United Continental, Vantage, Twin River, Edwards, Ruby Western, Sirva, Ducommun break

By Sara Rosenberg

New York, March 22 - United Continental Holdings, Vantage Drilling Co. and Twin River Management Group Inc. updated terms on their loan deals and then freed up for trading on Friday, and Edwards Group, Ruby Western Pipeline Holdings, Sirva Inc. and Ducommun Inc. hit the secondary market as well.

In more happenings, H.J. Heinz Co. downsized its total term loan debt, reduced spreads, added step-downs and revised original issue discount talk on the B-2 loan, Rock Ohio Caesars (ROC Finance LLC) flexed pricing lower, and ISS A/S raised its term loan B size while cutting pricing and the original issue discount.

Also, California Pizza Kitchen Inc. upsized its B loan and trimmed the spread, floor and discount, BBB Industries LLC set pricing at the tight end of talk, MoneyGram International Inc. moved up its commitment deadline, and Ranpak Corp. and Securus Technologies Inc. announced new deal plans.

United begins trading

United Continental's $900 million term loan B (Ba2/BB-) due 2019 emerged in the secondary on Friday afternoon, with levels quoted at par ½ bid, 101¼ offered on the open, and then it moved to par ¾ bid, 101½ offered, according to a trader.

Pricing on the loan is Libor plus 300 basis points, after being cut in the morning from talk of Libor plus 325 bps to 350 bps, and the debt was sold at par, after tightening from initial talk of 991/2, a market source said.

The loan has a 1% Libor floor and 101 soft call protection for one year.

J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance an existing term loan B due 2014.

The borrowers are United Air Lines Inc. and Continental Airlines Inc.

United Continental is a Chicago-based airline operator.

Vantage hits secondary

Vantage Drilling finalized the original issue discount on its $350 million six-year term loan B (B3) at 981/2, the middle of the 98 to 99 talk, and then the debt broke for trading later in the day at 99¾ bid, par ½ offered, sources said.

Pricing on the loan is Libor plus 450 bps with a 1.25% Libor floor.

The loan, which was previously downsized from $525 million, is non-callable for two years.

In addition to the term loan B, the company is getting a $200 million amended and restated revolving credit facility due April 25, 2017 that is priced at Libor plus 350 bps.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Jefferies Finance LLC and RBC Capital Markets LLC are leading the term loan, and Royal Bank of Canada is the administrative agent on the revolver.

Proceeds from the term loan, along with $775 million of senior secured bonds that were recently upsized from $600 million, will be used to refinance existing 11½% senior secured notes due 2015.

Vantage Drilling is a Houston-based offshore drilling contractor.

Twin River frees to trade

Twin River Management Group upsized its 5½ year term loan B to $270 million from $260 million, firmed pricing at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps guidance, and then broke for trading at par ¼ bid, 101¼ offered, according to market sources.

The 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year were left intact.

Deutsche Bank Securities and Credit Suisse Securities (USA) LLC are leading the now $295 million credit facility (B1/BB-), which also includes a $25 million five-year revolver.

Proceeds will be used to refinance existing debt and fund a dividend.

Twin River Management is the owner and operator of the Twin River casino located near Providence, R.I.

Edwards tops OID

Edwards Group's credit facility emerged in the secondary market, with the $560 million seven-year term loan (B2) quoted at 99½ bid, a market source said.

Pricing on the loan is Libor plus 350 bps with a step-down that was added recently to Libor plus 325 bps if leverage is less than 1¾ times. There is a 1.25% Libor floor and 101 soft call protection for one year, and it was issued at 99.

The company's $650 million credit facility also includes a $90 million super-priority revolver (Ba1).

Deutsche Bank Securities, Barclays, Goldman Sachs & Co. and RBC Capital Markets are leading the deal that will be used to refinance existing debt.

Edwards Group is a Crawley, England-based technology business and a supplier of vacuum and abatement products for the manufacture of microelectronics devices.

Ruby Western breaks

Ruby Western Pipeline's $500 million senior secured seven-year term loan (Ba2/BB+) also freed up, with levels quoted at par ¼ bid, 101 offered, according to sources.

Pricing on the loan is Libor plus 250 bps with a 1% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, pricing was cut from talk of Libor plus 275 bps to 300 bps and the discount firmed at the tight end of the 99 to 99½ talk.

Barclays and Credit Suisse Securities are leading the loan that will be used to fund a distribution to the sponsors and a six-month debt service reserve.

Leverage is 5.5 times net cash flow available for debt service.

Closing will occur on Wednesday, one source added.

Ruby Western Pipeline is a holding company with a 50% ownership of the Western US FERC-regulated Ruby Pipeline from Wyoming to Oregon that is a joint venture with Kinder Morgan.

Sirva levels surface

Sirva's credit facility was another deal to begin trading, with the $300 million six-year term loan B quoted at 98½ bid, 99½ offered, a source said.

Pricing on the B loan is Libor plus 625 bps with a 1.25% Libor floor, and it was sold at an original issue discount at 98. The debt is non-callable for 18 months, then at 102½ for a year and at 101 for a year.

During syndication, pricing on the loan was increased from Libor plus 525 bps, the discount firmed at the wide end of the 98 to 99 talk, and the call protection was revised from 101 soft call for one year.

The company's $350 million credit facility includes a $50 million ABL revolver.

Goldman Sachs and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and fund a payout to preferred equity holders.

Net leverage through the term loan is 4 times.

Sirva is a Westmont, Ill.-based provider of moving and relocation services.

Ducommun frees up

Another deal to break was Ducommun's credit facility, with the $162.6 million term loan B due 2017 quoted at 101 bid, 102 offered, a trader remarked.

Pricing on the term loan B, as well as on a $60 million revolver due 2016, is Libor plus 375 bps with a 1% Libor floor. The B loan has 101 soft call protection for one year.

Proceeds are being used to reprice the company's existing revolver and term loan B from Libor plus 425 bps with a 1.25% Libor floor.

UBS Securities LLC is the lead bank on the $222.6 million credit facility.

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

Cengage extended bounces

In more trading news, Cengage Learning Acquisitions Inc.'s extended term loan dropped as low as 71 bid, 72½ offered on news of a revolver draw and the hiring of advisers to assess its capital structure; however, by late day, the debt had rebounded to 72¼ bid, 73¼ offered, according to a trader. On Thursday, the loan was quoted at 72 5/8 bid, 73 1/8 offered.

The company borrowed $430 million under its revolver, which basically puts the loan at fully drawn, in order to ensure that it has sufficient liquidity to fund working capital needs, a news release said.

And, the company retained Alvarez & Marsal as restructuring adviser, Lazard as financial adviser and Kirkland & Ellis LLP as legal adviser.

Cengage is a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets.

BWIC surfaces

A $49.2 million Bid-Wanted-In-Competition was announced, with a bid deadline set for 11 a.m. ET on Monday, a trader said.

Avaya Inc.'s term loan B-5 and extended term loan B-3 are both on offer, as is Doncasters Group Ltd.'s term loans B2 and C2, Federal-Moguls Corp.'s term loans B and C, Ginn LA Conduit Lender Inc.'s tranche A credit-linked deposit, term loan B and second-lien term loan, and HCA Inc.'s term loans B-2 and B-3.

All in all, the portfolio includes about 32 issuers, the trader added.

Heinz reworks deal

Back over in the primary, Heinz downsized its six-year term loan B-1 and seven-year term loan B-2 debt to a total of $9.5 billion from $10.5 billion with the upsizing of its senior secured second-lien notes offering to $3.1 billion from $2.1 billion, according to a market source. Specific sizes on the loan tranches are still to be determined.

Also, pricing on the term loan B-1 was trimmed to Libor plus 225 bps from talk of Libor plus 275 bps to 300 bps and a step-down was added to Libor plus 200 bps when net first-lien leverage is less than 2.1 times, the source said.

The term loan B-1 still has a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year.

As for the term loan B-2, pricing was cut to Libor plus 250 bps from talk of Libor plus 275 bps to 300 bps, a step-down to Libor plus 225 bps was added when net first-lien leverage is less than 2.1 times and original issue discount talk was revised to 99½ to 99¾ from just 991/2, the source continued.

The 1% Libor floor and 101 soft call protection for two years on the B-2 loan were unchanged.

Heinz getting revolver

Heinz's now $11.5 billion senior secured credit facility (Ba2/BB/BB+) also provides for a $2 billion revolver that was upsized from $1.5 billion.

Recommitments were due at 3 p.m. ET on Friday, the source added.

At launch, the company was planning on getting $8.5 billion of U.S. term loan B-1 and B-2 debt, $1.4 billion euro equivalent in six-year term loan B-1 and seven-year term loan B-2 debt, up to $600 million in sterling-denominated six-year term loan B-1 and seven-year term loan B-2, and a $1.5 billion revolver.

However, on Thursday, investors were told that the company would not be pursuing the euro and sterling loans and that those funds were moved into the U.S. loans.

The euro and sterling B-1 and B-2 loans were talked at Libor plus 300 bps to 325 bps with a 1% Libor floor and an original issue discount of 991/2. There was 101 soft call protection for one year on the B-1 tranche and soft call protection of 101 for two years on the B-2 tranche.

Heinz being acquired

Proceeds from Heinz's credit facility, notes and $16.24 billion of equity will fund its purchase by Berkshire Hathaway and 3G Capital for $72.50 in cash per share. The transaction is valued at about $28 billion, including the assumption of outstanding debt.

JPMorgan, Well Fargo Securities LLC, Barclays and Citigroup Global Markets Inc. are leading the credit facility.

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

Heinz is a Pittsburgh-based food product company.

Rock Ohio cuts pricing

Rock Ohio Caesars lowered the spread on its $535 million six-year first-lien covenant-light term loan to Libor plus 375 bps from talk of Libor plus 450 bps to 475 bps, while keeping the 1.25% Libor floor, original issue discount of 99½ and 101 soft call protection for one year intact, according to a market source.

Also, the commitment deadline was moved up to 5 p.m. ET on Monday from Thursday, the source remarked.

The company's $570 million credit facility also includes a $35 million five-year revolver.

Credit Suisse Securities, Deutsche Bank Securities and Wells Fargo Securities are leading the deal that will be used to refinance existing first-lien debt and fund the acquisition of the Higbee Building.

Rock Ohio is a casino operator in the Midwest. The company is a joint venture formed by Rock Gaming LLC and Caesars Entertainment Corp.

ISS upsizes, flexes

ISS increased its term loan B to $350 million from $300 million, reduced the coupon to Libor plus 275 bps from talk of Libor plus 300 bps to 325 bps and modified the original issue discount to 99¾ from 991/2, according to a market source.

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

Goldman Sachs, Deutsche Bank Securities, Nordea and UBS Securities are leading the deal that will be used, along with a euro term loan A, to refinance a €600 million second-lien loan due June 30, 2015.

ISS is a Copenhagen-based facilities services company.

California Pizza revised

California Pizza Kitchen raised its term loan B to $370 million from $320 million and cut pricing on the tranche, as well as on a $30 million revolver, to Libor plus 425 bps with a 1% Libor floor and an original issue discount of 993/4, according to a market source. The term B still has 101 soft call protection for six months.

Initial talk on the credit facility had been Libor plus 450 bps to 475 bps with a 1.25% Libor floor and an original issue discount of 991/2.

Also, the tenor on the credit facility was pushed out to five years, the source said. Previously, the revolver matured on July 7, 2016 and the term loan matured on July 7, 2017.

Recommitments are due at 5 p.m. ET on Monday and closing is targeted for March 29.

GE Capital Markets and Jefferies Finance LLC are leading the now $400 million credit facility that will be used to refinance existing first- and second-lien debt. Funds from the upsizing will pay a distribution to shareholders, the source added.

California Pizza Kitchen is a Playa Vista, Calif.-based casual dining chain and a distributor of frozen food products.

BBB firms spread

BBB Industries set pricing on its $35 million five-year revolver and a $205 million six-year term loan at Libor plus 425 bps, the tight end of the Libor plus 425 bps to 450 bps guidance, according to a market source. The 1.25% Libor floor was unchanged.

Additionally, amortization on the B loan was increased to 5% per annum from 1% per annum, the source remarked.

The term loan B is still offered at an original issue discount of 99 and has 101 soft call protection for one year, and the revolver is offered at a discount of 98.

Allocations are expected to go out on Monday, and closing will occur on Wednesday.

GE Capital Markets is the lead on the $240 million credit facility that will be used to refinance existing debt.

BBB Industries is a Mobile, Ala.-based manufacturer and distributor of vehicle aftermarket replacement parts, primarily remanufactured starters, alternators and power steering products.

MoneyGram moves deadline

MoneyGram accelerated the commitment deadline on its $850 million seven-year covenant-light term loan B to 5 p.m. ET on Tuesday from Thursday, according to a market source.

The term loan B is talked at Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year.

In addition to the term loan B, the company's $975 million credit facility (B1/BB-) includes a $125 million five-year revolver, the source continued.

Bank of America Merrill Lynch, Wells Fargo Securities, JPMorgan, Deutsche Bank Securities and Credit Agricole Securities (USA) Inc. are leading the deal that will be used to refinance 13¼% second-lien notes due 2018 and existing term loans.

MoneyGram is a Dallas-based provider of money transfer and payment services.

Ranpak joins calendar

Also in the primary, Ranpak set a bank meeting for Tuesday to launch a $470 million credit facility, according to a market source.

The facility consists of a $20 million five-year revolver, a $300 million six-year first-lien term loan B and a $150 million seven-year second-lien term loan, the source said.

Goldman Sachs is leading the deal that will be used to refinance existing debt and fund a dividend.

Ranpak is a Concord Township, Ohio-based producer of protective paper packaging materials and systems.

Securus readies deal

Securus Technologies is anticipated to hold a bank meeting in early April to launch a $540 million credit facility to help fund its buyout by ABRY Partners, according to sources.

The facility consists of a $50 million five-year revolver, a $335 million seven-year first-lien term loan and a $155 million eight-year second-lien term loan, sources said.

Deutsche Bank Securities and BNP Paribas Securities Corp. are the lead banks on the deal.

Securus is a Dallas-based provider of inmate communications services and investigative technologies.

McGraw-Hill closes

In other news, the buyout of McGraw-Hill Global Education Holdings LLC by Apollo Global Management LLC from McGraw-Hill Cos. for $2.4 billion has been completed, a news release said.

For the transaction, McGraw-Hill Education got a new $1.05 billion senior secured credit facility (B2/NA/BB) consisting of a $240 million five-year revolver and an $810 million six-year covenant-light term loan.

Pricing on the term loan is Libor plus 775 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $560 million as the company's bond deal was reduced to $800 million from $1.05 billion, the spread was increased from talk of Libor plus 650 bps to 700 bps and the discount was widened from 98.

Credit Suisse Securities, Morgan Stanley Senior Funding, Jefferies, UBS Investment Bank, Nomura and BMO Capital Markets Corp. led the deal for the New York-based digital learning company.

Commercial Barge wraps

Commercial Barge Line Co. (American Commercial Lines) closed on its $450 million 61/2-year first-lien term loan (Ba3/B-) and $200 million seven-year second-lien term loan (Caa1/CCC), as well as on a $75 million upsize to its ABL revolver, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the first-lien term loan is Libor plus 625 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 950 bps with a 1.25% floor and was sold at a discount of 98. This tranche is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

During syndication, pricing on the first-lien loan was raised from Libor plus 500 bps, the discount was widened from 99 and the tranche was downsized from $650 million as the second-lien loan was added. Also, the spread on the second-lien loan was lifted from talk of Libor plus 875 bps to 900 bps and the call protection was sweetened from non-callable for one year, then at 102 in year two and 101 in year three.

Commercial Barge refinancing

Proceeds from Commercial Barge's credit facility were used to repay 10 5/8%/11 3/8% senior PIK toggle notes due 2016 at a redemption price of 105 and 12½% senior secured notes due 2017 at a redemption price of 1061/4, as well as to fund a $207 million dividend.

Bank of America Merrill Lynch, Goldman Sachs, UBS Investment Bank and Wells Fargo Securities led the deal.

Commercial Barge Line is a Jeffersonville, Ind.-based marine transportation and service company.

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