First Data up with planned partial repayment; BJ’s second-lien higher on amendment proposal

By Sara Rosenberg

New York, March 9 – First Data Corp.’s term loans were stronger in trading on Wednesday following news of an expected paydown on one of the loan tranches with bond offering proceeds, and BJ’s Wholesale Club Inc.’s second-lien term loan gained ground with amendment chatter.

In other happenings, Key Safety Systems’ amendment proposal underwent a number of changes before being approved by lenders, and Travel Leaders Group LLC emerged with add-on term loan plans.

First Data rises

First Data’s term loans headed higher in the secondary market on Wednesday with news of a proposed partial repayment of the 2018 tranche, according to a trader.

The 2018 term loan was quoted at 99¾ bid, 100 1/8 offered, up from 99 3/8 bid, 99¾ offered, the 2021 term loan was quoted at 99¾ bid, 100¼ offered, up from 99½ bid, par offered and the 2022 term loan was quoted at 99 1/8 bid, 99 5/8 offered, up from 98¾ bid, 99¼ offered, the trader said.

Although the paydown is only expected on the 2018 term loan, the whole loan structure moved up with the news as it was viewed as an overall positive for the debt, the trader added.

Funds for the partial repayment of the senior secured term loan facility due 2018 will come from a senior secured first-lien notes offering that was upsized to $900 million from $500 million.

The notes will be issued under the indenture governing the $1 billion aggregate principal amount of 5% senior secured notes due 2024 that were issued on Nov. 25, 2015.

First Data is an Atlanta-based provider of electronic commerce and payment services.

BJ’s second-lien better

BJ’s Wholesale Club’s second-lien term loan was stronger as word emerged that the company is seeking an amendment to allow for open market purchases of the second-lien debt, traders remarked.

The amendment would also give the company the ability to draw $100 million under its ABL revolver to help with the open market purchases or Dutch auctions.

In the afternoon, one trader had the second-lien loan quoted at 86 bid, 90 offered, up from 83½ bid, 85½ offered on Tuesday, and a second trader had the debt quoted at 87 bid, 89 offered, up from 85 bid, 87 offered on Wednesday morning.

Deutsche Bank Securities Inc. is leading the amendment and is asking for lender consents by 5 p.m. ET on March 16.

BJ’s is a Westborough, Mass.-based operator of warehouse clubs.

BWIC surfaces

Also in trading, a roughly $244 million Bid Wanted In Competition was announced, with bids from investors due at noon ET on Thursday, according to a trader.

Some of the debt in the portfolio includes Academy Ltd.’s first-lien term loan, Acadia Healthcare Co. Inc.’s first-lien term loan B, CSC Holdings LLC’s first-lien term loan, Internet Brands Inc.’s first-lien term loan, Neiman Marcus Group LLC’s first-lien term loan, SRS Distribution Inc.’s first-lien term loan, Toys R Us’ term loan B-2, B-3 and B-4 and Zebra Technologies Corp.’s first-lien term loan B.

There are close to 60 issuers in the BWIC, the trader added.

OWIC announced

A roughly $138.5 million Offers Wanted In Competition emerged, with offers due at 1 p.m. ET on Thursday, a trader remarked.

Names in the portfolio include, among others, Academy Ltd., David’s Bridal Inc., Heartland Dental Care Inc., Learfield Communications Inc., NEP Broadcasting LLC, Platform Specialty Products Corp., Tibco Software Inc. and XPO Logistics Inc.

There are over 70 issuers in the OWIC.

Key Safety reworked

Key Safety Systems’ amendment request was changed to lift term loan pricing to Libor plus 450 basis points with a 1% Libor floor from initial talk of Libor plus 425 bps with a 1% Libor floor, extend the proposed 101 soft call protection to one year from six months and add MFN for life, instead of no MFN, a market source said.

The UBS AG-led amendment is boosting term loan pricing from a current rate of Libor plus 375 bps with a 1% Libor floor.

The company sought the amendment to allow for a change of control in connection with its acquisition by Ningbo Joyson Electronic Corp. from FountainVest Partners, the Canada Pension Plan Investment Board, Crestview Partners and members of management in a cash transaction valued at about $920 million.

Lenders were offered a 50-bps consent fee.

As a result of the revisions, the amendment was approved, the source added.

Closing on the acquisition is expected in the first half of this year, subject to regulatory filings, approvals and other customary conditions.

Key Safety is a Sterling Heights, Mich.-based supplier of advanced engineered safety products for automotive and non-automotive markets. Ningbo Joyson is a Ningbo, China-based automotive supplier.

Travel Leaders on deck

Travel Leaders is set to hold a bank meeting at 11 a.m. ET in New York on Thursday to launch a fungible $25 million add-on term loan to investors, according to a market source.

The add-on term loan is priced at Libor plus 600 bps with a 1% Libor floor, which matches existing term loan pricing. Original issue discount talk is not yet out, the source continued.

UBS AG is leading the deal that will be used to add liquidity for potential acquisitions.

In addition to the new debt, the company is seeking technical amendments to its credit facility, the source added.

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

KAR Auction closes

In other news, KAR Auction Services Inc. completed its $1.65 billion of bank debt (Ba3/BB-) that includes a $300 million five-year revolver and a $1.35 billion seven-year term loan B-3, according to an 8-K filed with the Securities and Exchange Commission.

The term loan B-3 is priced at Libor plus 350 bps with a 0.75% Libor floor and was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, the term loan size firmed at the high end of revised talk of $1.15 billion to $1.35 billion and up from a launch size of $1.15 billion, pricing was trimmed from talk of Libor plus 375 bps to 400 bps, and the discount was set at the tight end of the 98.5 to 99 guidance.

J.P. Morgan Securities LLC, Barclays, Goldman Sachs Bank USA, Fifth Third Securities Inc. and US Bank led the deal that was used to refinance a term loan B-1 due March 2017, to term out revolver drawings and for general corporate purposes.

KAR is a Carmel, Ind.-based provider of vehicle auction services and a provider of floorplan financing.

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