Summit, Armstrong, NDS, Atlantic Broadband, Allegiant, American Seafoods, Huntsman break

By Sara Rosenberg

New York, March 8 - Summit Entertainment LLC's credit facility hit the secondary market on Tuesday, as did those of Armstrong World Industries Inc., NDS Finance, Atlantic Broadband Finance LLC, Allegiant Travel Co., American Seafoods Group LLC and Huntsman International LLC.

Over in the primary, Octavius Tower increased the size of its term loan, and Sinclair Television Group Inc. moved some funds between its term loan A and term loan B while reducing the spread on the B tranche.

Also, Ntelos Holding Corp. added a pricing step-down to its term loan, and Arizona Chemical Inc. set the spread on its loan at the tight end of talk.

Additionally, pricing guidance on MEG Energy Corp., Fifth Third Processing Solutions LLC, Radio One Inc. and Six3 Systems Inc. surfaced as the transactions were launched to lenders during the session.

Furthermore, Asurion, Quintiles, Kindred Healthcare Inc., Jarden Corp., Chemtura Corp., Pilot Travel Centers LLC and Douglas Dynamics Inc. are getting ready to bring new deals to market, and Earthbound Farm and HHI Group Holdings LLC began circulating price talk on their upcoming loans.

Summit frees up

Summit Entertainment's credit facility started trading on Tuesday, with the $550 million 51/2-year term loan quoted at 98 bid, 99 offered throughout the day, according to a trader.

Pricing on the term loan is Libor plus 600 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, the term loan was downsized from $600 million, the maturity was shortened from seven years, pricing was flexed up from talk of Libor plus 525 bps to 550 bps, the discount widened from 98½ and call protection was added.

Also, the 75% cash flow sweep from the Breaking Dawn I and II movies was modified to less than $5 million from less than $15 million, and a 50% IPO sweep was added.

Summit getting revolver

Summit Entertainment's $750 million senior secured credit facility (B1/B) also includes a $200 million revolver.

J.P. Morgan and UBS are the co-lead arrangers on the deal.

Proceeds will be used to repay existing debt, for working capital needs and general corporate purposes and to fund a dividend.

Summit Entertainment is a Santa Monica, Calif.-based independent film studio.

Armstrong hits secondary

Armstrong's $550 million term loan B also made its way into the secondary market, with levels quoted at par 1/8 bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at par. There is 101 soft call protection for six months.

Bank of America Merrill Lynch is the lead bank on the deal that is being used to reprice an existing term loan that was obtained late last year for a dividend recapitalization.

The existing loan is priced at Libor plus 350 bps with a 1.5% Libor floor and was sold at an original issue discount of 991/2.

Armstrong is a Lancaster, Pa.-based designer and manufacturer of floors, ceilings and cabinets.

NDS trades atop OID

NDS Finance's $800 million seven-year term loan B broke in the afternoon at par ¼ bid, par 5/8 offered, up from its original issue discount price of 991/2, according to a trader.

Pricing on the term loan B is Libor plus 300 bps with a step-down to Libor plus 275 bps at less than 3.0 times leverage and a 1% Libor floor. There is 101 soft call protection for six months.

During syndication, pricing was lowered from Libor plus 325 bps, the floor was reduced from 1.25% and call protection was added.

J.P. Morgan, Morgan Stanley, BNP Paribas, Goldman Sachs, Lloyds and UBS are the lead banks on the $1.125 billion credit facility (Ba2/BB-), which also includes a $75 million revolver and a $250 million euro-equivalent six-year term loan A deal and will be used to refinance existing debt.

NDS is a U.K.-based supplier of open end-to-end digital technology and services to digital pay-television platform operators and content providers.

Atlantic Broadband breaks

Atlantic Broadband's $555 million five-year term loan B freed up as well, with levels quoted at par ¼ bid, par 5/8 offered, according to a trader.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

Credit Suisse and SunTrust are the lead banks on the deal that is being used to refinance/reprice a term loan B that was obtained late last year to refinance a bank deal, pay a dividend and redeem preferred stock.

The existing B loan, originally sized at $575 million, is priced at Libor plus 350 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 991/2.

Atlantic Broadband is a Quincy, Mass.-based cable provider.

Allegiant tops par

Allegiant Travel's $125 million term loan (Ba3/BB-) broke for trading at par 5/8 bid, 101 1/8 offered, above its original issue discount price of 991/2, according to a market source.

Pricing on the loan is Libor plus 425 bps with a 1.5% Libor floor, and there is 101 soft call protection for one year.

During syndication, the discount was tightened from 99 and the Libor floor was cut from 1.75%.

Citadel Securities is leading the deal that will be used for general corporate purposes, including to fund capital expenditures.

Allegiant Travel is a Las Vegas-based all-jet passenger airline company.

American Seafood trades

American Seafoods Group's $282 million term loan B started trading too, with levels quoted at par ¼ bid, par 5/8 offered, according to a trader.

Pricing on the term loan B is Libor plus 300 bps with a 1.25% Libor floor, and it was sold at par.

The company $382 million financing (BB-) also includes a $100 million term loan A that is priced at Libor plus 275 bps.

Proceeds from the term loan A and the term loan B are being used to refinance/reprice an existing term loan B.

When completed in 2010 as part of a refinancing transaction, pricing on the then sized $390 million B loan was Libor plus 400 bps with a 1.5% Libor floor, and it was sold at a discount of 99.

Bank of America Merrill Lynch is the lead bank on the deal for the Seattle-based harvester, processor, preparer and supplier of seafood.

Huntsman extended frees up

Huntsman International's $650 million extended term loan B due April 2017 broke on Tuesday as well, with levels quoted at 99 1/8 bid, 99 5/8 offered early in the day, according to a trader. In the afternoon, a second trader was quoting the loan at 99 3/8 bid, 99 7/8 offered.

Pricing on the extended loan is Libor plus 250 bps, compared to pricing on the non-extended term loan B due April 2014 of Libor plus 150 bps.

J.P. Morgan and Citigroup acted as the lead banks on the amendment and extension transaction.

Lenders were offered a 10 bps amendment fee.

Huntsman is a Salt Lake City-based manufacturer and marketer of differentiated chemicals.

Octavius upsizes

Moving to the primary, Octavius Tower lifted its six-year senior secured term loan to $450 million from $400 million, while leaving price talk Libor plus 800 with a 1.25% Libor floor and an original issue discount of 99, according to sources. The loan is non-callable for 18 months, then at 103, 102, 101.

Following the upsizing, Standard & Poor's cut the loan rating to B from B+.

J.P. Morgan is the lead bank on the deal that will be used to fund the completion of the Octavius Tower at Caesars' Palace Las Vegas and the development of a retail, dining and entertainment corridor on the Las Vegas strip.

Octavius Tower is a subsidiary of Caesars Entertainment Corp., a Las Vegas-based casino entertainment company.

Sinclair reworks deal

Also coming out with some changes to its credit facility was Sinclair Television, as it upsized its term loan A, downsized its term loan B and lowered pricing on the B tranche, according to a market source.

The five-year term loan A is now sized at $115 million, up from $100 million, and price talk was left unchanged at Libor plus 225 bps, the source said.

Meanwhile, the 51/2-year term loan B was downsized to $225 million from $240 million, and pricing was trimmed to Libor plus 300 bps from Libor plus 325 bps. The tranche includes a 1% Libor floor, an original issue discount of 99 7/8 and 101 soft call protection for six months.

J.P. Morgan is the lead bank on the $340 million deal (Baa3/BB+).

Sinclair repaying debt

Proceeds from Sinclair's new loans, along with cash and/or revolver borrowings, will be used to refinance the company's existing $270 million term loan B that matures in October 2015 and to redeem $70 million of 6% convertible debentures due 2012.

The existing B loan was obtained in August 2010 to repay a previous B loan. Pricing on the existing tranche is Libor plus 400 bps with a 1.5% Libor floor. The loan was sold at an original issue discount of 99½ and includes 101 soft call protection for one year.

As of Sept. 30, there was about $264 million outstanding under the term loan B.

Sinclair is a Hunt Valley, Md.-based television broadcasting company.

Ntelos adds step

Ntelos added a pricing step-down to Libor plus 275 bps at 2.75 times leverage to its $751 million first-lien term loan and is asking for recommitments by noon ET on Wednesday, according to a market source.

Initial pricing on the loan was left unchanged at Libor plus 300 bps with a 1% Libor floor and a par offer price, and there is 101 soft call protection for six months.

J.P. Morgan and UBS are the joint lead arrangers on the deal that will be used to reprice existing term loan debt.

In 2010, the company got a $125 million incremental term loan and in 2009 it got a $635 million term loan, with both of these tranches priced at Libor plus 375 bps with a 2% Libor floor. The incremental loan had been sold at an original issue discount of 99¾ and was used for the acquisition of FiberNet, while the 2009 loan was sold at an original issue discount of 99 and was used to refinance debt.

Ntelos is a Waynesboro, Va.-based provider of wireless and wireline communications services.

Arizona Chem sets spread

Arizona Chemical firmed pricing on its $430 million term loan B (B+) at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, according to a market source. As before, the loan has a 1.5% Libor floor and 101 soft call protection for one year, and is being offered at par.

Goldman Sachs is the left lead bank on the deal that will be used to reprice the company's existing term loan B that is priced at Libor plus 500 bps with a 1.75% Libor floor and was sold at an original issue discount of 981/2. There is 101 soft call protection for one year.

The existing loan was obtained late last year to help fund the company's buyout by American Securities.

Arizona Chemical is a Jacksonville, Fla., supplier of pine chemicals to the adhesives, inks and coatings and oleochemicals markets.

MEG discloses talk

In more primary happenings, MEG Energy held a call on Tuesday morning to kick off syndication on its $1 billion term loan B, and with the launch, talk of Libor plus 300 bps with a 1% Libor floor, a par offer price and 101 soft call protection for one year was announced, according to a market source.

The company's $1.5 billion credit facility also includes a $500 million revolver that is already fully subscribed, the source said.

Barclays, Credit Suisse, BMO Capital Markets and Morgan Stanley are the joint bookrunners on the deal.

Proceeds from the credit facility will be used to refinance the company's existing revolver, term loan B and term loan D and for general corporate purposes.

MEG selling notes

To help fund the refinancing, MEG Energy also plans on issuing $500 million of senior notes, for which a roadshow will begin on Wednesday.

Debt being refinanced includes the company's $200 million revolver due Jan. 31, 2013, its $41.5 million term loan B due April 3, 2013 and its $957.9 million term loan D due April 3, 2016.

Pricing on the existing revolver is Libor plus 400 bps with a 75 bps unused fee, pricing on the term loan B is Libor plus 200 bps and pricing on the term loan D is Libor plus 400 bps with a 2% Libor floor.

Closing on the credit facility and the notes is expected to occur at the same time.

MEG Energy is a Calgary, Alta.-based oil sands development company.

Fifth Third guidance

Fifth Third Processing Solutions launched with a call on Tuesday its $1.775 billion first-lien term loan at Libor plus 300 bps to 325 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for one year, according to a market source.

Goldman Sachs and J.P. Morgan are the lead banks on the deal that will be used to refinance the company's $1.575 billion first-lien term loan and $200 million second-lien term loan obtained late last year in connection with the acquisition of National Processing Co.

Pricing on the existing first-lien term loan is Libor plus 400 bps, and pricing on the second-lien is Libor plus 675 bps, with both having a 1.5% Libor floor and both sold at an original issue discount of 99. The second-lien has soft call protection of 102 in year one and 101 in year two.

Fifth Third Processing is a Cincinnati-based provider of payment transaction processing and acceptance services.

Radio One launches

Radio One launched a deal on Tuesday as well, approaching lenders with a $25 million four-year revolver (B1) talked at Libor plus 550 bps and a $386 million five-year term loan B (B2) talked at Libor plus 600 bps with a 1.5% Libor floor, according to a market source. Both tranches are being offered at a discount of 99, and the term loan B includes 101 soft call protection for one year.

Credit Suisse and Deutsche Bank are the lead banks on the $411 million credit facility that will be used to refinance existing debt.

Commitments are due on March 22.

Radio One is a Lanham, Md.-based urban-oriented multi-media company.

Six3 pricing

Six3 Systems held a bank meeting to launch a proposed credit facility, which includes a $140 million term loan with talk of Libor plus 400 bps with a 1.5% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Bank of America Merrill Lynch and SunTrust are the lead banks on the $170 million deal that also provides for a $30 million revolver.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Six3 is a McLean, Va.-based provider of strategic and differentiated solutions and services to support the missions of customers in the U.S. national security and defense intelligence communities.

Asurion plans refi

Asurion, a Nashville, Tenn.-based provider of technology protection services, has scheduled a bank meeting for Thursday to launch a proposed $4.64 billion covenant-light credit facility that will be used to refinance existing debt, according to market sources.

The facility, led by Bank of America Merrill Lynch, Barclays, Credit Suisse, Morgan Stanley, Goldman Sachs and Deutsche Bank, consists of a $120 million five-year revolver, a $3.5 billion seven-year first-lien term loan and a $1.02 billion eight-year second-lien term loan, sources said.

In 2010, the company got a $900 million incremental first-lien term loan for a dividend that priced at Libor plus 525 bps with a 1.5% Libor floor and was sold at an original issue discount of 96. There's call protection of 102 in year one and 101 in year two.

And, in 2007, the company completed a buyout financing deal that was comprised of a $100 million revolver at Libor plus 200 bps, a $1.755 billion first-lien term loan at Libor plus 300 bps and a $580 million second-lien PIK toggle term loan at Libor plus 650 bps cash pay.

Quintiles sets launch

Quintiles is planning to launch a proposed $2.425 billion credit facility with a bank meeting on Thursday that consists of a $225 million revolver due in 2016 and a $2.2 billion term loan B due in 2018, according to an informed source.

J.P. Morgan is the left lead arranger on the deal, and Morgan Stanley, Barclays and Citigroup are on the right.

Proceeds will be used to refinance $1.695 billion of existing debt, including $525 million of 9½% senior notes due December 2014.

Quintiles is a Durham, N.C.-based biopharmaceutical services company offering clinical, commercial, consulting and capital services.

Kindred coming Friday

Kindred Healthcare has scheduled a bank meeting for Friday to launch a proposed $1.3 billion senior secured credit facility that is being led by J.P. Morgan, Morgan Stanley and Citigroup, according to a market source.

The Louisville, Ky.-based health-care services company's facility consists of a $600 million five-year asset-based revolver and a $700 million seven-year term loan B.

Proceeds will be used to help fund the acquisition of RehabCare Group Inc., a St. Louis-based provider of physical rehabilitation services, for $1.3 billion, including $400 million of existing debt.

Closing on the acquisition is expected on or about June 30, subject to approvals by the stockholders of both companies, completion of financing, clearance under the provisions of the Hart-Scott-Rodino Act of 1976, and the receipt of certain licensure and regulatory approvals.

Jarden deal emerges

Jarden is set to hold a bank meeting on Thursday to launch a proposed $1.25 billion senior secured credit facility, consisting of a $250 million revolver, a $500 million term loan A and a $500 million term loan B, according to a market source.

Barclays, Deutsche Bank, J.P. Morgan and Wells Fargo are the lead banks on the deal that will be used to refinance existing debt.

At Dec. 31, the company had about $1.06 billion of term loans outstanding and no borrowings under its revolver. The debt includes a $364 million extended term loan B-5 due January 2015 that was obtained in August at pricing of Libor plus 325 basis points.

Jarden is a Rye, N.Y.-based consumer products company.

Chemtura call scheduled

Chemtura has set a conference call for Wednesday to launch a $395 million term loan that is being led by Bank of America Merrill Lynch and Citigroup, according to a market source.

Proceeds will be used to refinance the company's $295 million exit term loan from August 2010 that is priced at Libor plus 400 bps with a 1.5% Libor floor, and includes 101 call protection for one year, and for general corporate purposes.

Following the news, the exit term loan was quoted at par ¾ bid, 101 offered in the secondary market, down from 101 bid, 101½ offered, a trader added.

Chemtura is a Middlebury, Conn.-based manufacturer and marketer of specialty chemicals, agrochemicals and pool, spa and home care products.

Pilot Travel readies deal

Pilot Travel Centers has scheduled a bank meeting for Wednesday to launch a proposed $2.6 billion senior secured credit facility that consists of an $800 million revolver, an $800 million term loan A and a $1 billion term loan B, according to a market source.

Bank of America Merrill Lynch, Wells Fargo and SunTrust are the lead banks on the deal that will be used to refinance existing bank debt and to redeem some bonds.

In 2009, the company got a $2.15 billion senior secured credit facility to fund the acquisition of Flying J. Inc.'s travel plaza business.

At close, the facility consisted of a $500 million revolver, a $500 million term A and an $800 million term loan B, all priced at Libor plus 325 bps with a 2% Libor floor, and a $350 million term loan C. The term loan B had been sold at an original issue discount of 99.

Pilot Travel Centers is a Knoxville, Tenn.-based operator of travel centers.

Douglas coming soon

Douglas Dynamics is set to hold a bank meeting on Wednesday to launch a proposed $185 million credit facility that is being led by J.P. Morgan, according to a market source.

The facility consists of a $60 million revolver and a $125 million seven-year term loan B, the source said, adding that price talk is not yet available.

Proceeds will be used to refinance existing debt.

Douglas Dynamics is a Milwaukee, Wis.-based designer, manufacturer and seller of snow and ice control equipment for light trucks.

Earthbound talk emerges

Earthbound Farm revealed that it will be launching a repricing of its $225 million term loan B with a call on Wednesday at talk in the Libor plus 400 bps to 425 bps area with a 1.5% Libor floor, a par offer price and 101 soft call protection for one year, according to a market source.

By comparison, when the loan was syndicated late last year for a dividend recapitalization, it priced at Libor plus 500 bps with a 1.75% Libor floor and an original issue discount of 981/2.

RBC Capital Markets is the lead bank on the deal.

Earthbound Farm is a San Juan Bautista, Calif.-based organic food company.

HHI floats guidance

HHI Group is scheduled to hold a bank meeting on Wednesday for a $325 million term loan B, and in preparation for the launch, talk has surfaced at Libor plus 550 bps with a 1.5% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, according to a market source.

Bank of America Merrill Lynch, Goldman Sachs and Credit Suisse are the lead banks on the deal that will be used to refinance existing debt and fund a dividend.

In early 2010, the company got a $200 million term loan B as part of a dividend recapitalization at pricing of Libor plus 750 bps with a 3% Libor floor and an original issue discount of 97. Later in the year, the company did a $30 million term loan add-on that was also used for a dividend.

HHI is a Royal Oak, Mich.-based manufacturer of forged parts and wheel bearings, and a supplier of powdered metal engine and transmission components.

Del Monte closes

In other news, Del Monte Foods Co. closed on its $3.45 billion credit facility comprised of a $750 million five-year ABL revolver (NA/NA/BB) and a $2.7 billion seven-year covenant-light term loan (Ba3/B+/BB), according to a news release.

Pricing on the San Francisco-based branded pet and consumer products company's term loan is Libor plus 300 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 993/4. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $2.5 billion as a bond offering was reduced to $1.3 billion from $1.5 billion, pricing was cut from Libor plus 400 bps and the discount tightened from 99.

J.P. Morgan, Barclays, Morgan Stanley and Bank of America Merrill Lynch led the deal that was used to help fund the buyout of the company by Kohlberg Kravis Roberts & Co. LP, Vestar Capital Partners and Centerview Partners.

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