Boulder Brands, Ikaria, MedSolutions free up; Cengage softens on back of bankruptcy filing

By Sara Rosenberg

New York, July 3 - Boulder Brands Inc.'s credit facility made its way into the secondary market on Wednesday morning, with the term loan seen trading above its original issue discount price, and Ikaria Acquisition Inc. and MedSolutions freed up as well.

Also in trading, Cengage Learning Acquisitions Inc.'s term loans weakened in the wake of the company's bankruptcy filing.

Switching to the primary market, True Religion Apparel Inc. revealed timing on the launch of its buyout financing credit facility.

Boulder Brands starts trading

Boulder Brands' credit facility broke for trading on Wednesday, with the $250 million seven-year covenant-light senior secured term loan B quoted at 99½ bid, par ½ offered, according to a market source.

Pricing on the B loan is Libor plus 400 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

Recently, the loan was upsized from $245 million and pricing was raised from Libor plus 350 bps.

The company's $330 million credit facility (B1/B+) also includes an $80 million five-year revolver that was upsized from $75 million.

Proceeds from the facility that is expected to close on Monday will be used to refinance existing debt and the funds raised through the upsizing will be put on the balance sheet.

Citigroup Global Markets Inc., BMO Capital Markets and Barclays are leading the deal for the Paramus, N.J.-based health and wellness food company.

Ikaria breaks

Ikaria's $850 million of debt also hit the secondary market, with both the $525 million five-year first-lien term loan (B1/B) and the $325 million six-year second-lien term loan (Caa1/CCC+) quoted at 99½ bid, par ½ offered, a market source said.

Pricing on the first-lien term loan is Libor plus 600 bps with a 1.25% Libor floor and it was sold at a discount of 981/2. There is call protection of 102 for six months and 101 for a year thereafter.

The second-lien term loan is priced at Libor plus 975 bps with a 1.25% floor and was sold at 981/2. This debt is non-callable for six months, then at 104 for six months, 102 for a year and 101 for a year.

Ikaria recapitalizing

Proceeds from Ikaria's loans, which are being led by Credit Suisse Securities (USA) LLC, will finance a dividend payment, repay existing debt and pre-fund research and development.

During syndication, the first-lien term loan was downsized from $550 million, pricing was lifted from talk of Libor plus 525 bps with a 1% floor and a discount of 99, the maturity was shortened from six years and the call protection was changed from a 101 soft call for one year.

Also in syndication, the second-lien loan was upsized from $300 million, pricing was revised from Libor plus 925 bps with a 1% floor, the maturity was shortened from seven years and the call protection was sweetened from 103 in year one, 102 in year two and 101 in year three.

Ikaria is a Hampton, N.J.-based biotherapeutics company.

MedSolutions tops OID

MedSolutions' credit facility freed up too, with the $300 million six-year term loan B seen at 99½ bid, par offered, sources said.

Pricing on the term loan is Libor plus 525 bps with a 1.25% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

During syndication, the term loan was cut from $360 million, pricing was flexed from Libor plus 400 bps, the discount firmed at the high end of the 99 to 99½ talk, and a total net debt covenant was added to the initially covenant-light tranche.

The company's $375 million credit facility also includes a $75 million five-year revolver.

SunTrust Robinson Humphrey Inc. and Fifth Third Securities Inc. are leading the deal that will be used to refinance existing debt and fund a dividend, which was reduced as a result of the term loan B downsizing.

MedSolutions is a Franklin, Tenn.-based provider of medical cost management services.

Cengage slides

In more trading news, Cengage's extended term loan, non-extended term loan and incremental term loan all dropped during Wednesday's session to 70½ bid, 72½ offered from 73½ bid, 76½ offered, according to a trader.

On Tuesday, the Stamford, Conn.-based educational content, software and services company announced that it filed for Chapter 11 and entered into a restructuring support agreement with an ad hoc committee of first-lien lenders who hold about $2 billion of its first-lien debt.

Prior to the bankruptcy filing, the term loans were all quoted at 74 bid, 75 offered.

The restructuring is expected to eliminate more than $4 billion in debt from the balance sheet and position the company to implement management's strategic business plan.

The company is not planning on getting a debtor-in-possession financing facility as it maintains substantial cash balances and expects to generate positive cash flow, a news release said. Secured lenders have agreed to let the company use its use cash flow from operations to continue to fund the business and meet obligations in the normal course during the restructuring process.

True Religion sets launch

Over in the primary, True Religion Apparel disclosed timing on its $535 million senior secured credit facility, as a bank meeting has been scheduled for 10 a.m. ET in New York on Tuesday to launch the deal to investors, according to market sources.

The facility consists of a $50 million asset-based revolver, a $375 million seven-year first-lien covenant-light term loan and a $110 million eight-year second-lien covenant-light term loan, sources said.

Deutsche Bank Securities Inc., Jefferies Finance LLC, UBS Securities LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used with up to $175 million in equity and cash on hand to fund the company's buyout by TowerBrook Capital Partners LP for $32 per share in cash in a transaction valued at about $835 million.

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

True Religion is a Vernon, Calif.-based jeans and jeans-related sportswear company.

Springer deadline emerges

Springer Science + Business Media revealed that commitments will be due on July 23 for its $1,553,000,000 seven-year first-lien covenant-light term loan that will launch with a bank meeting at 11 a.m. ET in New York on Tuesday, according to a market source.

The company's credit facility also includes a €150 million revolver and a €565 million seven-year first-lien covenant-light term loan.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays, Nomura and UBS Securities LLC are the lead banks on the deal.

Proceeds, along with €640 million of subordinated debt that has been privately placed with Goldman Sachs Mezzanine fund, will fund the buyout of the Berlin-based STM publisher by BC Partners from EQT Partners and the Government of Singapore Investment Corp. for around €3.3 billion.

Senior leverage is about 5 times, and total leverage is just shy of 7 times.

American Casino closes

American Casino & Entertainment Properties LLC completed its $350 million credit facility that consists of a $15 million revolver (B1/BB), a $215 million six-year first-lien term loan (B1/BB) and a $120 million 61/2-year second-lien term loan (Caa2/B-), according to a news release.

The first-lien loan is priced at Libor plus 475 bps with a 1.25% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

As for the second-lien loan, it is priced at Libor plus 1,000 bps with a 1.25% Libor floor and it was sold at 97. The debt is non-callable for two years, then at 103 in year three and 101 in year four.

Recently, the spread on the first-lien loan was increased from Libor plus 425 bps and the maturity was shortened from seven years, and pricing on the second-lien loan was lifted from talk of Libor plus 825 bps to 850 bps, the discount was modified from 98, the maturity was shortened from 7½ years, and the call protection was changed from non-callable for one year, then at 102 in year two and 101 in year three.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that is being used by the Las Vegas-based gaming and entertainment company to redeem 11% senior secured notes.

TransDigm wraps

TransDigm Inc. closed on its $900 million first-lien covenant-light tack-on term loan C (Ba3/B+) due February 2020, a news release said.

Pricing on the loan is Libor plus 300 bps with a 0.75% Libor floor, and it was sold at an original issue discount at 98. There is 101 soft call protection for one year.

During syndication, the loan was upsized from $700 million and the discount firmed at the wide end of the 98 to 98½ talk.

Credit Suisse Securities (USA) LLC, UBS Securities LLC, Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. led the deal that was used with $500 million of notes to fund a dividend.

In connection with the term loan upsizing, the bond deal was reduced from an originally expected size of $700 million.

TransDigm is a Cleveland-based designer, producer and supplier of aircraft components.

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