21st Century, Trinseo, HanesBrands break; Compusearch, RadNet, Penton Media reveal changes

By Sara Rosenberg

New York, April 28 – 21st Century Oncology Inc. increased the size of its term loan B, set the spread at the high end of talk, eliminated a pricing step-down, sweetened the call protection and then freed up for trading on Tuesday, and deals from Trinseo Materials Operating SCA and HanesBrands Inc. hit the secondary market too.

In more happenings, Compusearch and RadNet Inc. tightened issue prices on their first-lien term loan debt, and Penton Media Inc. trimmed the spread and Libor floor on its add-on term loan, approached investors with a repricing proposal for its existing term loan and added call protection to the debt.

Furthermore, SIG Combibloc Group AG (Onex Wizard Acquisition), Houghton Mifflin Harcourt Publishers Inc., Aria Energy Operating LLC and A. Schulman Inc. came out with price talk on their loans, and Script Relief LLC and Air Canada emerged with new deal plans.

21st Century reworked, trades

21st Century Oncology lifted its seven-year first-lien term loan B to $610 million from $570 million, finalized pricing at Libor plus 550 basis points, the wide end of the Libor plus 525 bps to 550 bps talk, removed a 50 bps pricing step-down at 4.5 times total net leverage and revised the call protection to a hard call of 102 in year one and 101 in year two, with a par public equity carve-out, from a 101 soft call for six months, according to a market source.

Unchanged on the term loan B was the 1% Libor floor and original issue discount of 99.

The company’s now $735 million senior credit facility also includes a $125 million revolver.

Commitments were due at 11 a.m. ET on Tuesday, and by late day the debt surfaced in the secondary market, with levels quoted at 99½ bid, par offered, a trader said.

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 with $360 million of 11% senior notes, downsized from $400 million with the term loan B upsizing, to refinance existing debt.

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

Trinseo frees up

Trinseo’s credit facility broke for trading too, with the $500 million 6½-year covenant-light term loan B quoted at 100¼ bid, 100¾ offered on the open and then it moved to 100 3/8 bid, 100 7/8 offered, a trader said.

Pricing on the term loan B is Libor plus 325 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99¾. There is 101 soft call protection for six months.

During syndication, the term loan B was upsized from $450 million as the company’s senior notes offering was downsized to $700 million-equivalent from $750 million-equivalent, pricing was trimmed from Libor plus 375 bps, and the discount was tightened from talk of 99 to 99½.

Trinseo’s $825 million senior secured facility (Ba3/BB-) also includes a $325 million five-year revolver.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, Goldman Sachs Bank USA, HSBC Securities, Mizuho, SMBC and Scotiabank are leading the deal that that will refinance 8¾% senior secured notes.

The Berwyn, Pa.-based materials company and manufacturer of plastics, latex and rubber expects to close on the new loan next week.

HanesBrands tops par

HanesBrands’ credit facility also began trading, with the $425 million seven-year term loan B seen at 100¼ bid, 100¾ offered and then it moved up to 100½ bid, 101 offered, a trader remarked.

Pricing on the term loan B is Libor plus 250 bps with a 0.75% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

During syndication, the term loan B was upsized from $325 million, pricing was trimmed from talk of Libor plus 275 bps to 300 bps, the issue price was modified from 99½, and the call protection was pushed out from six months.

The company’s $1.85 billion senior secured credit facility (Baa3/BBB-) also includes a $1 billion five-year revolver and a $425 million five-year term loan A.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt, and, due to the recent term loan B upsizing, borrowings under the revolver will be reduced.

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

Compusearch tweaks discount

Back in the primary, Compusearch modified the original issue discount on its $115 million six-year first-lien term loan B to 99¾ from 99, while keeping pricing at Libor plus 450 bps with a 1% Libor floor, a market source said.

As before, the term loan B has 101 soft call protection for six months.

The company’s $181 million facility also includes a $15 million revolver and a $51 million 6½-year second-lien term loan that was privately placed.

Recommitments were due by the end of the day on Tuesday, the source added.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to help fund the buyout of the company by ABRY Partners.

Compusearch is a Dulles, Va.-based provider of software and services that advance commerce and collaboration among government agencies and contractors.

Radnet update emerges

RadNet revised the issue price on its fungible $75 million incremental first-lien term loan due Oct. 10, 2018 to par from talk in the 99¾ area, according to a market source.

The incremental loan is still priced at Libor plus 325 bps with a 1% Libor floor, which matches existing first-lien term loan pricing.

Commitments were due at 5 p.m. ET on Tuesday.

Barclays is leading the deal that will be used to repay revolver debt and for general corporate purposes.

RadNet is a Los Angeles-based owner and operator of fixed-site diagnostic imaging centers.

Penton revises deal

Penton Media cut pricing on its $60 million add-on term loan to Libor plus 400 bps with a 1% Libor floor from Libor plus 425 bps with a 1.25% Libor floor, and is now seeking a repricing of its existing $454 million term loan to Libor plus 400 bps with a 1% Libor floor from Libor plus 425 bps with a 1.25% Libor floor, a source said.

Also, 101 soft call protection for six months was added to all of the term loan debt, the source remarked.

As before, the incremental term loan is offered at par. The newly added repricing is offered at par too.

Proceeds from the add-on loan will be used to support acquisitions.

Commitments are due on May 5, the source added.

GE Capital Markets is leading the deal for the New York-based tradeshow and professional information services company.

SIG Combibloc launches

Also on the new deal front, SIG Combibloc held its lender call on Tuesday, launching the repricing of its $1,225,000,000 and €1.05 billion covenant-light term loans due March 13, 2022 with talk of Libor/Euribor plus 325 bps with a 1% floor, a par issue price and 101 soft call protection for one year, a market source said.

The repricing will take the loans down from Libor/Euribor plus 425 bps with a 1% floor, and extend the 101 soft call protection from March 13, 2016.

Existing loans are being paid out at 101 with the repricing, the source added.

Consents/commitments are due at 5 p.m. ET on Thursday, and closing is targeted for May 13.

Barclays is leading the deal.

SIG Combibloc is a Switzerland-based supplier of carton packaging and filling machines for beverages and food.

Houghton reveals guidance

Houghton Mifflin Harcourt Publishers launched with a morning meeting its $500 million six-year senior secured covenant-light term loan B (B1/BB/BB+) with talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on May 8, the source said.

Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal that will be used to help fund the acquisition of the Educational Technology and Services business of Scholastic Corp. for $575 million in cash, subject to customary working capital adjustments, and to replace an existing $180 million term loan.

Closing is expected in late May, subject to customary conditions and regulatory approval.

Houghton Mifflin Harcourt is a Boston-based provider of pre-K-12 education content, services and technology solutions. Educational Technology and Services is a provider of digital intervention curriculum, products and services as well as related implementation and assessment services and school consulting services.

Aria Energy sets talk

Aria Energy disclosed guidance of 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 on its $200 million seven-year term loan B that launched with a bank meeting during the session, a source remarked.

The company’s $270 million credit facility (Ba3/B) also includes a $70 million five-year revolver.

Commitments are due at 5 p.m. ET on May 12, the source added.

Barclays, RBC Capital Markets, M&T Bank and Comerica are leading the deal that will be used for working capital requirements and general corporate purposes, to refinance existing debt, to put cash on the balance sheet and to fund a distribution to the sponsor, Ares EIF.

Aria Energy is a Novi, Mich.-based owner, operator and developer of long-lived energy projects.

A. Schulman floats pricing

A. Schulman is talking its $425 million seven-year term loan B and €145 million seven-year term loan B at Libor/Euribor plus 350 bps to 375 bps with a 0.75% floor and an original issue discount of 99½ in preparation for its upcoming bank meeting in New York on Wednesday, according to a market source.

The company’s senior secured credit facility (Ba3/BB-) also includes a $300 million five-year revolver and a $200 million five-year term loan A.

J.P. Morgan Securities LLC is left lead on the deal that will be used to help fund the acquisition of Citadel Plastics Holdings Inc. from HGGC and Charlesbank Capital Partners for $800 million.

Closing is expected in the third quarter, subject to standard conditions.

A. Schulman is an Akron, Ohio-based supplier of high-performance plastic compounds, powders and resins. Citadel is a Chicago-based specialty engineered plastics company.

Script Relief coming soon

Script Relief scheduled a bank meeting for 11 a.m. ET in New York on Wednesday to launch a new credit facility, according to a market source, who said further details are not yet available.

Citigroup Global Markets Inc. is leading the deal.

Script Relief is a New York-based provider of pharmacy discount cards.

Air Canada on deck

Air Canada set a call for 11:30 a.m. ET on Wednesday to launch a new loan deal, according to a market source.

Citigroup Global Markets Inc. is leading the deal for the Montreal-based airline company.

Additional details on the transaction are not yet available, the source added.

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