Air Canada, Raley’s break; Epicor, Merrill, Flint, Hubbard, American Gaming, CHG set talk

By Sara Rosenberg

New York, May 12 – Air Canada Inc.’s credit facility made its way into the secondary market on Tuesday, with the term loan trading above par, and Raley’s saw its term loan free up as well.

Moving to the primary market, Epicor Software Corp., Merrill Communications LLC, Flint Group (Colouroz Investment), Hubbard Radio LLC, American Gaming Systems and CHG Healthcare Services Inc. disclosed price talk with launch.

Additionally, Lightsquared released pricing guidance on its first-lien term loan in preparation for its upcoming bank meeting, and LegalShield and American Rock Salt joined this week’s calendar.

Air Canada frees up

Air Canada’s credit facility began trading on Tuesday, with the $300 million term loan B due Sept. 26, 2019 quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 325 basis points with a 0.75% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Last week, the spread on the term loan firmed at the tight end of the Libor plus 325 bps to 350 bps talk, and the Libor floor was reduced from 1%.

Proceeds will be used to reprice an existing term loan B from Libor plus 450 bps with a 1% Libor floor.

The company’s $510 million senior secured credit facility also includes a $210 million revolver due Sept. 26, 2018.

Citigroup Global Markets Inc. is leading the deal that is expected to close on Thursday.

Air Canada is a Montreal-based airline company.

Raley’s hits secondary

Raley’s $200 million seven-year term loan (B3/B+) also broke, with the debt quoted at 99 bid, a trader remarked.

Pricing on the term loan is Libor plus 625 bps with a 1% Libor floor, and it was sold at an original issue discount of 98. There is hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the loan was increased from Libor plus 550 bps, the discount widened from 99, and the call protection was changed from a 101 soft call for one year.

Wells Fargo Securities LLC leading the deal.

Along with the term loan, the company is getting a $200 million five-year asset-based revolver and a $43 million 10-year subordinated seller note.

Proceeds will be used to help fund the buyout of the West Sacramento, Calif.-based supermarket chain by Michael Teel, the current chief executive officer.

Epicor reveals pricing

Switching to the primary market, Epicor Software held its bank meeting on Tuesday afternoon, and with the event, talk on its $1.4 billion seven-year covenant-light first-lien term loan surfaced at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 for new money, an issue price of par for existing money and 101 soft call protection for six months, according to a market source.

The company’s $1.5 billion credit facility also includes a $100 million revolver.

Commitments are due on May 20, the source continued.

Jefferies Finance LLC, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used with $610 million of pre-placed second-lien notes to refinance existing debt and fund a dividend to investors, including Apax Partners.

First-lien leverage will be 5.1 times, and total leverage will be 7.3 times.

Epicor is a Dublin, Calif.-based provider of enterprise business software services.

Merrill releases talk

Merrill Communications came out with talk of Libor plus 475 bps with a 1% Libor floor and an original issue discount of 99 on its $510 million seven-year covenant-light first-lien term loan that launched with a morning bank meeting, according to a market source.

The term loan, which has 101 soft call protection for one year, is part of a $560 million credit facility (B2/BB-) that also includes a $50 million revolver.

Commitments are due on May 27.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to refinance existing debt.

Merrill is a St. Paul-based provider of outsourcing solutions for complex business communication and information management.

Flint Group launches

Flint Group held its call, launching the repricing of its $856 million first-lien term loan due Sept. 7, 2021 with talk of Libor plus 325 bps to 350 bps and the repricing of its €622 million first-lien term loan due Sept. 7, 2021 with talk of Euribor plus 300 bps to 325 bps, according to a market source.

Both term loans are also guided with a 1% floor, a 99.9 to par issue price and 101 soft call protection for six months, the source said.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal.

In connection with the repricing, the company is seeking an amendment to its credit facility to increase the junior debt prepayment basket to €100 million from €30 million.

Commitments and consent pages are due at noon ET on Friday.

Flint is a Luxembourg-based supplier of inks and other print consumables.

Hubbard holds call

Hubbard Radio surfaced in the morning with plans to hold a lender call at 11 a.m. ET to launch a $370 million senior secured credit facility (B1/BB-) split between a $10 million five-year revolver and a $360 million seven-year term loan B, a market source said.

Talk on the term loan B is Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, the source continued.

Commitments are due at noon ET on May 21.

Morgan Stanley Senior Funding is leading the deal that will be used to refinance an existing senior secured credit facility.

Hubbard Radio is a St. Paul, Minn.-based broadcasting company.

American Gaming talk

American Gaming Systems disclosed original issue discount talk of 99.5 on its fungible $250 million incremental term loan (B+) that launched during the session, a source remarked.

Pricing on the incremental loan is Libor plus 825 bps with a 1% Libor floor, in line with the existing term loan.

Commitments are due on May 22, the source added.

Jefferies Finance and Macquarie Capital are leading the deal that will be used with $115 million in senior secured PIK notes to fund the acquisition of Cadillac Jack Inc. from Amaya Inc. for C$476 million, consisting of C$461 million in cash and a C$15 million 5% PIK note.

Closing is expected this year, subject to gaming regulatory and antitrust approvals and other conditions.

American Gaming is a Las Vegas-based manufacturer and operator of gaming machines. Cadillac Jack is a designer and supplier of electronic games and systems for the regulated global gaming industry.

CHG discount emerges

CHG Healthcare Services held its call, launching its fungible $200 million add-on first-lien term loan (B2/B) with original issue discount talk of 99.5, according to market sources.

The add-on loan is priced at Libor plus 325 bps with a 1% Libor floor, which matches existing first-lien term loan pricing, and the debt is getting 101 soft call protection for six months.

Commitments are due on May 19, sources added.

Goldman Sachs Bank USA, Barclays, Citigroup Global Markets and Jefferies Finance are leading the deal.

Proceeds will be used by the Salt Lake City-based health-care staffing firm to repay second-lien term loan borrowings.

Lightsquared floats guidance

Lightsquared released talk of Libor plus 775 bps with a 1% Libor floor, an original issue discount of 97 and call protection of non-callable for one year, then at 102 in year two and 101 in year three on its $1.75 billion five-year first-lien term loan that is slated to launch with a bank meeting at 12:30 p.m. ET in New York on Wednesday, according to a market source.

The loan has a ticking fee of 1% for the first 120 days and an additional 1% after 120 days, the source said.

Credit Suisse Securities, Jefferies Finance and Morgan Stanley Senior Funding are leading the deal that will be used to fund the company’s exit from Chapter 11 and refinance debtor-in-possession facilities.

Commitments are due on May 27.

LightSquared is a Reston, Va.-based wireless communications company.

LegalShield on deck

LegalShield set a call for 2 p.m. ET on Wednesday to launch a $70 million add-on loan (B+) and an amendment of its outstanding $400 million senior secured credit facility, according to market sources.

Morgan Stanley Senior Funding is leading the deal.

The add-on loan will be used to fund a dividend, sources remarked.

LegalShield is an Ada, Okla.-based provider of legal services.

American Rock readies loan

American Rock Salt will hold a bank meeting at 10 a.m. ET on Friday to launch an $80 million incremental covenant-light first-lien term loan talked at Libor plus 375 bps with a 1% Libor floor and an original issue discount that is still to be determined, a market source remarked.

The spread and floor on the incremental loan matches the existing first-lien term loan.

RBS Citizens is leading the deal that will be used to with cash on hand to repay a $120 million second-lien covenant-light term loan at its 102 call protection.

American Rock Salt is a Retsof, N.Y.-based salt mine operator.

W&T Offshore closes

In other news, W&T Offshore Inc. completed its $300 million five-year second-lien term loan (B+) that priced at a fixed rate of 9% and was sold at an original issue discount of 99, for a yield of 9¼%, a news release said.

The loan is non-callable for two years, and the first call is at 50% coupon. There is a 101 investor put at a change-of-control, and if more than $50 million of W&T Offshore’s 2019 senior notes remain outstanding 30 days prior to the maturity of the second-lien loan, the company is required to make an offer to purchase the loan.

Morgan Stanley Senior Funding, TD Securities (USA) LLC, Wells Fargo Securities, Scotiabank, Natixis, Citigroup Global Markets and Goldman Sachs Bank USA led the deal that was used to repay a reserve-based facility.

W&T Offshore is a Houston-based oil and natural gas producer.

Quintiles completes deal

Quintiles Transnational Corp. closed on its $1.95 billion senior secured credit facility that includes a $500 million five-year revolver, an $850 million five-year term loan A and a $600 million seven-year term loan B, according to a news release.

Pricing on the term loan B is Libor plus 250 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75. There is 101 soft call protection for six months.

During syndication, the term loan B was upsized from $500 million, and pricing was lowered from talk of Libor plus 275 bps to 300 bps. The term loan A was upsized from $750 million.

Proceeds were used with $800 million of unsecured debt to refinance existing bank debt and for general corporate purposes, including corporate transactions and equity repurchases.

JPMorgan, Barclays, Morgan Stanley Senior Funding, Bank of America Merrill Lynch, MUFG and PNC Bank led the deal for the Durham, N.C.-based provider of biopharmaceutical development and commercial outsourcing services.

Chemours wraps

Chemours Co. closed on its $2.5 billion senior secured credit facility (Ba1/BBB-) that consists of a $1 billion revolver and a $1.5 billion seven-year covenant-light term loan B, a news release.

Pricing on the term loan B is Libor plus 300 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for one year.

During syndication, the spread on the B loan was flexed from Libor plus 325 bps, the discount was tightened from 99, and the call protection was extended from six months.

JPMorgan and Credit Suisse Securities led the deal that was used to help fund the company’s spinoff from E.I. DuPont de Nemours & Co.

Chemours’ businesses include titanium technologies based around the white pigment titanium dioxide, fluoroproducts and chemical solutions aimed at the gold production, oil refining, agriculture, industrial polymers and other industries.

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