Sinclair, Belfor, Mirion break; Charter, Evertec, Rice Drilling, Steward, Ranpak tweak deals

By Sara Rosenberg

New York, April 8 - Sinclair Television Group Inc.'s credit facility freed up for trading on Monday with the term loan B seen above its issue price, and Belfor USA Group Inc. and Mirion Technologies Inc. emerged in the secondary market too.

Moving to the primary, Charter Communications Operating LLC reverse flexed pricing on its term loan, and Evertec Group LLC reduced the coupon and Libor floor on its term loan B, while also modifying the offer price, call protection and pricing grid.

Also, Rice Drilling B LLC firmed the spread on its second-lien term loan at the low end of guidance and the original issue discount in the middle of talk, and Steward Health Care System LLC upsized its B loan and reduced pricing and the original issue discount.

Additionally, Ranpak Corp. increased the size of its first-lien term loan and tightened pricing on the debt, as well as on a second-lien loan, and First Data Corp. announced to investors that it is now seeking a repricing of its 2018 term loan B tranche.

Furthermore, Crown Castle Operating Co., MediMedia USA Inc. and Covis Pharma Holdings Sarl set pricing guidance with launch, Caraustar Industries Inc. revealed talk on its upcoming deal, and ThermaSys Corp. (API Heat Transfer Inc.), Harden Healthcare, MMI International Ltd. and TriNet HR Corp. disclosed new loan plans.

Sinclair starts trading

Sinclair Television's credit facility hit the secondary market on Monday, with the $400 million seven-year term loan B quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the B loan is Libor plus 225 basis points with a 0.75% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

During syndication, pricing on the term B was decreased from talk of Libor plus 250 bps to 275 bps and the offer price was tightened from 993/4.

The $1 billion credit facility (Baa3/BB+) also includes a $100 million five-year revolver and a $500 million five-year term loan A.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are leading the deal.

Sinclair refinancing

Proceeds from Sinclair's credit facility and $600 million of senior notes will be used to take out existing bank debt via an amendment and restatement to raise the new term loan and revolving commitments and to introduce increased incremental loan capacity, increased television station acquisition capacity and increased flexibility under negative covenants.

In addition, the new term loans, cash on hand and/or a draw under the new revolver are expected to be used to fund the acquisitions of 18 television stations owned by Barrington Broadcasting Group LLC for $370 million and four television stations owned by COX Media Group for about $99 million.

The acquisitions are expected to close this quarter.

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

Belfor frees up

Another deal to begin trading was Belfor, with its $200 million six-year term loan B quoted at par ½ bid, according to a trader.

Pricing on the loan is Libor plus 275 bps with a step-down to Libor plus 250 bps when consolidated leverage is less than 3 times. There is a 0.75% Libor floor and 101 soft call protection for one year, and it was sold at an original issue discount of 991/2.

Recently, the pricing step-down was added, the Libor floor was reduced from 1% and the discount firmed at the tight end of the 99¼ to 99½ talk.

In addition to the B loan, the company's $520 million credit facility (Ba3/BB-) includes a $170 million five-year revolver and a $150 million five-year term loan A.

J.P. Morgan Securities LLC is leading the deal that will be used by the Birmingham, Mich.-based damage recovery and restoration provider to refinance existing debt.

Mirion tops par

Mirion Technologies' roughly $277 million first-lien term loan (B2/B) due March 2018 broke as well, with levels seen at par ½ bid, sources said.

Pricing on the loan is Libor plus 450 bps with a 1.25% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

Proceeds from the Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc.-led deal are being used to reprice an existing term loan from Libor plus 500 bps with a 1.25% floor.

Mirion is a San Ramon, Calif.-based provider of mission-critical products to detect, monitor and identify radiation.

Charter cuts coupon

Over in the primary, Charter Communications trimmed the spread on its $1.5 billion seven-year first-lien term loan (Baa3/BB+/BB+) to Libor plus 225 bps from Libor plus 250 bps, while keeping the 0.75% Libor floor, original issue discount of 99½ and 101 soft call protection for six months intact, according to a market source.

Commitments were due at the close of business on Monday, the source continued.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are leading the loan that will help fund the acquisition of Optimum West (Bresnan Broadband Holdings LLC), a manager of cable operating systems in Colorado, Montana, Wyoming and Utah, from Cablevision Systems Corp. for $1.625 billion in cash.

Closing is expected in the third quarter, subject to customary conditions, including regulatory approval.

Charter Communications is a St. Louis-based broadband communications company.

Evertec reworks deal

Evertec cut pricing on its $400 million seven-year term loan B to Libor plus 275 bps from Libor plus 300 bps, lowered the Libor floor to 0.75% from 1%, changed the offer price to par from 99¾ and extended the 101 soft call protection to one year from six months, a market source said.

Also, the term B pricing grid now only includes one 25 bps step-down at 3.5 times net senior secured leverage, as opposed to having one step-down at 3.5 times net senior secured leverage and one at 3 times net senior secured leverage, the source said. Leverage is expected at around 4.1 times at close.

In addition to the term loan B, the company's $800 million senior secured credit facility (B1/B+) includes a $100 million five-year revolver and a $300 million five-year term loan A.

Lead bank, J.P. Morgan Securities LLC, was seeking recommitments by 1 p.m. ET on Monday.

Proceeds, along with cash on hand, will be used to refinance an existing credit facility and 11% senior notes due 2018, and for general corporate purposes.

Evertec, a San Juan, Puerto Rico-based full-service transaction processing business, must complete an initial public offering in order for the credit facility to close.

Rice Drilling updates terms

Rice Drilling set pricing on its $300 million 51/2-year senior secured second-lien term loan at Libor plus 725 bps, the tight end of the Libor plus 725 bps to 750 bps talk and the original issue discount at 981/2, versus talk of 98 to 99, according to a market source.

The loan still has a 1.25% Libor floor and hard call protection of 102 in year one and 101 in year two.

Recommitments are due at noon ET on Tuesday, the source continued.

Barclays is leading the deal that will be used to repay existing debt, to redeem convertibles and for general corporate purposes, including capital expenditures and acquisitions.

Leverage is 4 times net debt to first quarter 2013 annualized EBITDA.

Rice Drilling is a Canonsburg, Pa.-based natural gas exploration and production company.

Steward Health revised

Steward Health Care System lifted its seven-year term loan B (B2/B) to $285 million from $250 million, cut the coupon to Libor plus 550 bps from the Libor plus 575 bps area and moved the original issue discount to 99 from 98, according to a market source.

As before, the loan has a 1.25% Libor floor and 101 soft call protection for one year.

Recommitments are due at 3 p.m. ET on Tuesday, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance ABL borrowings, and pre-fund acquisitions and capital expenditures.

Steward Health Care is a Boston-based health care system.

Ranpak reworks loans

Ranpak upsized its six-year first-lien term loan B to $315 million from $300 million, with the tranche split between a $185 million piece and a €100 million piece, and reduced pricing to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps, according to sources.

The 1.25% floor, original issue discount of 99½ and 101 soft call protection for one year on the first-lien loan was unchanged.

Meanwhile, the company's $150 million seven-year second-lien term loan was flexed to Libor plus 750 bps from talk of Libor plus 775 bps to 800 bps and the discount was changed to 99 from 981/2.

The second-lien loan still has a 1.25% Libor floor and call protection of 103 in year one, 102 on year two and 101 in year three, sources said.

Goldman Sachs & Co. and Barclays are leading the now $485 million credit facility, which also includes a $20 million five-year revolver, and will be used to refinance existing debt and fund a dividend.

Ranpak is a Concord Township, Ohio-based producer of protective paper packaging materials and systems.

First Data repricing

First Data revealed that it is looking to reprice its $1,008,000,000 first-lien term loan B (B1/B+) due September 2018 to Libor plus 400 bps with no Libor floor from Libor plus 500 bps with no floor, according to a market source.

The repricing is offered at an original issue discount of 99 3/8 to 99 5/8 and has no call protection, the source said.

Commitments are due by 4 p.m. ET on Tuesday. No call was held to launch the deal.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the repricing for the Greenwood Village, Colo.-based provider of electronic commerce and payment services.

Just last week, the company wrapped syndication of a repricing of its $2,436,000,000 first-lien term loan (B1/B+) due March 2017 and €178 million first-lien term loan (B1/B+) due March 2017 to Libor plus 400 bps with no floor from Libor plus 500 bps with no floor. Those repriced loans were sold at a discount of 99 5/8, after being revised from guidance of 99¼ to 991/2.

Crown Castle launches

In more primary happenings, Crown Castle held its call in the morning, launching a $1.58 billion term loan with talk of Libor plus 275 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Friday, the source said.

Bank of America Merrill Lynch, RBS Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 300 bps with a 1% Libor floor.

Crown Castle is a Houston-based owner, operator and leaser of towers and other infrastructure for wireless communications.

MediMedia pricing

MediMedia held its bank meeting in the afternoon, launching its $210 million first-lien term loan (B2) with talk of Libor plus 650 bps to 675 bps with a 1.25% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, according to a market source.

And, the $100 million second-lien term loan (Caa2) was launched at Libor plus 1,050 bps to 1,100 bps with a 1.25% floor, a discount of 97 and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

The company's $335 million credit facility also includes a $25 million revolver (B2).

Commitments are due on April 19, the source added.

Goldman Sachs & Co., Jefferies Finance LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

MediMedia is a Yardley, Pa.-based specialty health care communications, publishing and medical education company.

Covis guidance emerges

Covis Pharma announced talk of Libor plus 525 bps to 550 bps with a 1.25% Libor floor and an original issue discount of 99 on its $205 million six-year first-lien term loan that launched with a bank meeting on Monday afternoon, according to a market source.

The term loan has 101 soft call protection for one year.

Commitments for the company's $230 million credit facility, which also includes a $25 million five-year revolver, are due on April 22, the source said.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading that deal that will fund the acquisition of select off-patent drugs.

Covis is a Zug, Switzerland-based specialty pharmaceutical company.

Caraustar floats talk

Caraustar Industries is talking its $330 million six-year covenant-light first-lien term loan at Libor plus 650 bps with a 1.25% Libor floor, an original issue discount of 99 and soft call protection of 102 in year one and 101 in year two, according to a market source.

The deal is slated to launch with a bank meeting at 1 p.m. ET in New York on Wednesday.

Also included in the company's $380 million credit facility is a $50 million five-year ABL revolver.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Jefferies Finance LLC are leading the financing that will be used to help fund the company's buyout by H.I.G. Capital.

Caraustar is an Austell, Ga.-based manufacturer of recycled paperboard products and packaging.

ThermaSys on deck

ThermaSys will host a bank meeting at 10:30 a.m. ET in New York on Wednesday to launch a $300 million credit facility that will be used to refinance existing debt and fund a dividend to shareholders, according to a market source.

The facility consists of a $35 million five-year revolver and a $265 million six-year first-lien term loan B, the source said, adding that talk is not yet available.

UBS Investment Bank, RBC Capital Markets and GE Capital Markets are leading the transaction.

ThermaSys is a Buffalo, N.Y.-based designer and manufacturer of specialty heat exchangers and heat transfer products.

Harden readies deal

Harden Healthcare scheduled a bank meeting for Tuesday afternoon to launch a $190 million senior secured credit facility, according to a market source.

Barclays, Bank of America Merrill Lynch, CIT and Wells Fargo Securities LLC are leading the deal that consists of a $40 million revolver and a $150 million term loan B, the source said.

Proceeds will be used by the Austin, Texas-based provider of post-acute healthcare services to refinance an existing credit facility and for general corporate purposes.

MMI coming soon

MMI International set a lender meeting for 10 a.m. ET on Wednesday to launch a $230 million senior secured term loan B that is being led by J.P. Morgan Securities LLC, according to a market source.

Proceeds will be used to refinance an existing term loan.

MMI is a Singapore-based technology company with a focus on key components for the Hard Disk Drive industry.

TriNet plans loan

TriNet will hold a conference call on Wednesday afternoon to launch a $150 million incremental term loan (B+) that will fund a dividend and be used for general corporate purposes, according to sources.

Bank of America Merrill Lynch, KeyBanc Capital Markets LLC, J.P. Morgan Securities LLC and BMO Capital Markets Corp. are leading the transaction.

TriNet is a San Leandro, Calif., cloud-based provider of on-demand HR services.

Hertz closes

In other news, Hertz Global Holdings Inc. completed its roughly $1.37 billion senior term loan B-2 that is priced at Libor plus 225 bps with a 0.75% Libor floor, according to a news release. The debt was issued at par.

Deutsche Bank Securities Inc. and Well Fargo Securities LLC led the deal that was used to reprice an existing term loan from Libor plus 275 bps with a 1% Libor floor.

Hertz is a Park Ridge, N.J.-based auto and equipment rental company.

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