Regent, International Market break; SeaWorld dips with earnings; Acosta, Cole-Parmer revised

By Sara Rosenberg

New York, Aug. 13 – Regent Energy Group Ltd. and International Market Centers LP (IMC OP LP) saw their credit facilities make their way into the secondary market on Wednesday, and SeaWorld Parks & Entertainment Inc.’s term loan B dropped on disappointing earnings news.

Over in the primary, Acosta Sales & Marketing adjusted spread and original issue discount talk on its term loan and extended the call protection.

Also, Cole-Parmer Instrument Co. (CPI Buyer LLC) widened pricing and offer prices on its first- and second-lien term loans and sweetened the call premium on the first-lien tranche, and Media General Inc. moved up the commitment deadline on its add-on term loan.

Regent starts trading

Regent Energy’s credit facility freed up on Wednesday, with the $301 million covenant-light first-lien term loan quoted at 98 bid, according to a market source.

Pricing on the first-lien term loan is Libor plus 500 basis points with a 1% Libor floor, and it was sold at and original issue discount of 97. There is 101 soft call protection for one year.

During syndication, the spread on the first-lien term loan was flexed up from talk of Libor plus 375 bps to 400 bps, the discount widened from 99½ and the call protection was extended from six months, the source said.

The company’s credit facility also includes a $75 million revolver and a C$140 million covenant-light second-lien term loan.

The second-lien loan was privately placed with a single investor at fixed-rate pricing of 10¼%, which swaps to the equivalent of the initial talk of Libor plus 725 bps with a 1% Libor floor and a discount of 99.

Regent being acquired

Proceeds from Regent Energy’s credit facility will be used to help fund its buyout by Advent International.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are leading the deal, with Goldman left lead on the first-lien loan and Deutsche left lead on the second-lien loan.

Regent Energy is a Nisku, Alberta-based oil recovery company.

International Market frees up

International Market Centers’ credit facility began trading too, with the $125 million seven-year second-lien term loan (B2/B-) quoted at 99 bid, par offered, according to a market source.

The second-lien term loan is priced at Libor plus 775 bps with a 1% Libor floor and was issued at 98½. This debt has hard call protection of 102 in year one and 101 in year two with a special IPO equity claw for 100% of the tranche at 101 in year one.

The company is also getting a $405 million six-year first-lien term loan (B1/BB-) priced at Libor plus 425 bps with a 25 bps step-down when total net leverage is less than 4.75, a 1% Libor floor and 101 soft call protection for one year. The debt was sold at an original issue discount of 99.

During syndication, pricing on the first-lien term loan was raised from Libor plus 350 bps, the discount firmed at the wide end of the 99 to 99½ talk and the call protection was extended from six months, second-lien term loan pricing widened from talk of Libor plus 675 bps to 700 bps while the discount was changed from 99, the MFN sunset was removed and the free and clear incremental basket was eliminated.

International Market refinancing

Proceeds from International Market Center’s $580 million credit facility, which also includes a $50 million revolver (B1/BB-), will be used to refinance existing mortgage debt and for general corporate purposes.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the deal, with JPMorgan left lead on the first-lien and Deutsche Bank left lead on the second-lien.

International Market Centers is an owner and operator of showroom space for the home furniture, home décor and gift industries.

SeaWorld dives

SeaWorld Parks & Entertainment’s term loan B fell to 96¾ bid, 97¼ offered from 97¾ bid, 98¼ offered after the company released second quarter numbers that were short of analyst expectations, a trader remarked.

For the quarter, the company’s revenue was $405.2 million versus $411.3 million in the second quarter of 2013, net income was $37.3 million, or $0.43 per diluted share, compared to a net loss of $15.9 million, or $0.18 per diluted share, in the prior year, and adjusted EBITDA was $126.1 million, down from $127 million last year.

The company also said that it now expects full year 2014 revenue to be down in the range of 6% to 7% and full year adjusted EBITDA to be down in the range of 14% to 16%.

SeaWorld is an Orlando-based theme park operator.

Charter trades

Also in the secondary, Charter Communications Operating LLC’s $3.5 billion senior secured seven-year first-lien term loan G was seen by one trader on Wednesday at par bid, par ½ offered, versus levels of par bid, par ¼ offered after the break on Tuesday, and by a second trader at par ¼ bid, 101 offered.

Pricing on the loan is Libor plus 350 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99½, after tightening the other day from 99. There is 101 soft call protection for one year.

Earlier in syndication, the deal was revised from a $3.2 billion six-year term loan G talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, a discount of 99½ and 101 soft call protection for six months, and a $4.2 billion seven-year term loan H talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, a discount of 99 and 101 soft call protection for six months.

Closing is expected in early to mid-September.

Charter lead banks

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading Charter’s loan that will be used to fund the purchase of customers and systems from Comcast Corp.

The acquisitions are conditioned on the completion of the merger of Comcast and Time Warner Cable, as well as the receipt of Hart-Scott-Rodino, FCC and other required regulatory approvals, Charter shareholder approval and various other matters.

Following the close of the Comcast-Time Warner Cable merger, Charter will buy systems serving about 1.4 million of the prior Time Warner Cable video customers for an estimated value of $7.4 billion based on projected 2014 EBITDA.

Also, Charter will own through the issuance of stock to Comcast shareholders, about 33% of the new publicly traded cable provider (SpinCo) to be spun off by Comcast serving about 2.5 million customers, and Comcast shareholders will own about 67% of SpinCo.

Charter is a Stamford, Conn.-based broadband communications company and cable operator.

Acosta reworks talk

Switching to the primary, Acosta Sales & Marketing changed price talk on its $2,065,000,000 seven-year term loan to Libor plus 375 bps to 400 bps from Libor plus 350 bps to 375 bps and original issue discount talk to just 99 from 99 to 99½, according to a market source.

Additionally, the 101 soft call protection was extended to one year from six months, the source said, adding that the 1% Libor floor was unchanged.

The company’s $2.29 billion credit facility also includes a $225 million five-year revolver.

Recommitments were due at 5 p.m. ET on Wednesday, the source continued.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to help fund the buyout of the company by Carlyle Group from Thomas H. Lee Partners LP, and GIC, a current investor in Acosta, will re-invest in the company.

Acosta, a Jacksonville, Fla.-based full-service sales and marketing agency in the consumer goods industry, expects the buyout to close in the third quarter.

Cole-Parmer sets changes

Cole-Parmer Instrument raised pricing on its $240 million seven-year first-lien covenant-light term loan (B2/B) to Libor plus 450 bps from Libor plus 375 bps, moved the original issue discount to 98½ from 99 and pushed out the 101 soft call protection to one year from six months, a source remarked.

Also, pricing on the $107 million eight-year second-lien covenant-light term loan (Caa2/CCC+) was increased to Libor plus 750 bps from Libor plus 700 bps and the discount was changed to 98½ from 99, the source said.

In addition, the MFN sunset was removed.

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

Recommitments for the company’s $367 million credit facility, which also includes a $20 million revolver (B2/B), are due at noon ET on Friday, the source added.

Cole-Parmer funding buyout

Proceeds from Cole-Parmer’s credit facility will be used with equity to fund its purchase by GTCR from Thermo Fisher Scientific Inc. for $480 million.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the bank debt.

Closing is subject to regulatory approval and other customary closing conditions.

Cole-Parmer is a Vernon Hills, Ill.-based manufacturer and distributor of specialty laboratory equipment, instruments and supplies.

Media General tweaks deadline

Media General accelerated the commitment deadline on its fungible $75 million add-on term loan to Wednesday from Friday, a market source said.

The loan is talked at Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99½.

RBC Capital Markets is leading the deal that will be used to help fund the acquisition of WHTM TV, an ABC affiliate in Harrisburg, Pa., currently owned by Allbritton Communications, for $83.4 million in cash.

Media General is a Richmond, Va.-based local television broadcasting and digital media company.

Terex closes

In other news, Terex Corp. completed its $1.1 billion credit facility (Ba1/BBB-) that includes a $600 million revolver, a $230 million seven-year first-lien covenant-light term loan and a €200 million seven-year first-lien covenant-light term loan, a news release said.

Pricing on the U.S. term loan is Libor plus 275 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99¾, and the euro term loan is priced at Euribor plus 325 bps with a 0.75% floor and was sold at a discount of 99¾. Both term loans have 101 soft call protection for six months.

During syndication, the offer price on both term loans firmed at the tight end of the 99½ to 99¾ talk.

Credit Suisse Securities (USA) LLC, Commerz, Goldman Sachs Bank USA and RBS Securities Inc. led the deal that was used to refinance existing debt.

Terex is a Westport, Conn.-based diversified equipment manufacturer.

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