Lawson, Aveta, Grede, Ennis, Oberthur break; Atlantic Broadband, Catalina revise deals

By Sara Rosenberg

New York, March 30 - Lawson Software Inc. finalized term loan B tranche sizes, set the original issue discount on its B-1 loan and added a pricing step-down to all of the institutional debt before freeing up for trading on Friday afternoon.

Also, Aveta Inc. upsized its facility and Grede Holdings LLC downsized its term loan while setting pricing at the high side of talk, and then both of these deals hit the secondary market too, as did Ennis-Flint and Oberthur Technologies.

In more news, Atlantic Broadband Finance LLC tightened original issue discounts on its first- and second-lien term loans, Catalina Marketing Corp. lifted pricing on it extended term loan B and 99 Cent Only Stores firmed the spread on its term loan B-1 at the wide end of guidance.

Furthermore, Aptalis Pharma Inc. released guidance on its incremental term loan B with its launch, TridentUSA Health Services started circulating price talk on its credit facility ahead of its upcoming bank meeting, and Freedom Group Inc. announced new loan plans.

Lawson firms details

Lawson Software came out with final structure on its credit facility and added a 25 basis point pricing step-down to its U.S. term loan B, euro term loan B and term loan B-1, which becomes effective when net leverage falls below 5½ times, according to a market source.

The size of the six-year U.S. term loan B ended up at $2.77 billion, and pricing is Libor plus 500 bps with a 1.25% Libor floor. It was sold at an original issue discount of 99, and includes 101 soft call protection for one year. A few days ago, the spread on this tranche had been flexed up from talk of Libor plus 450 bps to 475 bps.

Meanwhile, the six-year euro term loan B size firmed at €250 million (about $333 million equivalent), versus earlier talk in a range of €200 million to €250 million, the source said. Pricing is Euribor plus 550 bps with a 1.25% floor and an original issue discount of 99, and there is 101 soft call protection for one year.

Lawson B-1 OID

Meanwhile, Lawson's $400 million 41/2-year term loan B-1 saw its original issue discount price firm at 991/2, the low end of recent talk of 99 to 991/2, and tighter than initial talk of just 99, the source continued. Pricing is Libor plus 450 bps, after being increased earlier from talk of Libor plus 400 bps to 425 bps, and there is a 1.25% Libor floor and 101 soft call protection for one year.

The company's $3.65 billion senior secured credit facility (Ba3/B+) also includes a $150 million five-year revolver.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays Capital Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC and KKR Capital Markets are the lead banks on the deal.

Lawson starts trading

With final terms set on Lawson's credit facility, the deal was able to make its way into the secondary market in the afternoon, with the term loan B quoted at 99 7/8 bid, par 1/8 offered on the break and then it moved up to par 5/8 bid, par 7/8 offered, a trader said.

The term loan B-1 broke at 99 5/8 bid, par 1/8 offered and then traded up to par 3/8 bid, par 7/8 offered, the trader added.

Proceeds, along with $1.35 billion-equivalent senior notes, will be used to refinance existing debt in connection with the company's merger with Infor Global Solutions Holdings Ltd. The notes were upsized from $1.15 billion so the company can repay a holdco PIK loan.

Lawson, a St. Paul, Minn.-based provider of enterprise software, and Infor Global, a New York-based provider of business software, are both currently owned by Golden Gate Capital.

Aveta ups loan, breaks

Aveta increased its term loan B to $525 million from $500 million, and then began trading, according to a trader who saw the loan at 98¾ bid, 99½ offered on the open and at 99 3/8 bid, par 1/8 offered shortly thereafter.

Pricing on the term loan B, as well as on a $50 million five-year revolver, firmed in line with talk at Libor plus 650 bps with a 2% Libor floor, and the tranches were sold at an original issue discount of 97. The B loan has soft call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Jefferies & Co. are the lead banks on the now $575 million credit facility (B1/B+) that will be used to refinance existing debt and fund a dividend.

Aveta is a Fort Lee, N.J.-based medical management company.

Grede reworked deal trades

Grede Holdings reduced its term loan B to $200 million from $250 million and freed up in the afternoon at levels of 98½ bid, 99 offered, according to sources.

Pricing on the loan was set at Libor plus 550 bps with a 1.5% Libor floor and an original issue discount of 98, compared to initial talk of Libor plus 500 bps to 550 bps with a 1.5% floor and a discount of 98 to 981/2, sources remarked.

As before, the loan has 101 soft call protection for one year.

GE Capital Markets and Jefferies & Co. are the lead banks on the deal that will be used to refinance existing debt and fund a dividend.

Grede is a Southfield, Mich.-based iron casting supplier.

Ennis-Flint tops OID

Ennis-Flint's credit also hit the secondary on Friday, with the $252 million six-year first-lien term loan B quoted at 99 bid on the break and then it moved up to 99½ bid, par offered, according to a market source.

Meanwhile, the $115 million 61/2-year second-lien term loan was seen at 99 bid, the source added.

Pricing on the first-lien term loan, which was upsized from $240 million, and a $38 million revolver, which was downsized from $50 million, is Libor plus 500 bps with a 1.25% Libor floor. The tranches were sold at an original issue discount of 981/2, and the term loan includes 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 900 bps with 1.25% Libor floor and was sold at an original issue discount of 98. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC is the lead arranger on the deal.

Ennis-Flint merger

Ennis-Flint's credit facility is being done in connection with its formation through the merger of two Brazos Private Equity Partners LLC companies, Ennis Traffic Safety Solutions and Flint Trading Inc. The merger is expected to be completed in the second quarter.

Proceeds from the new deal will be used to refinance existing debt.

Leverage is around 3.7 times through the first-lien and around 5.4 times total.

Ennis-Flint is a provider of pavement markings that offers a range of products, including traffic paint, conventional and preform thermoplastics and raised pavement markers. Corporate offices are in Dallas and Thomasville, N.C.

Oberthur frees up

Another deal to break was Oberthur Technologies, with its $250 million term loan B seen at 96 bid, 96½ offered on the open and then it moved up to 96¼ bid, 96¾ offered, according to a trader.

Pricing on the loan is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 95 after widening from talk of 97 to 97½ during the syndication process.

The U.S. term loan B due November 2018 is being carved out of a €410 million term loan B, and pricing on the euro tranche firmed in line with talk at Euribor plus 500 bps with an original issue discount of 95. There is no floor on the euro piece.

RBC Capital Markets LLC, Barclays Capital Inc. and Lloyds Securities LLC are leading the deal that will be used to refinance debt used for the company's buyout by Advent International in late 2011.

Oberthur is France-based provider of security and identification services based on smart-card technologies.

Atlantic Broadband OIDs

Back over in the primary, Atlantic Broadband modified its term loans, moving the original issue discount on its $660 million seven-year first-lien term B (Ba3/B+) to 99½ from 99 and on its $350 million 71/2-year second-lien term loan (Caa1/B-) to 99¼ from 98, according to a market source. The $50 million five-year revolver (Ba3/B+) is still being sold at 99.

As before, pricing on the revolver and first-lien term loan B is Libor plus 400 bps with a 1.25% Libor floor, and pricing on the second-lien term loan is Libor plus 850 bps with a 1.25% floor. The first-lien term B has 101 soft call protection for one year, and the second-lien loan is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, subject to a carve-out for change of control within the first 24 months.

Recommitments towards the $1.06 billion senior secured credit facility were due by 5 p.m. ET on Friday.

Atlantic recapitalizing

Proceeds from Atlantic Broadband's credit facility will be used to refinance an existing $25 million revolver due in 2015 and a $485.8 million term loan due in 2016, redeem all of its 9 3/8 % senior subordinated notes due 2014 and fund a dividend of around $345 million.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Leverage is 4.3 times through the first lien and 6.5 times through the second lien.

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

Catalina flexes

Catalina Marketing raised pricing on its extended term loan B to Libor plus 550 basis points from Libor plus 500 bps, and is now offering a $40 million paydown, according to a market source.

The company is asking to extend its $597 million term loan B to 2017 from 2014, and its $100 million revolver to 2016 from 2013.

Lenders are still offered a 15 bps extension fee and a 10 bps consent fee.

Lead bank, J.P. Morgan Securities LLC, was seeking commitments towards the revised deal by 3 p.m. ET on Friday.

Catalina Marketing is a St. Petersburg, Fla.-based provider of precision marketing services.

99 Cent sets coupon

99 Cent Only Stores nailed down pricing on its $525 million senior secured term loan B-1 (B2) at Libor plus 400 bps, the high side of the Libor plus 375 bps to 400 bps talk, according to a market source.

The loan still has a 1.25% Libor floor and 101 soft call protection for one year, and it was sold to investors at par.

Proceeds are being used to reprice an existing $525 million term loan that was done in late 2011 at pricing of Libor plus 550 bps with a 1.5% Libor floor and was sold at an original issue discount of 98. This debt has soft call protection of 102 in year one and 101 in year two, which means existing lenders are getting paid down at 102.

RBC Capital Markets, BMO Capital Markets and Deutsche Bank Securities Inc. are the lead banks on the deal.

99 Cent is a City of Commerce, Calif.-based operator of extreme value retail stores.

Aptalis guidance emerges

In more primary happenings, Aptalis Pharma (formerly Axcan Holdings Inc.) held a conference call on Friday to kick off syndication on its $200 million five-year senior secured incremental term loan B, at which time price talk of Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 98 was announced, according to sources.

Coupon and floor on the incremental loan are in line with existing term loan B pricing, but when done in early 2011, the existing loan was sold at an original issue discount of 991/2.

Bank of America Merrill Lynch, Barclays Capital Inc. and RBC Capital Markets LLC are the lead banks on the deal that will be used to redeem $195 million of senior unsecured notes.

Aptalis, a Bridgewater, N.J.-based specialty pharmaceutical company, is seeking commitments towards the new loan by April 10.

TridentUSA reveals talk

TridentUSA Health Services set a bank meeting for 10 a.m. ET on Tuesday to launch a $325 million credit facility, and in preparation for the event, price talk on the deal was released, according to a market source.

The $50 million four-year revolver and $175 million five-year first-lien term loan are both talked at Libor plus 525 bps with a 1.25% Libor floor and an original issue discount of 981/2, and the term loan has 101 repricing protection for one year, the source remarked.

And, the $100 million 51/2-year second-lien term loan is talked at Libor plus 900 bps with a 1.25% Libor floor and an original issue discount of 97, the source said. This tranche is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

TridentUSA lead banks

Credit Suisse Securities (USA) LLC, GE Capital Markets and Madison Capital are leading TridentUSA's new credit facility.

Proceeds will be used to refinance $120 million of existing debt and pay a roughly $140 million dividend to the company's sponsors, which are Audax Group and Frazier Healthcare.

TridentUSA is a Burbank, Calif.-based provider of bedside diagnostics services offering mobile x-ray, ultrasound, teleradiology and laboratory services to skilled nursing home, assisted living, home health care, hospice and correctional markets.

Freedom Group readies deal

Freedom Group also joined the forward calendar, setting a bank meeting for Tuesday to launch a $330 million seven-year covenant-light term loan B, according to a market source.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the lead banks on the deal that will be used to redeem notes.

The company is tendering for $245.2 million 11¼%/11¾% senior PIK notes due 2015 at FGI Holding Co. and $247.5 million 10¼% senior secured notes due 2015 at FGI Operating Co. LLC, and both offers expire on April 27.

Freedom Group is a Madison, N.C.-based designer, manufacturer and marketers of firearms, ammunition, and related products for the hunting, shooting sports, law enforcement, and military markets.

Sonneborn closes

The buyout of Sonneborn LLC, a Parsippany, N.J.-based manufacturer and supplier of high-purity specialty hydrocarbons, by One Equity Partners from Sun Capital Partners Inc. has been completed, according to a news release.

Funding for the transaction cam from a $270 million senior secured facility (B1/B) consisting of $30 million five-year revolver and a $240 million six-year term loan B.

Pricing on the B loan is Libor plus 500 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 98.

During syndication, pricing on the B loan was reduced from the Libor plus 550 bps context and the 101 soft call protection for one year was eliminated.

Macquarie Capital and BMO Capital Markets Corp. acted as the lead banks on the deal.

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