Bennu frees up; Microsemi, Akorn revised; BJ's, Crosby, RPI set talk; CSC discount emerges

By Sara Rosenberg

New York, Oct. 31 - Bennu Oil & Gas LLC's second-lien term loan emerged in the secondary market on Thursday with levels seen above its original issue discount price.

Over in the primary, Microsemi Corp. revised the Libor floor and finalized the offer price on its term loan B, and Akorn Inc. set pricing on its term loan at the low end of talk while tightening the original issue discount.

In addition, BJ's Wholesale Club Inc., Crosby Worldwide Ltd. and RPI Finance Trust (Royalty Pharma) released talk with launch, and CSC ServiceWorks Inc. (Coinmach) disclosed original issue discount guidance on its add-on loan.

Also, Tribune Co., RadioShack Corp. revealed timing on the launch of its credit facility, and Linden Cogeneration Power Complex (EFS Cogen Holdings I LLC), Medical Specialties Distributors LLC and Internap Network Services Corp. joined the forward calendar.

Bennu starts trading

Bennu Oil & Gas's $350 million five-year second-lien term loan broke for trading on Thursday with levels quoted at par ¼ bid, 101¼ offered, a market source said.

Pricing on the loan is Libor plus 900 basis points with a 1.25% Libor floor and it was sold at a discount of 99. The debt is non-callable for one year, 102 for a year and 101 for a year.

Recently, pricing on the loan was reduced from Libor plus 1,000 bps and the discount was revised from 97.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the company's exit from bankruptcy and for general corporate purposes.

Bennu is an oil and gas exploration and production company in the Gulf of Mexico.

Microsemi tweaks deal

Moving to the primary, Microsemi revised the Libor floor on its $150 million term loan B due Feb. 19, 2020 to 0.75% from 1%, firmed the offer price at par, the tight end of the 99½ to par talk, and extended the 101 soft call protection to six months from a February 2014 expiration date, according to a market source.

Pricing on the loan is still Libor plus 275 bps.

With the changes, the tranche was separated so that it is no longer fungible with the company's existing term loan B that is priced at Libor plus 275 bps with a 1% Libor floor, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to partially fund the acquisition of the Symmetricom Inc. for $7.18 per share, or about $230 million.

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor services. Symmetricom is a San Jose, Calif.-based company that generates, distributes and applies precise time for the communications, aerospace/defense, IT infrastructure and metrology industries.

Akorn updates pricing

Akorn firmed pricing on its $600 million seven-year covenant-light term loan (B1/B+) at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and moved the original issue discount to 99½ from 99, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company's $675 million senior secured credit facility also includes a $75 million five-year ABL revolver.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used with cash assumed to fund the acquisition of Hi-Tech Pharmacal Co., Inc. for $43.50 per share, or about $640 million, and the revolver will be available for working capital and other corporate purposes.

Closing is targeted for the first quarter of 2014, subject to customary conditions, including termination of the waiting period under the provisions of the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Akorn is a Lake Forest, Ill.-based niche pharmaceutical company. Hi-Tech is an Amityville, N.Y.-based specialty pharmaceutical company.

Tribune pricing

Tribune hosted a bank meeting on Thursday, launching its $3.8 billion seven-year term loan B with talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

The company's $4.1 billion senior secured credit facility (Ba3/BB+) also includes a $300 million five-year revolver.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used with cash on hand to fund the $2,725,000,000 acquisition of Local TV Holdings LLC from Oak Hill Capital Partners and refinance existing debt.

Closing is expected to occur by the end of the year, subject to antitrust and Federal Communications Commission approvals and other customary conditions.

Tribune is a Chicago-based multimedia company. Local TV is a Newport, Ky.-based owner and operator of television stations.

BJ's guidance surfaces

BJ's Wholesale Club launched during the session its $1.45 billion first-lien term loan (B3/B-) due Sept. 26, 2019 with talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, a market source said.

As for the $650 million second-lien term loan (Caa2/CCC) due March 31, 2020, talk emerged at Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Barclays, Jefferies Finance LLC and Morgan Stanley Senior Funding Inc. are leading the $2.1 billion deal that will be used to refinance existing term loans and fund a dividend.

BJ's is a Westborough, Mass.-based operator of warehouse clubs.

Crosby discloses talk

Crosby Worldwide held its bank meeting and came out with price talk on its first-and second-lien term loans, according to a market source.

The $530 million seven-year first-lien term loan is talked at Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, the source said.

And, the $120 million eight-year second-lien term loan is talked at Libor plus 700 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source continued.

The company's $715 million senior secured credit facility, for which commitments are due on Nov. 12, also includes a $65 million five-year revolver.

Crosby lead banks

Morgan Stanley Senior Funding Inc., UBS Securities LLC, KKR Capital Markets, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and HSBC Securities (USA) Inc. are leading Crosby's credit facility.

Proceeds will be used to fund the buyout of the Crosby Group and Acco Material Handling Solutions by KKR from Melrose Industries plc for about $1 billion.

Closing is expected in the fourth quarter, subject to customary regulatory approvals.

Crosby is a Tulsa, Okla.-based provider of highly engineered solutions for lifting and rigging applications across the oil and gas, construction, mining and industrial sectors. Acco is a York, Pa.-based provider of custom-built specialty material handling equipment, including a full line of hoists, industrial cranes, monorails, carts and trailers.

RPI Finance repricing

RPI Finance Trust held its call on Thursday, launching a repricing of its term loan B-1 with talk of Libor plus 225 bps to 250 bps with no floor, its term loan B-2 with talk of Libor plus 225 bps to 250 bps with a 0.75% Libor floor, and its term loan B-3 with talk of Libor plus 250 bps to 275 bps with a 0.75% Libor floor, according to market sources.

All of the term loans are being offered at par and have 101 soft call protection for six months, sources said.

With this transaction, pricing on the B-1 will be revised from Libor plus 250 bps with a 0.75% Libor floor, pricing on the B-2 will change from Libor plus 275 bps with a 0.75% Libor floor, and pricing on the B-3 will come down from Libor plus 300 bps with a 1% Libor floor.

Lead banks, Bank of America Merrill Lynch, Goldman Sachs Bank USA and J.P. Morgan Securities LLC, are asking for commitments by Nov. 8.

RPI Finance is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

CSC reveals discount

CSC ServiceWorks launched in the morning its $460 million incremental term loan B with original issue discount talk in the 99 area and 101 soft call protection for six months from funding, according to a market source.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, which matches existing term loan B pricing.

Commitments are due on Nov. 8, the source said.

Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will help fund the acquisition of Mac-Gray Corp. for $21.25 per share, or about $524 million.

Closing is expected in the first half of 2014, subject to the adoption of the acquisition agreement by Mac-Gray's stockholders, regulatory approval and other customary conditions.

CSC is a Plainview, N.Y.-based provider of multi-family housing and commercial laundry solutions and air vending services. Mac-Gray is a Waltham, Mass.-based provider of laundry facilities management services.

Radioshack readies launch

In more primary news, RadioShack disclosed timing on its $835 million credit facility, scheduling a bank meeting for Tuesday to launch the transaction, according to a market source.

As previously reported, the facility consists of a $585 million senior secured ABL revolver and a $250 million secured term loan.

GE Capital Markets, CIT Corporate Finance, RBS Citizens and Salus Capital Partners are leading the deal that will be used to refinance the company's existing $450 million ABL credit facility, $75 million of term loans and $100 million second lien term loan.

Closing is expected in the fourth quarter.

RadioShack is a Fort Worth-based retailer of mobile technology products and services and products related to personal and home technology and power supply needs.

Linden plans meeting

Linden Cogeneration Power Complex, a 942MW cogeneration facility located in Linden, N.J., set a bank meeting for Monday with a 1 p.m. ET registration time to launch a $925 million senior secured credit facility, according to a market source.

The facility consists of a $100 million five-year revolver and an $825 million seven-year term loan B, the source said.

Barclays, Citigroup Global Markets Inc. and Bank of Tokyo-Mitsubishi are leading the deal that will be used to refinance existing debt, make a distribution to GE in connection with the acquisition of a 50% interest in the borrower by Highstar, support project-level letter-of-credit requirements, fund the debt service reserve account, and pay related fees and expenses.

Total leverage is 4 times, the source added.

Medical Specialties on deck

Medical Specialties Distributors surfaced with plans to hold a bank meeting at 3 p.m. ET in New York on Monday to launch a $170 million credit facility (B3/B), according to a market source.

The facility consists of a $30 million revolver, and a $140 million six-year first-lien term loan talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

Commitments are due on Nov. 18.

Credit Suisse Securities (USA) LLC and BNP Paribas Securities Corp. are leading the deal that will help fund the buyout of the company by New Mountain Capital.

Medical Specialties is a Stoughton, Mass.-based distributor of home infusion equipment and supplies.

Internap coming soon

Internap Network, an Atlanta-based provider of IT Infrastructure services, will host a bank meeting on Nov. 8 to launch a $350 million senior secured credit facility, according to a market source.

The facility consists of a $50 million five-year revolver and a $300 million six-year term loan.

Based on an 8-K filed with the Securities and Exchange Commission, the revolver is expected to be priced at Libor plus 400 bps with a 50 bps unused fee and the term loan is expected at Libor plus 425 bps with a 1% Libor floor and 101 soft call protection for one year.

Official talk, however, is not yet out.

Jefferies Finance LLC and PNC Capital Markets LLC are leading the deal that will fund the purchase of Montreal-based hosting and cloud provider iWeb for about$145 million, refinance existing debt, and finance working capital and general corporate purposes.

Closing is expected in December, subject to customary conditions.

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