Advanced Disposal, Valeant, Entercom, National Vision, Outfront, Playa and more break

By Sara Rosenberg

New York, Nov. 15 – In the secondary market on Wednesday, deals from Advanced Disposal Services Inc., Valeant Pharmaceuticals International Inc., Entercom/CBS Radio, National Vision Inc. and Outfront Media Inc. freed up for trading.

Also, Playa Hotels & Resorts NV changed the original issue discount on its add-on term loan B, CryoLife Inc. lowered pricing on its term loan B, Michael Baker International LLC raised pricing on its term loan and sweetened the call protection, B&G Foods Inc. upsized its term loan B, and Cvent Inc. set the spread on its term loan at the high side of talk and tightened the original issue discount, and then these deals broke as well.

In more happenings, RCN Grand Wave (Radiate Holdco LLC) increased the size of its oversubscribed incremental first-lien term loan, and Hostess Brands LLC revised the issue price on its term loan, eliminated a spread step-down and adjusted the maturity.

Additionally, ExGen Renewables IV LLC lifted its term loan size, lowered pricing and adjusted the original issue discount, AGRO Merchants Global LP upsized its first-lien term loan B while tightening the spread and issue price, and downsized its second-lien term loan, and LSC Communications Inc. set the spread on its term loan at the wide end of guidance and extended the call protection.

Furthermore, Paysafe Group plc, Diamond Resorts International Inc., Parts Town (PT Holdings LLC) and Lantheus Medical Imaging Inc. announced price talk with launch, and Installed Building Products Inc. joined this week’s calendar.

Advanced Disposal frees up

Advanced Disposal Services’ $1,464,000,000 covenant-light term loan B (B2/BB+) due November 2023 hit the secondary market on Wednesday, with levels quoted at par bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 225 basis points with a 0.75% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 275 bps with a 0.75% Libor floor.

Closing is expected on Tuesday.

Advanced Disposal is a Ponte Vedra, Fla.-based provider of non-hazardous solid waste services.

Valeant tops issue price

Valeant’s $3,820,610,632 term loan F due April 1, 2022 broke for trading, with levels seen at par 5/8 bid, 101 offered, a trader remarked.

Pricing on the loan is Libor plus 350 bps with a 0.75% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Barclays is leading the deal that will reprice an existing term loan down from Libor plus 475 bps with a 0.75% Libor floor.

In connection with the repricing, some of the term loan F is being paid down with proceeds from the sale of $750 million of secured notes and cash on hand. The $3,820,610,632 amount is the size of the loan post the paydown.

Closing is expected on Tuesday.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

Entercom hits secondary

Entercom/CBS Radio’s $830 million seven-year incremental term loan B-1 (Ba3/BB-) began trading too, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 275 bps with a 0% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

Goldman Sachs Bank USA is leading the deal that will be used to roll the legacy term loan B into the incremental term loan B-1.

Entercom/CBS Radio is a Philadelphia-based radio broadcasting company.

National Vision begins trading

National Vision’s $570 million first-lien term loan (B1/B+) due November 2024 also broke, with levels quoted at 99¾ bid, par ¼ offered, a trader said.

Pricing on the loan is Libor plus 275 bps with a step-down to Libor plus 250 bps if Moody’s corporate rating of Ba3 is achieved and a 0% Libor floor. The debt has 101 soft call protection for six months and was sold at an original issue discount of 99.75.

During syndication, pricing on the term loan was flexed up from talk of Libor plus 250 bps and the step-down was added.

Goldman Sachs Bank USA, KKR Capital Markets, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Jefferies LLC, UBS Investment Bank, Wells Fargo Securities LLC, Mizuho and Macquarie Capital (USA) Inc. are leading the deal that will be used to amend/refinance an existing term loan due March 2021 that is priced at Libor plus 300 bps with a 1% Libor floor.

National Vision is a Duluth, Ga.-based optical retailer.

Outfront levels emerge

Another deal to start trading was Outfront Media’s $670 million senior secured covenant-light first-lien term loan B (Ba1/BB+) due March 16, 2024, with levels seen at par bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 200 bps with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan B.

Closing is expected on Friday.

Outfront Media is a New York-based out-of-home media company.

Playa revises OID, trades

Playa Hotels & Resorts tightened the original issue discount on its fungible $380 million add-on covenant-light term loan B (B2/B+) due April 2024 to 99.75 from 99.5 and left pricing at Libor plus 325 bps with a 1% Libor floor, a market source remarked.

With this transaction pricing on the company’s existing term loan B will be changed to Libor plus 325 bps with a 1% Libor floor from current pricing of Libor plus 300 bps with a 1% Libor floor, and all of the term loan B debt is getting 101 soft call protection for six months.

Including the add-on, the term loan B will total $909 million.

With terms finalized, the term debt emerged in the secondary market and levels were quoted at par ½ bid, 101 offered, a trader added.

Deutsche Bank Securities Inc. is the left lead on the deal.

The add-on loan will be used to repay $360 million of senior notes due 2020.

Closing is expected during the week of Dec. 4.

Playa Hotels is an owner, operator and developer of all-inclusive resorts.

CryoLife flexes, frees up

CryoLife trimmed pricing on its $225 million covenant-light first-lien term loan B due November 2024 to Libor plus 400 bps from talk in the range of Libor plus 425 bps to 450 bps and removed the MFN sunset, setting the 50 bps MFN for life, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $255 million of credit facilities (B2/B) also include a $30 million revolver.

Recommitments were due at 10 a.m. ET on Wednesday and then the term loan broke for trading with levels seen at par ¼ bid, 101¼ offered, a trader said.

Deutsche Bank Securities Inc., Capital One Bank and Fifth Third Bank are leading the deal that will be used with cash on hand to fund the acquisition of Jotec for $225 million, subject to certain adjustments, consisting of 75% in cash and 25% in CryoLife common stock, and to refinance an existing $69 million term loan.

Closing is expected in early December, subject to customary conditions.

CryoLife is a Kennesaw, Ga.-based medical device and tissue processing company. Jotec is a German-based developer of technologically differentiated endovascular stent grafts, and cardiac and vascular surgical grafts

Michael sweetened, breaks

Michael Baker changed pricing on its $250 million five-year senior secured covenant-light first-lien term loan (B1/B+) to Libor plus 450 bps from Libor plus 400 bps and pushed out the 101 soft call protection to one year from six months, while leaving the 1% Libor floor and original issue discount of 99 intact, a market source said.

The term loan then freed to trade and levels were quoted at 99½ bid, par ¼ offered, the source added.

The company’s $360 million of credit facilities also include a $110 million 4.5-year ABL revolver.

Jefferies LLC, SunTrust Robinson Humphrey Inc. and Citizens Bank are leading the deal that will be used with $227.5 million of senior secured notes to refinance existing debt and to fund a distribution to SC3 shareholders in connection with the previously announced sale of SC3.

Michael Baker is a Pittsburgh-based provider of engineering, development, intelligence and technology solutions.

B&G modified, trades

B&G Foods increased its term loan B (Ba2/BB+) due Nov. 2, 2022 to $650 million from $640 million, according to a market source.

As before, pricing on the loan is Libor plus 200 bps with a 0% Libor floor and an original issue discount of 99.75, and the debt is getting 101 soft call protection for six months.

After terms firmed up, the loan began trading and levels were quoted at par ¼ bid, par ½ offered, another source added.

Barclays is leading the deal that will be used to reprice an existing term loan B.

Closing is expected on Monday.

B&G Foods is a Parsippany, N.J.-based manufacturer, seller and distributor of branded shelf-stable and frozen foods.

Cvent finalizes, tops OID

Cvent firmed pricing on its $700 million seven-year first-lien term loan (B3/B-) at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk and tightened the original issue discount to 99.75 from 99.5, according to a market source.

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

By late day, the loan made its way into the secondary market and levels were quoted at par bid, par ½ offered, a source added.

Goldman Sachs Bank USA, Antares Capital, Jefferies LLC and RBC Capital Markets LLC are leading the deal that will be used to pay down existing first- and second-lien term loans.

Cvent is a Tysons Corner, Va.-based software-as-a-service solutions provider to the enterprise meetings and event management industry.

BWIC announced

Also in trading, a $260 million loan Bid Wanted In Competition surfaced, with bids due at 11 a.m. ET on Thursday, a trader said.

Some of the names in the portfolio are Air Medical, Centurylink Inc., Endurance, Formula One, JBS USA LLC, Petco Animal, Standard Aero and WME IMG Worldwide.

There are about 92 issuers in the BWIC, the trader added.

RCN Grand upsizes

Back in the primary market, RCN Grand Wave lifted its fungible incremental first-lien term loan due Feb. 1, 2024 to $1,425,000,000 from $1,275,000,000, according to a market source.

Pricing on the loan is still Libor plus 300 bps with a 0.75% Libor floor and an original issue discount of 99, and the debt still has 101 soft call protection for six months.

In addition to the term loan, the cable operator is getting a $150 million incremental revolver.

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

UBS Investment Bank, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Nomura, Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to help fund the acquisition of Wave Broadband, a regional broadband fiber company, from Oak Hill Capital Partners, management and GI Partners. The additional term loan proceeds will be used to reduce the senior bridge facility or expected senior notes by the same amount, the source added.

Closing is expected this year, subject to customary conditions.

Hostess revises loan

Hostess Brands modified the issue price on its $994 million first-lien term loan (B1/BB-) to par from 99.875, changed the maturity date to August 2022 from August 2023 and removed a 25 bps ratings-based pricing step-down, a market source said.

Pricing on the loan is still Libor plus 225 bps with a 0.75% Libor floor, and the debt has 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday and allocations are targeted for Thursday, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance an existing term loan due August 2022 priced at Libor plus 250 bps with a 0.75% Libor floor.

Hostess is a Kansas City, Mo.-based sweet baked goods company.

ExGen changes surface

ExGen Renewables raised its seven-year senior secured term loan B to $850 million from $750 million, reduced pricing to Libor plus 300 bps from Libor plus 325 bps and moved the original issue discount to 99.75 from 99.5, according to a market source.

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

Commitments are due at noon ET on Thursday, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to make a distribution to Exelon Corp., fund debt service reserve and liquidity accounts and pay related transaction fees and expenses. The additional proceeds from the loan upsizing will be used to increase the dividend, the source added.

ExGen Renewables, an indirect wholly owned subsidiary of Exelon, indirectly owns a material interest in 33 operating renewable generation projects located within the U.S. with a total capacity of about 1,791 MW.

AGRO reworked

AGRO Merchants increased its seven-year covenant-light first-lien term loan B to $360 million from $350 million, cut pricing to Libor plus 375 bps from Libor plus 400 bps and modified the original issue discount to 99.5 from 99, a market source remarked.

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

Commitments are due at 10 a.m. ET on Thursday, the source added.

In connection with the first-lien term loan upsizing, the company downsized its privately placed second-lien term loan to $80 million from $90 million.

Morgan Stanley Senior Funding Inc., Barclays and Deutsche Bank Securities Inc. are leading the senior secured deal that will be used to refinance the existing capital structure, fund an acquisition and pay related fees and expenses.

AGRO Merchants is an Alpharetta, Ga.-based owner and operator of temperature-controlled warehouse and distribution space.

LSC updated

LSC Communications firmed pricing on its $313 million term loan B at Libor plus 550 bps, the wide end of the Libor plus 525 bps to 550 bps talk, and extended the 101 soft call protection to one year from six months, a market source remarked.

The term loan still has a 0.75% Libor floor and a par issue price.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan down from Libor plus 600 bps with a 1% Libor floor.

LSC is a Chicago-based provider of digital print, print-related services and office products.

Paysafe details emerge

Paysafe Group held its London bank meeting on Wednesday and announced price talk and tranching for its first-and second-lien term loans, a market source said. A bank meeting for U.S. investors will take place at 9:30 a.m. ET in New York on Friday.

The debt is split between a $957.5 million seven-year covenant-light first-lien term loan (B1/B) talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.5, a $957.5 million equivalent euro seven-year covenant-light first-lien term loan (B1/B) talked at Euribor plus 350 bps with a 0% floor and a discount of 99.5, a $250 million eight-year covenant-light second-lien term loan (Caa1/CCC+) talked at Libor plus 725 bps with a 1% Libor floor and a discount of 99, and a $250 million equivalent euro eight-year covenant-light second-lien term loan (Caa1/CCC+) talked at Euribor plus 700 bps with a 0% floor and a discount of 99, the source continued.

The first-lien term loans have 101 soft call protection for six months and the second-lien term loans have call protection of 102 in year one and 101 in year two.

Commitments are due on Nov. 29, the source added.

Credit Suisse, Jefferies, Morgan Stanley, BMO and Deutsche Bank are leading the deal that will be used to help fund the buyout of the company by Blackstone and CVC.

Paysafe is an Isle of Man-based provider of end-to-end payment solutions.

Diamond releases guidance

Diamond Resorts came out with talk of Libor plus 450 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $693 million term loan B (B1/B+) due Sept. 2, 2023 a few hours before its afternoon lender call began, a market source said.

Commitments are due at noon ET on Monday, the source added.

RBC Capital Markets, Barclays and Apollo Global Securities are leading the deal that will be used to reprice an existing term loan B down from Libor plus 600 bps with a 1% Libor floor.

Diamond Resorts is a Las Vegas-based hospitality and vacation ownership company.

Parts Town launches

Parts Town held its bank meeting during the session and announced price talk on its $200 million seven-year first-lien term loan (B2/B-) and $82.5 million eight-year second-lien term loan (Caa2/CCC), according to a market source.

Talk on the first-lien term loan is Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the second-lien tem loan is Libor plus 800 bps to 825 bps with a 1% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Commitments are due on Nov. 30, the source added.

Jefferies LLC, Citizens Bank and Golub are leading the term loans.

The company’s $332.5 million of credit facilities, which also include a $50 million ABL revolver led by Citizens, will be used to refinance the existing capital structure.

Parts Town is an Addison, Ill.-based OEM parts distributor and service provider to the foodservice equipment market.

Lantheus discloses talk

Lantheus Medical released talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $274 million term loan (B+) that launched with a late morning call, a market source remarked.

Commitments are due on Nov. 22, the source added.

Citizens Bank and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan from Libor plus 450 basis points with a 1% Libor floor.

Lantheus Medical is a North Billerica, Mass.-based developer, manufacturer, seller and distributor of diagnostic imaging agents.

Installed Building on deck

Installed Building Products set a lender call for 10 a.m. ET on Thursday to launch a $299 million covenant-light term loan B (B1/BB) due April 2024 talked at Libor plus 250 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments and consents are due at 5 p.m. ET on Tuesday, the source said.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 1% Libor floor.

Along with the repricing, the company intends to amend the covenant allowing for debt to fund capital expenditures to provide additionally flexibility to support above market growth.

Gross leverage is 2.4 times and net leverage is 2 times.

Installed Building Products is a Columbus, Ohio-based installer of insulation products.

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