Polycom, Pilot, Compuware, Pinnacle break; ETE, Zekelman, Sprint, Hyland, Power update deals

By Sara Rosenberg

New York, Jan. 30 – Polycom Inc. finalized the spread on its term loan at the high side of guidance and tweaked the call protection and Pilot Travel Centers LLC increased the size of its term loan B, and then both deals broke for trading on Monday.

Also, Compuware Corp. set pricing on its add-on term loan B-2 and repricing transaction at the low end of talk and then freed up above par, and Pinnacle Foods Finance LLC’s credit facility emerged in the secondary market as well.

In more happenings, Energy Transfer Equity firmed pricing on its term loan at the wide end of talk but tightened the original issue discount, and Zekelman Industries trimmed the spread on its incremental term loan B and repricing of its existing term loan B.

Additionally, Sprint Corp. upsized its term loan B, cut the spread and modified original issue discount talk, Hyland Software Inc. set pricing on its incremental first-lien term loan and repricing of its existing first-lien term loan due at the low end of talk and tightened the issue price on the incremental debt, and Power Products LLC modified the original issue discount on its first-lien term loan.

Furthermore, Change Healthcare and Harland Clarke Holdings Corp. moved up the commitment deadlines on their term loans, and Peabody Energy Corp., Townsquare Media Inc. and Give & Go Prepared Foods Corp. released price talk with launch.

And, Blackhawk Mining LLC, Vectra Co. (Duke Finance LLC), Engility Corp., Navistar International Corp., Twin River Management Group Inc., Ineos Group Holdings SA and Ilpea Industries Inc. emerged with new deal plans.

Polycom tweaked, trades

Polycom firmed pricing on its $725 million first-lien term loan at Libor plus 525 basis points, the high end of the Libor plus 500 bps to 525 bps talk, and pushed out the 101 soft call protection to one year from through September, according to a market source.

The term loan still has a 1% Libor floor and a par issue price.

With final terms in place, the term loan freed up for trading, and levels were quoted at par 1/8 bid, par 5/8 offered, a trader added.

RBC Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice an existing term loan down from Libor plus 650 bps with a 1% Libor floor.

Polycom is a San Jose, Calif.-based provider of secure video, voice and content solutions.

Pilot upsized, breaks

Pilot Travel Centers raised its term loan B due May 2023 to $1,275,000,000 from $1,166,000,000, a market source remarked.

Pricing on the loan remained at Libor plus 200 bps with no Libor floor and a par issue price, and the debt has 101 soft call protection for six months.

By late afternoon, the term loan B made its way into the secondary market, and levels were seen at par 1/8 bid, par 3/8 offered, the source continued.

Wells Fargo Securities LLC is leading the deal that will be used to refinance an existing term loan B priced at Libor plus 275 bps with no Libor floor, and due to the upsizing, to repay some revolver borrowings.

Pilot Travel is a Knoxville, Tenn.-based operator of travel centers and retailer of diesel fuel to the over-the-road market.

Compuware firms terms

Compuware set pricing on its $435 million add-on term loan B-2 and repricing of its existing $931 million term loan B-2 at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, according to a market source.

The term debt still has a 1% Libor floor and 101 soft call protection for six months, the add-on still has an original issue discount of 99.75 and the repricing still has a par issue price.

Last week, the add-on term loan was upsized from $310 million.

Jefferies Finance LLC is the left lead on the deal.

Compuware tops par

With pricing firmed up, Compuware’s term loan B-2 debt broke for trading, with levels quoted at par 1/8 bid, par ½ offered, the source said.

Proceeds from the add-on loan will be used to repay a term loan B-1 priced at Libor plus 525 bps with a 1% Libor floor, and, due to the recent upsizing, to pay down $59 million in revolver borrowings and $66 million of an existing second-lien term loan.

The repricing transaction will take the existing term loan B-2 down from Libor plus 525 bps with a 1% Libor floor.

Compuware is a Detroit-based technology performance company.

Pinnacle Foods frees up

Pinnacle Foods’ credit facility began trading as well, with the $2,262,000,000 term loan due 2024 quoted at par 1/8 bid, par 3/8 offered, a trader said.

Pricing on the term loan is Libor plus 200 bps with no Libor floor, and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

Last week, pricing on the term loan was lowered from Libor plus 225 bps, and the discount was tightened from 99.5.

The company’s $2,462,000,000 credit facility (Ba2/BB+) also includes a $200 million revolver due 2022.

Senior secured leverage is 3.2 times, and total leverage is 4.3 times.

Pinnacle Foods lead banks

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading Pinnacle Foods’ credit facility.

Proceeds will be used with about $220 million of cash from the balance sheet to refinance an existing $150 million revolver, a $1.41 billion term loan G, a $508 million term loan H and a $545 million term loan I.

Closing is targeted for Friday.

Pinnacle Foods is a Parsippany, N.J.-based manufacturer, marketer and distributor of high-quality branded food products.

Energy Transfer revised

Back in the primary market, Energy Transfer Equity firmed pricing on its $2.2 billion seven-year first-lien term loan (Ba2/BB/BB+) at Libor plus 275 bps, the high end of the Libor plus 250 bps to 275 bps talk, and moved the original issue discount to 99.75 from 99.5, according to a market source.

The term loan still has no Libor plus and 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Monday, the source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc., DNB, BBVA, TD Securities (USA) LLC, PNC, Natixis and SMBC are leading the deal that will be used to refinance existing term loans.

Energy Transfer is a Dallas-based midstream oil and gas company.

Zekelman cuts spread

Zekelman Industries lowered pricing on its $100 million incremental term loan B due June 14, 2021 and a repricing of its existing $821 million term loan B due June 14, 2021 to Libor plus 375 bps from talk of Libor plus 400 bps to 425 bps and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source remarked.

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

Goldman Sachs Bank USA is leading the deal.

The incremental loan will be used for mergers and acquisitions and general corporate purposes, and the repricing will take the existing term loan down from Libor plus 500 bps with a 1% Libor floor.

Closing is expected in mid-February.

Zekelman Industries, formerly known as JMC Steel, is a Chicago-based manufacturer of industrial steel pipe and tubular products.

Sprint reworked

Sprint raised its seven-year term loan B (Ba2) to $4 billion from $1.5 billion, reduced pricing to Libor plus 250 bps from talk of Libor plus 300 bps to 325 bps and revised original issue discount talk to a range of 99.5 to 99.75 from just 99.5, according to a market source.

As before, the term loan B has a 0.75% Libor floor and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Monday, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes.

Sprint is an Overland Park, Kan.-based communications services company.

Hyland modifies deal

Hyland Software finalized pricing on its $155 million incremental first-lien term loan due July 2022 and repricing of its existing $616 million covenant-light first-lien term loan due July 2022 at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, and tightened the issue price on the incremental term loan to par from 99.5, a source said.

The incremental term loan and repriced loan still have a 25 bps step-down at 3.5 times first-lien leverage, a 0.75% Libor floor and 101 soft call protection for six months, and the repricing is still being issued at par.

Recommitments are due at noon ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal.

Proceeds from the incremental loan will be used to repay an existing second-lien term loan, and the repricing will take the existing first-lien term loan down from Libor plus 375 bps with a 1% Libor floor.

Hyland is a Westlake, Ohio-based enterprise content-management software developer.

Power Products updated

Power Products changed the original issue discount on its $270 million covenant-light first-lien term loan (B1/B) to 99.5 from 99, a market source said.

As before, the term loan is priced at Libor plus 450 bps with a 1% Libor floor and has 101 soft call protection for six months.

Recommitments were due at noon ET on Monday, the source added.

The company’s senior secured credit facility also includes a $30 million revolver (B1/B) and a $92.5 million privately placed second-lien term loan.

RBC Capital Markets is leading the deal that will be used to help fund the buyout of the company by Genstar Capital for $496 million.

First-lien leverage is 4.2 times and total leverage is 5.6 times.

Power Products is a Menomonee Falls, Wis.-based manufacturer and supplier of electrical products for construction and maintenance, recreational marine and specialty vehicles, industrial power, and transportation.

Change Healthcare accelerated

Change Healthcare moved up the commitment deadline on its $4,865,000,000 seven-year covenant-light term loan B to 5 p.m. ET on Thursday from Feb. 8, according to a market source.

Talk on the loan is Libor plus 275 bps to 300 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s credit facility (Ba3/B+) also includes a $500 million revolver.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with $1,235,000,000 in senior notes to help refinance existing debt and fund the creation of the company through the merger of Change Healthcare Holdings Inc. and the majority of McKesson Technology Solutions.

Closing on the merger is expected in the first half of this year, subject to customary conditions.

Change Healthcare is a health care information technology company.

Harland changes deadline

Harland Clarke accelerated the commitment deadline on its $370 million five-year covenant-light first-lien term loan (B1/BB-) to noon ET on Wednesday from 5 p.m. ET on Thursday, a source remarked.

Talk on the term loan is Libor plus 600 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are joint lead arrangers on the deal and joint bookrunners with Wells Fargo Securities LLC, Macquarie Capital (USA) Inc. and Jefferies Finance LLC.

Proceeds will be used to refinance an existing term loan.

Harland Clarke is a San Antonio-based provider of media delivery, payment solutions and marketing services.

Peabody discloses talk

Also in the primary market, Peabody Energy held its bank meeting on Monday, launching a $500 million five-year covenant-light first-lien senior secured term loan talked at Libor plus 525 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 hard call protection for one year, a market source said.

Commitments are due at 5 p.m. ET on Feb. 8, the source added.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to help refinance existing debt in connection with the company’s exit from bankruptcy.

The St. Louis-based coal producer also plans on getting $1 billion in first-lien exit notes, $450 million in second-lien notes from existing second-lien noteholders and $3.1 billion of total equity.

Pro forma first-lien leverage is 2.2 times, net first-lien leverage is 1 times, total leverage is 2.9 times and net total leverage is 1.7 times.

Closing is expected in early April.

Townsquare holds call

Townsquare Media hosted a lender call at 2 p.m. ET on Monday to launch a repricing of its $298.5 million first-lien term loan (Ba2/BB-) talked at Libor plus 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Feb. 6, the source said.

RBC Capital Markets is leading the deal that will take the existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Townsquare Media is a Greenwich, Conn.-based diversified media and entertainment and digital marketing services company.

Give & Go reveals OID

Give & Go Prepared Foods disclosed original issue discount talk of 99.5 on its $50 million covenant-light incremental first-lien term loan (B1/B+) that launched with an afternoon lender call, a source remarked.

Pricing on the first-lien term loan is Libor plus 550 bps with a 1% Libor floor, and has 101 soft call protection through July 29, 2017.

Deutsche Bank Securities Inc. and Antares Capital are leading the deal that will be used to fund the acquisition of Uncle Wally’s Bake Shoppe.

Give & Go is a Toronto-based manufacturer of value-added baked goods.

Blackhawk sets meeting

Blackhawk Mining scheduled a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch a $660 million five-year first-lien term loan, a market said.

The term loan has hard call protection of 103 in year one, 102 in year two and 101 in year three, the source added.

Jefferies Finance LLC is leading the deal that will be used to refinance existing ABL-A and ABL-B facilities, legacy Blackhawk debt, a first-lien term loan and a 1.5-lien term loan, to cash collateralize letters of credit and to pay fees and expenses.

Blackhawk Mining is a Lexington, Ky.-based producer of coal, operating nine active coal mining complexes in West Virginia and Kentucky.

Vectra joins calendar

Vectra emerged with plans to hold a bank meeting at 3 p.m. ET on Tuesday to launch a $425 million seven-year covenant-light first-lien term loan talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Feb. 14, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Vectra, formerly known as OM Group Inc., is a St. Louis-based technology-driven specialty materials and specialty chemicals company.

Engility on deck

Engility set a lender call for 11 a.m. ET on Tuesday to launch a $195 million term loan B-1 and a $608 million term loan B-2, according to a market source.

Morgan Stanley Senior Funding Inc., KKR Capital Markets LLC, Barclays, SunTrust Robinson Humphrey Inc., Regions Capital Markets, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the senior secured deal that will be used to reprice an existing term loan B-1 due 2020 and an existing term loan B-2 due 2023.

Last year, the term loan B-1 closed at pricing of Libor plus 425 bps with no Libor floor, and the term loan B-2 closed at pricing of Libor plus 475 bps with a 1% Libor floor.

Engility is a Chantilly, Va.-based provider of integrated services for the U.S. government.

Navistar repricing

Navistar will hold a lender call at 11 a.m. ET on Tuesday to launch a repricing of its $1.03 billion senior secured term loan B due August 2020 talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, a par issue price and 101 hard call protection through August 2017, a source remarked.

The repricing will take the term loan down from Libor plus 550 bps with a 1% Libor floor.

J.P. Morgan Securities LLC is leading the deal that is expected to be completed within the next 10 days.

Navistar is a Lisle, Ill.-based manufacturer and seller of commercial and military trucks, buses, and diesel engines and a provider of service parts for trucks and trailers.

Twin River coming soon

Twin River Management Group scheduled a lender call for 10 a.m. ET on Tuesday to launch a repricing of its $389 million covenant-light term loan B due July 2020 that is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due from existing lenders by the close of business on Friday and new lender commitments are due by noon ET on Feb. 7, the source added.

Deutsche Bank Securities Inc. is leading the deal that will reprice the existing term loan down from Libor plus 425 bps with a 1% Libor floor.

Twin River is a Lincoln, Rhode Island-based owner and operator of casino resorts.

Ineos readies loans

Ineos set a lender call for 9 a.m. ET on Tuesday to launch a new €575 million U.S. dollar-equivalent term loan B due 2024 and a new €575 million term loan B due 2024 that will be used to repay existing notes due 2019, according to a market source.

The company will also launch an up to $1,489,000,000 term loan due March 31, 2022 to reprice and extend an existing 2020 term loan and reprice an existing 2022 term loan, and will launch an up to €1,934,000,000 term loan due March 31, 2022 to reprice and extend an existing 2020 term loan and reprice an existing 2022 term loan, the source said.

Barclays and Bank of America Merrill Lynch are the global coordinators and joint lead arrangers on the deal, and joint bookrunners with Credit Suisse, Goldman Sachs, J.P. Morgan Securities LLC and Lloyds.

Commitments are due at 5 p.m. ET on Feb. 7, the source added.

Along with these transactions, Ineos, a Rolle, Switzerland-based chemical company, intends to use cash on the balance sheet to repay existing U.S. dollar term loan B debt due in 2018.

Ilpea deal emerges

Ilpea Industries scheduled a lender call for 10 a.m. ET on Tuesday to launch a roughly $250 million equivalent credit facility, a market source said.

The facility consists of a $25 million revolver, a $200 million term loan B and a €24 million term loan B, the source added.

PNC Bank and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt and redeem preferred stock.

Ilpea is a Scottsburg, Ind.-based producer of custom plastic extrusions for the appliance and construction industries.

JBS allocates

In other news, JBS USA Lux SA allocated its $2.8 billion term loan B due Oct. 30, 2022 and closing is expected on Thursday, according to a market source.

Pricing on the term loan B is Libor plus 250 bps with a 0.75% Libor floor, and it was issued at par. The loan has 101 soft call protection for six months.

On Friday, the term loan B was upsized from $2.09 billion and pricing was reduced from Libor plus 275 bps.

Barclays is leading the deal that will be used to refinance existing term loan B debt due in 2018, 2020 and 2022 into one term loan B tranche, and the upsized amount will be used for general corporate purposes.

JBS is a Greeley, Colo.-based animal protein products processing company.

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