Generac, LPL Financial, Tempur-Pedic, MB Aerospace, Grocery Outlet, Sprint Industrial break

By Sara Rosenberg

New York, May 10 - Generac Power Systems Inc. made a number of changes to the size and pricing on its term loan B and then freed up for trading on Friday afternoon, and LPL Financial LLC, Tempur-Pedic International Inc., MB Aerospace, Grocery Outlet Inc. and Sprint Industrial Holdings LLC emerged in the secondary market, too.

In more trading happenings, Cengage Learning Acquisitions Inc.'s extended and non-extended term loans were stronger as the company released fiscal third-quarter numbers.

Back on the new deal front, SeaWorld Parks & Entertainment Inc. reduced pricing on its term loan B, added a step-down, set the original issue discount at the wide side of talk and extended the call protection, and Brickman Group Holdings Inc. divided its term loan B into two tranches and revised pricing.

In addition, Select Medical Corp. reduced pricing on its loan and updated the Libor floor, Universal Health Services Inc. firmed the coupon on its loan at the low end of talk, Atlantic Aviation FBO Inc. trimmed the spread on its term loan while reducing the Libor floor and firming the discount at the high end of guidance, and OtterBox raised pricing on its B loan.

Furthermore, Getty Images Inc. launched a repricing of its term loan B to investors, Alpha Natural Resources Inc. came to market with a new loan, and Scientific Games International Inc. and J.C. Penney Co. Inc. revealed timing on their deals.

Generac revised, breaks

Generac Power Systems lifted its seven-year senior secured term loan B (B2/B+) to $1.2 billion from $1.15 billion and cut pricing to Libor plus 275 basis points with a 0.75% Libor floor and an original issue discount of 99¾ from Libor plus 300 bps with a 1% Libor floor and a discount of 991/2, according to a market source.

Also, a step-down was added to Libor plus 250 bps when net leverage is less than 3 times and post-delivery of the financial report for fiscal year ending Dec. 31, 2013, the 101 soft call protection was extended to one year from six months and the 24-month sunset on the incremental facility was removed, the source said.

Recommitments were due by 11 a.m. ET on Friday, and by late day, the loan had begun trading with levels quoted at par 5/8 bid, 101 1/8 offered, a trader added.

J.P. Morgan Securities LLC is leading the deal that will refinance an existing term loan, pay a special dividend to common shareholders of up to $5 per share, and, as a result of the upsizing, add cash to the balance sheet.

With the term loan, the Waukesha, Wis.-based designer and manufacturer of generators also plans on getting a $150 million asset-based revolver, which is expected to be undrawn at close.

LPL tops par

LPL Financial' $1,084,000,000 term loan B (Ba2/BB-) due March 2019 also hit the secondary market, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the loan is Libor plus 250 basis points with a 0.75% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Recently, pricing on the loan had been reduced from Libor plus 275 bps and the offer price on the new money was tightened from 993/4.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance term loan A and term loan B debt.

LPL Financial is a broker-dealer, an RIA custodian and a consultant to retirement plans with offices in Boston, Charlotte, N.C., and San Diego.

Tempur-Pedic trading

Tempur-Pedic's $743 million freed up as well, with levels seen at par ¾ bid, 101¼ offered, a trader remarked.

Pricing on the loan is Libor plus 275 bps with a 0.75% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

Proceeds are being used to reprice an existing term loan from Libor plus 400 bps with a 1% Libor floor.

The size of the repriced loan includes a planned $125 million paydown.

Bank of America Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Fifth Third Securities Inc. are leading the deal.

Tempur-Pedic is a Lexington, Ky.-based manufacturer, marketer and distributor of premium mattresses and pillows.

MB Aero hits secondary

MB Aerospace's credit facility began trading too, with the $70 million six-year term loan quoted at par ¼ bid, according to a market source.

Pricing on the term loan is Libor plus 475 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99.

The company's $105 million credit facility also includes a $15 million five-year revolver priced at Libor plus 475 bps with a 1.25% Libor floor, and a $20 million pound sterling equivalent six-year term loan priced at Libor plus 500 bps with a 1.25% floor and sold at a discount of 99.

Societe Generale and BNP Paribas Securities Corp. are leading the deal that will back the company's acquisition of Delta Industries.

Senior and total leverage is 3.9 times and equity is over 45% of pro forma capitalization.

MB Aerospace is a Motherwell, England-based provider of highly engineered components for the commercial and military aero-engine and industrial gas turbine markets.

Grocery Outlet frees up

Grocery Outlet's roughly $340 million first-lien term loan (including $25.8 million add-on) due Dec. 17, 2018 also broke for trading, with levels quoted at par ¼ bid, 101¼ offered, a market source said.

Pricing on the term loan is Libor plus 425 bps with a 1.25% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

During syndication, the add-on portion of the loan was upsized by $20 million and pricing finalized at the tight end of the Libor plus 425 bps to 450 bps talk.

Barclays is leading the deal that will be used to reprice an existing roughly $314.2 million first-lien term loan from Libor plus 575 bps with a 1.25% Libor floor, and pay down $20 million of second-lien term loan borrowings.

First-lien leverage is 4 times, total leverage is 5.1 times and rent adjusted leverage is 6.1 times.

Grocery Outlet is a Berkeley, Calif.-based extreme-value grocery retailer.

Sprint Industrial breaks

Another deal to begin trading was Sprint Industrial Holdings, with the $150 million six-year first-lien term loan (B2/B+) quoted at 99 bid, par ½ offered, and the $70 million 61/2-year second-lien term loan (Caa2/CCC+) quoted at 99 bid, according to sources.

Pricing on the first-lien term loan is Libor plus 575 bps, after firming recently at the tight end of the Libor plus 575 bps to 600 bps talk. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was issued at an original issue discount of 99.

The second-lien term loan is priced at Libor plus 1,000 bps, after flexing the other day from Libor plus 1,025 bps to 1,050 bps. There is a 1.25% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three, and the debt was sold at a discount of 98.

The company's $232.5 million facility also includes a $12.5 million five-year revolver (B2/B+).

Goldman Sachs & Co. is leading the deal that will be used to refinance existing debt.

Sprint Industrial is a Houston-based specialized industrial maintenance service provider offering both storage and safety equipment for rental.

Cengage rises

Also in the secondary market, Cengage's term loans were better after 2013 fiscal third quarter results were announced, according to a trader.

The extended term loan was quoted at 79 bid, 79½ offered, up from 77½ bid, 78¼ offered, and the non-extended term loan was seen at 79½ bid, 80 offered, up from 78 bid, 78¾ offered, the trader said. Early in the day, the extended term loan was as high as 81 5/8 bid, and the non-extended loan was as high as 81½ bid.

For the three months ended March 31, the company reported an operating loss of $2.77 billion compared with $12.3 million for the three months ended March 31, 2012, primarily reflecting a $2.76 billion preliminary goodwill impairment and $12.7 million of operational restructuring charges.

Net loss for the quarter was $2.16 billion, compared to a net loss of $84.7 million last year, total revenues for the quarter were $353.4 million, up 4.8 % from $337.2 million in the prior year, and total adjusted EBITDA for the quarter was $91.3 million, up 29.7% from $70.4 million in the 2012 quarter.

Cengage is a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets.

SeaWorld flexes

Returning to the primary, SeaWorld Parks & Entertainment reduced pricing on its roughly $1.4 billion term loan B (Ba3/BB-) to Libor plus 225 bps from Libor plus 250 bps, and added a step to Libor plus 200 bps at less than 3.2 times net total leverage, according to sources.

Also, the original issue discount firmed at 993/4, the high end of the 99¾ to par talk, and the 101 soft call protection was pushed out to one year from six months, sources remarked.

The 0.75% Libor floor was left unchanged.

Recommitments for the Orlando, Fla.-based theme park operator's loan were due at 1 p.m. ET on Friday.

Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., Wells Fargo Securities LLC and Macquarie Capital are leading the deal that will be used to refinance an existing term loan B that is priced at Libor plus 300 bps with a 1% Libor floor and an existing term loan A that is priced at Libor plus 275 bps.

Brickman reworks deal

Brickman Group modified its deal so that it is now looking to get a roughly $237.9 million term loan B-2 due Oct. 14, 2016 at Libor plus 300 bps with no Libor floor and a par offer price, and a $300 million term loan B-3 due Sept. 28, 2018 at Libor plus 325 bps with a 1% Libor floor and a par offer price, according to a market source.

Both covenant-light term loans have 101 soft call protection for six months, the source said.

By comparison, at launch, the deal was structured as a single roughly $537.9 million term loan B due Oct. 14, 2016 talked in the Libor plus 325 bps to 350 bps area with a 1% Libor floor, a par offer price and 101 soft call protection for six months..

Commitments are due on Tuesday.

Senior secured leverage is 3.4 times, and total leverage is 5.7 times.

Barclays is leading the deal that will be used by the Gaithersburg, Md.-based commercial landscaping company to reprice an existing term loan Due Oct.14, 2016 from Libor plus 425 bps with a 1.25% Libor floor, and extend a portion of the debt.

Select Medical modified

Select Medical trimmed pricing on its $620 million term loan B due June 2018 to Libor plus 300 bps from Libor plus 325 bps and set the Libor floor at 1%, the tight end of the 1% to 1.25% talk, according to a market source.

The loan continues to have a par offer price and 101 soft call protection for six months.

Recommitments are due at 5 p.m. ET on Monday, the source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan B and a term loan B series A due 2018.

Select Medical is a Mechanicsburg, Pa.-based operator of specialty hospitals and outpatient rehabilitation clinics.

Universal Health sets spread

Universal Health Services firmed the spread on its $746 million term loan B at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, while keeping the par offer price and 101 soft call protection for six months intact, according to a market source. The loan has no Libor floor.

Proceeds will be used to reprice an existing term loan from Libor plus 275 bps with a 1% Libor floor.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Goldman Sachs & Co., RBS Securities Inc. and SunTrust Robinson Humphrey Inc. are leading the transaction.

Universal Health is a King of Prussia, Pa.-based operator of acute care hospitals, behavioral health facilities and ambulatory centers.

Atlantic Aviation changes

Atlantic Aviation lowered pricing on its $465 million seven-year first-lien term loan to Libor plus 250 bps from talk of Libor plus 275 bps to 300 bps, changed the Libor floor to 0.75% from 1%, and set the original issue discount at 99, the wide end of the 99 to 99½ guidance, according to a market source.

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

With the pricing changes, the commitment deadline on the deal was moved up to 5 p.m. ET on Tuesday from May 17, the source remarked.

Barclays, Macquarie Capital and Wells Fargo Securities LLC are leading the $535 million senior secured credit facility (Ba3/BB-), which also includes a $70 million five-year revolver.

Proceeds from the credit facility, cash on hand and a proposed public offering of the company's LLC interests, will be used to refinance an existing credit facility and capital expenditures facility.

Atlantic Aviation, a New York-based owner, operator and investor in a diversified group of infrastructure businesses, will have first-lien and total leverage of 3.5 times.

OtterBox lifts pricing

OtterBox raised pricing on its $400 million six-year term loan B (B1/B+) to Libor plus 425 bps from Libor plus 400 bps and increased amortization to 5% in year one, 7½% in year two and 10% annually thereafter, from just 1% per annum, according to a market source.

As before, the loan has a 1% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year.

The company's new $550 million credit facility also includes a $150 million three-year ABL revolver that is priced at Libor plus 175 bps.

Commitments were due at 5 p.m. ET on Friday and closing is targeted for May 17.

Wells Fargo Securities LLC is leading the deal that will be used to help fund the acquisition of LifeProof, a San Diego-based maker of protective cases for Smartphones and Tablet PCs.

OtterBox is a Fort Collins, Colo.-based producer of protective solutions for global handheld manufacturers, wireless carriers and distributors.

Getty holds call

In other primary news, Getty Images held its Friday morning call, at which time a repricing of its $1.895 billion covenant-light term loan B due October 2019 was launched, according to a market source.

The repriced loan is talked at Libor plus 250 bps to 275 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, compared to current pricing of Libor plus 350 bps with a 1.25% Libor floor.

Lead banks, Barclays, J.P. Morgan Securities LLC, Goldman Sachs & Co., Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC, are asking for commitments by 5 p.m. ET on Thursday, the source said.

Senior secured leverage is 4.9 times, total leverage is 6.4 times and net total leverage is 6.3 times.

Getty Images is a Seattle-based creator and distributor of still imagery, video and multimedia products.

Alpha Natural launches

Alpha Natural Resources presented to lenders a $500 million senior secured covenant-light term loan B (BB) due May 31, 2020 that is talked 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, according to a market source.

Commitments are due on May 17, the source said.

Citigroup Global Markets Inc., PNC Capital Markets LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays, Wells Fargo Securities LLC, BMO Capital Markets Corp. and Goldman Sachs & Co. are leading the deal.

Proceeds will be used by the Abingdon, Va.-based coal producer to refinance $400 million of term loan A amortization and add cash to the balance sheet to fund the repurchase of convertible senior notes due 2015.

Scientific Games timing

Scientific Games set a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch its $2.3 billion seven-year covenant-light term loan B that has 101 soft call protection for six months, according to a market source.

Price talk is not yet available, the source said. The company has said in prior filings with the Securities and Exchange Commission that term loan B pricing was expected at Libor plus 300 bps with a 1% Libor floor, but those filings also had the 101 soft call as being in place for one year.

Also, based on the regulatory filings, it is anticipated that the company will get a $300 million five-year revolver with the term loan B.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the deal.

Scientific buying WMS

Proceeds from Scientific Games' senior secured credit facility will be used to help fund the purchase of WMS Industries Inc. for $26.00 in cash per common share or about $1.5 billion total, and refinance credit facilities at both companies.

Pro forma leverage is around 5 times without synergies and about 4.4 times with synergies.

Closing is expected by year-end, subject to regulatory approvals and other customary conditions. WMS shareholder approval for the transaction was obtained on Friday.

Scientific Games is a New York-based provider of customized, end-to-end gaming solutions to lottery and gaming organizations. WMS is a Waukegan, Ill.-based designer, manufacturer and marketer of video and mechanical reel-spinning gaming machines, video lottery terminals and in gaming operations.

J.C. Penney readies meeting

J.C. Penney revealed that its $1.75 billion five-year senior secured term loan (NA/B/BB-) will also launch with a bank meeting on Tuesday, according to a market source.

Goldman Sachs & Co. is leading the deal that will be used for working capital and other general corporate purposes and to amend or take out 7 1/8% debentures due 2023.

J.C. Penney is a Plano, Texas-based operator of department stores.

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