Pilot, Level 3 free up; First Data up with paydown; WaveDivision accelerates deadline

By Sara Rosenberg

New York, Aug. 2 - Pilot Travel Centers LLC reworked its loan structure and then hit the secondary market with the term loan B-2 quoted above par, and Level 3 Communications Inc.'s term loans broke as well.

Also in trading, First Data Corp.'s non-extended term loan headed higher as the company announced plans to take out some term debt with bond proceeds.

Switching to the primary, WaveDivision Holdings LLC revised its commitment deadline, Windstream Corp. reverse flexed pricing on its term loan B-3 and TRAC Intermodal LLC increased its asset-based credit facility as a result of a decrease to its bond offering.

Additionally, DaVita Inc., West Corp. and Sabre Industries Inc. released price talk on their loans, and Select Medical Corp. disclosed the original issue discount guidance on its incremental debt in connection with their launches.

Furthermore, Navistar Inc. started circulating talk on its upcoming loan and Genpact International Inc. announced new credit facility plans.

Pilot Travel breaks

Pilot Travel Centers' new bank debt freed up for trading on Thursday, with the $670 million term loan B-2 quoted at par ¼ bid, par 5/8 offered, according to a trader.

Pricing on the B-2 loan is Libor plus 325 basis points with a 1% Libor floor, and it was sold at an original issue discount of 991/4. There is 101 soft call protection for one year.

The Knoxville, Tenn.-based operator of travel centers is also getting a $330 million add-on term loan A and a $100 million add-on revolver, with proceeds from the $1.1 billion of new bank debt (Ba2) being used for a distribution to shareholders, acquisitions and general corporate purposes.

Shortly before allocations went out on the Bank of America Merrill Lynch, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc.-led deal, the term loan B-2 was downsized from $700 million, pricing firmed at the tight end of the Libor plus 325 bps to 350 bps talk and the discount tightened from 99. Also, the add-on term loan A was upsized from $300 million.

Level 3 hits secondary

Level 3 Communications' new debt began trading too, with the $600 million 31/2-year term loan and the $815 million seven-year term loan both seen at 99¾ bid, par ¼ offered on the open, and then the seven-year loan moved up to par bid, par 3/8 offered, according to a trader.

Pricing on the 31/2-year loan is Libor plus 325 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 991/2, and pricing on the seven-year loan is Libor plus 375 bps with a 1.5% floor, and it was sold at a discount of 99.

During syndication, the 31/2-year tranche was upsized from a minimum of $300 million and the discount was tightened from 99, and the seven-year tranche was downsized from around $1.1 billion while pricing was flexed from Libor plus 400 bps.

Level 3 refinancing A loan

Proceeds from Level 3's $1.415 billion of new term loans (Ba3/B+) will be used to repay a roughly $1.4 billion senior secured term loan A due in March 2014.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the lead banks on the new deal.

Level 3 is a Broomfield, Colo.-based provider of fiber-based communications services.

First Data rises

In more secondary happenings, First Data's non-extended term loan was better as the company said that it would be paying down some senior secured term loans with proceeds from a senior secured notes offering, according to a trader.

The non-extended loan was quoted at 97¾ bid, 98¾ offered, up from 97¼ bid, 97¾ offered, the trader said.

Initially, the bond offering was expected at $750 million, but it was upsized to $1.3 billion late in the day.

First Data is a Greenwood Village, Colo., provider of electronic commerce and payment services.

WaveDivision shutting early

Meanwhile, over in the primary, WaveDivision accelerated the commitment deadline on its $470 million term loan B to Friday from Aug. 9, according to a market source.

The B loan is talked at Libor plus 450 basis points to 500 bps with a 1.25% Libor floor and an original issue discount of 99, the source said. There is 101 soft call protection for one year.

The company's $520 million credit facility (Ba3/BB-) also includes a $50 million revolver.

Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the lead banks on the deal that will help fund the buyout of the company by Oak Hill Capital Partners, GI Partners and management from Sandler Capital Management.

Closing is expected next quarter, subject to regulatory approvals and customary conditions.

WaveDivision is a Kirkland, Wash.-based owner and operator of broadband cable systems.

Windstream cuts pricing

Windstream lowered the coupon on its $600 million seven-year term loan B-3 to Libor plus 300 bps from guidance of Libor plus 325 bps to 350 bps, while leaving the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a market source.

Recommitments were due at 3 p.m. ET on Thursday and allocations are targeted for Friday, the source remarked.

In addition to the term loan B-3, the company is getting a $300 million five-year term loan A-4 priced at Libor plus 225 bps with no Libor floor.

Windstream lead banks

The leads on Windstream's $900 million of new term loan debt (Baa3/BB+) include J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., CoBank, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, RBS Securities Inc., SunTrust Robinson Humphrey Inc., Union Bank of California and Wells Fargo Securities LLC.

Proceeds will be used to repay existing revolver borrowings and for working capital needs.

Windstream is a Little Rock, Ark.-based provider of advanced communications and technology services, including managed services and cloud computing.

TRAC upsizes

TRAC Intermodal lifted its five-year asset-based senior secured credit facility to $725 million from $700 million, according to a market source.

On the flip side, the company reduced its senior secured second-lien notes offering to $300 million from $325 million, the source said.

Proceeds from the notes will be used to repay the Fortis and the DVB credit facilities, to terminate existing interest rate swap agreements, pay prepayment penalties and for general corporate purposes.

TRAC is a Princeton, N.J.-based provider of marine and domestic intermodal equipment.

DaVita talk surfaces

DaVita held a bank meeting on Thursday morning to launch its $1.65 billion seven-year term loan B-2, and with the event, talk came out at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, a source said.

The company's $3 billion of debt (Ba2/BB-) also provides for a $1.35 billion five-year term loan A-3 talked at Libor plus 250 bps.

J.P. Morgan Securities LLC is leading the deal that will help fund the purchase of HealthCare Partners for about $4.42 billion, consisting of $3.66 billion in cash and about 9.38 million shares of stock.

Closing is expected early in the fourth quarter, subject to approval under Hart-Scott-Rodino and by HealthCare Partners' owners. The combined company will be named DaVita HealthCare Partners Inc.

DaVita is a Denver-based provider of kidney care services. HealthCare Partners is a Torrance, Calif.-based operator of medical groups and physician networks.

West pricing

West also launched during the session, and talk on its $720 million term loan B (Ba3) was announced as Libor plus 475 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.

Commitments are due next week, the source said.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., Wells Fargo Securities LLC, Bank of America Merrill Lynch and Barclays are leading the deal that will refinance existing debt and to fund a dividend.

West is an Omaha-based provider of voice-related communication services.

Sabre reveals guidance

Another deal to see price talk emerge was Sabre Industries, with its $190 million credit facility presented to lenders with talk of Libor plus 500 bps to 525 bps with a 1.25% Libor floor and an original issue discount of 981/2, according to a market source.

Commitments on the facility, which consists of a $60 million revolver and a $130 million term loan, are due on Aug. 16, the source added.

BNP Paribas Securities Corp. and PNC Capital Markets LLC are leading the deal that will be used to help fund Kohlberg's buyout of the company from Corinthian Capital Group LLC.

Net leverage is 2.8 times through the credit facility and 4.3 times total.

Sabre is an Alvarado, Texas-based tower, pole and shelter manufacturer.

Select Medical OID

Select Medical disclosed that its $150 million incremental term loan B due June 1, 2018 is being shopped with an original issue discount of 97 shortly before its afternoon conference call took place to formally launch the transaction, according to a market source.

Pricing on the add-on is Libor plus 375 bps with a 1.75% Libor floor, in line with the existing term loan B.

J.P. Morgan Securities LLC, Goldman Sachs & Co., Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., Wells Fargo Securities LLC and RBC Capital Markets are leading the deal that will be used to call some of the company's 7 5/8% senior subordinated notes due 2015.

Select Medical is a Mechanicsburg, Pa.-based operator of specialty hospitals and outpatient rehabilitation clinics.

Fairway launches

Fairway Group Acquisition Co. launched its $300 million credit facility as planned on Thursday, and lenders are being given until Aug. 15 to place their orders, according to a market source.

As already reported, the deal includes a $40 million five-year revolver, and a $260 million six-year first-lien term loan talked at Libor plus 700 bps with a 1.5% Libor floor, an original issue discount of 98 and 101 repricing protection for one year.

Credit Suisse Securities (USA) LLC is the lead bank on the deal that will be used to refinance existing debt and add cash to the balance sheet.

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

Navistar floats talk

Navistar set a bank meeting for 10 a.m. ET in New York on Monday to launch a $1 billion five-year covenant-light term loan B, and talk on the deal emerged at Libor plus 650 bps to 700 bps with a 1.5% Libor floor, an original issue discount of 98 and hard call protection of 101 in year one, 102 in year two and 101 in year three, according to a market source.

The term loan B is split between $750 million that will be drawn at close and $250 million that will be delayed-draw for 90 days, the source remarked.

J.P. Morgan Securities and Goldman Sachs Lending Partners LLC are the lead arrangers on the deal, and Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are involved as well.

Expected ratings are B2/B, the source added.

Navistar, a Lisle, Ill.-based manufacturer of commercial and military trucks, buses, RVs and diesel engines, will use the term loan for general corporate purposes and to repay ABL credit facility debt.

Genpact coming soon

In other news, Genpact revealed that it will be approaching the loan market with a $925 million senior secured credit facility that will launch with a bank meeting at 2 p.m. ET in New York on Tuesday, according to a market source.

The facility consists of a $250 million five-year revolver and a $675 million seven-year term loan, with price talk not yet available, the source said.

Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt and fund a special dividend to shareholders of $2.24 per share, or roughly $500 million.

The dividend will occur prior to Bain Capital Partners' purchase of 68 million of GenPact's shares from General Atlantic and Oak Hill Capital Partners for $14.76 per share, or about $1 billion.

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

CPM nets interest

CPM Holdings Inc.'s first-and second-lien term loans are heard to be about three quarters of the way subscribed, with investors still having until Aug. 13 to throw in their commitments, a source said.

The $275 million first-lien term loan (Ba3/B+) is talked at Libor plus 500 bps to 525 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and the $185 million second-lien term loan (Caa1/B) second-lien loan is talked at Libor plus 900 bps with a 1.25% floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three.

The Jefferies & Co.-led $500 million deal, which also provides for a $40 million revolver (Ba3/B+), will be used to refinance existing bonds and to fund a distribution to shareholders.

Net leverage is 2.4 times through the first-lien debt and 4.3 times total, while gross leverage is 2.8 times through the first-lien and 4.8 times total.

CPM is a Waterloo, Iowa, supplier of oilseed processing and animal feed production equipment.

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