Secondary sees surge of loans break; Tervita, Saxon Energy, PQ, Weather Channel update deals

By Sara Rosenberg

New York, Feb. 7 - Rite Aid Corp. upsized its first-lien term loan and Sage Products Holdings III LLC firmed pricing on its term loan at the wide end of talk, and then both deals freed up for trading on Thursday.

Other deals to hit the secondary market included Arris Group Inc., Sesac, Wenner Media LLC, Waupaca Foundry Inc., Tank Holding Corp., Intelligrated, Vantage Specialty Chemicals, Kronos Inc., iStar Financial Inc., Neiman Marcus Group Inc. and Paradigm Holdco Sarl.

In more happenings, Tervita Corp. lowered pricing on its term loan B, and Saxon Energy Services Inc. revised its credit facility, upsizing both the term loan B and the revolver and tightening the spread and discount while shortening the soft call protection on the B loan.

Also, PQ Corp. increased the coupon on its repricing proposal, and Weather Channel finalized the spread on its term loan at the high end of guidance.

Additionally, SNL Financial LC surfaced with a refinancing transaction, and Albertson's LLC, Integra Telecom Holdings Inc., Zuffa LLC, Serta Simmons (AOT Bedding Super Holdings LLC), Landry's Inc., Prestige Brands Holdings Inc. and Acosta Sales & Marketing set talk with launch.

Furthermore, AmWINS Group Inc., TransDigm Inc., Valeant Pharmaceuticals International Inc., Bragg Communications Inc. and Smart & Final Holdings Corp. disclosed deal plans.

Rite Aid ups loan

Rite Aid increased its seven-year first-lien term loan (B1/B+) to 1,125,000,000 from $900 million, and kept pricing at Libor plus 300 basis points with a 1% Libor floor and a par offer price, according to a market source. There is still 101 soft call protection for six months.

Earlier in the process, the first-lien term loan saw its spread cut from Libor plus 325 bps, its floor reduced from 1.25% and its offer price tightened from 991/2.

The company is also getting a $470 million 71/2-year second-lien term loan (B3/B-) that is priced at Libor plus 475 bps with a 1% Libor floor and a par offer price, after coming in earlier from Libor plus 500 bps with a 1.25% floor and an discount of 99. This debt has hard call protection of 103 in year one, 102 in year two and 101 in year three.

With final terms in place, the loans broke for trading, with the first-lien debt quoted at par bid, 101 offered, and the second-lien debt quoted at 102 bid, 103 offered, a trader added.

Rite Aid plans revolver

In addition to the term loans, Rite Aid is seeking a $1,725,000,000 five-year ABL revolver (B1) that has pricing ranging from Libor plus 225 bps to 275 bps based on excess availability. Of the total revolver size, $1.5 billion is currently committed.

Proceeds from the now $3.32 billion credit facility will be used to refinance an existing $1.04 billion term loan due 2014 and fund cash tender offers that expire on Feb. 28 for $410 million of 9¾% senior secured notes due 2016, $470 million of 10 3/8% senior secured notes due 2016 and $180.3 million of 6 7/8% senior debentures due 2013.

If Rite Aid receives additional commitments for the revolver, the proceeds from the first-lien term loan upsizing will be used to prepay a portion of its $331.7 million tranche 5 term loan due 2018.

Wells Fargo Securities LLC, Citigroup Global Markets Inc., Bank of America Merrill Lynch, GE Capital Markets, Goldman Sachs & Co. and Morgan Stanley Senior Funding Inc. are leading the Camp Hill, Pa.-based drugstore chain's deal, with Wells Fargo the left lead on the revolver and first-lien term loan, and Citigroup the left lead on the second-lien term loan.

Sage levels emerge

Sage Products set pricing on its $380 million covenant-light first-lien term loan due December 2019 at Libor plus 325 bps, the wide end of the Libor plus 300 bps to 325 bps talk, and then freed up, with levels seen at par bid, par ½ offered, according to a market source.

The loan has a 1% Libor floor and 101 soft call protection until Dec. 13, 2013, and was issued at par.

Proceeds are being used to refinance the existing first-lien term loan that is priced at Libor plus 400 bps with a 1.25% Libor floor.

Barclays and Deutsche Bank Securities Inc. are leading the deal.

First-lien leverage is 4 times and total leverage is 6.1 times.

Sage Products is a Cary, Ill.-based health care products manufacturer specializing in skin hygiene products to help prevent or stop infections in medical settings.

Arris trades

Arris Group's credit facility began trading, with the $825 million seven-year term loan B quoted at par bid, par ½ offered, a trader remarked.

Pricing on the term loan B is Libor plus 275 bps with a step-down to Libor plus 250 bps when leverage is less than 2.5 times. There is a 0.75% Libor floor and 101 soft call protection for one year, and the debt was sold at 993/4.

The company's $2,175,000,000 senior secured credit facility (Ba3) also includes a $250 million five-year revolver and a $1.1 billion five-year term loan A that is priced at Libor plus 225 bps.

During syndication, the term loan A was upsized from $1 billion and the term loan B was downsized from $925 million. Also, the spread on the B loan firmed at the tight end of the Libor plus 275 bps to 300 bps talk, the step-down was added and the discount tightened from 991/2.

Arris lead banks

Bank of America Merrill Lynch and RBC Capital Markets are leading Arris' deal that will help fund the acquisition of the Motorola Home business from Motorola Mobility for $2.35 billion in a cash-and-stock transaction.

Under the terms of the agreement, Google Inc., the parent of Motorola Mobility, will receive $2.05 billion in cash and about $300 million in newly issued Arris shares, representing a roughly 15.7% ownership interest in Arris post-closing.

Closing is expected by the second quarter, subject to customary approvals and conditions.

Arris is a Suwanee, Ga.-based communications technology company. Motorola Home is an IP business.

Sesac breaks

Sesac's credit facility made its way into the secondary, with both the $235 million six-year first-lien term loan (B1/BB-) and the $110 million 61/2-year second-lien term loan (Caa1/CCC+) quoted at par bid, 101 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 475 bps with a 1.25% Libor, and it was sold at a discount of 99. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 875 bps with a 1.25% Libor floor, and it was sold at 981/2. There is 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 $220 million, pricing was reduced from talk of Libor plus 525 bps to 550 bps and the call protection was shortened from one year. Additionally, the second-lien term loan was upsized from $105 million and pricing was cut from talk of Libor plus 925 bps to 950 bps.

Sesac acquired

Proceeds from Sesac's $360 million credit facility, which also includes a $15 million five-year revolver (B1/BB-), are being used to back its already completed buyout by Rizvi Traverse Management for $590.5 million.

Other funds for the transaction came from equity, the amount of which was reduced due to the term loan upsizings.

Jefferies & Co. is leading the deal.

Sesac is a Nashville, Tenn.-based performing rights organization that represents the interests of individual songwriters and publishers of music to ensure they are compensated for the public performance of their copyrighted material.

Wenner tops OID

Wenner Media's credit facility started trading, with levels on the $190 million five-year term loan B quoted at 97½ bid, 98½ offered, according to a trader.

Pricing on the B loan is Libor plus 950 bps with a 1.25% Libor floor, and it was sold at a discount of 961/2. The tranche has hard call protection of 103½ in year one, 102 in year two and 101 in year three.

During syndication, the term loan was downsized from $200 million, pricing was lifted from Libor plus 800 bps, the discount firmed at the high end of revised talk of 96½ to 97 and wide of initial talk of 98, and the call protection was changed from soft call protection of 102 in year one and 101 in year two.

The company's $205 million credit facility (B3/B) also includes a $15 million 41/2-year revolver.

J.P. Morgan Securities LLC is leading the deal that is being used to refinance existing debt and for general corporate purposes.

Wenner Media is a New York-based provider of entertainment and lifestyle brand publications.

Waupaca hits secondary

Waupaca Foundry's $200 million add-on term loan (B+) also broke, with levels quoted at par ¼ bid, par ¾ offered, a trader said.

Pricing on the add-on is Libor plus 450 bps with a 1.25% Libor floor, in line with existing term loan pricing, and it was issued at par.

During syndication, the add-on was upsized from $150 million and the offer price was revised from 991/2.

GE Capital Markets led the deal that was used to fund a dividend.

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.

Tank starts trading

Tank Holding's roughly $349 million term loan hit the secondary too, with levels quoted at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the loan is Libor plus 325 bps, after firming the other day at wide end of the Libor plus 300 bps to 325 bps talk. There is a 1% Libor floor and 101 soft call protection for six months, and the tranche was issued at par.

Proceeds are being used to reprice the existing term loan from Libor plus 425 bps with a 1.25% Libor floor.

GE Capital Markets is the lead bank on the deal.

Tank Holding is a Lincoln, Neb.-based manufacturer of polyethylene and steel material handling products.

Intelligrated breaks

Intelligrated's roughly $214 million first-lien term loan began trading as well, with levels quoted at par bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 325 bps with a 1.25% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

Proceeds are being used to reprice an existing term loan from Libor plus 550 bps with a 1.25% Libor floor, and existing lenders are getting paid out at 102 due to current call protection.

RBC Capital Markets and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Intelligrated is a Mason, Ohio-based provider of automated material handling services and products.

Vantage tops par

Vantage Specialty Chemicals' roughly $238 million term loan was another deal to break on Thursday, with levels quoted at par ½ bid, 101 offered, a trader said.

Pricing on the loan is Libor plus 375 bps, after flexing recently from Libor plus 425 bps. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was sold at par.

Proceeds are being used to reprice an existing term loan from Libor plus 550 bps with a 1.5% Libor floor.

RBC Capital Markets is the lead bank on the deal.

Vantage is a Chicago-based specialty chemicals company.

Kronos frees up

Kronos' $1.21 billion first-lien covenant-light term loan due October 2019 allocated, and levels were seen at par ¼ bid, par ¾ offered in trading, a source said.

Pricing on the loan is Libor plus 350 bps, after flexing recently from Libor plus 325 bps. There is a 1% Libor floor and 101 repricing protection for six months, and the debt was issued at par.

Proceeds are being used to refinance the existing term loan that is priced at Libor plus 425 bps with a 1.25% Libor floor, and existing lenders are getting paid out at 101.

Credit Suisse Securities (USA) LLC is the lead arranger on the deal and a bookrunner with Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC.

Kronos is a Chelmsford, Mass.-based provider of workforce management software.

iStar par bid

iStar Financial's roughly $1.82 billion term loan B due October 2017 freed up in the afternoon, with levels quoted by one trader at par bid, par ¾ offered.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and it was issued at par. The debt includes 101 soft call protection through Dec. 31, 2013.

Proceeds were used to reprice an existing term loan from Libor plus 450 bps with a 1.25% Libor floor, and existing lenders are getting paid out at 101.

J.P. Morgan Securities LLC, Barclays and Bank of America Merrill Lynch led the deal.

iStar is a New York-based fully integrated finance and investment company focused on the commercial real estate industry.

Neiman allocates

Neiman Marcus' $2.56 billion first-lien covenant-light term loan due May 2018 was yet another deal to allocate and break, with levels quoted at par bid, par ½ offered, according to a market source.

The loan is priced at Libor plus 300 bps with a 1% Libor floor, and was issued at par. There is 101 soft call protection for six months.

Proceeds are being used to reprice an existing term loan from Libor plus 350 bps with a 1.25% Libor floor.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Neiman Marcus is a Dallas-based chain of department stores.

Paradigm frees up

Paradigm's $305 million covenant-light first-lien term loan emerged in the secondary too, with levels quoted at 101 bid, 101½ offered, a source said.

Pricing on the loan is Libor plus 350 bps, after flexing recently from Libor plus 375 bps. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was issued at par.

Proceeds are being used to reprice an existing term loan from Libor plus 525 bps with a 1.25% Libor floor, and existing lenders are being repaid at 101 with the repricing.

UBS Securities LLC is the lead bank on the deal.

Paradigm is a software vendor focused on the oil and gas exploration and production space.

Tervita cuts spread

Back in the primary, Tervita reduced pricing on its $750 million first-lien secured term loan B (B2/B-) to Libor plus 500 bps from talk of Libor plus 525 bps to 550 bps, and left the 1.25% Libor floor, discount of 99 and 101 soft call protection for one year unchanged, according to a market source.

Recommitments are due at 5 p.m. ET on Friday, the source said.

Previously, the term loan B was upsized from $500 million as a the company reduced its senior secured notes offering to $850 million from $1.1 billion.

With the term loan B, the company is looking to get a C$300 million revolver (Ba3).

RBC Capital Markets, Goldman Sachs & Co., Deutsche Bank Securities Inc. and TD Bank are leading the deal that will be used with the bonds to repay an existing senior secured credit facility.

Closing is expected before the end of this month.

Tervita is a Calgary-based environmental management company for the oil and gas industry.

Saxon reveals revisions

Saxon Energy increased its term loan B to $440 million from $425 million, cut pricing to Libor plus 425 bps from Libor plus 450 bps, trimmed the original issue discount to 99½ from 99 and shortened the 101 soft call protection to six months from one year, according to a market source. The 1.25% Libor floor was left intact.

In addition, the company upsized its revolver to $110 million from $100 million.

Recommitments for the now $550 million credit facility (Ba3/B) are due at noon ET on Friday, the source added.

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

PQ flexes

PQ revised the coupon on its $1.22 billion first-lien term loan due Feb. 9, 2018 to Libor plus 350 basis points from Libor plus 325 bps, while keeping the 1% Libor floor, par offer price and 101 soft call protection for one year intact, according to a market source.

Proceeds are being used to reprice an existing term loan from Libor plus 425 bps with a 1% Libor floor, and existing lenders are getting paid out at 101.

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

PQ is a Malvern, Pa.-based producer of specialty inorganic performance chemicals and catalysts.

Weather Channel firms coupon

Weather Channel set pricing on its roughly $1.6 billion term loan B at Libor plus 275 bps, the high end of the Libor plus 250 bps to 275 bps talk, and left the 0.75% Libor floor, par offer price and 101 soft call protection for six months intact, according to a market source.

Allocations are expected to go out on Friday, the source said.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and J.P. Morgan Securities LLC are leading the deal that will reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor.

Weather Channel is an Atlanta-based media company devoted to bringing weather news via television, internet and mobile devices.

SNL holds call

In other news, SNL Financial went out in the morning with plans to host a call in the late afternoon to launch a $305 million credit facility consisting of a $30 million revolver and a $275 million first-lien covenant-light term loan due October 2018, a source said.

Talk on the term loan is Libor plus 350 bps with a 1% Libor floor, a par offer price and 101 repricing protection for one year, the source remarked.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing credit facility, including a $275 million term loan priced at Libor plus 425 bps with a 1.25% Libor floor.

Commitments are due on Tuesday, the source added.

SNL is a financial information provider.

Albertson's pricing

Albertson's held its bank meeting in the afternoon and released talk of Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $1.05 billion term loan B, according to a market source.

Commitments are due on Feb. 22, the source said.

The company's $2.05 billion credit facility also includes a $1 billion ABL revolver.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that will be used to help fund the acquisition of Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores from SuperValu Inc. for $100 million in cash plus the assumption of about $3.2 billion in debt.

Closing is expected this quarter, subject to customary closing conditions and the completion of financing.

Albertson's is a New York-based food and drug retailer.

Integra releases guidance

Integra Telecom announced talk of Libor plus 525 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $555 million first-lien term loan (B2) that launched on Thursday, according to a market source.

And, talk on the $225 million second-lien term loan (Caa2) emerged at Libor plus 900 bps to 950 bps with a 1.25% Libor floor and a discount of 98 to 981/2, and the debt is non-callable for one year, then at 102 in year two and 101 in year three, the source said.

Commitments for the $840 million credit facility, which also includes a $60 million revolver (B2), are due on Feb. 15.

Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are leading the deal, with Bank of America left lead on the first-lien loan and Morgan Stanley left lead on the second-lien loan.

Proceeds will be used by the Portland, Ore., fiber-based telecommunications carrier to refinance existing debt.

Zuffa hosts meeting

Zuffa held a bank meeting, at which time it launched its $450 million term loan B with talk in the Libor plus 300 bps area with a 1% Libor floor, an offer price of 99½ to par and 101 soft call protection for one year, according to a market source.

Commitments for the $510 million credit facility, which also includes a $60 million revolver, are due on Feb. 14, the source said.

Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt.

Zuffa is the Las Vegas-based company that owns the Ultimate Fighting Championship brand.

Serta discloses talk

Serta Simmons held its call on Thursday, launching its $1.31 billion senior secured term loan B due Oct. 1, 2019 with talk of Libor plus 300 bps to 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Proceeds will be used to reprice the existing term loan B from Libor plus 375 bps with a 1.25% Libor floor.

Lead banks, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., UBS Securities LLC, Goldman Sachs & Co. and Barclays, are asking for commitments by Feb. 14, the source said.

Serta Simmons is a mattress manufacturer.

Landry's launches

Landry's launched a repricing of its roughly $1 billion term loan B to Libor plus 350 bps with a 1.25% Libor floor from Libor plus 525 bps with a 1.25% Libor floor, according to a market source.

The repriced loan has 101 soft call protection for six months and existing lenders are getting paid out at 101 due to current call protection, the source said.

Jefferies & Co. is leading the deal.

Landry's is a Houston-based full-service restaurant, hospitality and entertainment company.

Prestige proposal details

Prestige Brands held a call to launch the repricing of its $454.5 million senior secured term loan B due January 2019 to Libor plus 300 bps with a 1% Libor floor from Libor plus 400 bps with a 1.25% Libor floor, a source said.

The repriced loan is being offered at par and has 101 soft call protection for six months, and commitments are being asked for by Feb. 14.

Citigroup Global Markets Inc. is leading the deal.

Prestige is an Irvington, N.Y.-based marketer of branded consumer products in the over-the-counter health care and household cleaning industries.

Acosta terms

Acosta Sales & Marketing launched a repricing of its term loan B to take pricing down to Libor plus 300 bps with a 1% Libor floor from Libor plus 350 bps with a 1.5% Libor floor, according to a market source.

The repriced loan has a step-down to Libor plus 275 bps at less than 3.5 times leverage, the source said.

Goldman Sachs & Co. is leading the deal.

Acosta is a Jacksonville, Fla.-based full-service sales and marketing agency in the consumer packaged goods industry.

AmWINS readies loan

AmWINS set a call for Friday to launch a $715 million first-lien covenant-light term loan due February 2020 that is talked at Libor plus 375 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 repricing protection for one year, according to a market source.

Proceeds will be used to reprice and extend an existing $394 million first-lien term loan due June 2019 from Libor plus 450 bps with a 1.25% Libor floor, and to refinance a second-lien term loan.

Credit Suisse Securities (USA) LLC is leading the deal and asking for commitments by Feb. 15, the source said.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

TransDigm joins calendar

TransDigm will host a conference call at 10 a.m. ET on Friday to launch a $2.51 billion credit facility that consists of a $310 million five-year revolver and a $2.2 billion seven-year first-lien covenant-light term loan, according to a market source.

The term loan is talked at Libor plus 275 bps with a 0.75% Libor floor, a par offer price and 101 repricing protection for one year, the source said.

Proceeds will be used to refinance an existing credit facility, including a $2.2 billion term loan that is priced at Libor plus 300 bps with a 1% Libor floor.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are the leading the deal, for which commitments are due on Wednesday.

TransDigm is a Cleveland-based maker of aircraft components.

Valeant coming soon

Valeant Pharmaceuticals set a lender call at 10 a.m. ET on Friday to launch $2.3 billion in term loan B's that are talked at Libor plus 275 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

The debt consists of a $1.3 billion term B-series D loan due February 2019 and a $1 billion term B-series C loan due December 2019, the source said.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance existing term loan B debt.

Valeant is a Mississauga, Ont.-based specialty pharmaceutical company.

Bragg deal surfaces

Bragg Communications is holding a call on Friday morning to launch a repricing of its roughly $300 million term loan B to Libor plus 275 bps with a 0.75% Libor floor from Libor plus 300 bps with a 1% Libor floor, according to a market source.

The repriced loan is being offered at par and has 101 soft call protection for six months, and existing lenders will get paid out at par with this transaction.

TD Securities (USA) LLC is the lead bank on the deal.

Commitments are due on Feb. 15, the source added.

Bragg Communications is a Halifax, N.S.-based cable television and telecommunications company.

Smart & Final repricing

Smart & Final scheduled a call for 1 p.m. ET on Friday to launch a repricing of its $525 million first-lien term loan from Libor plus 450 bps with a 1.25% Libor floor, according to a market source.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal.

Smart & Final is a Commerce, Calif.-based warehouse-style, no membership fee, multi-format retailer targeting households and smaller businesses.

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