Sandy Creek, Garda, Golden Nugget, Wilsonart break; Arby's revises deadline on strong demand

By Sara Rosenberg

New York, Nov. 6 - Sandy Creek Energy Associates LP's credit facility freed up for trading on Wednesday with the term loan B seen bid above par, and Garda World Security Corp., Golden Nugget Inc. and Wilsonart LLC hit the secondary, too.

Switching to the primary, Arby's (ARG IH Corp.) moved up the commitment deadline on its credit facility, Active Network Inc. lifted the size of its second-lien term loan, set pricing on its first-lien loan at the low end of guidance and tightened discounts on both tranches, and Terex Corp. lowered the coupon on its U.S. and euro term loans.

Additionally, Southern Graphics Inc., Pro Mach Inc., Travel Leaders Group LLC and MRC Global Inc. (McJunkin Red Man Corp.) released talk with launch, Husky Injection Molding Systems Ltd. disclosed original issue discount guidance, and Actuant Electrical surfaced with new deal plans.

Sandy Creek tops OID

Sandy Creek Energy's credit facility emerged in the secondary market on Wednesday, with the $1,025,000,000 first-lien term loan B (Ba3/BB-) quoted at par bid, par ½ offered and then it moved up to par ¼ bid, 101 offered, according to a trader.

Pricing on the term B is Libor plus 400 basis points with a 1% Libor floor and it was sold at a discount of 991/2, after tightening the other day from 99. There is 101 soft call protection for one year.

The company's $1,202,000,000 credit facility also includes a $41 million revolver, a $34 million debt service reserve letter-of-credit facility and a $102 million senior secured tax exempt letter-of-credit facility that has a 325 bps letter-of-credit fee.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., CoBank, Credit Agricole CIB, ING Capital, Union Bank, Natixis, Investec and ICBC are leading the deal that will be used to refinance existing debt, pay swap breakage costs, fund operating reserves, repay Sandy Creek Energy Holdings' loan, which is currently held by affiliates of LS Power, and pay transaction- related fees and expenses.

Sandy Creek Energy Associates owns 64% of the Sandy Creek Energy Station plant, while Brazos Electric Power Cooperative Inc. owns a 25% interest, and the remainder is owned by Lower Colorado River Authority.

Garda frees up

Garda World Security's credit facility also began trading, with the $540 million U.S. seven-year term loan B quoted at par ½ bid, 101 offered and the C$135 million seven-year term loan B quoted at par bid, par ¾ offered, according to one trader. A second trader had the U.S. loan at par 5/8 bid, par 7/8 offered.

Pricing on the U.S. term B is Libor plus 300 bps and pricing on the Canadian loan is BA plus 375 bps, with both having a 1% floor and sold at an original issue discount of 991/2. There is 101 soft call protection for one year on the term loans.

During syndication, the U.S. term loan was decreased from a revised amount of $600 million but increased from an initial amount of $525 million, and pricing was reduced from modified talk of Libor plus 375 bps and initial talk of Libor plus 325 bps. In addition, the Canadian loan was downsized from C$150 million, pricing on the Canadian tranche was lowered from revised talk of BA plus 425 bps but ended up in line with talk at launch, and the call protection on both term loans was extended from six months.

The company's roughly $825 million senior secured credit facility (Ba3/B+) also includes a $150 million five-year revolver.

Garda lead banks

RBC Capital Markets LLC, Bank of America Merrill Lynch, TD Securities (USA) LLC and Mizuho Securities USA Inc. are leading Garda's credit facility.

With the credit facility, the company is getting $300 million of 7¼% notes that were downsized from a revised amount of $425 million of notes, but are in line with the originally planned amount.

Proceeds will be used to refinance existing credit facility debt and senior unsecured notes due 2017 and fund the C$110 million acquisition of G4S Cash Solutions.

Due to the company's decision to cancel its previously announced upsizings, plans for a dividend were terminated.

Closing on the acquisition is expected before the end of this year, subject to customary conditions including regulatory approvals.

Garda is a Montreal-based provider of business and security services. G4S Cash is a provider of risk management and secure transit of valuables such as currency, diamonds, jewelry and more.

Golden Nugget starts trading

Golden Nugget's credit facility broke as well, with the $500 million of six-year term loan B debt quoted at par bid, a trader remarked.

Pricing on the term B, which includes a $350 million funded tranche and a $150 million delayed-draw tranche, is Libor plus 450 bps with a 1% Libor floor and it was sold at a discount of 99. There is call protection of 102 in year one and 101 in year two.

The company's $575 million facility (Ba3/BB-) also includes a $75 million five-year revolver.

During syndication, pricing on the term B debt firmed at the low end of revised talk of Libor plus 450 bps to 475 bps and down from initial talk of Libor plus 500 bps to 525 bps, the funded tranche was upsized from $300 million and the revolver was downsized from $100 million.

Jefferies Finance LLC and Deutsche Bank Securities Inc. are leading the deal that will be used with $295 million of bonds (reduced from $300 million) to refinance all of the company's existing debt, to acquire from Pinnacle Entertainment Inc. and complete the Golden Nugget Lake Charles casino and hotel resort project, and for related fees.

Golden Nugget is a hotel and casino operator. The company is being spun out of Landry's Inc.

Wilsonart breaks

Another deal to hit the secondary was Wilsonart's $160 million add-on term loan due October 2019, with levels quoted at 98¾ bid, 99¼ offered, according to a market source.

Pricing on the add-on is Libor plus 300 bps with a 1% Libor floor, in line with existing term loan pricing, and it was sold at a discount of 98 after firming a the low end of the 97½ to 98 talk.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Securities LLC are leading the deal that will be used to fund the acquisition of Durcon Inc., a Taylor, Texas-based manufacturer of laboratory-grade work surfaces.

Closing is expected in the fourth quarter.

Wilsonart is a Temple, Texas-based manufacturer and distributor of high-pressure laminates and other engineered surfaces used in furniture, office and retail space, countertops, worktops and other applications.

BWIC announced

In more secondary happenings, a $230 million Bid-Wanted-In-Competition emerged, with market players asked to get their bids in by noon ET on Thursday, according to traders.

Some of the names in the portfolio are Alere Inc., Biomet Inc., DaVita HealthCare Partners Inc., Federal-Mogul Corp., HCA Inc., Kindred Healthcare Inc., Nielsen Finance LLC, Sabre Inc., TPF Generation Holdings LLC, West Corp. and Zayo Group LLC.

The portfolio includes about 138 loan issuers, the trader added.

Arby's accelerated

Over in the primary, Arby's revised the commitment deadline on its $370 million credit facility (B3/B) to 5 p.m. ET on Thursday from Nov. 13 as the deal is already "multiple times oversubscribed", a market source said.

The facility consists of a $35 million five-year revolver and a $335 million seven-year first-lien term loan.

Talk on the term loan is Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

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

Arby's, owned by Roark Capital, is an Atlanta-based quick-service restaurant chain.

Active Network reworked

Active Network raised its eight-year covenant-light second-lien term loan (Caa1/CCC+) to $192.5 million from $172.5 million and revised the original issue discount to 99½ from 99, while leaving pricing at Libor plus 850 bps with a 1% Libor floor, according to sources. The tranche still has call protection of 103 in year one, 102 in year two and 101 in year three.

As for the $342.5 million seven-year covenant-light first-lien term loan (B1/B+), the spread firmed at Libor plus 450 bps, the tight end of the Libor plus 450 bps to 475 bps talk, and the original issue discount was moved to 99½ from 99, sources continued. The 1% Libor floor and 101 soft call protection for six months were unchanged.

Commitments for the company's now $580 million credit facility, which also includes a $45 million five-year revolver (B1/B+), were due on Wednesday.

Active being acquired

Proceeds from Active Network's credit facility and equity will be used to fund its buyout by Vista Equity Partners for $14.50 per share in cash, or about $1.05 billion.

The amount of equity being used was reduced by $20 million due to the second-lien term loan upsizing, sources added.

Bank of America Merrill Lynch, RBC Capital Markets LLC and BMO Capital Markets Corp. are leading the deal.

Closing is expected by the end of this quarter, subject to satisfaction of a minimum tender condition, expiration or termination of any waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, receipt of financing and other customary conditions.

Active Network is a San Diego-based provider of cloud-based activity and participant management services.

Terex flexes

Terex trimmed pricing on its $343,221,505 term loan due April 2017 to Libor plus 275 bps from Libor plus 300 bps and on its €113,474,156 term loan due April 2017 to Euribor plus 325 bps from Euribor plus 350 bps, while keeping the 0.75% floor, par offer price and 101 soft call protection for one year on both loans unchanged, according to a market source.

Recommitments are due at noon ET on Thursday, the source remarked.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing U.S. term loan priced at Libor plus 350 bps with a 1% Libor floor and an existing euro term loan priced at Euribor plus 400 bps with a 1% floor.

Terex is a Westport, Conn.-based equipment manufacturer.

Southern Graphics holds call

Southern Graphics emerged in the morning with plans to host a call at 2 p.m. ET on Wednesday to launch a $397 million first-lien covenant-light term loan due October 2019 talked at Libor plus 325 bps to 350 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 refinance an existing term loan priced at Libor plus 375 bps with a 1.25% Libor floor.

Commitments are due on Nov. 13, the source said.

Credit Suisse Securities (USA) LLC is leading the deal for the Louisville, Ky.-based provider of design-to-print graphics services to the consumer products packaging industry.

Pro Mach reveals talk

Pro Mach held its call in the morning, launching its $314.3 million first-lien term loan due July 16, 2017 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, according to a market source.

The company also launched its $55 million revolver with talk of Libor plus 325 bps to 350 bps with no floor, the source said.

Proceeds will be used to reprice an existing revolver from Libor plus 375 bps with no floor and an existing term loan from Libor plus 375 bps with a 1.25% Libor floor.

In addition to the repricing, the company is seeking certain amendments to its credit agreement and is offering lenders a 10 bps consent fee.

Barclays is leading the $369.3 million credit facility, for which commitments/responses are due by noon ET on Nov. 14, the source added.

Pro Mach is a Loveland, Ohio-based provider of packaging machinery services and related aftermarket products to clients in the food, beverage, household goods and pharmaceutical industries.

Travel Leaders guidance

Travel Leaders came out with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor and an original issue discount of 99 on its $170 million six-year term loan B that was presented to lenders at a bank meeting in the afternoon, according to a market source.

As reported earlier, the B loan has 101 soft call protection.

The company's $185 million credit facility (B1/BB-) also includes a $15 million five-year revolver.

UBS Securities LLC and Jefferies Finance LLC are leading the deal that will be used to fund the acquisition of the company.

Travel Leaders is a Plymouth, Minn.-based travel agency company.

MRC Global launches

MRC Global held a call to launch a $794 million covenant-light term loan due November 2019 that is being led by Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA and Wells Fargo Securities LLC, according to sources.

The loan is talked at Libor plus 400 bps with a step-down to Libor plus 375 bps at total net leverage of 2.5 times a 1% Libor floor, an original issue discount of 99 7/8 and 101 soft call protection for six months, sources said.

Commitments are due on Nov. 13.

Proceeds will be 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.

Husky releases OID

Husky Injection Molding Systems launched its $160 million add-on term loan (Ba3/B) with original issue discount guidance of 99¼ to 991/2, according to a market source.

As previously reported, pricing on the add-on is Libor plus 325 bps with a 1% Libor floor, which matches existing term loan pricing.

Commitments are due on Nov. 14, the source said.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC and TD Securities (USA) LLC are leading the deal that will be used to fund the acquisition of Schöttli Group.

Husky is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry. Schöttli is a Diessenhofen, Switzerland-based medical and closure mold making company.

Actuant Electrical readies deal

Also on the primary front, Actuant Electrical set a bank meeting for 2 p.m. ET on Tuesday to launch a $150 million credit facility, according to a market source.

The facility consists of a $20 million five-year revolver and a $130 million six-year term loan B, the source said.

RBC Capital Markets and NXT Capital are leading the deal that will be used with $60 million of senior subordinated notes to help fund the $258 million buyout of the company by Sentinel Capital Partners from Actuant Corp.

Actuant Electrical is a Menomonee Falls, Wis.-based provider of products for the retail do-it-yourself, marine, industrial OEM and wholesale electrical markets.

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