NEP Broadcasting breaks; Tesoro moves up deadline; Taminco sets spreads; Bombardier flexes

By Sara Rosenberg

New York, Jan. 18 - NEP Broadcasting LLC's credit facility made its way into the secondary market on Friday, with both the first- and second-lien term loans seen trading above their original issue discount prices.

Moving to the primary market, Tesoro Corp. accelerated the commitment deadline on its term loan, Taminco firmed spreads under its U.S. and euro term loan repricing proposal at the tight end of guidance, and Bombardier Recreational Products reduced the coupon on its loan.

Also, Crossmark set talk with launch, Saxon Energy Services Inc., WASH Multifamily Laundry Systems, Syniverse Holdings and Blackboard Inc. announced new deal plans, and DineEquity Inc. and Regent Seven Seas Cruises revealed that they will be approaching lenders with repricing proposals.

NEP frees up

NEP Broadcasting's credit facility broke for trading on Friday, with the $470 million covenant-light seven-year first-lien term loan (B1/B) quoted at 100½ bid, 101½ offered on the open and then it moved to 101½ bid, 102 offered, according to a market source.

And, the company's $140 million 71/2-year covenant-light second-lien term loan (Caa1/CCC+) was quoted at 103 bid, 104 offered, another source said.

Pricing on the first-lien term loan is Libor plus 400 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

The second-lien loan is priced at Libor plus 825 bps with a 1.25% Libor floor and was sold at a discount of 99. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien term loan was upsized from $455 million, the coupon was cut from Libor plus 425 bps and the discount was revised from 99.

Also, the second-lien term loan was reduced from a revised size of $150 million and an original size of $165 million, pricing was trimmed from Libor plus 875 and the discount was tightened from 98. The second downsizing to this tranche was because the company has more cash than initially expected.

NEP getting revolver

NEP Broadcasting's $670 million senior secured credit facility also provides for a $60 million five-year revolver (B1/B) that has a springing covenant.

Proceeds will back the company's already completed buyout by Crestview Partners from American Securities LLC.

Barclays, Morgan Stanley Senior Funding Inc. and GE Capital Markets Corp. are the joint lead arrangers on the first-lien debt, with Barclays the left lead, and Morgan Stanley and Barclays are leading the second-lien loan, with Morgan Stanley the left lead.

NEP is a Pittsburgh-based provider of outsourced teleproduction services critical to the delivery of live sports and entertainment events.

Tesoro shutting early

Over in the primary, Tesoro moved up the commitment deadline on its $500 million three-year term loan B (Ba1/BBB-) to Tuesday from Thursday, according to a market source.

The loan is talked at Libor plus 275 bps with an offer price of 99¾ to par and includes 101 soft call protection for one year.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used with cash to fund the acquisition of BP's integrated Southern California refining and marketing business for $1.18 billion plus the value of inventory at the time of closing.

Closing is expected before the middle of the year, subject to regulatory approval.

Tesoro is a San Antonio-based refiner and marketer of petroleum products.

Taminco finalizes pricing

Taminco firmed the coupon on its roughly $345 million term loan at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, a market source said. The 1% Libor floor and 101 soft call protection for six months were left unchanged.

This transaction is repricing the existing U.S. term loan from Libor plus 400 bps with a 1.25% Libor floor.

In addition, the company set pricing on its roughly €120 million term loan at Euribor plus 350 bps, compared to initial talk of 25 bps to 50 bps wider than the U.S. loan, the source said. This tranche also has a 1% floor and 101 soft call protection for six months.

The euro term loan is being repriced from Euribor plus 425 bps with a 1.25% floor.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Nomura, UBS Securities LLC, Goldman Sachs & Co. and Apollo Global Securities are leading the repricing that is expected to become effective during the week of Jan. 21.

Taminco is a Belgium-based producer of alkylamines and their derivatives.

Bombardier reduces pricing

Bombardier Recreational Products trimmed pricing on its $1.05 billion six-year covenant-light term loan B (B1) to Libor plus 375 bps from Libor plus 400 bps, while leaving the 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year unchanged, according to a market source.

Also, the commitment deadline was moved to 5 p.m. ET on Tuesday from Wednesday, the source said.

The company had approached lenders with this term B late last year, but the deal was then pulled. Talk on that loan had been Libor plus 375 bps to 400 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

RBC Capital Markets LLC and BMO Capital Markets Corp. are the joint lead arrangers on the deal and bookrunners with UBS Securities LLC and Bank of America Merrill Lynch.

Proceeds will refinance existing debt and fund a dividend payment.

Bombardier is a Valcourt, Quebec-based designer manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

Crossmark talk emerges

Also on the new deal front, Crossmark launched with a bank meeting on Friday its $310 million covenant-light first-lien term loan with talk of Libor plus 400 bps with a 1.25% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, according to a market source.

And, the $105 million covenant-light second-lien term loan was launched at Libor plus 800 bps to 825 bps with a 1.25% Libor floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

The company's $490 million credit facility also includes a $75 million revolver.

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the deal that will be used to help fund the buyout of the company by Warburg Pincus from management.

Crossmark is a Plano, Texas-based sales and marketing services company in the consumer goods industry.

Saxon on deck

Saxon Energy surfaced with plans to hold a bank meeting on Thursday to launch a $525 million credit facility (Ba3/B) that consists of a $100 million revolver and a $425 million term loan, according to a market source.

RBC Capital Markets LLC, HSBC Securities (USA) Inc., UBS Securities LLC and Scotia Capital (USA) Inc. are leading the deal.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Saxon is a Calgary, Alta.-based oil services company providing land based drilling and workover service to oil and gas exploration and production companies.

WASH readies deal

WASH Multifamily Laundry set a bank meeting for Tuesday to launch a $440 million credit facility, according to a market source, who said that details on structure are not yet available.

GE Capital Markets is leading the deal.

Proceeds will be used to refinance existing debt and fund an acquisition.

WASH is an El Segundo, Calif.-based provider of laundry facilities management services.

Syniverse plans add-on

Syniverse scheduled a call for 3:15 p.m. ET on Tuesday to launch a $625 million delayed-draw add-on senior secured term loan due April 2019, according to a market source.

Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs & Co. are leading the deal that will be used to help fund the roughly €550 million purchase of MACH.

Closing on the acquisition is subject to regulatory approvals.

Syniverse is a Tampa, Fla.-based provider of technology and business services for the telecommunications industry. MACH is a Luxembourg-based provider of cloud-based communication services.

Blackboard coming soon

Blackboard plans to launch on Tuesday a $150 million add-on to its term loan B-2 that will be used to refinance existing debt, according to a market source.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Blackboard is a Washington, D.C.-based provider of enterprise software applications and related services to the education industry.

DineEquity repricing

DineEquity will host a lender call at 3 p.m. ET on Tuesday to launch a $472 million senior secured term loan due October 2017 that will be used to reprice its existing term loan from Libor plus 300 bps with a 1.25% Libor floor, according to a market source.

Barclays is the lead bank on the deal.

Furthermore, the company will ask to amend some covenants under its credit facility so as to gain more flexibility.

DineEquity is a Glendale, Calif.-based owner of Applebee's Neighborhood Grill & Bar and IHOP Restaurants.

Regent sets call

Regent Seven Seas Cruises plans to hold a call at 10 a.m. ET on Tuesday to launch a repricing of its roughly $300 million term loan B from Libor plus 500 bps with a 1.25% Libor floor, according to a market source.

Lenders will get paid down at 101 with the repricing due to the presence of call protection.

Deutsche Bank Securities Inc. is leading the deal.

Regent Seven Seas is a Miami-based cruise ship company.

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