Dex Media up on quarterly numbers; Hoffmaster, Eddie Bauer break; TASC reworks tranche sizes

By Sara Rosenberg

New York, May 6 - Dex Media East Inc. and Dex Media West Inc. saw their term loan levels rise in trading on Tuesday after the release of first-quarter numbers by parent company Dex Media Inc. that showed a year-over-year improvement in revenues.

Also, in the secondary market Hoffmaster Group Inc.'s credit facility freed up, with its first- and second-lien term loans quoted above their original issue discount prices, and Eddie Bauer Inc.'s term loan began trading as well.

Moving to the primary markets, TASC Inc. trimmed the size of its first-lien term loan and lifted the size of its second-lien term loan, and Capella Healthcare withdrew its refinancing transaction.

Furthermore, Floatel International Ltd. and Grede Holdings LLC released price talk with launch, and EnergySolutions LLC, 21st Century Oncology Inc. and Neff Rental LLC surfaced with new deal plans.

Dex Media strengthens

Dex Media East and West bank debt gained some ground in trading on Tuesday with the announcement of first quarter earnings results, according to a market source.

The East loan was quoted at 75 bid, 76 offered, up from 73¾ bid, 74¾ offered, and the West loan was quoted at 85 bid, 86 offered, up from 83½ bid, 84½ offered, the source said.

For the quarter, Dex Media reported operating revenue of $456 million, up from $288 million in the first quarter of 2013, a net loss of $82 million, or $4.74 per share, versus a net loss of $59 million, or $5.84 per share, in the prior year, and adjusted pro forma EBITDA of $194 million, compared to $230 million last year.

Cash provided by operations for the three months ended March 31 was $100 million less $3 million in capital expenditures, which resulted in free cash flow of $97 million. As a result of the strong free cash flow, the company was able to pay down $74 million of its bank debt during the quarter.

Dex Media is a Dallas-based provider of social, local and mobile marketing services through direct relationships with local businesses.

Hoffmaster tops OIDs

In more trading news, Hoffmaster's credit facility broke, with the $280 million six-year first-lien covenant-light term loan (B2/B) quoted at 99½ bid, par offered and the $84 million seven-year second-lien covenant-light term loan (Caa2/CCC+) quoted at 99 bid, par offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 425 basis points with a step-down to Libor plus 400 bps at 3.25 times first-lien leverage. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was sold at an original issue discount of 99.

The second-lien term loan is priced at Libor plus 900 bps with a 1% Libor floor and was sold at 981/2. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $399 million credit facility also includes a $35 million revolver.

Hoffmaster refinancing

Hoffmaster, an Oshkosh, Wis.-based producer of specialty disposable tabletop products, will use the proceeds from its new credit facility to take out existing debt.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and Macquarie Capital are leading the deal.

During syndication, the first-lien term loan was upsized from $265 million, the pricing step-down was added and the discount firmed at the wide end of the 99 to 99½ talk.

Additionally, during syndication, the second-lien term loan was downsized from $104 million, the spread was flexed from Libor plus 825 bps, the discount was changed from 99, and the call protection was sweetened from 103 in year one and 101 in year two.

Eddie Bauer frees up

Eddie Bauer's $225 million six-year term loan B (B3/B-) hit the secondary too, with levels seen at 98¾ bid, 99¾ offered, a trader remarked.

Pricing on the loan is Libor plus 525 bps with a 1% Libor floor and it was sold at a discount of 981/2. There is 101 soft call protection for one year.

Recently, the term loan was downsized from $250 million, pricing was increased from talk of Libor plus 425 bps to 450 bps, the discount widened from 99 and the call protection was extended from six months.

Goldman Sachs Bank USA, Guggenheim and MCS Capital are leading the deal that will be used to refinance existing debt and fund a dividend.

Eddie Bauer is a Bellevue, Wash.-based manufacturer of clothing, accessories and gear for men and women.

TASC tweaks sizes

On the primary front, in its latest round of changes, TASC reduced its six-year first-lien term loan (B1/B+) to $393 million from $432 million and raised its seven-year second-lien term loan (Caa2/CCC+) to $250 million from $200 million, according to a market source.

Pricing on the first-lien term loan remained at Libor plus 550 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien loan is still priced at a fixed rate of 12% with no floor and a discount of 98.

The first-lien term loan still has 101 soft call protection for one year, and the second-lien term loan is still non-callable for one year, then at 105 in year two and 102.5 in year three.

The company's now $693 million senior secured credit facility also includes a $50 million five-year revolver (B1/B+).

Recommitments were due by noon ET on Tuesday, the source added.

TASC lead banks

Barclays and KKR Capital are leading TASC's credit facility that will be used to refinance an existing credit facility, bringing net senior secured leverage to 3.6 times and net total leverage to 5.8 times.

The deal has underwent a number of revisions during syndication, including a widening of the second-lien loan offer price from par and a sweetening of its call protection from 102 in year one and 101 in year two. Also, a total net leverage covenant was added to the first- and second-lien tranches, eliminating their covenant-light status.

Also, initially, the company had launched an amendment and extension of its existing non-covenant-light credit facility, but that was shifted to plans for the new credit facility last month. The amendment would have extended the $632 million term B by two years to Dec. 18, 2017 and raised pricing to Libor plus 525 bps with a 1.25% Libor floor from Libor plus 325 bps with a 1.25% Libor floor, and extended the revolver by two years to Sept. 18, 2017 and reduced the size to $50 million from $80 million.

TASC is a Chantilly, Va.-based provider of advanced systems engineering and technical assistance to the defense, intelligence, federal and homeland security markets.

Capella withdrawn

Capella Healthcare pulled its $425 million first-lien term loan B (B1/B) and $160 million second-lien term loan (Caa1/CCC+) from market, according to a market source.

Talk on the first-lien term loan was Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, and talk on the second-lien term loan was Libor plus 700 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC were leading the deal that was going to be used to refinance $500 million 9¼% senior notes due 2017, purchase certain capital leases and for general corporate purposes.

Capella Healthcare is a Franklin, Tenn.-based developer and operator of health care facilities.

Floatel discloses talk

Floatel International held its bank meeting on Tuesday, launching its $650 million six-year covenant-light first-lien term loan with talk of Libor plus 475 bps to 500 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

As previously reported, the term loan has 101 soft call protection for one year.

Commitments are due at noon ET on May 20, the source added.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt.

Floatel is a Sweden-based owner and operator of offshore accommodation and construction support vessels.

Grede reveals talk

Grede Holdings came out with talk of 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 on its $600 million term loan that launched with a bank meeting during the session, a source remarked.

The company's $675 million credit facility (B1) also includes a $75 million revolver.

Commitments are due on May 19, the source added.

Goldman Sachs Bank USA, GE Capital Markets, Nomura and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by American Securities LLC.

Grede is a Southfield, Mich.-based producer of engineered iron castings to the automotive, medium and heavy truck and industrial markets.

EnergySolutions on deck

EnergySolutions set a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch an $825 million credit facility, according to a market source.

The facility consists of a $125 million revolver and a $700 million first-lien senior secured term loan, the source said.

Morgan Stanley Senior Funding Inc., Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt.

EnergySolutions is a Salt Lake City-based nuclear commercial services company.

21st Century readies deal

21st Century Oncology plans to hold a bank meeting at 2:30 p.m. ET in New York on Wednesday to launch a $640 million credit facility, according to a market source.

The facility consists of a $210 million revolver and a $430 million first-lien senior secured term loan, the source remarked.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, GE Capital Markets and Wells Fargo Securities LLC are leading the deal for Fort Myers, Fla.-based provider of cancer care services.

Neff coming soon

Neff Rental scheduled a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $525 million seven-year second-lien covenant-light term loan that is talked at Libor plus 650 bps with a 1% Libor floor, an original issue discount of 99, and hard call protection of 102 in year one and 101 in year two, a market source said.

Commitments are due on May 21, the source added.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading the deal that will be used to refinance existing secured notes and fund a dividend.

Neff is a Miami-based construction equipment rental company.

Caesars Growth closes

In other happenings, Caesars Growth Properties Holdings LLC completed its acquisition of Bally's Las Vegas, the Cromwell, the Quad Resort & Casino and Harrah's New Orleans from Caesars Entertainment Corp., a news release said.

For the acquisition and to refinance Planet Hollywood Resort & Casino's existing debt, Caesars Growth Properties got a $1,325,000,000 senior secured credit facility (B2/B+/BB-) comprised of a $150 million revolver, and a $1,175,000,000 seven-year first-lien term loan priced at Libor plus 525 bps with a 1% Libor floor and sold at an original issue discount of 991/2. The term loan is non-callable for one year, then at 101 in year two.

During syndication, pricing on the term loan was flexed from Libor plus 575 bps and the discount was revised from 99.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., UBS Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Macquarie Capital and Nomura led the deal for the Las Vegas-based casino asset and entertainment company.

Avago completes deal

Avago Technologies Ltd. closed on its $5.1 billion credit facility (Ba1/BBB-/BBB-) that provides for a $500 million five-year revolver and a $4.6 billion seven-year term loan B, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the revolver is Libor plus 250 bps and pricing on the term loan is Libor plus 300 bps with a 0.75% Libor floor and it was sold at a discount of 991/2. The term loan has 101 soft call protection for one year.

During syndication, pricing on the term loan was cut from Libor plus 325 bps, the discount was tightened from 99 and the call protection was extended from six months.

Deutsche Bank Securities Inc., Barclays, Bank of America Merrill Lynch and Citigroup Global Markets Inc. led the deal that was used to help fund the acquisition of LSI Corp. for $11.15 per share in an all-cash transaction valued at $6.6 billion.

Avago is a Singapore-based designer, developer and supplier of analog semiconductor devices. LSI is a San Jose, Calif.-based designer of semiconductors and software.

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