CEC Entertainment, Seadrill, Fieldwood, Ineos, Viva Alamo, NXP break; Sabre tweaks deal

By Sara Rosenberg

New York, Feb. 14 - CEC Entertainment Inc. firmed pricing on its term loan at the tight end of talk and added a step-down, Seadrill Ltd. upsized its term loan and set the spread at the low side of guidance and then both deals hit the secondary market on Friday.

Also freeing up for trading during the session was Fieldwood Energy LLC once offer prices firmed up, Ineos after a shift of funds between its U.S. and euro term loan tranches as well as Viva Alamo LLC (Alamo Portfolio) and NXP BV.

In more happenings, Sabre Inc. modified the pricing step-down on its term loan, Accellent Inc. and Atlantic Power LP revised the commitment deadlines on their credit facilities, and Nine West Holdings Inc. disclosed price talk with launch.

Furthermore, Synarc-BioCore Holdings LLC began circulating guidance on its term loans, Rent-A-Center Inc. timing surfaced, and Playa Resorts Holding B.V. and Waddington Group (WNA Holdings Inc.) emerged with new deal plans.

CEC updated, frees up

CEC Entertainment finalized the spread on its $760 million seven-year covenant-light term loan B at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, and added a step-down to Libor plus 300 bps at 3.25 times secured leverage, according to a market source, who said the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months were unchanged.

With final terms in place, the deal was able to break for trading on Friday with levels on the term loan quoted at par ¼ bid, par ¾ offered, the source said.

Earlier in syndication, the term loan was upsized from $725 million as the company's bond offering was reduced to $255 million from $305 million and $15 million more of cash on hand was discovered to be available at close.

The company's $910 million credit facility (B1/B) also includes a $150 million five-year revolver.

CEC being acquired

Proceeds from CEC's credit facility and the notes will be used to fund the buyout of the company by Apollo Global Management LLC for $54.00 per share in a transaction valued at about $1.3 billion, including the assumption of debt.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and UBS Securities LLC are the lead banks on the bank debt.

Closing is subject to a minimum tender condition of more than 50% of the company's common shares, the receipt of the Federal Trade Commission's approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions.

CEC is an Irving, Texas-based operator of Chuck E. Cheese's family dining and entertainment stores.

Seadrill tweaked, breaks

Seadrill lifted its seven-year term loan B (Ba3/BB-) to $1.8 billion from $1.7 billion and set pricing at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, while keeping the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a market source.

Recommitments were due at 10:15 a.m. ET on Friday, and in the afternoon the term loan emerged in the secondary market with levels quoted at 99½ bid, par ½ offered, the source said.

The company's now $1.9 billion credit facility, which is expected to close in the third week of February, also includes a $100 million first-out senior secured revolver (Baa3).

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Seadrill is an Oslo-based provider of offshore drilling services to the oil and gas industry.

Fieldwood hits secondary

Fieldwood Energy finalized the offer price on its fungible $200 million add-on first-lien covenant-light term loan (BB-) due Sept. 25, 2018 at par, the tight end of the 99¾ to par talk, and changed the offer price on its fungible $425 million add-on second-lien term loan (B-) to 101½ from talk of par ½ to 101, according to sources.

The debt then freed up, with the first-lien term loan quoted at par 1/8 bid, par 7/8 offered and the second-lien term loan quoted at 103 1/8 bid, 103 7/8 offered, sources said.

Pricing on the add-on first-lien term loan is Libor plus 287.5 bps with a 1% Libor floor and there is 101 soft call protection through March 31, in line with the existing first-lien term loan.

The add-on second-lien loan is Libor plus 712.5 bps with a 1.25% Libor floor, which matches existing second-lien pricing.

Fieldwood lead banks

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading Fieldwood's term loans, with Citi the left lead on the first-lien loan and JPMorgan the left lead on the second-lien loan.

Proceeds will be used to help fund the $750 million acquisition of SandRidge Energy Inc.'s Gulf of Mexico and Gulf Coast business, and, as part of the transaction, SandRidge will retain a 2% overriding royalty interest in two identified exploration prospects.

Closing is targeted for the week of Feb. 24.

Fieldwood is a Houston-based acquirer and developer of conventional oil and gas assets.

Ineos retranches, trades

Ineos trimmed its U.S. term loan due May 4, 2018 to $2.52 billion from roughly $2,607,000,000 and lifted its euro term loan due May 4, 2018 to €900 million from roughly €841 million, according to a market source.

The Switzerland-based manufacturer of petrochemicals, specialty chemicals and oil products then saw its deal begin trading on Friday, with the U.S. term loan quoted at par 1/8 bid, par 3/8 offered, a trader remarked.

Pricing on the U.S. loan is Libor plus 275 bps and the euro loan is priced at Euribor plus 300 bps, with both having a 1% Libor floor and sold at par. There is 101 soft call protection for six months.

Recently, pricing on the U.S. term loan firmed at the wide end of the Libor plus 250 bps to 275 bps talk, pricing on the euro loan firmed at the high side of the Euribor plus 275 bps to 300 bps talk, the floors on both tranches were widened from 0.75% and step-down provisions were removed.

Barclays and Bank of America Merrill Lynch are leading the senior secured covenant-light term loans that will be used to reprice an existing U.S. term loan from Libor plus 300 bps with a 1% Libor floor and an existing euro term loan from Euribor plus 325 bps with a 1% floor.

Viva Alamo tops OID

Viva Alamo's credit facility also broke, with the $515 million seven-year covenant-light term loan B quoted at 99¼ bid, par ¼ offered, according to a trader.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $500 million as an equity contribution was reduced to $203 million from $218 million, pricing firmed at the tight end of the 375 bps to 400 bps, the call protection was extended from six months and the MFN sunset was pushed out to 18 months from 12 months.

The company's $565 million senior secured deal (B1/BB-) also includes a $50 million five-year revolver.

Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the credit facility that will be used to help fund the company's $685 million buyout by Blackstone from Direct Energy.

Closing is expected this quarter, subject to customary regulatory approvals.

Viva Alamo consists of three Texas gas-fired power stations with combined capacity of 1,295 megawatts.

NXP starts trading

NXP's $400 million senior secured covenant-light term loan (Ba2/BB+) due March 4, 2017 freed up as well, with levels quoted at par bid, par ¼ offered, a market source said.

Pricing on the loan is Libor plus 200 bps with a 0.75% Libor floor and it was issued at par. There is 101 soft call protection for six months.

Recently, the loan was downsized from $486 million using liquidity on the company's balance sheet and pricing firmed at the high end of the Libor plus 175 bps to 200 bps talk.

Barclays is leading the deal that will be used by the Eindhoven, Netherlands-based maker of semiconductors to reprice/refinance an existing $486 million term loan A-1 priced at Libor plus 325 bps with a 1.25% Libor floor.

Existing lenders will get paid out at the 101 call premium at closing, which is expected on March 5.

Sabre reworks step

Back in the primary, Sabre changed the leverage-based step-down under its roughly $1.7 billion term loan B due Feb. 19, 2019 to Libor plus 300 bps from Libor plus 275, a market source said.

Opening pricing on the loan is still Libor plus 325 bps. The debt has a 1% Libor floor, a par offer price and 101 soft call protection for six months.

Proceeds will be used to reprice an existing term loan from Libor plus 400 bps with a 1.25% Libor floor.

Bank of America Merrill Lynch is leading the deal for the Southlake, Texas-based online travel company.

Accellent shutting early

Accellent accelerated the commitment deadline on its $1.13 billion credit facility to Thursday from Feb. 25, according to a market source.

The facility consists of a $75 million five-year revolver, a $795 million seven-year first-lien term loan and a $260 million eight-year second-lien term loan.

The first-lien term loan is talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 725 bps to 750 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

UBS Securities LLC, Goldman Sachs Bank USA and KKR Capital Markets LLC are leading the deal, with UBS the left lead on the first-lien debt and Goldman Sachs the left lead on the second-lien debt.

Accellent buying Lake Region

Proceeds from Accellent's credit facility will be used to fund the acquisition of Lake Region Medical, to refinance an existing credit facility and to repay senior and senior subordinated notes.

Under the agreement, Lake Region, an original development manufacturer of minimally invasive devices and delivery systems to the cardiology and endovascular markets, is being bought for $315 million, plus rollover stockholders will contribute $75 million of their stock for shares of the merged company.

The merged business will be called Lake Region Medical, and the company will continue to use the Accellent brand in marketing the advanced surgical business.

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

Accellent is a Wilmington, Mass.-based provider of fully integrated outsourced manufacturing and engineering services to the medical device industry.

Atlantic Power moves deadline

Atlantic Power pushed out the commitment deadline on its $800 million senior secured credit facility (Ba3/B+) to Wednesday from Friday due to the recent storm and technical issues with the company's presentation replay, a market source said.

However, by Friday morning, the deal was in really good shape, the source added.

The facility consists of a $200 million four-year revolver, and a $600 million seven-year term loan B with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the term loan, and Goldman Sachs, Bank of America, RBC Capital Markets and Union Bank are leading the revolver.

Atlantic Power refinancing

Proceeds from Atlantic Power's credit facility will be used to refinance an existing $150 million revolver; to redeem $190 million of 5.9% senior notes, $150 million of 5.87% senior guaranteed notes series A and $75 million 5.97% senior guaranteed notes series B; to provide for ongoing working capital needs and general corporate purposes; to support collateral support obligations to contract counterparties; to fund a debt service reserve; and to possibly repurchase 9% senior unsecured notes.

Closing on the credit facility is subject to syndication, the conclusion of negotiations, execution of final documentation, receipt of necessary approvals and satisfaction of customary conditions.

Atlantic Power LP, a subsidiary of Atlantic Power Corp., a Boston-based owner and operator of power generation assets, has 1,173 megawatts of hydro, natural gas and generation capacity and contracts in place for a majority of the capacity with a remaining average life of over seven years.

Nine West sets talk

Also in the primary, Nine West held its bank meeting on Friday, launching its $470 million 51/2-year term loan (Ba3) with talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, according to a market source.

Commitments are due on Feb. 27, the source said.

The company's $720 million also includes a $250 million asset-based revolver.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and MCS Capital Markets LLC are leading the term loan. Wells Fargo Securities LLC and Bank of America Merrill Lynch are leading the revolver.

Nine West funding buyout

Proceeds from Nine West's credit facility, along with $455 million senior unsecured bridge loan or senior notes, will be used to fund the buyout of parent company Jones Group Inc. by Sycamore Partners for $15.00 per share in cash in a transaction valued at about $2.2 billion, including net debt.

With the buyout, Jones Group will transfer ownership of its Jones Apparel business, its Kurt Geiger business and its Stuart Weitzman business to separate Sycamore affiliates, leaving Jones Group to be comprised of the Nine West business and the Jeanswear business.

Closing is expected in the second quarter, subject to shareholder and regulatory approvals and other customary conditions.

Nine West is a designer, marketer and wholesaler of apparel, footwear and accessories.

Synarc-BioCore floats guidance

Synarc-BioCore came out with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $225 million seven-year first-lien covenant-light term loan that will launch with a bank meeting at 3 p.m. ET in New York on Tuesday, a market source said.

Also, talk on the $100 million eight-year second-lien covenant-light term loan emerged at Libor plus 825 bps with a 1% floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source added.

The company's $365 million credit facility also includes a $40 million revolver.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and KeyBanc Capital Markets are leading the deal that will help fund the merger of CCBR-Synarc, a Newark, Calif.-based provider of clinical services to pharmaceutical and biotechnology companies, and BioClinica Inc., a Newton, Pa.-based provider of integrated, technology-enhanced clinical trial management services.

Closing is expected this quarter.

Synarc-BioCore is a clinical imaging and patient recruitment company for pharmaceutical and CRO clinical trials.

Rent-A-Center reveals timing

Rent-A-Center emerged with plans to hold a bank meeting on Thursday to launch its previously announced $850 million senior credit facility, according to a market source.

The facility consists of a $350 million term loan and a $500 million revolver.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing $687.5 million credit facility that expires July 14, 2016, under which about $348 million is outstanding.

Closing is expected this quarter.

Rent-A-Center is a Plano, Texas-based rent-to-own operator.

Playa readies deal

Playa Resorts set a call for 1:30 p.m. ET on Tuesday to launch a repricing of its $375 million term loan due August 2019 that is talked at Libor plus 300 bps to 325 bps with a 1% Libor floor, compared to current pricing of Libor plus 375 bps with a 1% Libor floor, according to a market source.

Included in the repriced loan is 101 soft call protection for six months, and existing lenders will get paid out a 101 with the repricing due to current call protection, the source remarked.

Commitments are due on Feb. 21.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal.

Playa is an owner, operator and developer of all-inclusive resorts in the Dominican Republic, Mexico and Jamaica.

Waddington plans add-on

Waddington scheduled a call for 1 p.m. ET on Tuesday to launch a fungible $50 million incremental covenant-light term loan B due June 7, 2020 that is talked at Libor plus 325 bps with a 1.25% Libor floor and 101 soft call protection until June 7, 2014, according to a market source. The original issue discount is not yet available.

Pricing on the add-on loan matched the company's existing first-lien term loan.

Commitments are due at noon ET on Feb. 21, the source said.

Barclays, RBC Capital Markets, GE Capital Markets and Goldman Sachs Bank USA are leading the deal that will be used to fund contemplated acquisitions.

Waddington is a Covington, Ky.-based manufacturer of disposable drinkware, dinnerware, servingware, cutlery and custom packaging.

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