Playa Funding frees up above OID; U.S. Renal Care, TIP Trailer Services rework deals

By Sara Rosenberg

New York, Aug. 6 - Playa Funding's credit facility made its way into the secondary market on Tuesday afternoon after undergoing a few issuer-friendly revisions, and bids on the term loan B were seen in the par-plus context.

Moving to the primary, U.S. Renal Care Inc. lowered pricing on its incremental first- and second-lien term loans and added a repricing request for its existing first-lien term debt, and TIP Trailer Services lifted spreads and original issue discounts on its U.S. and euro term loans.

Also, rue21 inc., Bally Technologies Inc., Foresight Energy LLC, Shingle Springs Tribal Gaming Authority, EXCO Resources Inc. and Endurance International Group (EIG Investors Corp.) released talk with launch, and Spectrum Brands Inc., Hubbard Radio LLC and NXT Capital joined this week's calendar.

Playa hits secondary

Playa Funding's credit facility broke for trading on Tuesday, with the $375 million six-year term loan B quoted at par ¼ bid, 101¼ offered, according to a market source.

Pricing on the B loan is Libor plus 375 basis points with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

Earlier in the day, pricing on the loan was cut from revised talk of Libor plus 400 bps and initial talk of Libor plus 425 bps. And, on Monday, the loan was upsized from $350 million and the discount was tightened from 99.

The company's $400 million credit facility (B2/B+) also includes a $25 million revolver.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal that will be used with $300 million of bonds and an investment from Hyatt Hotels Corp. to capitalize the company.

Playa is an owner, operator and developer of all-inclusive resorts in the Dominican Republic, Mexico and Jamaica.

U.S. Renal reworks deal

Over in the primary, U.S. Renal cut the coupon on its $335 million incremental first-lien term loan (Ba3/B) due July 3, 2019 to Libor plus 425 bps from talk of Libor plus 450 bps to 475 bps, added a step-down to Libor plus 400 bps at 5 times total net opco leverage and tightened the discount to 99 from 98, according to a market source. The 1% Libor floor and 101 soft call protection for one year were unchanged.

Also, the company added a repricing request to take down pricing on its existing $302 million first-lien term loan due July 3, 2019 to Libor plus 425 bps with a step-down to Libor plus 400 bps at 5 times total net opco leverage and a 1% Libor floor from Libor plus 500 bps with a 1.25% Libor floor, the source said. The repricing is offered at par and has 101 soft call protection for one year.

The incremental and existing first-lien term loans will be a single fungible tranche.

U.S. Renal second-lien

U.S. Renal also reduced pricing on its $160 million incremental second-lien term loan (B3/CCC+) due Jan. 3, 2020 to Libor plus 750 bps from Libor plus 800 bps, the source continued, adding that the debt still has a 1% Libor floor and a discount of 98, and is non-callable for one year, then at 102 in year two and 101 in year three.

Recommitments for the incremental debt were due by 5 p.m. ET on Tuesday. Signatures for the repricing amendment are due at noon ET on Wednesday.

Proceeds from the incremental debt will be used to finance the company's acquisition of Ambulatory Services of America Inc., which is expected to close this month.

Barclays, RBC Capital Markets, Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are leading the deal.

U.S. Renal is a Plano, Texas-based developer, acquirer and operator of outpatient treatment centers for persons suffering from chronic kidney failure. Ambulatory Services is a Brentwood, Tenn.-based health care services company that provides alternative site services in partnership with physicians.

TIP Trailer flexes

TIP Trailer increased pricing on its $150 million seven-year first-lien term loan to Libor plus 475 bps from Libor plus 425 bps and on its €163 million seven-year first-lien term loan to Euribor plus 500 bps from Euribor plus 450 bps, and moved the original issue discount on both tranches to 97 from 99, according to a market source.

In addition, the excess cash flow sweep in the credit agreement was modified to 75%, the source remarked.

As before, the term loans have a 1% floor and 101 soft call protection for one year.

The company's new credit facility (B1/BB+) also includes a €55 million six-year revolver.

Commitments are due at 5 p.m. ET on Thursday.

Credit Suisse is leading the deal that will be used to help fund the buyout of the company by HNA Group Co. Ltd. from GE Capital.

TIP is a European provider of transport equipment leasing, rental and service solutions.

rue21 releases talk

Also on the new deal front, rue21 held its bank meeting on Tuesday morning, and with the launch, talk on its $533 million seven-year term loan B (B-) emerged at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

This compares to expected pricing disclosed in the term loan commitment letter that was filed with the Securities and Exchange Commission of Libor plus 325 bps if first-lien secured leverage was more than 3.5 times, and Libor plus 300 bps if first-lien secured leverage was 3.5 times or less, or 25 bps higher than outlined if a ratings condition was not satisfied. The debt was said to have a 1% floor.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the co-lead arrangers, and bookrunners with Goldman Sachs Bank USA on the deal.

rue21 being acquired

Proceeds from rue21's term loan will be used to help fund its buyout by Apax Partners for $42 per share, or about $1.1 billion.

Other funds for the transaction are expected to come from a $150 million five-year asset-based revolver and $250 million of senior unsecured notes.

Backing the notes is a commitment for a $250 million one-year senior unsecured increasing rate bridge loan that is priced at Libor plus 525 bps, or Libor plus 575 bps if a ratings condition is not satisfied, with a 1.25% Libor floor. The spread will increase by 50 bps every three months until it hits a cap.

Closing is expected by year-end, subject to shareholder approval and customary conditions.

rue21 is a Warrendale, Pa.-based retailer of girls and guys apparel and accessories.

Bally pricing

Bally Technologies launched its seven-year covenant-light term loan B with a smaller $1.1 billion size and set talk at Libor plus 325 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.

The loan has a ticking fee of half the spread for days 31 to 60 and the full spread thereafter, the source continued.

Commitments are due on Aug. 20.

Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA and Union Bank are leading the deal that will be used to fund the acquisition of SHFL Entertainment Inc. for $23.25 in cash for total consideration of about $1.3 billion, including debt of $8 million and cash of $41 million as of April 30.

Bally ups revolver draw

As a result of opting to reduce the term loan B from the originally proposed $1.3 billion amount, Bally intends to borrow more under its revolving credit facility for the acquisition, the source remarked.

Pro forma total leverage is expected to be around 4 times.

Closing is anticipated by the second quarter of 2014, subject to SHFL shareholder approval, antitrust approval and gaming regulatory approvals.

Bally is a Las Vegas-based gaming company that designs, manufactures, distributes, and operates gaming devices and computerized monitoring, accounting and player-tracking systems for gaming devices. SHFL is a Las Vegas-based gaming supplier.

Foresight details surface

Foresight Energy held its bank meeting at which it told investors that it is seeking a $1.1 billion senior secured credit facility comprised of a $500 million five-year revolver and a $600 million seven-year covenant-light term loan, according to a market source.

The revolver is talked at Libor plus 325 bps with no Libor floor, and the term loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

Commitments are due at noon ET on Aug. 15.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Credit Agricole Securities (USA) Inc. are leading the deal that will fund a tender offer that expires on Aug. 19 for the company's $600 million 9 5/8% senior notes due 2017 and finance a dividend payment.

Foresight is a St. Louis-based producer of thermal coal.

Shingle Springs talk

Shingle Springs Tribal Gaming Authority launched its $240 million six-year term loan (B2/B) with talk of Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source. The debt has 101 soft call protection for six months.

Bank of America Merrill Lynch is the lead bank on the deal.

Proceeds will be used to refinance existing debt.

Shingle Springs Tribal Gaming Authority is the El Dorado County, Calif.-based overseer of the operations at RedHawk Casino.

EXCO reveals guidance

EXCO Resources disclosed talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $300 million first-lien term loan due 2019 that launched with a call during the session, according to a market source.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Bank of America Merrill Lynch and BMO Capital Markets Corp. are leading the deal.

Proceeds will be used by the Dallas-based oil and natural gas company to refinance an existing senior secured term loan and for general corporate purposes.

Endurance launches

Endurance International Group launched to existing investors only a $90 million first-lien tack-on term loan due November 2019 that is talked at Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection through November 2013, according to a market source.

The spread, floor and call protection match those on the existing first-lien term loan.

Commitments are due at 5 p.m. ET on Thursday, the source said.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the tack-on that will be used for general corporate purposes and/or potential tuck-in acquisitions, the source added.

Endurance is a Burlington, Mass.-based provider of web hosting and online services.

Spectrum readies loans

Spectrum Brands set a call for 11 a.m. ET on Wednesday to launch $1.1. billion in first-lien covenant-light term loans and disclosed price talk on the debt ahead of the launch, according to a market source.

The debt $700 million four-year tranche is talked at Libor plus 250 bps and the $400 million six-year tranche is talked at Libor plus 300 bps, with both having a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source remarked.

Amortization is 7.5% per annum on the four-year loan and 1% per annum on the six-year loan.

Commitments are due on Aug. 13.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used by the Madison, Wis.-based consumer products company to buy back $950 million of 9.5% senior secured notes due 2018 in a tender offer that expires on Sept. 3.

Hubbard coming soon

Hubbard Radio scheduled a call for 3 p.m. ET on Wednesday to launch a $63.5 million add-on delayed-draw term loan B that is being led by Morgan Stanley Senior Funding Inc., according to a market source.

Proceeds will be used to help fund the acquisition of 10 radio stations from Sandusky Radio for about $85.5 million.

Closing is expected upon Federal Communications Commission approval and other customary conditions.

Hubbard Radio is a Minneapolis-St. Paul, Minn.-based operator of radio stations.

NXT joins calendar

NXT Capital will host a bank meeting at 10 a.m. ET on Wednesday to launch a $150 million seven-year term loan B (BB-), according to a market source.

Wells Fargo Securities LLC, BMO Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used for general corporate purposes.

NXT Capital is a Chicago-based provider of structured financing services to middle-market and emerging growth companies and real estate investors.

Kodak wraps ABL syndication

In other news, Eastman Kodak Co. finalized the syndication and allocation of its $200 million five-year senior secured asset-based revolving credit facility, a news release said.

Bank of America Merrill Lynch, Barclays and J.P. Morgan Securities LLC are the leads on the revolver, which is part of the company's exit financing credit facility.

As reported earlier, the exit facility also includes a $420 million six-year first-lien term loan and a $275 million seven-year second-lien term loan, led by the same three banks but with JPMorgan on the left.

Pricing on the first-lien term loan is Libor plus 625 bps with a 1% Libor floor and it was sold at an original issue discount of 98. There is hard call protection of 102 in year one and 101 in year two.

The second-lien term loan is priced at Libor plus 950 bps with a 1.25% Libor floor and was sold at 971/2. This debt is non-callable for one year, then at 103 in year two and 101 in year three.

Kodak is a Rochester, N.Y.-based imaging technology products and services provider.

Valeant closes

Valeant Pharmaceuticals International Inc. completed its purchase of Bausch + Lomb Holdings Inc., a Rochester-based maker of contact lenses, ophthalmic surgical devices and instruments and ophthalmic pharmaceuticals, a news release said.

For the transaction, Valeant got $4.05 billion in term loans (Ba1/BB) consisting of an $850 million term loan A due April 2016 priced at Libor plus 225 bps and sold at a discount of 981/2, and a $3.2 billion seven-year term loan B priced at Libor plus 375 bps with a 0.75% Libor floor and sold at a discount of 981/2. The B loan has 101 soft call protection for six months.

During syndication, the term A was upsized from $500 million while the discount widened from talk of 99 to 991/2, and the term B was downsized from $3.55 billion, pricing was increased from talk of Libor plus 325 bps to 350 bps and the discount was revised from 991/2.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, RBC Capital Markets and Morgan Stanley Senior Funding Inc. led the deal.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

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