Caesars Entertainment, Caesars Growth, Ability break; handful of primary deals revised

By Sara Rosenberg

New York, May 14 - Caesars Entertainment Operating Co.'s term loan B-7 freed up for trading on Wednesday with levels seen above its original issue discount, and Caesars Growth Properties Holdings LLC and Ability Network Inc. hit the secondary too.

Moving to the primary, Jason Inc. lifted pricing and sweetened call protection on its first- and second-lien term loans and set the offer price on the first-lien tranche at the wide end of talk, and Corporate Capital Trust reduced the size of its term loan B, raised the spread, firmed the discount at the high side of guidance and modified the call protection.

Also, Anchor Glass Container Corp. trimmed pricing and revised the offer price on its term loan, Pregis Corp. North America finalized pricing on its term loan at the wide end of talk and extended the call protection, and Wenner Media LLC tightened the spread and original issue discount on its term loan B.

In addition, Neff Rental LLC accelerated the commitment deadline on its second-lien term loan, Compass Diversified Holdings, Trojan Battery Co. and Koppers Inc. released pricing with launch, and Long Term Care Group Inc. joined the calendar.

Caesars Entertainment tops OID

Caesars Entertainment Operating's $1.75 billion incremental term loan B-7 (NA/CCC-/CCC) due March 1, 2017 broke for trading on Wednesday, with levels quoted at par bid, par ½ offered on the open and then it moved up to par ½ bid, 101 offered, according to a market source.

Pricing on the loan is Libor plus 875 basis points with a 1% Libor floor and it was sold at an original issue discount of 991/4. The debt is non-callable for six months, then at 101 for six months.

During syndication, pricing on the loan was reduced from Libor plus 950 bps and the discount was modified from 98.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Macquarie Capital are leading the deal that will be used to refinance existing debt due in 2015 and existing term loans and for general corporate purposes.

Caesars Entertainment is a Las Vegas-based diversified casino-entertainment company.

Caesars Growth starts trading

Caesars Growth's $700 million one-year (with one-year extension option) first-lien term loan freed up too, with levels seen at 99½ bid, 99¾ offered, a source said.

Pricing on the loan is Libor plus 600 bps for 30 days, stepping up to Libor plus 700 bps for the rest of year one and Libor plus 800 bps for year two, with a 1% Libor floor and there is a 1% extension fee that is payable if the debt is outstanding at year two. The debt was sold at a discount of 99¼ after tightening recently from 99.

Credit Suisse Securities (USA) LLC is leading the deal that will be used by the Las Vegas-based casino asset and entertainment company to help fund the now completed acquisition of Bally's Las Vegas, the Cromwell and the Quad Resort & Casino from Caesars Entertainment Operating Co. Inc.

The company plans on completing its purchase of Harrah's New Orleans, following approval by the Louisiana Gaming Control Board, during the second quarter, and, at that time, it will use its already priced $675 million of notes and already syndicated $1,325,000,000 senior secured credit facility (B2/B+/BB-) to refinance the $700 million term loan and $485 million of debt outstanding for Planet Hollywood.

Ability frees up

Ability Network's credit facility also made its way into the secondary market, with the $202 million seven-year covenant-light first-lien term loan (B2/B) quoted at 98½ bid, 99½ offered and the $80 million eight-year covenant-light second-lien term loan (Caa2/CCC+) quoted at 99½ bid, par ½ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor and was sold at 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $200 million, pricing was increased from talk of Libor plus 425 bps to 450 bps, the discount was changed from 99 and the call protection was extended from six months. Also, pricing on the second-lien term loan was lifted from talk of Libor plus 775 bps to 800 bps.

Ability lead banks

Deutsche Bank Securities Inc. and Macquarie Capital are leading Ability Network's $302 million credit facility, which provides for a $20 million revolver (B2/B) as well.

Closing is expected on Friday.

Proceeds will be used to help fund the buyout of the company by Summit Partners.

Ability is a Minneapolis-based health care information technology company providing a national web-based network, enabling connectivity between providers and Medicare.

Jason reworks deal

In the primary, Jason flexed pricing higher on its $300 million seven-year covenant-light first-lien loan (B1/B) to Libor plus 450 bps from Libor plus 375 bps, firmed the original issue discount at 99, the high end of the 99 to 99½ talk and extended the 101 soft call protection to one year from six months, according to a market source.

In addition, pricing on the $120 million eight-year covenant-light second-lien loan (Caa1/CCC+) was raised to Libor plus 800 bps from Libor plus 725 bps, and the call protection was revised to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said.

As before, both term loans have a 1% Libor floor and the second-lien term loan has an original issue discount of 99.

The company's $460 million credit facility also includes a $40 million revolver (B1/B).

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

Jason being acquired

Proceeds from Jason's credit facility will be used to help fund the buyout of the company by Quinpario Acquisition Corp. from Saw Mill Capital LLC, Falcon Investment Advisors LLC and other investors for $538.65 million.

The transaction will also be funded from rollover equity invested by the current owners and management of Jason and proceeds from Quinpario's initial public offering that was completed in August.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. leading the credit facility.

Closing is expected this quarter, subject to regulatory and shareholder approval and customary conditions.

Jason is a Milwaukee-based manufacturer of items within the seating, finishing, components and automotive acoustics markets. Quinpario is a St. Louis-based special purpose acquisition company.

Corporate Capital revised

Corporate Capital Trust cut its term loan B to a minimum of $350 million from $500 million, lifted pricing to Libor plus 325 bps from talk of Libor plus 275 bps to 300 bps, set the original issue discount at 991/2, the wide end of the 99½ to 99¾ talk, revised the call protection to non-callable for one year from 101 soft call for six months and shortened the maturity to five years from seven years, according to a market source.

The term loan continues to have a 0.75% Libor floor.

Recommitments were due at 5 p.m. ET on Wednesday, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to pay down some bank debt and for general corporate purposes.

Corporate Capital Trust is an Orlando-based business development company that invests in privately owned American companies.

Anchor Glass tweaks terms

Anchor Glass Container reduced pricing on its $335 million seven-year first-lien term loan (B3/BB-) to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps and changed the original issue discount to 99¾ from 991/2, according to a market source.

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

The company's $435 million credit facility also includes a $100 million five-year ABL revolver.

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

UBS Securities LLC and RBC Capital Markets are leading the deal that will be used to help fund KPS Capital Partners LP's buyout of the company from Ardagh Holdings USA Inc.

Closing is expected this quarter or next quarter, subject to customary conditions and regulatory approvals.

Anchor Glass is a Tampa, Fla.-based manufacturer of glass packaging products for the beer, liquor, food, beverage and ready-to-drink end markets.

Pregis firms pricing

Pregis set pricing on its $230 million first-lien covenant-light term loan at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps talk, and pushed out the 101 soft call protection to one year from six months, according to a market source.

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

The company's $280 million credit facility (B2/B) also includes a $50 million revolver.

Commitments were due on Wednesday and allocations are expected on Thursday, the source said.

Goldman Sachs Bank USA and Barclays are leading the deal that will be used to help fund the buyout of the company by Olympus Partners from AEA Investors LLC.

Closing is expected this month.

Pregis is a Deerfield, Ill.-based protective packaging materials and systems manufacturer.

Wenner flexes

Wenner Media trimmed pricing on its $144 million term loan B (B3/BB-) to Libor plus 500 bps from Libor plus 550 bps and revised the original issue discount to 99¾ from 991/2, while keeping the 1% Libor floor unchanged, a market source said.

Included in the term loan is 101 soft call protection for one year.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan B.

Wenner Media is a New York-based provider of entertainment and lifestyle brand publications.

Neff moves deadline

Neff Rental accelerated the commitment deadline on its $525 million seven-year second-lien covenant-light term loan to 4 p.m. ET on Friday from May 21, a source remarked.

The term loan is talked at Libor plus 650 bps with a 1% Libor floor, an original issue discount of 99 and hard call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading the deal that will be used to refinance existing secured notes and to pay a dividend.

Neff is a Miami-based construction equipment rental company.

Compass talk emerges

Also in the primary, Compass Diversified Holdings released talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year on its $280 million seven-year term loan (Ba3/BB-) that launched with a bank meeting on Wednesday, according to a market source.

Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are leading the deal.

Proceeds will be used by the Westport, Conn.-based owner and manager of middle-market businesses to refinance existing bank debt.

Trojan reveals guidance

Trojan Battery launched with a meeting its $235 million seven-year term loan at talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

The company's $275 million credit facility also includes a $40 million six-year revolver.

Commitments are due on May 29, the source added.

GE Capital Markets, KeyBanc Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund a dividend and refinance existing debt.

Pro forma leverage is 4.5 times.

Trojan Battery is a Santa Fe Springs, Calif.-based manufacturer of deep-cycle batteries.

Koppers holds meeting

Koppers held its bank meeting during the session, and its $800 million senior secured credit facility was launched with a leverage-based pricing grid that ranges from Libor plus 225 bps to 325 bps, a market source said.

The facility consists of a $500 million revolver and a $300 million term loan A.

PNC Bank is leading the deal that will be used to fund the acquisition of the Wood Preservation and Railroad Services businesses of Osmose Holdings Inc. for $460 million.

Closing is expected in the third quarter, subject to regulatory filings and customary conditions.

Koppers is a Pittsburgh-based producer of carbon compounds and treated wood products.

Long Term Care on deck

Long Term Care Group emerged with plans to hold a bank meeting at 2 p.m. ET on Tuesday to launch a $195 million senior secured credit facility, according to a market source.

The facility consists of a $20 million revolver and a $175 million term loan B, the source said.

RBC Capital Markets and MCS Capital Markets are leading the deal that will be used to help fund the buyout of the company by Stone Point Capital from Univita Health.

Long Term Care Group is an Eden Prairie, Minn.-based business process outsourcing company for the long-term care insurance industry.

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