Numericable further downsizes; TravelClick sets price talk; Stater launches $725 million

By Paul A. Harris

Portland, Ore., April 22 - Cash loans were 1/8 point softer on Tuesday, according to a trader.

"Inflows are not as strong as they had been," the source commented.

"CLOs are said to be active, but that activity can't be too significant because we are just not seeing that much buying," the trader added.

Also the high-yield market may be attracting some cash away from leveraged loans, the source added.

Meanwhile synthetics presented a different picture.

The LCDX20 index of high yield credit default swaps finished 1/8 point higher at 104 1/16 bid, 104 9/16 offered, according to a hedge fund manager.

In the primary market, Numericable Group AG further downsized its six-year covenant-light term B (expected Ba3/confirmed B+) to €2.75 billion equivalent from €2.84 billion equivalent, after previously downsizing it from €5.6 billion.

Stater Bros. Markets launched a $725 million credit facility at a Tuesday bank meeting.

And TravelClick Inc. set pricing for $560 million of covenant-light term loans.

Numericable further downsizes

Numericable further downsized its six-year covenant-light term B (expected Ba3/confirmed B+) to €2.75 billion equivalent from €2.84 billion equivalent, after previously downsizing it from €5.6 billion.

The euro loan is now coming in a downsized €1.6 billion tranche, decreased from €1.75 billion after previously having been reduced from €2.6 billion.

The dollar loan is coming in an upsized $1.6 billion tranche, increased from $1.5 billion after having previously been decreased from €3 billion equivalent in U.S. dollars.

Both tranches are talked with 375 basis points spreads to Euribor and Libor, respectively, at 99 to 99.5 and feature 0.75% Libor floors.

Earlier spread talk was 350 bps to 375 bps.

Included in the term loans is 101 soft call protection for six months.

Allocations are expected on Wednesday.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are the joint global coordinators on the deal and joint bookrunners with Barclays, BNP Paribas Securities Corp., Credit Agricole, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and ING.

In conjunction with downsizing the term loans, Numericable upsized its concurrent restructured five-tranche dual currency offering of five-year first-lien senior secured notes (Ba3/B+) to €8.8 billion from €6.04 billion.

The credit facility also includes a €750 million five-year revolving credit facility at Numericable talked at Euribor plus 325 bps and a €200 million five-year revolver at Altice SA talked at Euribor plus 425 bps.

The revolvers have a commitment of 40% margin and a net leverage maintenance covenant.

Proceeds will be used to help fund the acquisition of Societe Francaise de Radiotelephone SA (SFR) from Vivendi SA, to refinance existing Numericable Group debt and for general corporate purposes.

The loans are part of €15.8 billion equivalent of debt financing backing transactions in which Altice is acquiring a stake in Numericable and Numericable is acquiring SFR.

In addition to the loans which are expected to allocate on Wednesday, the market is expecting $10.9 billion and €4.57 billion of combined issuance from Numericable and Altice to clear on Wednesday.

DSI Renal first-lien eases

DSI Renal Inc.'s $520 million of covenant-light term loans priced and allocated on Monday, according to a market source.

A $360 million first-lien term loan priced at Libor plus 375 bps at 99.5. The deal was seen at 99¾ bid, 100¼ offered on Tuesday after trading as high as par bid on Monday, according to a trader.

The spread came 25 bps wider than the original 325 bps to 350 bps spread talk.

The first-lien loan, which has a 1% Libor floor, features a coupon step-down to 350 bps when first-lien next leverage is less than 3.5-times. It has 101 soft call protection for six months.

The company also syndicated a $160 million Libor plus 675 bps covenant-light second-lien term loan at 99.25.

The spread came at the tight end of the 675 bps to 700 bps spread talk. The discount was trimmed from 99.

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

The company's $560 million credit facility also provides for a $40 million five-year revolver.

RBC Capital Markets, Barclays and GE Capital Markets are the leads on the deal.

Proceeds will be used to refinance existing debt.

DSI Renal is a Nashville, Tenn.-based provider of dialysis services.

TravelClick sets pricing

TravelClick set pricing for $560 million of covenant-light term loans on Tuesday, according to a market source.

A $385 million seven-year first-lien loan, which comes with 101 soft call protection for six months, is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor at 99.5.

A $175 million 7.5-year second-lien loan, with calls at 102 in year one and 101 in year two, is talked at Libor plus 700 bps to 725 bps with a 1% Libor floor at 99.

Commitments are due on May 2.

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

The $590 million facility also includes a $30 million revolver.

Proceeds will be used to help fund the acquisition of TravelClick by Thoma Bravo LLC from Genstar Capital for $930 million.

TravelClick is a New York-based provider of revenue generating cloud-based solutions for the hospitality industry.

Stater launches $725 million

Stater Bros. Markets launched a $725 million credit facility at a Tuesday bank meeting, according to a market source.

The deal, via lead left bookrunner BofA Merrill Lynch, features a $150 million revolver, a $275 million five-year term loan A and a $300 million seven-year term loan B.

The San Bernardino, Calif., supermarket chain plans to use the proceeds to refinance its term loan, as well as its 7¼% notes due 2015 and its 7 3/8% notes due 2018.

Eddie Bauer talks term loan

Eddie Bauer, Inc. talked its $250 million six-year term loan with a Libor spread of 425 bps to 450 bps, a 1% Libor floor and an original issue discount of 99 on Tuesday, according to a market source.

The deal features 101 soft call protection for six months.

Commitments are due on May 2.

Goldman Sachs Bank USA, Guggenheim and MCS Capital are leading the deal.

Proceeds will be used to refinance existing debt and fund a dividend, the source added.

Eddie Bauer is a Bellevue, Wash.-based manufacturer of clothing, accessories and gear for men and women.

BlackBrush incremental loan

BlackBrush TexStar LP mandated lead left bookrunner UBS to arrange a conference call with investors at 10 a.m. ET on Wednesday to discuss a proposed incremental senior secured term loan, according to a market source.

The company is a San Antonio-based oil production and natural gas gathering and treatment services provider.

Jonah Energy second-lien

Jonah Energy, Inc. mandated joint lead arrangers and joint bookrunners Citigroup Global Markets, JPMorgan, BofA Merrill Lynch, Morgan Stanley and Wells Fargo Securities LLC to arrange a bank meeting with second-lien lenders beginning at 11 a.m. ET on Thursday, according to a market source.

San Antonio-based Jonah Energy acquires and operates producing oil and gas properties located onshore in North America.

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