Visant, Media General, Datapipe free to trade; Getty Images retreats; SeaWorld down again

By Sara Rosenberg

New York, Aug. 14 – Visant Corp. added a ticking fee to its term loan and then freed up for trading on Thursday afternoon, and Media General Inc. and Datapipe Inc. hit the secondary as well.

Also in trading, Getty Images Inc.’s term loan B softened on quarterly numbers, and SeaWorld Parks & Entertainment Inc.’s term loan B continued to fall on the back of its disappointing earnings.

Moving to the primary, Travelport LuxCo upsized its term loan B, raised the spread, adjusted the pricing step-down, reworked the original issue discount and extended the call protection, and Prestige Brands Inc. increased pricing on its term loan B.

In addition, NN Inc. widened the spread and offer price on its term loan, and Acosta Sales & Marketing finalized pricing on its term loan at the wide end of revised talk and adjusted the original issue discount.

Furthermore, EP Minerals LLC moved some funds between its term loans, firmed spreads and widened the discount on the second-lien tranche, and Bioplan/Arcade Marketing pulled its credit facility from market with the intention being to relaunch the transaction next month.

Visant adds fee, trades

Visant added a ticking fee to its $775 million seven-year first-lien term loan of half the spread from days 31 to 60 and the full spread thereafter, according to a market source.

Pricing on the loan remained at Libor plus 600 basis points with a 1% Libor floor and an original issue discount of 98, and there is still 101 soft call protection for one year.

Earlier in syndication, pricing on the term loan was increased from Libor plus 450 bps, the discount was changed from 99 and the call protection was extended from six months.

The company’s $875 million credit facility (BB-) also includes a $100 million revolver.

Recommitments were due at noon ET on Thursday and with final terms in place, the deal broke for trading with term loan levels quoted at 98 bid, 98½ offered, a trader remarked.

Credit Suisse Securities (USA) LLC is leading the deal that will refinance existing bank debt.

Visant is an Armonk, N.Y.-based marketing and publishing services enterprise servicing the school affinity, direct marketing, fragrance, cosmetic and personal care sampling and packaging and educational and trade publishing segments.

Media General tops OID

Media General’s fungible $75 million add-on term loan emerged in the secondary as well, with levels quoted at 99 5/8 bid, 99 /78 offered on the open and then it moved up to 99¾ bid, par offered, a trader said.

The loan is priced at Libor plus 325 bps with a 1% Libor floor and was sold at an original issue discount of 99½.

RBC Capital Markets is leading the deal that will be used to help fund the acquisition of WHTM TV, an ABC affiliate in Harrisburg, Pa., currently owned by Allbritton Communications, for $83.4 million in cash.

Media General is a Richmond, Va.-based local television broadcasting and digital media company.

Datapipe tweaked, breaks

Datapipe upsized its add-on first-lien term loan B due March 15, 2019 to $32.5 million from $30 million and set the original issue discount at 98, the wide end of the 98 to 98½ talk, and firmed the discount on its $30 million add-on second-lien term loan due Sept. 15, 2019 at 98, the tight end of the 97½ to 98 talk, according to a market source.

The add-on first-lien term loan is priced at Libor plus 425 bps with a 1% Libor floor and has 101 soft call protection through Oct. 16, and the add-on second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor and has hard call protection of 101 through March 15, 2015.

By late day, the debt freed up for trading, with the first-lien loan quoted at 98¼ bid, 99 offered and the second-lien loan quoted at 98 bid, 99 offered, a trader added.

Morgan Stanley Senior Funding Inc., TD Securities (USA) LLC and Jefferies Finance LLC are leading the $62.5 million of fungible add-on senior secured term loans that will be used to fund the acquisition of Layered Tech and for general corporate purposes.

Datapipe, a Jersey City, N.J.-based IT services company, expects the loans to close on Monday.

Getty Images slides

In more trading happenings, Getty Images’ term loan B softened to 94½ bid, 95½ offered from 95½ bid, 96¼ offered as the company released to lenders its quarterly numbers, according to one trader.

A second trader, meanwhile, had the loan at 94¼ bid, 94¾ offered, down from 95¾ bid, 96¼ offered.

The earnings results “didn’t look great”, the trader added.

Getty Images is a Seattle-based creator and distributor of still imagery, video and multimedia products.

SeaWorld falls further

SeaWorld Parks & Entertainment’s term loan B dropped to 95¾ bid, 96¾ offered from 96¼ bid, 97¼ offered as investors continued to react to recently released second quarter numbers, a trader said. Prior to earnings news, the loan was quoted at 97¾ bid, 98¼ offered.

For the quarter, the company reported revenue of $405.2 million versus $411.3 million in the second quarter of 2013, net income of $37.3 million, or $0.43 per diluted share, compared to a net loss of $15.9 million, or $0.18 per diluted share, in the prior year, and adjusted EBITDA of $126.1 million, down from $127 million last year.

The company also said that it now expects full year 2014 revenue to be down in the range of 6% to 7% and full year adjusted EBITDA to be down in the range of 14% to 16%.

Additionally, on Thursday, Standard & Poor’s said it lowered the corporate credit rating on SeaWorld to BB- from BB and the senior secured credit facility rating to BB from BB+.

S&P said that it believes the significant factor hurting SeaWorld, an Orlando-based theme park operator, is negative media reports targeting the company’s use of Orca whales for entertainment purposes.

Travelport reworks deal

Over in the primary, Travelport upsized its seven-year term loan B to $2,375,000,000 from $2.3 billion, lifted pricing to Libor plus 500 bps from Libor plus 400 bps, moved the original issue discount to 98¾ from revised talk of 98½ and initial talk of 99, and pushed out the 101 soft call protection to one year from six months, according to a market source, who said the 1% Libor floor was unchanged.

In addition, the pricing step-down on the term loan B was changed to 25 bps upon a qualified initial public offering and B2/B corporate ratings from a 50 bps step-down upon completion of a qualified initial public offering, the incremental facility was cut to $300 million from $500 million with unlimited amounts at 0.25 times below the closing first-lien net leverage ratio, and the initial restricted payments baskets was reduced to $50 million from $100 million, the source continued.

The company’s now $2,475,000,000 facility (B3/B-) also provides for a $100 million five-year revolver.

Included in the term loan is a maintenance covenant based on the net first-lien leverage ratio with 35% headroom to match the revolver.

Travelport readies allocations

Recommitments for Travelport’s credit facility were due at the close of business on Thursday, allocations are targeted for Friday and closing is expected on Sept. 2, the source added.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance the company’s existing capital structure, including its first- and second-lien term loans, senior floating-rate notes due 2016, 13 7/8% senior notes due 2016, 11 7/8% senior subordinated notes due 2016, 11 7/8% dollar senior subordinated notes due 2016 and 10 7/8% senior subordinated euro notes due 2016.

The company also plans to use for the refinancing a $425 million senior unsecured bridge loan, which may be replaced by or exchanged for high-yield bonds. This bridge loan was downsized from $500 million with the term loan B upsizing.

Travelport Ltd. is an Atlanta-based provider of transaction processing services to the travel industry.

Prestige lifts spread

Prestige Brands increased pricing on its $720 million seven-year senior secured incremental term loan B (B1/BB) to Libor plus 350 bps from Libor plus 300 bps, and kept the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months intact, a market source said.

Commitments were due at 5 p.m. ET on Thursday, the source added.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and RBC Capital Markets are leading the loan that will help fund the $750 million acquisition of Insight Pharmaceuticals Corp. from Swander Pace Capital and Ontario Teachers’ Pension Plan.

Closing is expected in the first half of this fiscal year, subject to customary closing conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act of 1976.

Prestige Brands is a Tarrytown, N.Y.-based marketer and distributor of over-the-counter and household cleaning products. Insight Pharmaceuticals is a Trevose, Pa.-based marketer and distributor of feminine care and other over-the-counter health care products.

NN changes emerge

NN raised the spread on its $350 million seven-year covenant-light term loan (B2/B+) to Libor plus 500 bps from Libor plus 425 bps, modified the original issue discount to 98½ from 99, increased amortization to 5% per annum from 1%, and trimmed the incremental facility to $50 million subject to a 4 times leverage test from $100 million, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for one year.

Allocations are expected on Friday, the source said.

In addition to the term loan, the company’s $450 million senior secured credit facility includes a $100 million five-year asset-based revolver.

Bank of America Merrill Lynch and Keybanc Capital Markets are leading the deal, with Bank of America left lead on the term loan and Keybanc left lead on the revolver.

NN buying Autocam

Proceeds from NN’s credit facility will be used to help fund the acquisition of Autocam Corp. for $244.5 million in cash, $25 million of stock and the assumption of $30.5 million of debt, to refinance NN’s outstanding debt and for working capital and general corporate purposes.

Closing is expected in the third quarter, subject to customary conditions and regulatory approval.

NN is a Johnson City, Tenn.-based manufacturer of high precision metal bearing components, industrial plastic and rubber products and precision metal components. Autocam is a Grand Rapids, Mich.-based manufacturer of highly complex, system critical components for fuel systems, engines and transmission, power steering and electric motors.

Acosta updates deal

Acosta firmed pricing on its $2,065,000,000 seven-year term loan at Libor plus 400 bpsnts, the wide end of revised talk of Libor plus 375 bps to 400 bps and up from initial talk of Libor plus 350 bps to 375 bps, and set the original issue discount at 99¼, versus revised talk of 99 and initial talk of 99 to 99½, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for one year. Earlier in syndication, the call protection was extended from six months.

The company’s $2.29 billion credit facility also includes a $225 million five-year revolver.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to help fund the buyout of the company by Carlyle Group from Thomas H. Lee Partners LP, and GIC, a current investor in Acosta, will re-invest in the company.

Closing is expected in the third quarter.

Acosta is a Jacksonville, Fla.-based full-service sales and marketing agency in the consumer goods industry.

EP Minerals modified

EP Minerals increased its six-year first-lien term loan (B2/B+) to $180 million from $175 million, set pricing at Libor plus 450 bps, the low end of revised talk of Libor plus 450 bps to 475 bps but up from initial talk of from Libor plus 425 bps, and extended the 101 soft call protection to one year from six months, a market source said.

Also, the seven-year second-lien term loan (Caa2/CCC+) was cut to $70 million from $75 million, the spread finalized at Libor plus 750 bps, the wide end of the Libor plus 725 bps to 750 bps talk, and the discount moved to 98½ from 99, the source continued.

As before, the first-lien term loan has a 1% Libor floor and an original issue discount of 99½, and the second-lien term loan has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $275 million senior secured facility also includes a $25 million revolver (B2/B+).

BMO Capital Markets and BNP Paribas Securities Corp. are leading the deal that will refinance existing debt and fund a dividend.

EP Minerals is a Reno, Nev.-based provider of diatomaceous earth and perlite filter aids, functional additives and absorbents.

Bioplan pulled, plans relaunch

Bioplan/Arcade Marketing withdrew its $585 million credit facility from the primary due to unfavorable market conditions, however, the company is targeting to relaunch the deal in September, a source remarked.

The facility consists of a $65 million revolver (B2/B+), a $375 million seven-year first-lien covenant-light term loan (B2/B+) and a $145 million eight-year second-lien covenant-light term loan (Caa2/B-).

Talk on the first-lien term loan was Libor plus 450 bps with a 1% Libor floor, an original issue discount of 98½ and 101 soft call protection for six months, after flexing the other day from talk of Libor plus 400 bps to 425 bps with a discount of 99.

The second-lien term loan was talked at Libor plus 800 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, following a recent flex from talk of Libor plus 750 bps to 775 bps with a discount of 99.

Also, the term loans had a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Bioplan lead banks

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc. are leading Bioplan/Arcade’s credit facility, with Goldman the left lead on the first-lien loan and Credit Suisse the left lead on the second-lien loan.

Proceeds will be used to fund the merger of the two companies.

Under the agreement, Oaktree Capital Management LP, the current owner of Bioplan, will retain a 75% ownership interest and KKR and DLJ Merchant Banking, the current owners of Arcade, will retain a 25% ownership interest in the combined company.

Closing on the merger is expected by the beginning of the fourth quarter, subject to customary conditions and regulatory reviews.

Bioplan is a provider of unit-dose sampling and promotional turnkey services. Arcade Marketing is a New York-based provider of sampling services for the fragrance, cosmetics and skincare segments.

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