Freescale breaks, trades higher; Hub sets Tuesday meeting; Peabody launches $1.2 billion

By Paul A. Harris

Portland, Ore., Sept. 6 - The LCDX20 index of bank loan credit default swaps finished the Friday session at 103 1/8 bid, 103 5/8 offered, up 3/16 on the day.

In the primary market Freescale Semiconductor Inc.'s massively upsized Libor plus 375 basis points senior secured term loan B-5 due Jan. 15, 2021 broke at 99½ and traded to 99 7/8 bid.

Hub International Ltd. set a lender meeting for Tuesday to present its proposed $2.06 billion equivalent of credit facilities.

And Peabody Energy Corp. launched a $1.2 billion seven-year term loan.

Freescale breaks

Freescale's massively upsized senior secured term loan B-5 broke at 99½ and traded to 99 7/8 bid on Friday, a market source said.

The discount was hacked by 50 bps from the 99 original issue discount talk.

The deal was upsized from $300 million on Thursday after having closed the books a day early.

Deutsche Bank Securities Inc., Barclays and Citigroup Global Markets Inc. are the bookrunners on the deal.

The deal features a 1.25% Libor floor and 101 soft call protection for one year.

Proceeds will be used to redeem the company's 10 1/8% senior secured notes due 2018 and a portion of its 9¼% senior secured notes due 2018.

Freescale is an Austin, Texas-based provider of embedded processing semiconductors and related solutions.

Hub sets bank meeting

Hub International has set a lender meeting for Tuesday to present its proposed $2.06 billion equivalent of credit facilities, according to a market source.

The institutional tranche is a $1,785,000,000 term loan B.

There are two pro rata tranches: a $255 million revolver and a C$50 million revolver.

Morgan Stanley & Co., BofA Merrill Lynch and RBC Capital Markets are joint lead arrangers and joint bookrunners. BMO, Macquarie and UBS Investment Bank are also joint bookrunners.

Proceeds will be used to help fund the buyout of the company by Hellman & Friedman LLC and to refinance existing debt.

Hub is a Chicago-based insurance brokerage.

Peabody launches $1.2 billion

Peabody Energy launched a $1.2 billion seven-year term loan B with a 275 bps spread to Libor and a 1% Libor floor, discounted to 99, on Friday, according to a market source.

The term loan has a six-month 101 soft call.

The $2.7 billion credit facility also has a $1.5 billion senior secured revolver.

Commitments are due on Sept. 17.

Citigroup Global Markets is the left bookrunner. BofA Merrill Lynch, BNP Paribas, Credit Agricole CIB, HSBC, Morgan Stanley, PNC Capital Markets and RBS Securities are joint bookrunners.

The maturity of the revolver will be the earlier of five years or 91 days before the maturity date of the 6% senior notes due 2018, if they are in existence.

The term loan amortizes at a rate of 1% per annum, paid quarterly, with the remainder due at maturity.

The term loan is expected to close and fund on Sept. 20.

The borrower is a St. Louis-based coal producer.

Air Canada call on Monday

Joint lead arranger Citigroup has set up a lender call on behalf of Air Canada at 11 a.m. ET on Monday.

As reported, Air Canada announced on Thursday that it plans to enter into an $800 million credit facility and $300 million offering of secured notes, as part of a C$1.1 billion debt refinancing.

The company concurrently launched tender offers and consent solicitations for its 9¼% senior secured notes due 2015, its 10 1/8% senior secured notes due 2015 and its 12% senior second-lien notes due 2016.

The bank debt will be comprised of a $100 million revolver and a $700 million term loan.

The tender expires on Sept. 18.

Air Canada is Canada's largest domestic and international airline.

Pinnacle moves up deadline

Pinnacle Foods moved up the deadline on its $525 million incremental term loan to Monday, according to a market source.

Previously books had been expected to remain open until Thursday.

Talk has the deal coming with an initial Libor spread of 250 bps, at 97.5 to 98.

There is a 0.75% Libor floor and a 25 bps spread step-down, which would take it to Libor plus 225 bps if total net leverage falls below 4.25-times, a market source said.

Bank of America Merrill Lynch, Barclays, UBS Securities LLC, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Macquarie Capital are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of the Wish-Bone salad dressings business from Unilever plc.

Other funds for the $580 million acquisition will come from cash on hand.

Closing is expected late in the third quarter or early in the fourth quarter.

Go Daddy accelerates timing

Go Daddy Operating Co. LLC moved up the timing for its $100 million incremental senior secured term loan (existing ratings Ba3/B), a market source said on Friday.

Commitments are due on Monday, two days earlier than the previously announced Sept. 11 deadline.

As reported, the deal is talked with a 325 bps spread to Libor and a 1% Libor floor discounted to 99.75.

Barclays is the left lead among a syndicate of managers that also includes KKR Capital Markets and Deutsche Bank Securities Inc.

Proceeds will be used to finance potential acquisitions.

Go Daddy is a Scottsdale, Ariz.-based provider of web hosting and domain names.

Tenet shifts $1.8 billion

Tenet Healthcare Corp. announced in a Friday press release that it plans to sell $1.8 billion of secured notes and $2.8 billion of unsecured notes.

The $1.8 billion of secured debt had been expected to materialize in the form of a term loan via BofA Merrill Lynch, which is leading the acquisition financing bond deal.

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