Nuveen, First Data break; Infor retreats on paydown; Ikaria resizes, changes deadline

By Sara Rosenberg

New York, Sept. 13 - Nuveen Investments' term loan made its way into the secondary market on Thursday, and Infor's U.S. term loan headed lower with news that some of the debt will be repaid with a new B-2 loan.

Also, First Data Corp. launched a term loan in the morning, upsized it by the afternoon and then freed it up for trading above its original issue discount price.

In more happenings, Ikaria Acquisition Inc. upsized its term loan and accelerated the commitment deadline as a result of strong oversubscription, and price talk emerged on ADS Waste Holdings Inc., Plains Exploration & Production Co., Cannery Casino Resorts LLC, Potpourri Group Inc., ConvaTec Inc., Samson Investment Co., IPC Systems Inc. and Transtar Holding Co.

Furthermore, original issue discounts were announced on Boomerang Tube LLC and Jackson Hewitt Tax Service, and TriMas Corp. and Kindred Healthcare Inc. revealed plans for new deals.

Nuveen frees up

Nuveen Investments' $435 million term loan due May 2017 (B2) broke for trading on Thursday, with levels quoted at par bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 550 basis points with no Libor floor, and it was sold at an original issue discount of 99½ for new money and at par for rollover commitments from existing lenders. There is 101 soft call protection through February 2013.

During syndication, the discount price on new money firmed at the tight end of the 99 to 99½ talk.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets LLC, Morgan Stanley Senior Funding Inc., UBS Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing non-extended debt.

Nuveen is a Chicago-based provider of investment services to institutions as well as individual investors.

First Data starts trading

First Data's $750 million first-lien term loan (NA/NA/BB-) due September 2018 also freed up, with levels quoted at 98¾ bid, 99 offered, according to a trader.

Pricing on the loan is Libor plus 500 bps with no Libor floor and it was sold at an original issue discount of 981/4, a source said. At first, the discount was labeled as to be determined, but it emerged in the early afternoon.

Also, when the deal launched in the morning, it was sized at $400 million, but it was increased within a few hours on good demand.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Bank of America Merrill Lynch are leading the deal that will be used to repay non-extended U.S. term loan borrowings.

The company will also pay down its term loan with proceeds from a ¾% senior secured notes offering that was upsized to $850 million from $250 million.

First Data is an Atlanta-based electronic commerce and payment processing company.

Infor softens

Infor's U.S. term loan B fell to par ¾ bid, 101¼ offered, from 101½ bid, 101 7/8 offered, as investors were told that a portion of the debt will be paid down at a price of 101, according to a trader.

Funds for the repayment will come from a $750 million term loan B-2 due April 5, 2018 that launched on Thursday with talk of Libor plus 400 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, a market source said.

By comparison, the existing term loan B is priced at Libor plus 500 bps with a 1.25% Libor floor.

Commitments for the new term loan B-2 are due at noon ET on Sept. 20.

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

Infor is a New York-based provider of business software.

Panda Sherman steady

Panda Sherman Power LLC's $372 million five-year senior secured term loan B (B) was quoted at 99½ bid, par ½ offered on Thursday, in line with levels that were seen shortly after the debt broke for trading on Wednesday afternoon, according to a market source.

Pricing on the loan is Libor plus 750 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 981/2. The loan is non-callable for two years, then at 102 in year three and 101 in year four.

During syndication, the deal was upsized from $353.7 million as the equity contribution was reduced, the spread was lowered from Libor plus 800 bps and the discount was tightened from 98.

Goldman Sachs & Co., Credit Suisse Securities (USA) LLC and Ares Capital are leading the deal that will be used for project financing.

Panda Sherman is a Sherman, Texas-based natural gas fueled combined-cycle facility.

Ikaria ups loan

Moving to the primary, Ikaria lifted its five-year first-lien term loan (B1/BB) to $175 million from $125 million and changed the commitment deadline to Friday from Sept. 20, being that the debt was so well received by investors, according to a market source.

Pricing on the loan was left unchanged at Libor plus 650 bps with a 1.5% Libor floor and an original issue discount of 98. There is 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and Fifth Third Securities Inc. are leading the deal.

Proceeds will be used for a dividend recapitalization, and as a result of the term loan upsizing, the size of the dividend was increased, the source added.

Ikaria is a Hampton, N.J.-based biotherapeutics company in the critical care market.

ADS reveals guidance

ADS Waste Holdings held a bank meeting on Thursday morning to kick off syndication on its credit facility, and with the launch, price talk on the $1.65 billion term loan B was announced, according to a market source.

The B loan is talked 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, the source remarked.

The company's $1.95 billion credit facility (B1/B+) also includes a $300 million revolver that is offered with a 100 bps upfront fee for orders of $15 million.

Commitments are due on Sept. 27, the source continued.

Deutsche Bank Securities, Inc., Macquarie Capital, UBS Investment Bank, Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are leading the deal.

ADS funding acquisition

Proceeds from ADS Waste's credit facility will help fund the purchase of Veolia ES Solid Waste Inc. from Veolia Environmental Services North America Corp. for about $1.9 billion.

Other funds for the transaction will come from $830 million of senior unsecured notes.

At close, which is expected in the fall, Star Atlantic Waste Holdings LP, a Highstar Capital portfolio company, will combine its existing investments in Advanced Disposal Services Inc. and Interstate Waste Services Inc. with the acquired Veolia operations, and the combined business will operate as Advanced Disposal Services.

Senior secured leverage is about 4 times and leverage through the unsecured debt is about 6 times.

ADS Waste is a Jacksonville, Fla.-based provider of integrated, non-hazardous solid waste collection, transfer, recycling and disposal services.

Plains holds meeting

Plains Exploration also launched with a meeting, and its $1.25 billion seven-year term loan B is being talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, according to sources, who said that original issue discount talk is heard to be 99.

The $5 billion senior secured credit facility also includes a $3 billion five-year revolver and a $750 million five-year term loan A.

J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch, BMO Capital Markets Corp., Citigroup Global Markets Inc., RBC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal.

Proceeds, along with $2 billion of senior notes, will be used to fund the $560 million acquisition of a 50% working interest in the Holstein Field from Shell Offshore Inc., the $5.55 billion purchase of oil and natural gas interests in the Gulf of Mexico from BP Exploration & Production Inc., to refinance some existing debt and for general corporate purposes.

Plains Exploration is a Houston-based oil and gas company.

Cannery details surface

Cannery Casino Resorts disclosed price talk details on its first-and second-lien term loans with its bank meeting in the afternoon, according to a market source.

The $350 million six-year first-lien term loan (B2/BB-) is talked at Libor plus 500 bps with a 1.25% Libor floor, a discount of 99 and 101 soft call protection for one year, the source said.

And, the $175 million seven-year second-lien term loan (Caa2/CCC+) is talked at Libor plus 900 bps with a 1.25% floor and a discount of 98, and includes call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Macquarie Capital are leading the $565 million credit facility, which also provides for a $40 million five-year revolver (B2/BB-).

Proceeds will be used by the Las Vegas-based owner and operator of hotels and casinos to repay bank debt and some PIK preferred stock.

Potpourri releases talk

Also holding a bank meeting and setting guidance was Potpourri Group, with its $135 million credit facility launched at Libor plus 550 bps with a 1.25% Libor floor and an original issue discount of 981/2, a market source told Prospect News.

Commitments for the facility, which consists of a $25 million revolver and a $110 million term loan B, are due on Sept. 27, the source said.

GE Capital Markets and NXT Capital are leading the deal.

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

Potpourri is a N. Billerica, Mass.-based multi-title catalog company offering products in home décor, casual apparel, gifts and unique accessories.

ConvaTec repricing

ConvaTec launched a repricing and amendment of its existing $484 million U.S. term loan B that is talked at Libor plus 375 bps with a 1.25% Libor floor and an original issue discount of 99¾ and includes 101 soft call protection for one year, according to a market source.

The debt is being repriced from Libor plus 425 bps with a 1.5% Libor floor.

Lead bank, J.P. Morgan Securities LLC, is asking for commitments by 5 p.m. ET on Monday.

Earlier this week, the company launched a $300 million term loan B-2 due 2016 with talk of Libor plus 425 bps with a 1.5% floor and an offer price of 99½ to par, and then on Tuesday, pricing on that loan was changed to Libor plus 375 bps with a 1.25% floor and a discount of 993/4. This tranche has 101 soft call protection for one year as well.

Proceeds from the term B-2 will fund the $321 million acquisition of 180 Medical Holdings Inc., an Oklahoma City-based provider of disposable, intermittent catheters and urologic medical supplies.

ConvaTec is a Skillman, N.J.-based developer and marketer of medical technologies.

Boomerang OID

Boomerang Tube set original issue discount talk on its $230 million term loan in the 98 area with its Thursday launch, according to a market source.

As previously reported, the loan is talked at Libor plus 925 bps to 950 bps with a 1.5% Libor floor, and includes call protection of 103 in year one, 102 in year two and par thereafter.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to refinance senior and mortgage notes, an equipment term loan and ABL revolver borrowings.

Boomerang Tube is a St. Louis-based producer of oil country tubular goods and line pipe.

Jackson Hewitt discount

Jackson Hewitt Tax Service launched its $150 million term loan with an original issue discount of 981/2, according to a market source. Talk on the loan came out ahead of the launch at Libor plus 800 bps with a 1.5% Libor floor.

Bank of America Merrill Lynch is the lead bank on the $200 million five-year credit facility, which also includes a $50 million revolver.

Proceeds will be used to refinance existing debt.

Jackson Hewitt is a Parsippany, N.J.-based provider of full-service individual federal and state income tax return preparation.

U.S. Xpress launches

U.S. Xpress Enterprises Inc. held its bank meeting, and launched its $230 million credit facility in line with previously disclosed price talk, according to a market source.

The facility consists of a $40 million three-year revolver talked at Libor plus 600 bps with a 50 bps unused fee, and a $190 million four-year term loan B talked at Libor plus 600 bps with a 1.5% Libor floor and an original issue discount of 97½ to 98.

SunTrust Robinson Humphrey Inc. is the lead bank on the deal that will be used to refinance an existing credit facility.

Total leverage is slightly over 4 times.

U.S. Xpress is a Chattanooga, Tenn.-based truckload carrier and a diversified provider of truckload, intermodal and logistics services.

Omnicare comes to market

Omnicare Inc. was another company to host a bank meeting, launching its $725 million five-year credit facility (Baa3/BBB-) as expected at talk of Libor plus 175 bps, subject to a leverage-based pricing grid, according to a market source.

The facility consists of a $300 million revolver that has a 35 bps unused fee and a $425 million term loan A.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt.

Net leverage is around 2.4 times.

Omnicare is a Cincinnati-based provider of pharmaceutical services to patients and providers.

Samson sets talk

Back to the topic of price talk, Samson Investment came out with coupon and discount guidance on its $750 million six-year covenant-light term loan (B1) on Thursday, a day after its bank meeting took place, according to a market source.

The loan is talked at Libor plus 500 bps to 525 bps with an original issue discount of 99, the source said. Prior to launch, it was disclosed that the deal includes a 1.25% Libor floor and 101 soft call protection for one year.

Lead banks, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, RBC Capital Markets LLC, Citigroup Global Capital Markets Inc. and Mizuho Securities USA Inc., are seeking commitments by Sept. 20.

Proceeds will be used to pay down revolving credit facility borrowings.

Samson is a Tulsa, Okla.-based private exploration and production company.

IPC pricing

Talk on IPC Systems' $230 million roughly five-year term loan C (B1/B-), which had launched on Wednesday, surfaced at Libor plus 625 bps to 650 bps with a 1.25% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, a source said.

The loan is co-terminus with the company's existing extended term loans.

Commitments are due on Sept. 21, the source continued.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance non-extended term loan B debt.

IPC is a Jersey City, N.J.-based provider of specialized voice and data communications and trading collaboration services for the financial markets.

Transtar readies loan

Transtar began circulating price talk on its first-and second-lien term loans as the debt is getting ready to launch with a bank meeting on Wednesday, according to a market source.

The $295 million six-year first-lien term loan is being talked at Libor plus 475 bps with a 1.25% Libor floor and an original issue discount of 99, and the $165 million seven-year second-lien term loan is being talked at Libor plus 850 bps with a 1.25% Libor floor and a discount of 98, the source said.

The company's $510 million credit facility also provides for a $50 million five-year revolver.

RBC Capital Markets LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

Transtar is a Cleveland-based distributor of automotive aftermarket driveline solutions.

TriMas deal emerges

In other news, TriMas has set a bank meeting for 9 a.m. ET on Wednesday in New York to launch a $650 million credit facility that will be used to refinance existing debt and for general corporate purposes, according to a market source.

The facility consists of a $250 million five-year revolver, a $150 million five-year term loan A and a $250 million seven-year term loan B, the source said, adding that price talk is not yet available.

J.P. Morgan Securities LLC is the lead bank on the deal.

TriMas is a Bloomfield Hills, Mich.-based designer, manufacturer and distributor of engineered products for commercial, industrial and consumer end markets.

Kindred plans incremental

Kindred Healthcare scheduled a lender call for 2 p.m. ET on Friday to launch a $100 million incremental term loan B due June 1, 2018 that is talked at Libor plus 375 bps with a 1.5% Libor floor and an original issue discount that is still to be determined, according to a market source.

Pricing on the incremental matches existing term loan pricing.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance borrowings under the company's existing ABL facility.

Kindred Healthcare is a Louisville, Ky.-based health care services company.

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