NGPL, Grohe, Hub break; Momentive up on paydown; Chesapeake slides; Granite reworks deal

By Sara Rosenberg

New York, May 16 - NGPL PipeCo LLC's credit facility freed up for trading on Wednesday, with the term loan B quoted above its original issue discount, and Grohe AG and Hub International Holdings broke too.

In other secondary happenings, Momentive Performance Materials Inc.'s term loans moved higher with paydown news, and Chesapeake Energy Corp.'s unsecured term loan dropped as the market in general was heavy.

Switching to the primary, Granite Broadcasting Corp. made some revisions to its term loan B, including sweetening coupon, original issue discount and call premiums, while also shortening the tenor.

Furthermore, Jazz Pharmaceuticals plc and AlixPartners LLP disclosed price talk on their credit facilities as the deals were presented to lenders during the session.

NGPL starts trading

NGPL PipeCo's credit facility hit the secondary market on Wednesday, with the $700 million term loan B quoted at 98½ bid, 99 offered, according to a trader.

Pricing on the B loan is Libor plus 550 basis points with a 1.25% floor, and it was sold at an original issue discount of 98. The debt is non-callable for one year, and then there is a 101 soft call in year two.

During syndication, the term B was upsized from $600 million, the spread was lifted from Libor plus 425 bps, the discount widened from 98½ and the call protection was changed from just 101 soft call for one year.

The company's $675 million five-year deal (Ba3/B+) also includes a $75 million revolver.

Credit Suisse Securities (USA) LLC, Barclays Capital Inc. and RBC Capital Markets LLC are leading the credit facility that will fund the buyback of 6.514% senior notes due 2012 and for general corporate purposes. The company has received tenders for about $1.21 billion of its $1.25 billion notes.

NGPL is a Houston-based natural gas transportation and storage company.

Grohe frees up

Grohe's €375 million five-year first-lien covenant-light term loan (B2/B-) also broke, with the $257 million U.S. piece and the €175 million piece quoted at 99 bid, par offered, according to a source.

Pricing on the entire loan is Libor/Euribor plus 550 bps with a 1.25% floor, and it includes 101 soft call protection for one year. The U.S. debt was sold at an original issue discount of 99, and the euro debt was sold at 981/2.

During syndication, the Germany-based manufacturer and supplier of sanitary fittings upsized its deal from €300 million, with the U.S. tranche increased from $250 million and the euro tranche increased from €100 million, and the original issue discount on the U.S. loan tightened from 981/2.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are leading the deal that will refinance floating-rate notes, and, as a result of the upsizing some 8 5/8% notes due 2014.

Hub tops OID

Hub International's $215 million add-on term loan due June 14, 2017 was another deal to make its way into the secondary market, with levels quoted at 99½ bid, par offered, according to a source.

Pricing on the loan is Libor plus 450 bps with no Libor floor, and it was sold at an original issue discount of 99, after firming at the low end of the 98½ to 99 guidance, the source said.

The loan is fungible with the existing extended term loan B due June 14, 2017 that has the same spread as the add-on and the same 101 soft call protection through April 24, 2013.

Morgan Stanley Senior Funding Inc. is the lead arranger on the deal and a bookrunner with Bank of America Merrill Lynch and RBC Capital Markets LLC.

Hub, a Chicago-based insurance company, will use proceeds from the add-on loan to refinance non-extended term loan debt and incremental term loans due June 2014.

Momentive strengthens

Momentive Performance Materials' term loans were better in trading following the company's announcement that it will repay first-lien loan borrowings, according to a trader.

The extended term loans were quoted at 97 bid, 98 offered, up from 95 bid, 96 offered, and the term loan B-3 was quoted at 96 bid, 97 offered, up from 95 bid, 96 offered, the trader said.

Funds for the paydown will come from the sale of $500 million of senior secured 11/2-lien notes, upsized from $450 million.

Any remaining proceeds will be used to finance a tender for all $200 million, up from $130 million originally, of the company's 12½% second-lien notes at a price of 107.25 and for general corporate purposes.

Momentive is a Columbus, Ohio-based producer of thermoset resins.

Chesapeake retreats

Chesapeake Energy's $4 billion unsecured term loan (BB-) due Dec. 2, 2017 was active and saw a considerable drop in trading levels from where it broke on Tuesday as the secondary was weaker in general, traders said.

One trader also theorized that, although the paper is juicy in terms of pricing, there may be some concerns out there by investors that the company may be facing more issues than originally thought.

The loan was being quoted by one source at 96½ bid, 97 offered, down from 98½ bid, 99 offered, and by a second source at 96¾ bid, 97¼ offered, down from 98¼ bid, 98½ offered.

Pricing on the loan, which was sold at an original issue discount of 97, is Libor plus 700 bps through Dec. 31 with a 1.5% Libor floor. The spread will increase to Libor plus 800 bps if, prior to Jan. 1, 2013, the company uses proceeds from certain asset sales or financing transaction to repay revolver debt and to Libor plus 1,000 bps if any amounts remain outstanding after Jan. 1, 2013.

Starting on May 11, 2013, lenders have the option to exchange their loans for 11½% fixed-rate notes.

Chesapeake plans asset sales

Chesapeake Energy has said that it expects to repay the new term loan with proceeds from contemplated asset sales that are expected to total $9 billion to $11.5 billion this year.

Strong interest for its Permian Basin asset sales process and its Mississippi Lime joint venture process has been received, and the target is to close on the transactions in the third quarter, the company added.

Goldman Sachs & Co. and Jefferies Finance LLC led the new term loan that funded on Friday and was used to pay down revolver borrowings.

Chesapeake Energy is an Oklahoma City-based producer of natural gas as well as oil and natural gas liquids, and a driller of new wells.

Cengage slides

Another name to see quite a bit of weakening on Wednesday was Cengage Learning Acquisitions Inc., with both the extended and the non-extended term loan lower on the day, according to a trader.

The extended term loan was quoted at 85¾ bid, 86¾ offered, down from 88 bid, 88½ offered, the trader said.

And, the non-extended term loan was seen at 90¾ bid, 91¾ offered, down from 92 bid, 92½ offered, the trader added.

Cengage is a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets.

Granite tweaks loan

Moving to the primary, Granite Broadcasting came out with a round of changes to pricing, call protection and maturity on its $215 million first-lien term loan B (B2/B) and is asking lenders to recommit to the deal by noon ET on Friday, according to a market source.

The loan is now due in six years as opposed to seven years, and pricing is Libor plus 725 bps with a 1.25% Libor floor and an original issue discount of 971/2, versus initial talk of Libor plus 650 bps with a 1.25% Libor floor and a discount in the 98½ context, the source said.

As for call premiums, the B loan now has a hard call of 102 in year one and 101 in year two, compared to prior talk of 101 soft call protection for one year, the source remarked.

The New York-based television broadcasting company's $265.6 million credit facility also includes a $5 million five-year revolver (B2/B) and a $45.6 million 10-year second-lien term loan.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Jazz guidance surfaces

Jazz Pharmaceuticals held a bank meeting on Wednesday morning to kick off syndication on its $600 million credit facility (Ba3), and with the launch, price talk was released, according to a source.

Talk on the $100 million five-year revolver emerged at Libor plus 325 bps to 350 bps with no Libor floor, the source said, while the $500 million six-year term loan B is being shopped at Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99.

Barclays Capital Inc., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used with cash on hand to fund the acquisition of EUSA Pharma for $650 million.

Closing is expected in June, subject to customary conditions and regulatory approvals, including antitrust approval in the United States.

Jazz Pharmaceuticals is a Dublin, Ireland-based specialty biopharmaceutical company. EUSA is a specialty pharmaceutical company with headquarters in Langhorne, Pa., and Oxford, England.

AlixPartners price talk

AlixPartners also came out with pricing guidance with its bank meeting, launching its $600 million seven-year first-lien term loan (Ba3) at Libor plus 425 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, a market source said.

Meanwhile, the $220 million 71/2-year second-lien term loan (B3) was launched at Libor plus 800 bps with a 1.25% floor and a discount of 98, and includes call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

Commitments toward the $895 million credit facility, which also provides for a $75 million five-year revolver (Ba3), are due on May 24.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Jefferies & Co. and UBS Securities LLC are leading the deal that will help fund the company's buyout by CVC Capital Partners from Hellman & Friedman.

AlixPartners, a performance improvement, corporate turnaround and financial advisory services firm, expects the buyout to close this summer.

Pelican launches

Pelican Products Inc. launched its $480 million credit facility as planned on Wednesday and is asking lenders to get their commitments in by May 30, according to a source.

As was previously reported, the deal consists of a $30 million revolver and a $335 million six-year first-lien term loan, both talked at Libor plus 550 bps, and a $115 million seven-year second-lien term loan talked at Libor plus 900 bps. All tranches have a 1.5% Libor floor and an original issue discount of 98.

Included in the first-lien term loan is 101 repricing protection for one year, and call protection on the second-lien loan is 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC is leading the deal that will fund the acquisition of the company by Behrman Capital PEP from an existing Behrman fund.

Pelican Products is a Torrance, Calif.-based designer and manufacturer of advanced lighting systems and virtually indestructible cases.

CAMP well met

CAMP International Holding Co.'s $375 million credit facility is already oversubscribed since launching last week, and lenders still have until May 24 to place their orders, according to a market source.

The facility consists of a $30 million five-year revolver (B1/B), a $230 million seven-year covenant-light first-lien term loan (B1/B) talked at Libor plus 550 bps with a 1.25% Libor floor and an original issue discount of 99, and a $115 million 71/2-year covenant-light second-lien term loan (Caa2/CCC+) talked at Libor plus 900 bps with a 1.25% floor and a discount of 98.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets and UBS Securities LLC are leading the deal that will help fund the buyout of the company by GTCR from Warburg Pincus.

CAMP is a Ronkonkoma, N.Y.-based provider of maintenance tracking for business aviation.

Ascend fills out

Ascend Learning's $330 million term loan (B) is wrapping at initial terms, a source said, which calls for pricing of Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 991/2. There is 101 soft call protection for one year.

Bank of America Merrill Lynch and GE Capital Markets are the lead banks on the deal that will be used to repay existing first-lien debt that is priced at Libor plus 550 bps with a 1.5% Libor floor.

Closing is expected to occur on Thursday.

Ascend Learning is a Stilwell, Kan.-based provider of technology-based learning services focused on student training and testing results in health care and other vocational fields.

Arch Coal closes

In other news, Arch Coal Inc. completed its $1.4 billion six-year covenant-light senior secured term loan (Ba2/BB/BB) that is priced at Libor plus 450 bps with a 1.25% Libor floor, a news release said.

The loan was sold at an original issue discount of 99 after firming at the tight end of the 98½ to 99 talk, and there is call protection of 102 in year one and 101 in year two, but up to $500 million of asset sales will be allowed to repay the term loan at par within 18 months from closing.

Bank of America Merrill Lynch, PNC Capital Markets LLC, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., RBS Securities Inc., BMO Capital Markets Corp. and Union Bank led the deal that is being used to repurchase 6¾% senior notes due 2013 at Arch Western Finance LLC, to repay revolver borrowings and to provide additional liquidity.

In addition, the St. Louis-based coal producer and marketer amended its revolver to reduce the size to $600 million and loosen financial covenants. Pricing on the revolver is Libor plus 400 bps with a 75 bps unused fee.

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