Fortescue sets meeting for $4.5 billion loan; LCDX index trades 3/8 higher; repricings roll out

By Paul A. Harris

Portland, Ore., Oct. 1 - In the primary market, Fortescue Metals Group set a Wednesday bank meeting for its $4.5 billion five-year covenant-light senior secured credit facility.

And the parade of repricing deals continued to march through the bank loan market on Monday.

The LCDX 18 bank loan index traded 3/8 points higher on Monday, finishing at 101 1/8 bid, 101½ offered.

Credit Suisse and J.P. Morgan Securities LLC are the lead banks on the Fortescue deal.

Proceeds will be used to refinance all of the company's existing bank debt and to provide additional liquidity.

The facility extends the earliest repayment date for any of the company's debt to November 2015 and removes financial maintenance covenants that applied under previous facilities, the release said.

Fortescue is an East Perth, Australia-based iron ore producer.

AssuraMed bank meeting

AssuraMed Holding, Inc. has scheduled a bank meeting on Wednesday afternoon in New York for its $660 million of new credit facilities.

The deal includes a $440 million seven-year first lien term loan and a $220 million 7.5-year second lien term loan.

Morgan Stanley & Co. and SunTrust Robinson Humphrey are the joint lead arrangers.

Fifth Third, Goldman Sachs & Co., Jefferies & Co., J.P. Morgan Securities LLC, GE Capital and ING are the joint bookrunners.

Proceeds will be used to refinance the balance sheet, fund a dividend to shareholders.

AssuraMed, formerly known as Harrington Group, Inc., is a Cleveland-based supplier of disposable medical products to chronic disease patients.

Blue Coat refinancing

Blue Coat Systems Inc. will launch a $500 million refinancing term loan on Thursday.

Jefferies & Co. is leading the deal.

The Sunnyvale, Calif.-based web security company intends to refinance its first- and second-lien term loans.

The new term loan will come with the same maturity as the existing first-lien loan.

Existing lenders will be paid call protection, which is 101 on the first-lien loan and 103 on the second-lien loan.

The company has grossly outperformed its budget, materially beating the budget for bookings, revenue and EBITDA, the source said.

The company has improved EBITDA to over $145 million from $117 million, bringing pro forma net leverage to 2.8-times.

Thoma Bravo LLC and its investor group originally invested $500 million in equity, which will remain in the credit, the source added.

Communications Corp. call

Communications Corp. of America has scheduled a Tuesday lender call for its $157.5 million 5.5-year term loan B (B2/B).

J.P. Morgan Securities LLC is the lead.

The deal is talked with a Libor spread of 700 basis points with a 1.5% Libor floor. The original issue discount remains to be determined.

Proceeds will be used to refinance existing debt.

The borrower is a Louisiana-based TV broadcasting company focused on operating local TV stations in small and medium-sized markets.

Edgen Murray ABL

Edgen Murray Corp. plans to put in place a new global asset-backed revolving credit facility to replace its two existing senior secured asset-backed revolving credit facilities.

The company expects that it will be a multi-currency facility with sublimits available to its subsidiaries in the United States and certain foreign countries.

Edgen also announced on Monday that it plans to price $575 million of eight-year senior secured notes.

The deal is expected to price this week via joint bookrunners Jefferies & Co., Morgan Stanley & Co. and Bank of America Merrill Lynch, according to a syndicate source.

The Baton Rouge, La.-based steel company plans to use the proceeds from the notes to refinance debt.

Wolverine repricing term B

Wolverine Worldwide, Inc. has launched a repricing of its $350 million seven-year term loan B, according to a market source.

The deal, which is being led by J.P. Morgan Securities LLC, would take the Libor spread to 300 basis points from 375 basis points.

Discount talk is 99.75 to par. An original issue discount of 99 will be paid to originally allocated lenders on the closing date.

A 101 soft call will be paid to original lenders on the closing date and will be refreshed for one year from the closing date.

There will be a 187.5 bps ticking fee from July 16.

The expected closing date is Oct. 9.

Wolverine Worldwide is a Rockford, Mich.-based marketer of branded casual, active lifestyle, work, outdoor sport and uniform footwear and apparel.

BSN repricing deals

BSN Medical plans to launch a repricing of its dollar- and euro-denominated term loans on Tuesday, according to a market source.

The Libor spread on the dollar-denominated term loan B1 is repriced to 375 basis points from 475 bps. The Libor floor remains unchanged at 1.25%. The tranche features a 101 soft call. There will be no OID.

The spread on the euro-denominated term loan B2 is repriced to 425 bps from 500 bps. The Libor floor drops to 1% from 1.25%. The reoffer price is 99.5. The deal comes with a 101 soft call.

J.P. Morgan Securities LLC is leading the deal.

The consent date is Oct. 10.

BSN is a Hamburg, Germany-based medical supplies manufacturer.

Level 3 closes repricing

Level 3 Communications, Inc. announced in a Monday press release that its subsidiary, Level 3 Financing, Inc., has successfully completed the marketing of its new senior secured tranche B-II 2019 term loan to fully refinance its existing tranche B II and trance B III term loans under its existing senior secured credit facilities.

The $1.2 billion tranche B-II 2019 seven-year term loan will bear interest at Libor plus 325 bps with a 1.5% Libor floor and will mature on Aug. 1, 2019. It was priced at par.

As reported, Bank of America, Citigroup, Morgan Stanley, Credit Suisse, Deutsche Bank and JPMorgan led the refinancing.

The existing tranche B II and tranche B III term loans due 2018 have interest rates of Libor plus 425 bps with a 1.5% Libor floor. As a result of this refinancing, the company expects to save about $12 million of cash interest payments per year.

The closing of the refinancing transaction is scheduled to be completed on Oct. 4, subject to execution of definitive documentation and customary closing conditions.

Level 3 is a Broomfield, Colo., provider of fiber-based communications services.

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