CSC Holdings, Cedar Bay, Waupaca break; Dynegy, Pinnacle Foods, Tower Auto, Haas tweak deals

By Sara Rosenberg

New York, April 15 - CSC Holdings LLC's credit facility made its way into the secondary market on Monday, with levels on the term loan B seen above its original issue discount price, and Cedar Bay Generating Co. LP and Waupaca Foundry Inc. freed up too.

Moving to the primary, Dynegy Inc. made a number of changes to its deal, revising the maturity and pricing on its B-1 loan tranche and lowering the spread, floor and discount on its B-2 tranche, and Pinnacle Foods Finance LLC tightened the Libor floor and original issue discount on its upsized G loan, while also adding a pricing step-down and extending the call premium.

Also, Tower Automotive Holdings USA LLC trimmed the coupon on its term loan B and tightened the original issue discount, and Haas Group International raised pricing on its credit facility while widening the Libor floor on the institutional tranche.

Additionally, Osmose Holdings Inc. and SourceHOV LLC revealed talk with launch, Rexnord LLC surfaced with a repricing transaction, and TPF Generation Holdings LLC began circulating talk on its upcoming deal, and CDW LLC and Horseshoe Baltimore joined the forward calendar.

CSC tops OID

CSC Holdings' credit facility broke for trading on Monday, with the $2.35 billion seven-year term loan B quoted at 99 7/8 bid, par ¼ offered, according to a trader.

Pricing on the B loan is Libor plus 250 basis points with no Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

Recently, the spread on the loan was reduced from Libor plus 275 bps and the tranche was upsized from $1.9 billion as plans for a $500 million high-yield bond offering were eliminated.

In addition to the term loan B, the company's $4,785,000,000 credit facility (Baa3/BBB-) includes a $1.5 billion revolver and a $935 million term loan A, both priced at Libor plus 200 bps.

Bank of America Merrill Lynch, Barclays, Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. are leading the deal that will refinance existing bank debt.

CSC Holdings is a subsidiary of Cablevision Systems, a Bethpage, N.Y.-based media and telecommunications company.

Cedar Bay frees up

Cedar Bay's $250 million seven-year senior secured term loan (Ba3/BB) hit the secondary market as well, with levels quoted at 99 bid, par offered, according to a market source.

Pricing on the term loan is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. The debt is non-callable for six months, then has 101 soft call for the next 12 months.

Prior to launch, the loan was expected to be sized at $275 million, but the timeline for closing of the transaction shifted so that the company benefited from an extra quarter roll-forward, and as a result, the debt quantum required was reduced by $25 million.

Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt, fund a debt service reserve account and repay some subordinated debt.

Leverage is 3.3 times 2013 EBITDA and 2.9 times 2013 cash flow available for debt service.

Cedar Bay is a coal-fired power plant in Jacksonville, Fla.

Waupaca starts trading

Waupaca Foundry's term loan also broke, with levels quoted at par ¼ bid, par ¾ offered on the open and then it moved up to par ½ bid, 101 offered, a trader said.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

During syndication, pricing on the loan was increased from Libor plus 325 bps. The flex was done because investors wanted the call protection extended to one year so the company opted for a higher coupon in order to preserve the six months call protection.

Proceeds are being used to reprice an existing term loan from Libor plus 450 bps with a 1.25% Libor floor.

GE Capital Markets is leading the deal.

Waupaca Foundry is a Waupaca, Wis.-based producer of gray and ductile iron castings for the automotive, truck, agriculture, construction, hydraulics and commercial vehicle markets.

Dynegy reworks deal

Switching to the primary, Dynegy pushed out the maturity on its $500 million covenant-light term loan B-1 to seven years from two years, cut pricing to Libor plus 300 bps from Libor plus 350 bps and added 101 soft call protection for one year, according to a market source.

The term loan B-1 still has a 1% Libor floor and an original issue discount of 991/2, and is still expected to be taken out in the senior unsecured markets in the near term, market permitting, once the required financial statements and pro formas related to its proposed acquisition of Ameren Energy Resources are available, the source said.

In addition, pricing on the company's $800 million covenant-light seven-year term loan B-2 was modified to Libor plus 300 bps with a 1% Libor floor and a discount of 991/2, from Libor plus 375 bps with a 1.25% floor and a discount of 99, the source continued.

Unchanged on the B-2 loan was the 101 soft call protection for one year.

Dynegy leads

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, RBC Capital Markets and UBS Investment Bank are leading Dynegy's $1.8 billion credit facility (B2/BB-), which also includes a $500 million five-year revolver.

Recommitments were due at 5 p.m. ET on Monday. The commitments are pro-rata across both term loan tranches, the source added.

Proceeds will be used by the Houston-based energy company to refinance credit facilities at subsidiaries GasCo and CoalCo.

Pinnacle Foods changes

Pinnacle Foods lifted the size of its seven-year term loan G to $1.63 billion from $1.58 billion, trimmed the Libor floor to 0.75% from 1%, firmed the original issue discount at 993/4, the low end of the 99½ to 99¾ talk, added a pricing step-down to Libor plus 225 bps at 4.25 times net total leverage and extended the 101 soft call protection to one year from six months, according to a market source.

Opening pricing on the term loan continues to be Libor plus 250 bps, the source said.

In addition to the term loan, the company's now $1.78 billion senior secured credit facility (Ba3/BB) includes a $150 million five-year revolver.

Commitments were due at 5 p.m. ET on Monday, moved up from Tuesday, the source continued.

Pinnacle Foods refinancing

Proceeds from Pinnacle Foods' credit facility and $350 million of senior unsecured notes will be used to repay/replace the company's existing credit facility and 8¼% senior unsecured notes.

The notes were downsized from $400 million and priced on Monday at par to yield 4 7/8%, a source added.

Barclays, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc., UBS Investment Bank and Macquarie Capital are leading the new bank deal.

Pinnacle Foods is a Mountain Lakes, N.J.-based diversified packaged food company.

Tower Auto cuts pricing

Tower Automotive reduced pricing on its $420 million seven-year senior secured term loan B (B1/B+) to Libor plus 450 bps from talk of Libor plus 475 bps to 500 bps and revised the original issue discount was tightened to 99½ from 99, according to a market source.

As before, the loan has a 1.25% Libor floor and 101 soft call protection for one year.

Recommitments were due at 5 p.m. ET on Monday and closing is targeted for April 17, the source added.

Citigroup Global Markets; Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the bookrunners on the deal that had been upsized from $275 million earlier this month.

Proceeds will be used to refinance the company's 10 5/8% senior secured notes, all of which will be taken out as result of the previous upsizing.

Tower Automotive is a Livonia, Mich.-based supplier of automotive metal structural components and assemblies.

Haas revises deal

Haas Group lifted the coupon on its $30 million revolver and a $180 million term loan B to Libor plus 450 bps from Libor plus 425 bps and revised the Libor floor on the B loan to 1.25% from 1%, a market source said. The revolver has no floor.

The original issue discount of 99¼ on both tranches was unchanged.

Bank of Ireland is leading the $210 million credit facility that allocated on Monday and is expected to close on Tuesday.

Proceeds will be used to refinance existing debt and fund a dividend.

Haas Group is a chemical supply chain management services company and a distributor of aerospace chemicals and consumables.

Osmose holds call

Also in the primary, Osmose hosted a conference call at 2 p.m. ET on Monday, and a few hours before the event kicked off, details on the company's proposed $355 million term loan repricing and $50 million incremental term loan were announced, according to a market source.

The total $405 million first-lien covenant-light term loan due November 2018 is being talked at Libor plus 375 bps with a 1% Libor floor, a par offer price and 101 repricing protection for six months, the source said.

With this transaction, the company is repricing its existing term loan down from Libor plus 550 bps with a 1.25% Libor floor and paying a dividend with the incremental debt raised.

Credit Suisse Securities (USA) LLC is leading the deal.

Osmose is a Buffalo, N.Y.-based provider of wood preservation technology as well as utility and railroad asset management.

SourceHOV discloses talk

SourceHOV launched its $400 million five-year first-lien term loan B (B1) at Libor plus 450 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

And, the company's $110 million six-year second-lien term loan (Caa1) was launched at Libor plus 850 bps with a 1.25% Libor floor and a discount of 981/2, and is non-callable for one year, then at 102 in year two and 101 in year three, the source said.

The company's $570 million credit facility also includes a $60 million five-year revolver.

Commitments are due at noon ET on April 29, the source continued.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the deal that will be used to help fund the company's buyout by CVCI Private Equity's from Apollo Global Management LLC and certain minority holders.

SourceHOV is a Dallas-based provider of business process outsourcing and knowledge process outsourcing services.

Rexnord repricing

Rexnord launched a repricing of its $939 million first-lien covenant-light term loan (Ba2/BB) due April 2018 at Libor plus 275 bps with a 1% Libor floor from Libor plus 350 bps with a 1% floor, according to a market source.

The repriced loan is being offered at par and has 101 repricing protection for six months, the source said.

Credit Suisse Securities (USA) LLC is leading the deal, for which no investor call was held.

Commitments are due at the close of business on Thursday, the source added.

Rexnord is a Milwaukee-based industrial company comprising two strategic platforms: process & motion control and water management.

TPF floats guidance

TPF Generation set a bank meeting for 9:30 a.m. ET in New York on Friday to launch a $455 million credit facility and released price talk on the upcoming deal, according to a market source.

The $30 million four-year revolver is talked at Libor plus 275 bps with a par offer price, and the $425 million 41/2-year term loan B is talked at Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 99, the source remarked.

Also, the term loan B loan is non-callable for one year, then at 102 in year two for repricings and refinancings only.

UBS Securities LLC and Goldman Sachs & Co. are leading the deal that will be used by the operator of power generation facilities to refinance existing debt.

CDW coming soon

CDW scheduled a call for 2 p.m. ET on Tuesday to launch a $1.35 billion seven-year senior secured term loan (Ba3), according to a market source.

Barclays, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal that will be used to refinance the company's existing senior secured bank debt.

CDW is a Vernon Hills, Ill.-based provider of integrated information technology services.

Horsheshoe readies launch

Horseshoe Baltimore set a bank meeting for Tuesday to launch a $330 million credit facility that is being led by Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co., according to a market source.

The facility consists of a $10 million revolver, a $215 million seven-year term loan B, a $30 million Furniture, fixtures and equipment (FF&E) term loan, a $37.5 million seven-year final maturity, delayed-draw for 12 months term loan, and a $37.5 million seven-year final maturity, delayed-draw for 18 months term loan, the source said.

Proceeds will be used to fund the development of the Horseshoe Baltimore casino.

The casino is a joint venture between Caesars Entertainment, Rock Gaming LLC, CVPR Gaming Holdings LLC; STRON-MD Ltd. Partnership and PRT TWO LLC.

Leap closes

In other news, Leap Wireless International Inc. completed its $1,425,000,000 seven-year term loan C (Ba3/B+) that is priced at Libor plus 350 bps with a 1.25% Libor floor, according to a news release. The debt has 101 soft call protection for one year and was sold at an original issue discount of 991/4, after tightening from 99.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, UBS Securities LLC and Citigroup Global Markets Inc. led the deal.

Leap, a San Diego-based provider of digital wireless services, used the new term loan to refinance 7¾% secured notes and 4.5% convertible notes.

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