Ocwen nears par with financials update and amendment talk; Creative Artists modifies OID

By Sara Rosenberg

New York, April 14 – Ocwen Financial Corp.’s term loan was seen trading close to par during Tuesday’s session in connection with the dissemination of preliminary yearly financial results and indication that a potential loan amendment is in the works.

Over in the primary, Creative Artists Agency LLC tightened the original issue discount on its add-on term loan B as a result of strong demand, and 21st Century Oncology Inc. came out with price talk on term loan B with launch.

In addition, HanesBrands Inc. is getting ready to bring a refinancing transaction to market, Securus Technologies Holdings Inc. emerged with incremental term loan plans, and IPC Corp. scheduled a loan lender call.

Ocwen levels surface

Ocwen Financial’s term loan was quoted at 99 bid, par offered on Tuesday as the company released preliminary results for its fiscal year 2014 and disclosed that it is talking to senior secured term loan lenders about a potential amendment, according to a market source.

The source said that, prior to Tuesday, he last saw the term loan quoted at 95 bid in early March.

For the fiscal year, the company is estimating a net loss of $546 million, or $4.18 per share, compared to net income of $310.4 million, or $2.13 per share, for the year ended Dec. 31, 2013.

Preliminary revenue for 2014 is $2.1 billion, versus $2 billion in the prior year.

“I am encouraged by the progress Ocwen has made so far in 2015. We currently expect to be profitable in 2015 and meet all of our ongoing financial and servicing obligations. In addition to generating substantial cash flow from pending asset sales that have already been announced so far this year, we expect our historical track record of generating substantial cash flow from operations to continue in 2015 and beyond,” said Ron Faris, president and chief executive officer, in a news release.

Ocwen is an Atlanta-based servicer and originator of mortgage loans.

Creative Artists tweaks loan

Moving to the primary, Creative Artists Agency changed the original issue discount on its fungible $45 million add-on covenant-light term loan B due Dec. 17, 2021 to 99 7/8 from 99½, according to a market source.

The add-on term loan is priced at Libor plus 450 basis points with a 1% Libor floor and has 101 soft call protection until Dec. 17, 2015, all of which matches the existing term loan B.

Recommitments were due at noon ET on Tuesday.

Bank of America Merrill Lynch is leading the deal that will be used to pay down revolver borrowings.

Creative Artists is a Los Angeles-based entertainment and sports firm.

21st Century sets talk

21st Century Oncology held its bank meeting on Tuesday, launching its $570 million seven-year first-lien term loan B with talk of Libor plus 525 bps to 550 bps with a 50 bps pricing step-down at 4.5 times total net leverage, a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $695 million senior credit facility (B1) also includes a $125 million revolver.

Commitments are due at noon ET on April 27, the source added.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., KeyBanc Capital Markets LLC and HSBC Bank are leading the credit facility that will be used to refinance existing debt.

21st Century Oncology is a Fort Meyers, Fla.-based provider of cancer treatment services.

HanesBrands readies deal

HanesBrands set a lender call for 1:30 p.m. ET on Wednesday to launch a $1.75 billion senior secured credit facility, according to a market source.

The facility consists of a $1 billion five-year revolver, a $425 million five-year term loan A and a $325 million seven-year term loan B.

Talk on the term loan B is Libor plus 275 bps to 300 bps with a 0.75% Libor floor and 101 soft call protection for six months, the source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

HanesBrands is a Winston Salem, N.C.-based marketer of everyday basic apparel.

Securus on deck

Securus Technologies scheduled a lender call for 1 p.m. ET on Wednesday to launch a $205 million incremental covenant-light term loan B-2 due April 2020 that is talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on April 24, the source added.

Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. are leading the deal that will be used to fund the acquisition of JPay Inc.

Securus is a Dallas-based provider of advanced inmate communications, investigative technologies and information management solutions to the corrections industry. JPay is a Miami-based provider of inmate payments, email, and tablet products.

IPC plans call

IPC will hold a call for senior secured lenders at 11 a.m. ET on Wednesday, according to a market source, who said details on the purpose of the call are not yet available.

The company’s existing credit facility consists of a $25 million revolver, a $595 million first-lien term loan due Aug. 6, 2021 priced at Libor plus 550 bps with a 1% Libor floor, and a $305 million second-lien covenant-light term loan due Jan. 6, 2022 priced at Libor plus 950 bps with a 1% Libor floor.

Barclays is the left lead on the credit facility.

IPC is a Jersey City, N.J.-based provider of mission-critical network services and trading communication technology to the financial markets community.

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