Genpact updates pricing, breaks; Pinnacle Foods, Fairway, EP Energy hit secondary market

By Sara Rosenberg

New York, Aug. 17 - Genpact International Inc. finalized the coupon on its term loan at the low end of guidance and tightened the original issue discount on Friday morning, and not too long thereafter, the deal broke for trading.

And, a bunch more deals freed up for trading during the session, including Pinnacle Foods Finance LLC, Fairway Group Acquisition Co. and EP Energy Corp.

In addition, RCN Cable reduced the spread on the term loan B due to strong oversubscription, Panolam Industries International Inc. downsized its deal and raised pricing, and Immucor Inc.'s repricing amendment passed on the back of its covenant change.

Genpact tweaks deal

Genpact International set pricing on its $675 million seven-year term loan at Libor plus 325 basis points, the tight end of the Libor plus 325 bps to 350 bps talk, and moved the original issue discount to 99½ from 99, according to a market source.

As before, the loan has a 1% Libor floor and 101 soft call protection for one year.

The pricing change was announced early in the morning, and commitments were due at 10 a.m. ET on Friday.

The company's $925 million senior secured credit facility (Ba2/BB+) also provides for a $250 million five-year revolver.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal.

Genpact frees up

With final terms in place, Genpact's credit facility emerged in the secondary market, with the term loan quoted at par bid, par ½ offered, a source remarked.

Proceeds from the credit facility will be used to refinance existing debt and fund a distribution to shareholders.

Bain Capital Partners is buying about 68 million of GenPact's common shares from General Atlantic and Oak Hill Capital Partners for $14.76 per share, or about $1 billion.

But, closing of the Bain transaction won't occur until a special dividend of $2.24 per share, or roughly $500 million, is paid to all shareholders, including General Atlantic and Oak Hill Capital.

Genpact is a Hamilton, Bermuda-based provider of business process management services.

Pinnacle Foods breaks

Pinnacle Foods' $450 million senior secured term loan F (Ba3/B+) due Oct. 17, 2018 made its way into the secondary market in the afternoon, with the debt seen at 99½ bid, par offered, according to a market source.

Pricing on the loan, which was upsized from $300 million, is Libor plus 350 bps with a step-down that would take effect upon an initial public offering and 5.0 times total leverage. There is a 1.25% Libor floor and 101 soft call protection until April 17, 2013, and it was sold at a discount of 991/4, after firming at the tight end of the 99 to 99¼ talk.

Barclays, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the deal that will repay some non-extended term loan B debt due 2014, and, as a result of the upsizing, refinance some 9¼% senior notes due 2015.

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

EP Energy tops par

EP Energy's repriced $750 million senior secured covenant-light term loan due May 1, 2018 also broke, with levels quoted at par ½ bid, 101 offered, according to a trader.

The loan was repriced to Libor plus 400 bps with a 1% Libor floor from Libor plus 525 bps with a 1.25% Libor floor. The repriced deal was offered at par, while the original deal was sold at a discount of 99 during its April syndication.

Existing lenders are getting paid out at 101 as a result of soft call protection, and this call protection is remaining part of the repriced loan until May 2013.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the lead arrangers on the deal.

EP Energy is a Houston-based oil and natural gas exploration and production company.

Fairway bid around OID

Fairway's credit facility began trading as well, with the $260 million six-year first-lien term loan quoted at 98½ bid, 99½ offered, according to a market source.

Pricing on the term loan is Libor plus 675 bps with a 1.5% Libor floor, and it was sold at a discount of 981/2. The loan has 101 repricing protection for one year.

Due to strong demand, during syndication, pricing on the term loan was reduced from Libor plus 700 bps and the discount was tightened from 98.

The company's $300 million credit facility also includes a $40 million five-year revolver priced at Libor plus 675 bps, after flexing from Libor plus 700 bps too.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and add cash to the balance sheet, and pro forma for the transaction, net leverage will be 5.3 times.

Fairway is a supermarket chain with locations in New York, New Jersey and Connecticut.

RCN Cable flexes

Back in the primary, RCN Cable's well met $585 million four-year term loan B saw a pricing reduction to Libor plus 400 bps from Libor plus 425 bps, while the 1.25% Libor floor, original issue discount of 99½ and 101 soft call protection for one year were left unchanged, according to sources.

Pricing on the company's $40 million three-year revolver and roughly $47 million four-year term loan A remained at Libor plus 400 bps with no Libor floor.

SunTrust Robinson Humphrey Inc., GE Capital Markets and TD Securities (USA) LLC are the lead banks on the $672 million credit facility.

Proceeds will be used by the broadband services provider to refinance existing bank borrowings.

Panolam revises deal

Panolam Industries cut its term loan to $100 million from $132 million and lifted pricing on the tranche, as well as on a $15 million revolver, to Libor plus 600 bps from Libor plus 550 bps, according to a market source.

Both the term loan and revolver still have a 1.25% Libor floor and an original issue discount of 99, the source said. The term loan includes 101 soft call protection for one year.

GE Capital Markets is the lead bank on the $115 million five-year credit facility, down from $147 million, that will be used to refinance existing debt.

Because of the term loan downsizing, the company will leave its existing second-lien term loan in place, the source added.

Panolam is a Shelton, Conn.-based producer of decorative laminates that is majority owned by Apollo Capital Management.

Immucor repricing passes

In other news, Immucor received lender approval of its repricing amendment, under which the $612 million term loan B (BB-) is seeing pricing come down to Libor plus 450 bps with a 1.25% Libor floor from Libor plus 575 bps with a 1.5% Libor floor, and the 101 soft call protection is being extended for one year, according to a market source.

The approval came on the back of the company's decision on Thursday to leave the current net secured leverage covenant in place, as opposed to turning it into a covenant-light loan.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and UBS Securities LLC are leading the deal.

Immucor is a Norcross, Ga.-based provider of automated instrument-reagent systems to the blood transfusion industry.

Town Sports wraps

Town Sports International Holdings Inc. has successfully completed syndication of its repricing transaction, through which pricing on its $271 million term loan is going to Libor plus 450 bps with a 1.25% Libor floor from Libor plus 550 bps with a 1.5% floor, according to a market source.

The repriced loan has 101 soft call protection for one year.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and KeyBanc Capital Markets LLC are leading the repricing.

Town Sports is a New York-based owner and operator of fitness clubs.

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