Recommitments were due at 5 p.m. ET on Monday.

Wencor being acquired

Proceeds from Wencor’s credit facility and equity will be used to fund its buyout by Warburg Pincus from Odyssey Investment Partners LLC.

As a result of the first-lien term loan upsizing, the amount of equity being used for the transaction was reduced, sources added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal.

Closing is expected this quarter, subject to customary regulatory approvals.

Wencor is a Springville, Utah-based designer, repair provider and distributor of aftermarket aerospace components.

Liberty Cablevision flexes

Liberty Cablevision of Puerto Rico reduced pricing on its $530 million 7½-year first-lien term loan (B2/B) to Libor plus 350 bps from Libor plus 400 bps and moved the original issue discount to 99½ from 99, a market source said.

Additionally, pricing on the $145 million nine-year second-lien term loan (Caa2/CCC) was changed to Libor plus 675 bps from Libor plus 750 bps and the discount tightened to 99½ from 99, the source remarked.

As before, both term loans have a 1% Libor floor on both term loans, the first-lien loan has 101 soft call protection for six months, and the second-lien loan has call protection of 102 in year one and 101 in year two.

The company’s $715 million credit facility also includes a $40 million revolver (B2/B).

Recommitments were due at 5 p.m. ET on Monday, the source added.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Scotia Bank are leading the deal that will be used by the cable TV service provider in Puerto Rico to refinance existing bank debt.

Hilex Poly on deck

Hilex Poly is set to hold a bank meeting at 9 a.m. ET at the W Hotel in New York on Wednesday to launch a $555 million senior credit facility, according to a market source.

The facility consists of an $85 million five-year revolver and a $470 million seven-year covenant-light term loan, the source said.

GE Capital Markets, Macquarie Capital (USA) Inc. and BMO Capital Markets Corp. are leading the deal that will be used with $40 million of mezzanine financing from Northwestern Mutual Life to fund the acquisition of Duro Bag Manufacturing Co.

Closing is expected at the end of this quarter, subject to customary conditions and regulatory approvals.

Hartsville, S.C.-based Hilex Poly and Florence, Ky.-based Duro are plastic bag manufacturers.

Mediacom closes

In other news, Mediacom completed its $900 million of term loans (Ba3/BB) that consists of a $250 million three-year term loan I at Mediacom Broadband LLC, a $300 million seven-year term loan J at Mediacom Broadband LLC and a $350 million seven-year term loan G at Mediacom LLC, according to a news release.

Pricing on the term loan I is Libor plus 250 bps with no Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

The term loan J is priced at Libor plus 300 bps with a step-down to Libor plus 275 bps at 3 times secured leverage and a 0.75% Libor floor. The loan has 101 soft call protection for one year and was sold at a discount of 99¾.

And, the term loan G is priced Libor plus 300 bps with a leverage-based step-down and a 0.75% Libor floor, and was sold at 99½. This debt has 101 soft call protection for one year.

Mediacom lead banks

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, RBC Capital Markets, Natixis, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. led Mediacom’s deal that was used to refinance existing debt.

During syndication, the spread on the term loan I was reduced from talk of Libor plus 275 bps to 300 bps, the term loan J was upsized from $250 million, pricing firmed at the tight end of the Libor plus 300 bps to 325 bps talk, the step-down was added, and the discount was changed from revised talk of 99½ and initial talk of 99, and the term loan G was added to the deal.

Mediacom is a Middletown, N.Y.-based cable operator.

J.C. Penney completed

J.C. Penney Co. Inc. closed on its $2.35 billion asset-based senior secured credit facility, comprised of a $1.85 billion revolver (B1/B) and a $500 million term loan (B2/B), a news release said.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor and it was sold at an original issue discount of 99¼. There is 101 soft call protection for six months.

During syndication, the spread on the term loan was reduced from talk of Libor plus 450 bps to 475 bps and the discount was changed from 99.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Barclays and Goldman Sachs Bank USA led the deal, with Bank of America left lead on the term loan and Wells Fargo left lead on the revolver.

Proceeds were used by the Plano, Texas-based operator of department stores to refinance an existing asset-based revolver and for general corporate purposes.

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