Oxea starts trading; Allflex, ValleyCrest, WildHorse Resources, BioScrip update deals

By Sara Rosenberg

New York, June 6 - Oxea's credit facility freed up for trading on Thursday, with the first- and second-lien term loans quoted above their original issue discount prices.

Moving to the primary market, Allflex Holdings shifted some funds between its term loans and set first-lien pricing at the low end of talk, and ValleyCrest Cos. LLC lowered the coupon on its term loan.

Also, WildHorse Resources LLC raised pricing on its second-lien term loan, modified the call premiums, shortened the maturity and added a financial covenant, and BioScrip Inc. firmed the spread on its term B at the high side of guidance.

Furthermore, AMR Corp., Weather Co. (TWCC Holding Corp.), Hargray Communications, Deltek Inc., Help/Systems LLC and Websense Inc. released talk as their deals were presented to investors during the session, National Financial Partners Corp. guidance surfaced with ratings, and MedSolutions, Nine Entertainment Group Pty Ltd. and State Class Tankers came out with new deal plans.

Oxea hits secondary

Oxea's credit facility broke for trading on Thursday, with the $535 million 61/2-year first-lien term loan (B1) quoted at par 3/8 bid, par 7/8 offered, and the $325 million seven-year second-lien term loan (Caa1) quoted at par ½ bid, 101½ offered on the open and then the offer side tightened to 1011/4, according to a trader.

Pricing on the first-lien term loan is Libor plus 325 basis points with a 1% Libor floor, and it was sold at an original issue discount of 993/4. There is 101 soft call protection for six months.

During syndication, the first-lien term loan was downsized from $720.5 million, pricing firmed at the tight end of the revised talk of Libor plus 325 bps to 350 bps and down from initial talk of Libor plus 350 bps, the Libor floor was trimmed from 1.25% and the original issue discount was revised from 991/2.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor, and was sold at 991/2. This tranches has hard call protection of 102 in year one and 101 in year two.

Revisions made to the second-lien loan during syndication included setting pricing at the low side of the revised Libor plus 725 bps to 750 bps talk and down from original talk of Libor plus 750 bps, changing the floor from 1.25% and cutting the discount from 99.

Oxea euro term loan

In addition to the U.S. term loans, Oxea is getting a €450 million euro 61/2-year first-lien term loan (B1) that is priced at Euribor plus 350 bps with a 1% floor and was sold at 991/2. There is 101 soft call protection for six months.

This tranche had been upsized from €200 million, the spread firmed at the low end of the revised Euribor plus 350 bps to 375 bps talk and down from initial talk of Euribor plus 375 bps, and the floor was lowered from 1.25%.

Also included in the company's new credit facility is an up to €120 million revolver (B1).

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Nomura are leading the covenant-light deal, with Deutsche the left lead on the first-lien debt and JPMorgan the left lead on the second-lien loan.

Proceeds will be used by the Luxembourg-based chemical company to refinance existing debt and pay a dividend to Advent International.

Allflex tweaks deal

Over in the primary, Allflex upsized its seven-year first-lien term loan B to $570 million from $540 million, firmed pricing at Libor plus 325 bps, the tight end of the Libor plus 325 bps to 350 bps talk, and added 101 soft call protection for six months, according to a market source.

As before, the first-lien loan has a 1% Libor floor and an original issue discount of 991/2.

Meanwhile, the eight-year second-lien term loan was downsized to $240 million from $270 million, the source said. Talk on this tranche is Libor plus 700 bps to 725 bps with a 1% Libor floor, a discount of 99, and hard call protection of 102 in year one and 101 in year two.

The company's $910 million credit facility also provides for a $100 million revolver.

Recommitments were due at 4:30 p.m. ET on Thursday, the source added.

Allflex lead banks

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., RBC Capital Markets and Macquarie Capital are leading Allflex's credit facility, with Morgan Stanley the left lead on the first-lien loan and Bank of America the left lead on the second-lien loan.

Proceeds will be used to help fund the $1.3 billion buyout of the company by BC Partners from Electra Partners.

Allflex is a Vitre, France-based producer of visual and electronic identification tags and other tracking products for livestock and other species.

ValleyCrest flexes

ValleyCrest trimmed pricing on its $265 million six-year senior secured covenant-light term loan (B3/B-) to Libor plus 450 bps from Libor plus 475 bps, while keeping the 1% Libor floor, original issue discount of 99 and 101 repricing protection for one year intact, according to a market source.

Recommitments were due at 5 p.m. ET on Thursday, the source remarked.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance an existing term loan.

ValleyCrest is a Calabasas, Calif.-based provider of landscape maintenance services.

WildHorse reworks loan

WildHorse Resources increased pricing on its $325 million second-lien term loan (B3/B) to Libor plus 625 bps from Libor plus 550 bps, revised the call protection to 103 in year one and 101 in year two from 102 in year one and 101 in year two, shortened the maturity to 5½ years from six years and added an asset-coverage test to the originally covenant-light deal, according to a market source.

As before, the loan has a 1.25% Libor floor and an original issue discount of 99.

Wells Fargo Securities LLC, BMO Capital Markets and Bank of America Merrill Lynch are leading the deal that will be used to fund a dividend and refinance existing debt.

WildHorse Resources is a Houston-based energy company focused on oil and gas exploration and production in Texas and Louisiana.

BioScrip sets spread

BioScrip finalized pricing on its $250 million covenant-light term loan B at Libor plus 375 bps, the wide end of the Libor plus 350 bps to 375 bps talk, according to a market source.

Unchanged on the term B was the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months.

SunTrust Robinson Humphrey Inc., Jefferies Finance LLC and Morgan Stanley Senior Credit Funding Inc. are leading the $325 million senior secured credit facility (B2/B), which also includes a $75 million revolver.

Allocations are expected to go out late next week, the source added.

Proceeds will refinance an existing asset-based revolver, redeem 10¼% senior unsecured notes and be used for working capital and general corporate purposes.

BioScrip is an Eden Prairie, Minn.-based provider of comprehensive infusion and home care solutions.

AMR details emerge

In more primary happenings, AMR held its bank meeting on Thursday, at which time the company launched a $1.5 billion six-year debtor-in-possession term loan (Baa2/BB-/BB-) that converts into an exit term loan with talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount in the 99½ area and 101 soft call protection for six months, according to a market source.

The company's $2.5 billion credit facility also includes a $1 billion revolver.

Lead banks, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc., are asking for commitments by June 20, the source remarked.

AMR is a Fort Worth, Texas-based airline company.

Weather guidance

Weather launched its $600 million 71/2-year second-lien covenant-light term loan (B3/CCC+), and price talk was revealed to be Libor plus 600 bps with a 1% Libor floor and an original issue discount of 98 to 981/2, according to a market source.

Commitments for the term loan, which has call protection of 102 in year one and 101 in year two, are due at noon ET on June 14.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp., Mizuho Securities USA Inc. and Natixis are leading the deal that will be used to fund a dividend.

Weather is an Atlanta-based media company devoted to bringing weather news via television, internet and mobile devices.

Hargray sets talk

Hargray Communications came out with talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $305 million term loan B that launched with a bank meeting in the morning, according to a market source.

The company's $330 million credit facility (B2/B+) also includes a $25 million revolver.

Commitments are due on June 20, the source added.

RBC Capital Markets and Credit Suisse Securities (USA) LLC are leading the transaction that will be used to refinance existing debt and fund a modest dividend to shareholders.

Hargray is a provider of triple play data, video and voice services serving southeastern South Carolina and northeastern Georgia.

Deltek add-ons

Deltek launched its $150 million six-year add-on first-lien term loan with talk of Libor plus 375 bps with a 1.25% Libor floor, an original issue discount of 99½ for new and existing investors and 101 soft call protection for six months, according to a market source.

The spread and floor are in line with the existing $450 million first-lien term loan pricing.

The company also launched an $80 million seven-year add-on second-lien term loan with talk of Libor plus 775 bps with a 1.25% Libor floor, an original issue discount of 99½ for new money, a par offer price for existing lenders and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

With the add-on, the company is repricing its existing $200 million second-lien term loan from Libor plus 875 bps with a 1.25% Libor floor, and existing lenders are getting paid out at 103.

Deltek stripping covenant

Furthermore, as part of the transaction, Deltek is amending its credit facility to remove the leverage covenant, making the deal covenant-light, the source added.

Commitments are due on June 17.

Jefferies Finance LLC And RBC Capital Markets are leading the deal that will be used to fund a dividend.

Deltek is a Herndon, Va.-based provider of enterprise software and information for professional services firms and government contractors.

Help/Systems launches

Help/Systems launched a $360 million credit facility that will be used to refinance existing debt and fund a dividend, according to a market source.

The facility consists of a $40 million six-year revolver, a $240 million seven-year first-lien term loan B talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 991/2, and an $80 million eight-year second-lien term loan talked at Libor plus 750 bps with a 1% Libor floor, a discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

GE Capital Markets is leading the deal.

Help/Systems is an Eden Prairie, Minn.-based provider of automated operations and business intelligence software for IBM Power Systems servers.

Websense talk emerges

Websense launched its $350 million seven-year covenant-light first-lien term loan (B+) with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 991/2, and its $225 million 71/2-year covenant-light second-lien term loan (CCC+) with talk of Libor plus 750 bps with a 1% Libor floor and a discount of 99, a source said.

By comparison, filings with the Securities and Exchange Commission had pricing on the first-lien term loan expected at Libor plus 350 bps with a 1% Libor floor and pricing on the second-lien loan expected at Libor plus 750 bps with a 1% Libor floor.

The filings also said the first-lien term loan will have 101 repricing protection for six months and the second-lien term loan will have call protection of 102 in year one and 101 in year two.

The company's $615 million senior secured credit facility also includes a $40 million five-year revolver (B+).

Websense being acquired

Proceeds from Websense's credit facility and $500 million of equity will be used to help fund its buyout by Vista Equity Partners for $24.75 in cash per share.

J.P. Morgan Securities LLC, RBC Capital Markets and Guggenheim Partners are leading the deal.

Closing is expected before the end of the third quarter, subject to a minimum stock tender condition, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, financing and other customary conditions.

Websense is a San Diego-based provider of web security, e-mail security, mobile security and data loss prevention.

National Financial pricing

National Financial Partners revealed talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $716 term loan as a rating from Moody's Investors Service came out at B1 on the loan, a market source said. A B+ rating from Standard & Poor's was already announced earlier this week.

The company's $851 senior secured credit facility also includes a $135 million revolver (B1/B+).

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., UBS Securities LLC, Credit Suisse Securities (USA) LLC, MCS Capital and RBC Capital Markets are leading the deal that launched with a bank meeting on Wednesday.

Proceeds, along with $337 million of senior unsecured notes and up to $385.4 million of equity, will fund the buyout of the company by Madison Dearborn Partners LLC for $25.35 in cash per share. The transaction is valued at about $1.3 billion, including the full value of the company's convertible debt.

Closing is expected in the third quarter, subject to stockholder approval and other conditions.

National Financial Partners is a New York-based provider of benefits, insurance and wealth management services.

MedSolutions readies deal

MedSolutions emerged with plans to hold a bank meeting on Monday to launch a $435 million credit facility, according to a market source.

The facility consists of a $75 million five-year revolver and a $360 million six-year covenant-light term loan B, the source said.

SunTrust Robinson Humphrey Inc. and Fifth Third Securities Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

MedSolutions is a Franklin, Tenn.-based provider of medical cost management services.

Nine Entertainment on deck

Nine Entertainment Group set a lender call for 10 a.m. ET on Tuesday to launch the U.S. equivalent of a A$100 million senior secured term loan due Feb. 5, 2020, according to a market source.

UBS Securities LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Nomura are leading the deal that will be used for general corporate purposes and to fund the acquisition of WIN Adelaide.

Nine Entertainment is an Australian diversified media and entertainment group.

State Class coming soon

State Class Tankers scheduled a bank meeting for 10 a.m. ET on Monday to launch a $365 million seven-year covenant-light term loan B, according to a market source.

Bank of America Merrill Lynch, UBS Securities LLC and Barclays are leading the deal that will be used to help fund the construction of four product tankers, fund an 18-month interest reserve and put cash on the balance sheet.

Hawaiian Telcom closes

In other news, Hawaiian Telcom Communications Inc. completed its $300 million first-lien term loan (B1) due June 2019, a news release said.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 repricing protection for one year.

Credit Suisse Securities (USA) LLC led the deal that was used to refinance an existing term loan due February 2017 priced at Libor plus 575 bps with a 1.25% Libor floor.

Existing lenders were paid out at 101 with this refinancing.

Hawaiian Telcom is a Honolulu-based provider of integrated communications services.

© 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.