Drew Marine, World Kitchen break; Intelsat, Multi Packaging soften with paydown expectations

By Sara Rosenberg

New York, Nov. 19 - Drew Marine's credit facility made its way into the secondary market on Tuesday, with both the first- and second-lien term loans quoted above their original issue discount prices, and World Kitchen LLC broke, too.

Also in trading, Intelsat Jackson Holdings SA's term loan B-1 softened on paydown news and Multi Packaging Solutions Inc.'s term loan B weakened as the debt is expected to be taken out as part of the company's merger with Chesapeake Services Ltd.

Over in the primary, Linden Cogeneration Power Complex (EFS Cogen Holdings I LLC) lowered the spread on its term loan B and finalized the original issue discount at the high end of guidance, and Chromaflo Technologies modified original issue discounts for a second time while firming pricing at the low end of revised talk.

In addition, Del Monte Foods Consumer Products Inc. updated first- and second-lien tranche sizes, spreads and discounts, Misys plc downsized its U.S. loan, added a euro loan and revised the offer price on the debt, and American Beacon Advisors Inc. set pricing on its loan at the low side of talk.

Furthermore, Medical Specialties Distributors LLC lifted the coupon on its term debt, TransUnion Corp. tightened the offer price on its add-on deal, Landry's Inc., Alliant Holdings I LLC, NXP and Vantage Specialty Chemicals disclosed talk with launch, and Hostway Corp., CommScope Holding Co. Inc. and Continental Building Products LLC emerged with new deal plans.

Drew Marine frees up

Drew Marine's credit facility began trading on Tuesday, with the $220 million first-lien term loan (B1/B+) seen at par ¼ bid, par ¾ offered on the break and then it moved up to par 5/8 bid, 101 1/8 offered, and the $65 million second-lien term loan (Caa1/CCC+) seen at par ½ bid, 101½ offered on the open and then it moved up to 101 bid, 102 offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 350 basis points with a 1% Libor floor and it was sold at an original issue discount of 99 7/8. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 700 bps with a 1% Libor floor and it was sold at a discount of 993/4. This tranche includes call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $205 million, the spread was reduced from talk of Libor plus 375 bps to 400 bps and the discount was tightened from 991/2, and the second-lien term loan was downsized from $80 million, pricing was cut from talk of Libor plus 750 bps to 775 bps and the discount was changed from 99.

Drew Marine getting revolver

In addition to the term loans, Drew Marine's $335 million credit facility provides for a $50 million revolver (B1/B+).

BNP Paribas Securities Corp. is led the deal that was used to fund the acquisition of Drew Marine and ACR Electronics Inc. by the Jordan Co. from J.F. Lehman.

Drew Marine is a Whippany, N.J.-based provider of technical solutions and services to the marine industry. ACR is a Fort Lauderdale, Fla.-based provider of safety products to the aviation, marine, military and commercial markets.

World Kitchen tops OID

World Kitchen's $62 million add-on term loan broke as well, with levels quoted at par ½ bid, 101½ offered on the open and then it moved to par ¾ bid, according to a trader.

The add-on is priced at Libor plus 425 bps with a 1.25% Libor floor and was sold at a discount of 991/2.

Recently, pricing on the debt firmed at the low end of the Libor plus 425 bps to 450 bps talk and the discount was modified from 99.

BMO Capital Markets Corp. is leading the deal that will be used to fund a dividend and add cash to the balance sheet.

World Kitchen is a Rosemont, Ill.-based manufacturer and marketer of bakeware, dinnerware, kitchen and household tools, rangetop cookware and cutlery products.

Intelsat B-1 dips

In more trading happenings, Intelsat Jackson's term loan B-1 fell to par 3/8 bid, par ¾ offered from par ¾ bid, 101 1/8 offered after word emerged that a portion of the debt would be taken out with a new $1.75 billion term loan B-2 due June 30, 2019, according to a trader.

The new B-2 loan is talked at Libor plus 275 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, sources remarked.

The existing term loan B-1 due April 2018 is priced at Libor plus 300 bps with a 1.25% Libor floor.

In addition to the B-2 loan, the company launched on its 1:30 p.m. ET call a $500 million revolver due July 12, 2017 that will refinance its existing revolver due in 2016.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the new deal (BB-) for which commitments are due at noon ET on Friday.

Intelsat is a Luxembourg-based provider of satellite services.

Multi Packaging retreats

Multi Packaging Solutions' term loan B dropped to par bid, par ¾ offered from par ½ bid, 101 offered as it was revealed in a press release that the debt will be repaid at par in connection with the company's merger with Chesapeake Services.

Chesapeake, meanwhile, plans on getting a roughly $122 million incremental term loan to fund an equalization payment and to pay transaction related fees and expenses, and amend and restate its existing senior secured credit facility, to among other things, provide for a co-borrower structure with Multi Packaging.

Multi Packaging's existing loan lenders will be offered the opportunity to roll into the amended and restated Chesapeake senior secured credit facility, the news release said.

Multi Packaging is a New York-based provider of packaging solutions that is owned by Madison Dearborn Partners LLC.Chesapeake is a U.K.-based manufacturer of consumer packaging that is owned by the Carlyle Group.

At close, which is expected in the first quarter of 2014, subject to regulatory approval, ownership in the combined company will be split evenly between Carlyle and Madison Dearborn.

Linden updates pricing

Moving to the primary, Linden Cogeneration reverse flexed pricing on its $825 million seven-year term loan B to Libor plus 275 bps from talk of Libor plus 325 bps to 350 bps and set the original issue discount at 99, the wide end of the 99 to 99½ talk, according to a market source.

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

The company's $925 million senior secured credit facility (Ba1/BB+) also includes a $100 million five-year revolver.

Recommitments were due at 5 p.m. ET on Tuesday, the source remarked.

Barclays, Citigroup Global Markets Inc. and Bank of Tokyo-Mitsubishi are leading the deal that will be used to refinance existing debt, to make a distribution to GE in connection with the acquisition of a 50% interest in the borrower by Highstar, to support project-level letter-of-credit requirements, to fund the debt service reserve account and to pay related fees and expenses.

Total leverage is 4 times.

Linden is a 942MW cogeneration facility located in Linden, N.J.

Chromaflo tweaked again

Chromaflo set pricing on its $330 million six-year covenant-light first-lien term loan B (B2) at Libor plus 350 bps, the tight end of the modified Libor plus 350 bps to 375 bps talk and down from original talk of Libor plus 400 bps, and revised the original issue discount to 99¾ from revised talk of 99½ and initial talk of 99, according to a market source.

The first-lien loan still has a 1% Libor floor and 101 soft call protection for six months.

Additionally, the company firmed the spread on its $115 million 61/2-year covenant-light second-lien term loan (Caa2) at Libor plus 725 bps, the low end of revised talk of Libor plus 725 bps to 750 bps and down from initial talk of Libor plus 775 bps, and tightened the discount to 99½ from revised talk of 99 and initial talk of 981/2, the source said.

The second-lien loan still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Earlier in the week, when the first pricing changes were announced, the first-lien term loan was upsized from $310 million, the second-lien loan was downsized from $130 million and the MFN sunsets were eliminated.

Chromaflo lead banks

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Madison Capital and KeyBanc Capital Markets LLC are leading Chromaflo's $445 million deal that is expected to allocate on Wednesday.

Proceeds will be used to refinance existing debt and fund a dividend that was increased to about $165 million as a result of the small upsizing to the total amount of term loan borrowings and lower net debt refinanced at closing, the source added.

Pro forma first-lien leverage is 4.3 times and pro forma total leverage 5.8 times.

Chromaflo is an Ashtabula, Ohio-based supplier of chemical and pigment dispersions to the thermoset composites and architectural & industrial paint and coatings industries.

Del Monte changes surface

Del Monte Foods Consumer Products increased its seven-year covenant-light first-lien term loan to $710 million from $650 million, reduced pricing to Libor plus 325 bps from Libor plus 375 bps and firmed the original issue discount at 991/2, the tight end of the 99 to 99½ talk, according to a market source.

Meanwhile, the 71/2-year covenant-light second-lien term loan was downsized to $260 million from $280 million, pricing was trimmed to Libor plus 725 bps from Libor plus 775 bps, the discount was tightened to 99 from talk of 98 to 981/2, and the call protection was shortened to 102 in year one and 101 in year two, from 103 in year one, 102 in year two and 101 in year three, the source said.

As before, both term loans have a 1% Libor floor and the first-lien term loan still has 101 soft call protection for six months.

The company's now $1.32 billion credit facility also includes a $350 million ABL revolver.

Recommitments are due at 5 p.m. ET on Wednesday, the source remarked.

Del Monte being acquired

Proceeds from Del Monte Foods Consumer Products' credit facility will be used to help fund its $1.68 billion buyout by Del Monte Pacific Ltd.

Due to the upsizing to the total amount of term loan debt, the equity portion for the transaction is being reduced by $40 million, the source added.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc. and KKR Capital Markets LLC are the joint lead arrangers and bookrunners on the deal, with Citi the left lead on the first-lien loan and Morgan Stanley the left lead on the second-lien loan.

Closing on the acquisition is expected no later than the first quarter of 2014, subject to regulatory approvals and customary conditions.

Del Monte Foods Consumer Products is a packaged goods and fruit and vegetable company. Singapore-based Del Monte Pacific is a group of companies that caters to consumer needs for healthy food and beverage products.

Misys reworked

Misys cut its U.S. add-on term loan B due Dec. 1, 2018 to $140 million from $200 million and changed the offer price to par from 991/2, a source said.

Pricing on the fungible U.S. add-on term loan is still Libor plus 400 bps with a 1% Libor floor, and there is still 101 soft call protection until June 1, 2014.

With the downsizing, the company added a €50 million term loan B due Dec. 1, 2018 to its deal, and pricing is Euribor plus 425 bps with a 1% floor and a par offer price, the source continued. This tranche also has 101 soft call protection until June 1, 2014.

Commitments are due at noon ET on Wednesday.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the deal that will be used to repay a holding company loan that was issued with the merger with Turaz in January 2012.

Misys is a London-based provider of application software and services for the financial services industry.

American Beacon sets spread

American Beacon Advisors firmed pricing on its $170 million six-year term loan (Ba2/BB-) at Libor plus 375 bps, the tight end of the Libor plus 375 bps to 400 bps talk, while keeping the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

American Beacon Advisors is a Fort Worth, Texas-based provider of investment advisory services to institutional and retail markets.

Medial Specialties flexes

Medical Specialties Distributors raised pricing on its $140 million six-year first-lien term loan to Libor plus 550 bps from Libor plus 450 bps, according to a market source, who said the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year were unchanged.

The company's $170 million credit facility (B3/B) also includes a $30 million revolver.

Recommitments are due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC and BNP Paribas Securities Corp. are leading the deal that will be used to help fund the buyout of the company by New Mountain Capital.

Medical Specialties is a Stoughton, Mass.-based distributor of home infusion equipment and supplies.

TransUnion revises offer

TransUnion changed the offer price on its $65 million add-on term loan to par ¼ from par ahead of its 3 p.m. ET commitment deadline, according to a market source.

The add-on was launched in the morning, without a call, and was quickly oversubscribed.

Pricing on the add-on is Libor plus 300 bps with a 1.25% Libor floor, in line with existing term loan pricing, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to repay revolver borrowings.

TransUnion is a Chicago-based provider of information management and risk management services.

Landry's repricing

Also on the primary front, Landry's held its call on Tuesday afternoon, launching a repricing of its roughly $1 billion term loan to Libor plus 300 bps with a 1% Libor floor from Libor plus 350 bps with a 1.25% Libor floor, according to a market source.

The repriced loan will have 101 soft call protection for six months, the source said.

Lead, Jefferies Finance LLC, is seeking commitments by noon ET on Monday.

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

Alliant reveals guidance

Alliant Holdings launched during the session its $699,712,500 term loan B due Dec. 20, 2019 with talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, a market source said.

Also, the company launched its $100 million revolver due Dec. 20, 2017 with talk of Libor plus 300 bps to 325 bps, the source remarked.

Proceeds will be used to reprice an existing revolver and term loan B.

With the repricing, term loan B pricing will be coming down from Libor plus 375 bps with a 1.25% Libor floor.

Commitments are due on Monday and closing is targeted for Dec. 20, the source added.

Morgan Stanley Funding Inc. and KKR Capital Markets LLC are the joint lead arrangers on the $799,712,500 senior secured deal and Morgan Stanley, J.P. Morgan Securities LLC and Macquarie are the bookrunners.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

NXP comes to market

NXP announced and launched without a call a $496 million covenant-light term loan D due January 2020 with talk of Libor plus 250 bps to 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.

Proceeds will be used to refinance/reprice an existing term loan C that is priced at Libor plus 350 bps with a 1.25% Libor floor.

Commitments are due at noon ET on Friday and closing is targeted for Dec. 10, at which time a 101 call premium will be paid on the term loan C, the source said.

Deutsche Bank Securities Inc. is the sole bookruner on the deal and Barclays is the administrative agent.

NXP is an Eindhoven, Netherlands-based maker of semiconductors.

Vantage holds call

Vantage Specialty Chemicals hosted a call at 11 a.m. ET on Tuesday to launch a $75 million add-on term loan B with talk of Libor plus 375 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Proceeds will be used to fund a dividend to shareholders.

Also, the company is looking to extend the tenor on its existing $236.4 million term loan B by one year and is offering lenders a 25 bps amendment fee.

Commitments are due at noon ET on Monday, the source added.

RBC Capital Markets is leading the deal for the Chicago-based specialty chemicals company.

RCN launches

RCN Cable (RCN Services Telecom LLC) launched its $790 million term loan B in line with earlier guidance of Libor plus 350 bps to 375 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Commitments are due on Monday, the source said, adding that there is buzz that the deadline might be accelerated.

SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to reprice the company's existing term loan from Libor plus 400 bps with a 1.25% Libor floor.

RCN Cable is a cable provider that services Boston, Chicago, Washington, D.C., Lehigh Valley, Pa., New York City and Philadelphia.

Hostway readies deal

Hostway set a bank meeting for Wednesday afternoon to launch a $117.5 million credit facility that is being led by Societe Generale, according to a market source.

The facility consists of a $15 million five-year revolver talked at Libor plus 475 bps, a $77.5 million six-year first-lien term loan talked at Libor plus 475 bps with a 1.25% Libor floor and a $25 million seven-year second-lien term loan talked at Libor plus 875 bps with a 1.25% Libor floor, the source said, adding that original issue discount talk is still to be determined.

The second-lien term loan is being placed separately.

Proceeds, along with 37% equity, will be used to fund the buyout of the company by Littlejohn & Co.

Senior leverage is 3.3 times and total leverage is 4.3 times.

Hostway is a Chicago-based provider of hosting services for over 570,000 RGUs.

CommScope plans call

CommScope scheduled a call for Wednesday to launch $875 million in term loans, split between a $450 million term B-1 due January 2017 and a $425 million term B-2 due January 2018, according to a market source.

The B-1 loan is talked at Libor plus 225 bps to 250 bps with no Libor floor and the B-2 loan is talked at Libor plus 250 bps to 275 bps with a 0.75% Libor floor, with both having an offer price of 99¾ to par and 101 soft call protection for six months, the source continued.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance a term loan B due January 2018 that is priced at Libor plus 275 bps with a 1% Libor floor.

Currently, the existing term loan B is sized at around $975 million, but the company intends to use existing liquidity to repay $100 million of the debt with the refinancing.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

Continental on deck

Continental Building Products will hold a lender call at 1:30 p.m. ET on Wednesday to launch $130 million in new debt comprised of a fungible $95 million add-on first-lien covenant-light term loan due Aug. 28, 2020 and a fungible $35 million add-on second-lien covenant-light term loan due Feb. 26, 2021, according to a market source.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Monday.

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to fund a dividend to shareholders.

Continental Building is a supplier of drywall for residential and commercial construction industries.

Radioshack sees demand

In other news, RadioShack Corp.'s $585 million in five-year senior secured ABL revolving credit facilities are expected to wrap at initial terms as the book was targeted to close on Tuesday and the deal was well subscribed, according to a market source.

The deal is split between a $535 million tranche priced with a grid of Libor plus 200 bps to 250 bps, based on availability, and a 50 bps unused fee, and a $50 million first-in-last-out tranche priced at Libor plus 400 bps with no grid.

The company's $835 million credit facility also includes a $250 million secured term loan that was not marketed since it was placed with one lender.

GE Capital Markets, CIT Corporate Finance, RBS Citizens and Salus Capital Partners are leading the financing that will be used to refinance the company's existing $450 million ABL credit facility, $75 million of term loans and $100 million second-lien term loan.

Closing is expected this month.

RadioShack is a Fort Worth-based retailer of mobile technology products and services and products related to personal and home technology and power supply needs.

Spartan Stores closes

Spartan Stores completed its $1 billion five-year senior secured credit facility that consists of a $900 million revolver, a $40 million first-in last-out revolver and a $60 million term loan A-2, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the revolver can range from Libor plus 150 bps to 200 bps and pricing on the first-in last-out revolver is expected to range from Libor plus 275 bps to 325 bps, both based on monthly average excess availability. Pricing on the term loan is Libor 550 bps.

Wells Fargo Bank and Bank of America Merrill Lynch led the deal that was used to help fund the company's merger with Nash Finch Co. and is available for general corporate purposes.

Spartan is a Grand Rapids, Mich.-based grocery distributor. Nash Finch is an Edina, Minn.-based food distributor serving military commissaries and exchanges.

MRC Global wraps

MRC Global Inc. (McJunkin Red Man Corp.) closed on its $794 million covenant-light term loan, a news release said.

The term loan due November 2019 is priced at Libor plus 400 bps with a step-down to Libor plus 375 bps at total net leverage of 2.5 times. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was issued at par after tightening during syndication from talk of 99 7/8.

Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the deal that was used to reprice a roughly $640 million term loan from Libor plus 500 bps with a 1.25% Libor floor and repay revolver borrowings

MRC is a Houston-based distributor of pipe, valve, fittings and related products and services to the energy industry.

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