TridentUSA, RE/MAX, True Religion Apparel break; Pinnacle, Kodak, Larchmont tweak deals

By Sara Rosenberg

New York, July 29 - TridentUSA Health Services' credit facility made its way into the secondary market on Monday, with both the first- and second-lien term loans seen trading above their original issue discount prices, and RE/MAX LLC and True Religion Apparel Inc. freed up too.

Over in the primary, Pinnacle Entertainment Inc. carved out a shorter-dated tranche from its term loan B and adjusted price talk, Eastman Kodak Co. widened spreads as well as the original issue discounts on its first- and second-lien term loans and sweetened call premiums, and Larchmont Resources LLC reduced the size of its term loan, increased the coupon and revised the call protection.

Additionally, Vantage Pipeline, Continental Building Products LLC, Nuance Communications Inc. and International Equipment Solutions LLC set talk with launch, and ConvaTec Inc. came to market with an amendment and refinancing transaction.

Furthermore, Surgical Specialties Corp., Multi Packaging Solutions Inc., Boyd Gaming Corp., Moxie Liberty, Generic Drug Holdings Inc. (Harvard Drug) and Northeast Wind Capital II LLC joined this week's calendar, and ZEST Anchors Inc. released details on its buyout financing deal.

TridentUSA frees up

TridentUSA Health Services' credit facility broke on Monday, with the $340 million six-year first-lien term loan (B1/B) quoted at 99½ bid, par ½ offered, and the $155 million seven-year second-lien term loan (Caa1/CCC+) quoted at 99¾ bid, par ¾ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 525 basis points with a 1.25% Libor floor, and the loan was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 900 bps with a 1.25% Libor floor and was sold at a discount of 98. This debt has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, pricing on the first-lien loan was increased from talk of Libor plus 450 bps to 475 bps and the maturity was shortened from seven years, and pricing on the second-lien loan was lifted from Libor plus 850 bps while the maturity was shortened from 7½ years.

Trident readies close

TridentUSA's $570 million credit facility, which also includes a $75 million revolver (B1/B), is expected to close and fund on Wednesday, the source added.

Citigroup, GE Capital Markets and RBC Capital markets are leading the deal that will be used to refinance existing debt, to fund the acquisition of Life Choice Hospice and to monetize existing shareholders for the dilution of their ownership stakes via a new equity infusion from a group of new and existing investors.

TridentUSA is a Burbank, Calif.-based provider of bedside diagnostics services.

RE/MAX tops OID

RE/MAX's $230 million seven-year term loan B began trading as well, with levels quoted at par bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor and it was sold at a discount of 993/4. There is a step-down to Libor plus 275 bps when senior secured leverage is less than 2.25 times, net of up to $15 million of cash, and 101 soft call protection for six months.

Recently, pricing on the loan was reduced from talk of Libor plus 325 bps to 350 bps and the step-down was added.

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

RE/MAX is a Denver-based real estate company.

True Religion updated again

True Religion raised its six-year first-lien term loan to $400 million from $375 million, cut pricing to Libor plus 487.5 bps from revised talk of Libor plus 500 bps, although its still coming wide of initial talk of Libor plus 450 bps, and moved its original issue discount to 93½ from revised talk of 93 and initial talk of 99, a market source said. The first-lien term loan has a 1% Libor floor and 101 soft call protection for one year.

In addition, the 61/2-year second-lien term loan was downsized to $85 million from a recently revised amount of $92.5 million and an initial size of $110 million, pricing was increased to Libor plus 1,000 bps from Libor plus 825 bps and the discount was modified to 92 from 981/2, the source continued. The tranche still has a 1% Libor floor and is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

Last week, when the first round of changes came out, the call protection on the second-lien loan was modified from 103 in year one, 102 in year two and 101 in year three, the maturity on the second-lien loan was shortened from eight years and the maturity on the first-lien loan was shortened from seven years.

The company's now $545 million senior secured credit facility also provides for a $60 million ABL revolver that was upsized earlier from $50 million.

True Religion breaks

With terms finalized, True Religion's credit facility was able to hit the secondary market late in the day, with the first-lien term loan quoted at 94 bid, 95 offered and the second-lien term loan quoted at 93 bid, 94 offered, another source remarked.

Deutsche Bank Securities Inc., Jefferies Finance LLC, UBS Securities LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the company's buyout by TowerBrook Capital Partners LP for $32 per share in cash in a transaction valued at about $835 million.

Closing is expected in the third quarter, subject to shareholder approval, regulatory approvals and other customary conditions.

True Religion is a Vernon, Calif.-based jeans and jeans-related sportswear company.

Pinnacle reworks deal

In other news, Pinnacle Entertainment is now seeking an up to $500 million three-year term loan B-1 and an at least $1.1. billion seven-year term loan B-2, instead of a single $1.6 billion seven-year covenant-light term loan B, according to a market source.

Both term loan tranches are talked at Libor plus 275 bps with a 1% Libor floor and 101 soft call protection for one year, the source said. The B-1 loan is offered at par and the B-2 loan is offered at an original issue discount of 991/2.

Prior to the restructuring, the single seven-year B loan was talked at Libor plus 350 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for one year.

Recommitments were due at 5 p.m. ET on Monday, the source continued.

Pinnacle getting revolver

With the term B debt, the company is planning on getting a $1 billion five-year revolver as part of its $2.6 billion senior secured deal (Ba2/BB+/BB+).

J.P. Morgan Securities LLC, Goldman Sachs Lending Partners LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Barclays, Credit Agricole and UBS Securities LLC are leading the deal that will be used with up to $800 million of senior notes to fund the acquisition of Ameristar Casinos Inc. for $26.50 per share in cash, to redeem Pinnacle's 8 5/8% senior notes due 2017 and for working capital and general corporate purposes.

Closing is expected in August, subject to customary conditions, approval by Ameristar's shareholders and required regulatory approvals.

Pro forma for the transaction, senior secured leverage will be 2.9 times, senior secured net leverage will be 2.6 times, total leverage will be 6.6 times and total net leverage will be 6.3 times.

Pinnacle Entertainment is a Las Vegas-based owner and operator of casinos. Ameristar is a Las Vegas-based casino gaming company.

Kodak changes emerge

Eastman Kodak raised talk on its $420 million six-year first-lien term loan to Libor plus 550 bps to 575 bps from talk of Libor plus 475 bps to 500 bps, changed the discount to 98 from 99 and revised the call protection to a hard call of 102 in year one and 101 in year two, from just 101 soft call protection for one year, according to a market source. The 1% Libor floor was unchanged.

Meanwhile, pricing on the $275 million seven-year second-lien term loan was increased to Libor plus 950 bps from talk of Libor plus 825 bps to 850 bps, the discount was widened to the 97½ area from 981/2, and the debt is now non-callable for one year, then at 103 in year two and 101 in year three, instead of having call protection of 103 in year one, 102 in year two and 101 in year three, the source said. The 1.25% Libor floor was left intact.

Furthermore, the excess cash flow sweep was lifted to 75% at close from 50%, a financial covenant will be added beginning in December 2014 and a minimum liquidity test will be added through December 2014, the source continued.

Kodak lead banks

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Barclays are leading Kodak's $895 million senior secured exit facility, which also includes an up to $200 million senior secured asset-based revolver.

Proceeds will be used to fund distributions to creditors in accordance with the company's plan of reorganization.

Kodak is a Rochester, N.Y.-based imaging technology products and services provider to the photographic and graphic communications markets.

Larchmont revises loan

Larchmont Resources cut its six-year senior secured first-lien term loan to $250 million from $275 million, raised pricing to Libor plus 725 bps from talk of Libor plus 575 bps to 625 bps and modified the call protection to non-callable for one year, then at 101 in year two, from soft call protection of 102 in year one and 101 in year two, according to a market source.

Also, the excess cash flow seep was changed to 100% from 100% at three times leverage, 50% at 2.5 times leverage and 0% at less than 2.5 times leverage, and the incremental was trimmed to $25 million, from the greater of $75 million and an amount such that pro forma leverage is 0.5 times below opening leverage, the source remarked.

As before, the loan has a 1% Libor floor and an original issue discount of 99.

Larchmont repaying debt

Proceeds from Larchmont's term loan, which is being led by Barclays and Jefferies Finance LLC, will be used to refinance existing debt.

Recommitments for the loan are due at noon ET on Wednesday, the source added.

Larchmont Resources is a privately-held entity owned by Aubrey K. McClendon (AKM) and EIG Global Energy Partners that holds oil and gas interests that AKM purchased through his participation in the Chesapeake Energy Corp. Founders Well Participation Program.

Vantage Pipeline pricing

In more primary happenings, Vantage Pipeline held its bank meeting in the afternoon, launching its $225 million term loan B with talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

The company's $240 million credit facility (Ba2) also includes a $15 million revolver.

Commitments are due on Aug. 12, the source said.

RBC Capital Markets and TD Securities (USA) LLC are leading the loan that will be used with equity from Riverstone Holdings to fund the construction of the Vantage Pipeline, a roughly 700 km long high vapour pressure pipeline carrying ethane from North Dakota to Canada.

Continental Building launches

Continental Building Products disclosed with its meeting talk on its $300 million seven-year first-lien covenant-light term loan (B1/B+) at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 repricing protection for one year, a source said.

Furthermore, talk on the $100 million 71/2-year second-lien covenant-light term loan (Caa1/CCC+) came out at Libor plus 800 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source said.

The term loans have a 50 bps step-down with an initial public offering and B1/B+ ratings or less than 4 times total leverage.

Commitments for the $450 million credit facility, which also includes a $50 million five-year revolver (B1/B+), are due on Aug. 8.

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will help fund the roughly $700 million buyout of the drywall supplier by Lone Star Funds from Lafarge.

Nuance reveals talk

Nuance Communications disclosed talk of Libor plus 275 bps to 300 bps with no Libor floor, an offer price of 99¾ to par and 101 soft call protection for six months on its $485 million six-year senior secured term loan that launched with a call on Monday, a market source said.

Commitments are due on Thursday, the source said.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal.

Proceeds will be used to amend and extend an existing term loan due March 2016 priced at Libor plus 300 bps.

Nuance is a Burlington, Mass.-based provider of voice and language solutions for businesses and consumers.

International Equipment guidance

International Equipment Solutions launched in the morning its $270 million six-year term loan B (B2/B+) with talk of Libor plus 550 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments are due on Aug. 8, the source said.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and PNC Capital Markets LLC are leading the deal that will be used to refinance existing debt.

International Equipment is an Oak Brook, Ill.-based manufacturer of highly engineered cab enclosures and attachment tools.

ConvaTec holds call

ConvaTec hosted a call at 11 a.m. ET on Monday to launch a $784 million term loan B that is talked at Libor plus 300 bps to 325 bps and a €532 million term loan B that is talked at Euribor plus 325 bps to 350 bps, according to a market source.

Both term loans, due December 2016, have a 1% floor, an original issue discount of 99¾ and 101 soft call protection for six months, the source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance and amend the company's existing term loan B debt.

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

Surgical Specialties on deck

Surgical Specialties will hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $110 million credit facility that is being led by Credit Suisse Securities (USA) LLC, according to a market source.

The facility consists of a $10 million four-year revolver, and a $100 million five-year first-lien term loan talked at Libor plus 600 bps with a 1.5% Libor floor, an original issue discount of 98 and call protection of 102 in year one and 101 in year two on all voluntary prepayments, the source said.

Commitments are due on Aug. 13, the source added.

Proceeds will be used to fund a return of capital.

Surgical Specialties is a provider of disposable surgical products.

Multi Packaging readies deal

Multi Packaging Solutions scheduled a bank meeting for 10 a.m. ET on Tuesday to launch a $330 million credit facility (Ba3/B+), according to a market source.

The deal consists of a $50 million five-year revolver and a $280 million seven-year first-lien term loan B, the source said.

Barclays and Bank of America Merrill Lynch are leading the transaction that will be used to help fund the company's buyout by Madison Dearborn Partners from Irving Place Capital and to refinance its existing senior secured credit facility.

Leverage is 3.5 times on a senior secured basis and 5.8 times total, the source added.

Multi Packaging Solutions is a New York-based manufacturer of printed folding cartons, labels, and inserts for customers in the health care, consumer and media end markets.

Boyd joins calendar

Boyd Gaming surfaced with plans to hold a call on Wednesday to launch a $1.75 billion credit facility, according to a market source.

The facility consists of a $600 million five-year revolver, a $150 million five-year term loan A and a $1 billion seven-year covenant-light term loan B that has 101 soft call protection for six months, the source said.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, UBS Securities LLC and Wells Fargo Securities LLC are leading the deal.

Proceeds will be used by the Las Vegas-based owner and operator of gaming entertainment properties to refinance existing debt.

Moxie sets meeting

Moxie Liberty scheduled a bank meeting for Tuesday afternoon to launch a $558 million seven-year term loan, of which $358 million is funded and $200 million is delayed-draw, according to a market source.

Also, of the total delayed-draw amount, $150 million has already been placed, leaving only $50 million left to market, the source said.

The term loan debt is non-callable for 2½ years, then at 102 for one year and at 101 for another year.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Ares Capital and Union Bank are leading the deal that will be used to help fund the construction of the 829 megawatt natural gas fired power plant owned by Panda Power Funds.

Generic Drug plans loan

Generic Drug will host a bank meeting at 10 a.m. ET in New York on Wednesday to launch a $380 million senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt and pay a dividend to shareholders.

Generic Drug is a Livonia, Mich.-based independent pharmaceutical distributor.

Northeast Wind coming soon

Northeast Wind Capital scheduled a bank meeting for 10:30 a.m. ET on Wednesday to launch a $325 million senior secured term loan B that will be used for a recapitalization, according to a market source.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BNP Paribas Securities Corp., KeyBanc Capital Markets LLC and Union Bank are leading the deal.

Northeast Wind Capital, the owner of a portfolio of wind projects, is a joint venture between First Wind Holdings and Emera Inc. First Wind owns 51% of the portfolio and Emera owns the remaining 49%.

ZEST details emerge

ZEST Anchors set a bank meeting for 10 a.m. ET on Tuesday to launch a $260 million credit facility that will be used to back its previously announced buyout by Avista Capital Partners from The Jordan Co., according to a market source.

The facility consists of a $20 million revolver, a $160 million seven-year first-lien term loan, and an $80 million second-lien term loan that has already been placed, the source said.

Deutsche Bank Securities Inc., Fifth Third Securities Inc. and RBS Citizens are leading the deal.

ZEST is an Escondido, Calif.-based manufacturer and distributor of dental products for the treatment of edentulous patients.

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