Windstream retreats with refi; Pinafore down on repricing; Dupont, NEP, Ameriforge set talk

By Sara Rosenberg

New York, Jan. 8 - Windstream Corp.'s term loans were softer in trading on Tuesday as the company announced that it is working on refinancing transactions, and Pinafore Holdings BV (Tomkins Ltd.) term loan B weakened with the launch of a repricing.

Switching to the primary, Dupont Performance Coatings, NEP Broadcasting LLC and Ameriforge Group Inc. released price talk as their deals were presented to lenders during the session, and Alcatel-Lucent USA Inc. held its London bank meeting and is gearing up for its New York launch.

Also, BWAY Corp. disclosed timing on its add-on term loan, Apex Tool Group revealed details on its credit facility, and ATI Physical Therapy Inc. and Speedway Motorsports Inc. emerged with new deal plans.

Windstream dips

Windstream's term loans traded lower on Tuesday following news that the company is looking to refinance its 2013 term debt and 2017 notes, according to a trader.

The term loan B-1 was quoted at 99 7/8 bid, par 3/8 offered, down from par ½ bid, 101 offered, the term loan B-2 was quoted at par ¼ bid, par ¾ offered, down from 101 bid, 101½ offered, and the term loan B-3 was quoted at par 7/8 bid, 101 3/8 offered, down from 101 bid, 101½ offered, the trader said.

The term debt that will be repaid is the roughly $282.4 million term loan B-1 due on July 17, 2013 and the roughly $20.8 million term loan A-2 due on July 17, 2013, and the company is tendering for its $650 million 8 7/8% senior secured notes due 2017.

To fund the refinancing, the company is shopping a $300 million seven-year term loan B-4 (Baa3/NA/BBB-) and $700 million of senior notes due 2023.

Windstream B-4 details

Windstream's proposed term loan B-4 launched with a call on Tuesday and is being talked at Libor plus 275 basis points with a 0.75% to 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, sources said.

Bank of America Merrill Lynch, Barclays, Wells Fargo Securities LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc., Bank of Tokyo-Mitsubishi UFJ, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading the deal.

Closing is expected by the end of January.

Windstream is a Little Rock, Ark.-based provider of advanced network communications, including cloud computing and managed services, to businesses.

Pinafore softens

Pinafore Holdings' term loan B fell to par ¼ bid, 101¼ offered, from par ½ bid, 101½ offered, as the company held its lender call, which investors discovered was being held to launch a repricing of the debt, according to a trader.

Prior to news of a call hitting the market on Monday, the term loan B was quoted at par 7/8 bid, 101 7/8 offered. The reason for the call was not officially announced until Tuesday.

Under the proposal, the company is looking to lower pricing on its $1.344 billion term loan B, as well as on its $99 million term loan A, to Libor plus 275 bps with a 1% Libor floor from Libor plus 300 bps with a 1.25% Libor floor, a source told Prospect News. The repriced term loan B will have 101 soft call protection for one year, and both repriced loans are being offered at par.

Lead banks, Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, UBS Securities LLC and RBC Capital Markets LLC, are seeking commitments by Jan. 15.

Pinafore is a London-based engineering and manufacturing group.

Dupont Performance sets talk

Moving to the primary, Dupont Performance Coatings released official price talk on its $2.3 billion seven-year covenant-light U.S. term loan in connection with its New York bank meeting on Tuesday morning, according to a market source.

The term loan is talked at Libor plus 425 basis points with a 1.25% Libor floor and an original issue discount of 99, and includes 101 soft call protection for one year, the source said. Prior to the meeting, early chatter had the loan guided in the 5½% to 5¾% area on an all-in basis.

The company's $2.9 billion senior secured credit facility (B1/B+) also provide for a $400 million five-year revolver that is talked at Libor plus 400 bps with a 100 bps upfront fee and a $200 million seven-year covenant-light euro-equivalent term loan.

The euro term loan is anticipated to price 25 bps wider than the U.S. term loan, but have the same floor, original issue discount and soft call protection, the source continued.

Marketing of the credit facility will also take place in Europe with a London bank meeting to be held on Wednesday.

Dupont lead banks

Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., UBS Securities LLC, Jeffries Finance LLC and SMBC are leading Dupont Performance Coatings' credit facility.

Although the New York launch just happened and the European launch is coming up, the source is hearing that both the U.S. and euro term loans have already received very significant commitments.

Commitments are due at 5 p.m. ET on Jan. 17.

Proceeds from the credit facility, along with equity and $1.4 billion of bonds, will be used to fund the purchase of the company by the Carlyle Group from DuPont for $4.9 billion, which is expected to close this quarter, subject to customary conditions and regulatory approvals.

Net senior secured leverage is about 4 times and net total leverage is roughly 5.6 times.

DuPont Performance Coatings is a Wilmington, Del.-based supplier of vehicle and industrial coating systems.

NEP reveals guidance

NEP Broadcasting also held a bank meeting in the morning and released price talk on its $680 million senior secured credit facility with the event, according to sources.

The $60 million five-year revolver (B1) is talked at Libor plus 425 bps with no Libor floor, the $455 million seven-year covenant-light first-lien term loan (B1) is talked at Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 99, and the $165 million 71/2-year covenant-light second-lien term loan (Caa1) is talked at Libor plus 875 bps with a 1.25% Libor floor and a discount of 98, sources said.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Commitments are due at 5 p.m. ET on Jan. 18, sources continued.

NEP backing buyout

Proceeds from NEP Broadcasting's credit facility will back the acquisition of the company by Crestview Partners from American Securities LLC, which has already been completed.

Barclays, Morgan Stanley Senior Funding Inc. and GE Capital Markets Corp. are the joint lead arrangers on the first-lien debt, with Barclays left lead, and Morgan Stanley and Barclays are leading the second-lien loan, with Morgan Stanley left lead.

Leverage is 3.9 times through the first-lien and 5.2 times total, sources added.

NEP is a Pittsburgh-based provider of outsourced teleproduction services critical to the delivery of live sports and entertainment events.

Ameriforge pricing

Another deal to release guidance with its bank meeting was Ameriforge Group, with the $350 million seven-year covenant-light first-lien term loan (B1) launched at Libor plus 400 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to sources.

Meanwhile, the company's $150 million eight-year covenant-light second-lien term loan (Caa1) is talked at Libor plus 775 bps with a 1.25% Libor floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, sources remarked.

The $582.5 million credit facility also includes an $82.5 million five-year revolver (B1).

Deutsche Bank Securities Inc., UBS Securities LLC, Goldman Sachs & Co. and RBC Capital Markets LLC are leading the deal that will be used to back the company's already completed purchase by First Reserve Corp. from Tanglewood Investments Inc.

First-lien leverage is around 3.4 times and total leverage is around 4.9 times.

Ameriforge is a Houston-based is a manufacturer of highly engineered products, subassemblies and integrated systems for the oil and gas, midstream, downstream, power generation, aerospace, transportation and industrial markets.

Alcatel readies U.S. meeting

Alcatel-Lucent held a bank meeting in London on Tuesday for its €1,615,000,000-equivalent credit facility, and is getting ready for its New York bank meeting that will take place at 10 a.m. ET on Wednesday, according to a market source.

As previously reported, the facility consists of a $500 million 31/2-year term loan talked at Libor plus 600 bps with a 1.25% Libor floor, a $1,275,000,000 six-year term loan talked at Libor plus 700 bps with a 1.25% Libor floor and a €250 million six-year term loan talked at Euribor plus 700 bps with a 1.25% floor. All tranches are being offered at an original issue of 98.

The 31/2-year term loan has 101 soft call protection for one year, and the six year loans are non-callable for one year, then at 102 in year two and 101 in year three.

Alcatel sees demand

Alcatel-Lucent's credit facility went through a pre-marketing stage in December, and, the source said that in that process, the deal was "very well received."

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are leading the transaction.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Alcatel-Lucent is a Paris-based telecommunications services and equipment company.

BWAY sets call

In more primary happenings, BWAY scheduled a conference call for Wednesday to launch its proposed $261 million add-on to its existing senior secured term loan B, according to a market source.

The add-on will be fungible with the existing term loan B and will carry the same pricing of Libor plus 325 bps with a 1.25% Libor floor. The original issue discount on the add-on is not yet available, the source remarked.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs & Co. are leading the deal that will be used with $20 million of ABL revolver borrowings to fund the roughly $265 million purchase of Ropak Packaging from the Linpac Group. The revolver is being upsized to $200 million from $150 million with the acquisition.

Secured leverage is 3.3 times, OpCo leverage is 4.2 times and HoldCo leverage is 5.6 times.

Closing is expected in the second half of this month.

BWAY is an Atlanta-based supplier of general line rigid containers. Ropak is a Fountain Valley, Calif.-based producer of rigid plastic shipping containers.

Apex timing, structure

Apex Tool Group revealed that its senior secured credit facility will launch with a bank meeting at 10 a.m. ET on Friday and is sized at $1.01 billion, according to a market source.

The deal is comprised of a $175 million five-year revolver and an $835 million seven-year covenant-light term loan, the source said.

Barclays, Goldman Sachs & Co., Morgan Stanley Funding Inc., RBC Capital Markets LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the transaction that will help fund the buyout of the Sparks, Md.-based tool manufacturer by Bain Capital from Cooper Industries and Danaher Corp. for about $1.6 billion.

Closing is expected in the first half of this year, subject to customary conditions, including regulatory approvals.

Leverage is 3.6 times on a senior secured basis and net total leverage is 5.4 times.

ATI coming soon

ATI Physical Therapy will be holding a bank meeting next week to launch a $335 million secured credit facility that consists of a $50 million revolver and a $285 million seven-year term loan B, according to a market source.

Jefferies & Co. and Ally Commercial Finance are leading the deal.

Proceeds, along with $160 million of mezzanine debt from Crescent Mezzanine Partners and equity, will back the acquisition of the company by KRG Capital Partners from GTCR that was completed in December.

ATI Physical Therapy is a Bolingbrook, Ill.-based operator of physical therapy clinics.

Speedway plans deal

Speedway Motorsports is anticipated to hold a bank meeting during the week of Jan. 14 to launch a $350 million five-year credit facility (Ba1/BBB-) that consists of a $100 million revolver and a $250 million delayed-draw for six months term loan, according to sources.

Bank of America Merrill Lynch is the left lead on the deal that will be used to refinance an existing credit facility.

Other funds for the refinancing will come from a $100 million 6¾% senior notes offering.

Speedway Motorsports is a Concord, N.C.-based marketer, promoter and sponsor of motorsports entertainment.

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