Axiall, Tronox, Sorenson, Internet Brands, Flexera Software break; Orbitz revises deadline

By Sara Rosenberg

New York, March 13 - Axiall Corp. launched on Wednesday morning a new term loan, firmed the spread at the low end of talk and tightened the offer price by midday, and then freed up for trading late in the day.

Also, Tronox Ltd. upsized its term loan while reducing both the coupon and the original issue discount amidst strong demand, and it too hit the secondary market later in the day. And, other deals that broke for trading included Sorenson Communications Inc., Internet Brands Inc. and Flexera Software LLC.

In more loan happenings, Orbitz Worldwide Inc. accelerated the commitment deadline on its deal, NBTY Inc. and Ducommun Inc. announced and launched new deals, and TI Group Automotive LLC and Alere Inc. came out with loan plans.

Axiall starts trading

Axiall's $200 million senior secured term loan due Jan. 28, 2017 broke for trading on Wednesday, with levels quoted at par ½ bid, 101½ offered, according to a market source.

Pricing on the loan is Libor plus 250 basis points with a 1% Libor floor, and it was issued at par. There is 101 soft call protection through Jan. 28, 2014.

The loan launched in the morning with talk of Libor plus 250 bps to 275 bps with a 1% Libor floor and an original issue discount of 99½ to 993/4, and then firmed at the current pricing levels shortly thereafter.

Barclays, J.P. Morgan Securities LLC, RBC Capital Markets and Wells Fargo Securities LLC led the deal that was used with ABL loan borrowings to refinance an existing term loan due Jan. 28, 2017 priced at Libor plus 275 bps with a 1% Libor floor.

Senior secured leverage is 0.4 times and total leverage is 1.9 times.

Axiall is an Atlanta-based manufacturer of chemicals, plastics and building products.

Tronox reworked, breaks

Tronox lifted its senior secured term loan (Ba2/BBB-) to $1.5 billion from $1.3 billion, cut pricing to Libor plus 350 bps from Libor plus 375 bps and changed the original issue discount to 99½ from 99, according to market sources.

As before, the loan has a 1% Libor floor and 101 soft call protection for one year.

With terms finalized, the deal surfaced in the secondary market with levels quoted at par ½ bid, 101½ offered, sources said.

Goldman Sachs & Co., UBS Securities LLC, Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the loan that will be used to refinance existing bank debt and for general corporate purposes and/or potential strategic alternatives.

Closing is expected by the end of this quarter.

Tronox is a producer and marketer of titanium bearing mineral sands and titanium dioxide pigment.

Sorenson wraps 101

Sorenson Communications' $550 million term loan B (B2/B-) due Oct. 31, 2014 broke for trading, with levels quoted at par ¾ bid, 101½ offered, according to a trader.

Pricing on the loan is Libor plus 825 bps with a 1.25% Libor floor, and it was issued at par. The tranche has hard call protection of 102½ for six months and 101 for six months.

During syndication, the loan was upsized from $500 million and the offer price firmed at the tight end of the 99½ to par talk.

J.P. Morgan Securities LLC and Goldman Sachs & Co. are leading the deal that will be used to repay an existing term loan. Funds from the upsizing will be used to put cash on the balance sheet.

Sorenson is a Salt Lake City-based provider of Video Relay telecommunication and interpreting and CaptionCall telephone service for deaf and the hard-of-hearing.

Internet Brands tops OID

Internet Brands' credit facility hit the secondary market too, with the $330 million six-year term loan quoted at par bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Recently, the spread on the term loan was flexed up from talk of Libor plus 350 bps to 375 bps and the maturity was shortened from seven years.

The company's $380 million credit facility (B1/B+) also includes a $50 million five-year revolver.

RBC Capital Markets, Bank of America Merrill Lynch and GE Capital Markets are leading the deal that is being used to refinance existing debt and fund a dividend.

Internet Brands is an El Segundo, Calif.-based consumer-facing internet media company.

Flexera frees up

Flexera Software's credit facility also began trading, with the $330 million term loan B quoted at par ¼ bid, 101¼ offered on the break and then it moved to par ¾ bid, 101¾ offered, according to a trader.

Pricing on the B loan, as well as on a $25 million revolver, is Libor plus 375 bps with a 1.25% Libor floor, and the tranches were sold at an original issue discount of 991/2. The term B has 101 soft call protection for one year.

During syndication, pricing on the facility was reduced from talk of Libor plus 425 bps to 450 bps and the discount was tightened from 99.

BMO Capital Markets Corp. is leading the deal that is being used to refinance an existing first- and second-lien credit facility.

Flexera is a Schaumburg, Ill.-based provider of strategic application usage management services for application producers and their enterprise customers.

One Call holds steady

One Call Medical Inc.'s repriced $415 million term loan was seen at par ½ bid, 101½ offered in light trading on Wednesday, in line with where it broke for trading late in the prior session, according to a trader.

Pricing on the loan is Libor plus 425 bps with a 1.25% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

With this transaction, the company took its term loan pricing down from Libor plus 575 bps with a 1.25% Libor floor, and existing lenders are getting paid out at 101 with the repricing.

Jefferies Finance LLC is leading the deal.

One Call is a Parsippany, N.J.-based provider of specialty services to insurance payers.

Orbitz shutting early

Back in the primary, Orbitz revised the commitment deadline on its $450 million credit facility (B+) to 3 p.m. ET on Friday from March 20, according to a market source.

The facility consists of a $50 million revolver, a $150 million 41/2-year term loan B and a $250 million six-year term loan C.

Price talk on the term loan B is Libor plus 600 bps with a 1.25% Libor floor and an original issue discount of 99, and the term loan C is talked at Libor plus 675 bps with a 1.25% floor and a discount of 99. Both tranches have call protection of 102 in year one and 101 in year two against repricings.

Amortization on the term loan B is 10% per annum, while the term loan C amortizes at a rate of 1% per annum.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Orbitz is a Chicago-based online travel agency.

NBTY comes back

NBTY launched on Wednesday a $1.508 billion covenant-light senior secured term loan (Ba3/BB-) due Oct. 1, 2017 with talk of Libor plus 250 bps with a 1% Libor floor, a par offer price and 101 soft call protection for one year, according to a market source.

Proceeds will refinance an existing term loan priced at Libor plus 325 bps with a 1% Libor floor.

In February, the company attempted a repricing of the existing loan at talk of Libor plus 250 bps to 275 bps with a 1% Libor floor, a par offer price and 101 soft call protection through Oct. 11, 2013. However, this repricing was then pulled.

Barclays, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are the bookrunners on the new deal.

Commitments are due at 5 p.m. ET on Thursday, the source added.

NBTY is a Ronkonkoma, N.Y.-based manufacturer, marketer, distributor and retailer of vitamins and nutritional supplements.

Ducommun launches

Ducommun held a call in the morning to launch a repricing of its $222.6 million credit facility to Libor plus 375 bps with a 1% Libor floor from Libor plus 425 bps with a 1.25% Libor floor, according to a market source.

The facility consists of a $60 million revolver due 2016 and $162.6 million term loan B due 2017, the source said.

The repriced term loan has 101 soft call protection for one year.

Lead bank, UBS Securities LLC, is asking for commitments by March 20.

Ducommun is a Carson, Calif.-based provider of engineering and manufacturing services to the aerospace and defense industry.

Doncasters holds meeting

Doncasters Group Ltd. hosted its U.S. bank meeting on Wednesday for its roughly $1.1 billion of covenant-light term loans, and is asking lenders for their commitments by March 27, according to a source.

A bank meeting for European investors will take place on Friday in London.

As previously reported, the debt consists of a $515 million seven-year first-lien term loan (B2/B) talked at Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 99, a €200 million seven-year first-lien term loan (B2/B) talked at Libor plus 475 bps with a 1.25% floor and a discount of 99, and a $325 million 71/2-year second-lien term loan (Caa2CCC+) talked at Libor plus 825 bps with a 1.25% floor and a discount of 98.

Included in the first-lien term loans is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Doncasters is a U.K.-based manufacturer of complex precision components.

TI Group readies call

TI Group Automotive set a call for 11 a.m. ET on Thursday to launch a $950 million credit facility that will be used to refinance an existing term loan B and fund a one-time dividend, according to a market source.

The facility consists of a $100 million five-year ABL revolver and an $850 million amended and upsized six-year term loan B, the source said.

Talk on the term loan B is Libor plus 450 bps to 475 bps with a 1.25% Libor floor, an offer price that is still to be determined and 101 soft call protection for one year, the source added.

J.P. Morgan Securities LLC is leading the deal.

TI Group is an Auburn Hills, Mich.-based automotive supplier with a focus on fluid storage, transfer and delivery technology.

Alere plans repricing

Alere will launch on Thursday a repricing of its $1.36 billion of term loan B debt that consists of a $913 million term loan B, a $247 million term loan B-1 and a $198 million term loan B-2, according to sources.

Talk on the repricing is Libor plus 325 bps, subject to a leveraged based grid, with a 1% Libor floor, versus current pricing of Libor plus 375 bps with a 1% floor.

GE Capital Markets is leading the deal.

Alere is a Waltham, Mass.-based provider of near-patient diagnosis, monitoring and health management.

KAR Auction closes

In other news, KAR Auction Services Inc. completed its $1.82 billion term loan B due May 2017, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

Pricing on the loan is Libor plus 275 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection through November 2013.

During syndication, the spread was reduced from Libor plus 300 bps with a step-down to Libor plus 275 bps.

J.P. Morgan Securities LLC led the deal.

Of the total term loan amount, $150 million is incremental debt that was used to redeem $150 million of floating-rate senior notes due May 1, 2014, and the remainder of the term loan was used to reprice an existing $1.67 billion term loan B from Libor plus 375 bps with a 1.25% Libor floor.

Existing lenders got paid out at 101 with the repricing.

KAR is a Carmel, Ind.-based provider of vehicle auction services and a provider of floorplan financing to independent and franchise used vehicle dealers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.