Charter, Bass Pro, Ascend Performance, International Lease break; Hawker fall continues

By Sara Rosenberg

New York, April 4 - Charter Communications Operating LLC and Bass Pro Shops modified the original issue discounts on their term loans and then freed up for trading, and Ascend Performance Materials LLC firmed pricing at the low end of talk before breaking as well.

Also in the secondary market, International Lease Finance Corp.'s new term loan started trading, levels surfaced on United Surgical Partners International Inc.'s extended loan, and Hawker Beechcraft Inc.'s strip of institutional bank debt was once again lower as investors continue to be spooked by the company's slew of negative news over the past couple of days.

Over in the primary, Alon USA Energy Inc. may be looking at a smaller term loan B with no delayed-draw component and wider pricing as part of its recently announced exploration of financing alternatives, and Centaur LLC removed its deal from market.

Additionally, SBA Communications Corp. revealed price talk on its term loan A with launch, and Global Tel*Link Corp. emerged with repricing plans.

Charter starts trading

Charter Communications' $750 million seven-year term loan D made its way into the secondary market on Wednesday, with levels quoted at 99 7/8 bid, par ¼ offered, according to a trader.

Pricing on the loan is Libor plus 300 basis points with a 1% Libor floor, and it was sold at an original issue discount of 991/2.

The coupon and floor came in line with talk, but the discount was revised earlier in the day from the 99 area, a source added.

The company's $1.85 billion credit facility (Ba1/BB+/BB+) also includes a $1.1 billion five-year revolver.

Charter lead banks

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and UBS Securities LLC are the lead banks on Charter's credit facility that is expected to close on April 11.

Proceeds will be used to refinance a term loan B-1 and term loan B-2 and some term loan C borrowings.

At Dec. 31, the company had a roughly $78 million term loan B-1 due March 6, 2014 priced at Libor plus 200 bps, a roughly $10 million term loan B-2 due March 6, 2014 priced at Libor plus 500 bps with a 3.5% Libor floor and a roughly $3 billion term loan C due Sept. 6, 2016 priced at Libor plus 325 bps.

Charter is a St. Louis-based cable operator and broadband communications company.

Bass Pro frees up

Bass Pro Shops' $200 million add-on term loan (B1/BB-) broke as well, with levels quoted at 99 7/8 bid, par 3/8 offered, a trader remarked. The add-on trades with the existing term loan.

Pricing on the loan is Libor plus 400 bps with a 1.25% Libor floor, in line with existing term loan pricing, and it was sold at an original issue discount of 99¼ - revised from initial talk of 99. There is 101 soft call protection for one year.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the lead banks on the deal that will be used to fund a dividend and for general corporate purposes.

Bass Pro Shops is a Springfield, Mo.-based outdoor retailer.

Ascend Performance breaks

Also hitting the secondary was Ascend Performance Materials, with its $550 million six-year term loan B quoted at 98 3/8 bid, 98 5/8 offered, according to a trader.

Pricing on the loan is set at Libor plus 550 bps, the low end of the Libor plus 550 bps to 575 bps talk, a source said. The tranche has a 1.25% Libor floor, was sold at an original issue discount of 98, and is non-callable for one year, then at 101 in year two.

The company's $875 million credit facility also includes a $325 million three-year ABL revolver.

Bank of America Merrill Lynch, Jefferies & Co., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt and return capital to shareholders.

Ascend Performance Materials is a Houston-based producer of nylon chemicals.

International Lease tops par

Another deal to free up on Wednesday was International Lease Finance's $550 million senior secured term loan (NA/NA/BB), with levels quoted at par bid, par ½ offered on the open, and then it moved to par ¼ bid, par ¾ offered, a trader said.

Pricing on the loan firmed in line with talk at Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 991/2.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Goldman Sachs & Co. are the lead banks on the deal that will be used to refinance an existing $550 million senior secured term loan due March 17, 2016, which is essentially the same maturity as the new term loan.

Pricing on the existing loan is Libor plus 500 bps with a 2% Libor floor.

International Lease is a Los Angeles-based independent aircraft lessor.

United Surgical extended loan

United Surgical Partners' $313 million extended term loan B due April 2017 started being quoted in the secondary, with levels seen at 99¼ bid, par ¼ offered, according to a trader.

The $145 million non-extended loan due April 2014 was seen at 99½ bid, par ¼ offered and the new $365 million incremental loan due April 2019 was seen at 99½ bid, par ½ offered, the trader added.

Pricing on the extended loan is Libor plus 450 bps with a 0.75% floor, pricing on the non-extended is Libor plus 200 bps, and pricing on the incremental is Libor plus 475 bps with a 1.25% floor.

The incremental loan, which was sold at an original issue discount of 98½ and includes 101 soft call protection for one year, was used with $440 million of senior notes and cash on hand to repay some non-extended term loan borrowings, repay $437.5 million of senior subordinated notes and fund a $270 million special dividend to equity holders.

J.P. Morgan Securities LLC and Barclays Capital Inc. led the deal for the Dallas-based owner and operator of ambulatory surgery centers and surgical hospitals.

Hawker Beechcraft slides

Hawker Beechcraft's strip of institutional bank debt continued its downward trend, dropping to 67½ bid, 68½ offered from 68¼ bid, 69¼ offered, according to a trader. On Monday, the debt had closed the day at 70 bid, 72 offered and at the end of last week, levels were 73½ bid, 75 offered.

This week's decline started after the company said on Monday that it did not file its 10-K for 2011 by the March 30 deadline, that it anticipates 2011 losses from operations at around $481.8 million, compared to losses from operations of about $173.9 million in 2010, and that it would not make interest payments due April 2 on its 8½% senior notes, 8 7/8%/9 5/8% PIK notes and 9¾% subordinated notes.

Furthermore, last week, it was disclosed that a forbearance agreement has been reached through June 29 with about 70% of credit facility lenders to defer interest payments and get covenant relief, and that a new $124.5 million senior term loan due June 29 was obtained to fund ongoing operations.

With all of this news, Standard & Poor's downgraded the Wichita, Kan.-based aircraft company's corporate rating, secured credit facility and unsecured and subordinated notes to D.

Alon may rework loan

Switching to the primary, Alon USA Energy said late Tuesday that it is exploring financing alternatives with respect to its previously announced secured term loan plans, and a market source told Prospect News on Wednesday that those alternatives could include a downsizing.

The six-year secured term loan B (B2/B+) was launched in March with a size of $700 million and an option to include an up to $250 million delayed-draw component.

According to the source, it is possible that the loan size will be reduced and that the delayed-draw piece will be eliminated if the company decides not to move forward with its bond tender offer.

Alon tender results

Under the tender, Alon offered to purchase the $216.5 million of 13½% senior secured notes due 2014 held by its subsidiary Alon Refining Krotz Springs Inc.

The delayed-draw term loan was available to fund in the Fall the call of any notes not tendered in this offer.

By the March 28 consent deadline, around $160 million of the notes had been tendered, however, in its news release, the company disclosed that certain of the potential financing alternatives it is looking at for the term loan would not satisfy the financing condition for the tender offer.

Alon could flex

On top of a size change, Alon's term loan B could see pricing move higher from the original talk at launch of Libor plus 525 bps with a 1.25% Libor floor and an original issue discount of 98, the source continued.

Ticking fees on any delayed-draw piece were talked at 200 bps for the first three months and 300 bps for the following three months.

The loan was also launched with 101 soft call protection for one year.

Goldman Sachs & Co. is the lead bank on the deal that will be used to repay an existing roughly $425 million term loan and for general corporate purposes.

Alon USA is a Dallas-based refiner and marketer of petroleum products.

Centaur pulls deal

Centaur withdrew its $180 million credit facility from market, despite it being oversubscribed, with sources hearing that the company may be interested in an acquisition and didn't want to pay for a new deal now that might have to be refinanced in the next few months.

The property that the company is likely interested in is Indianapolis Downs LLC, and sources say that the auction process for that property appears to be happening at a much faster rate than previously expected.

Credit Suisse Securities (USA) LLC and Macquarie Capital were leading the credit facility that was going to be used to repay an existing $160 million first-lien term loan priced at Libor plus 650 bps with a 1.5% Libor floor.

Centaur facility details

Centaur's pulled deal consisted of a $10 million five-year undrawn revolver and a $170 million five-year first-lien term loan, both priced at Libor plus 675 basis points with a step-down to Libor plus 625 bps if first-lien leverage is 3.0 times, and both sold at an original issue discount of 97.

The term loan had a 1.25% Libor floor and 101 soft call protection for one year.

During syndication, the term loan was downsized from $230 million and shortened from a six-year maturity, pricing on the entire facility was flexed up from Libor plus 575 bps with the addition of the step-down and both tranches saw the discount price widen from 98.

Also, because of the downsizing, the company's existing $62.7 million second-lien term loan was going to remain in place, but would have had a six-year maturity and pricing of Libor plus 700 bps cash plus 500 bps PIK, versus a current rate of AFR plus 499 bps.

Centaur is an Indianapolis-based casino operator.

SBA sets talk

SBA Communications held a bank meeting on Wednesday to launch its $200 million five-year amortizing term loan A (Ba2/BB), which was presented to lenders with talk of Libor plus 250 bps, according to a market source.

TD Securities (USA) LLC and Wells Fargo Securities LLC are joint lead arrangers on the deal and joint bookrunners with Citigroup Global Markets Inc., RBS Securities Inc. and Deutsche Bank Securities Inc.

Proceeds will be used for general corporate purposes, including repaying borrowings under a revolving credit facility that is being increased by $200 million to $700 million through commitments from the existing lender group.

SBA is a Boca Raton, Fla.-based provider, owner and operator of wireless communications infrastructure.

NAB launches

North American Bancard (NAB Holdings LLC) also held its bank meeting during the session, launching its $160 million credit facility at previously outlined talk and asking lenders to get their commitments in by April 18, according to a market source.

The facility consists of a $10 million five-year revolver and a $150 million six-year term loan, both talked at Libor plus 550 bps with a 1.5% Libor floor and an original issue discount of 98. The term loan has 101 repricing protection for one year.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the lead banks on the deal that will be used to repay existing debt and fund a dividend.

North American Bancard is a Troy, Mich.-based merchant acquirer for payment processing.

Global Tel readies loan

Global Tel*Link came out with plans to hold a conference call at 2 p.m. ET on Thursday to launch a $620 million term loan due December 2017 that will reprice its existing term loan from Libor plus 550 bps with a 1.5% Libor floor, according to a market source.

Since the existing loan has soft call protection, lenders will be paid down at 101 with the repricing.

The new loan will also have 101 repricing protection for one year and will be offered at par. Coupon and Libor floor are not yet available, the source added.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are the lead banks on the deal.

Prior to the news, the term loan was quoted at par ½ bid, 101 offered, and traders said that it pretty much stayed in that area as a result of the 101 paydown price.

Global Tel*Link is a Mobile, Ala.-based correctional communications technology company.

Sprouts well met

In other news, Sprouts Farmers Market's $100 million add-on term loan (B2/B+) is oversubscribed at initial talk and allocations are expected to go out on Thursday, according to a market source.

The loan is priced at Libor plus 475 bps with a 1.25% Libor floor, in line with existing term loan pricing, and is being sold at an original issue discount of 981/2.

Jefferies & Co., Apollo Global Securities and Natixis are leading the deal that will be used to help fund the acquisition of Sunflower Farmers Market.

Closing is expected in mid-Spring, subject to regulatory approval.

Sprouts Farmers Market is a Phoenix-based grocer that operates in the farmers market specialty segment of the retail food industry. Sunflower Farmers Market is a chain of full-service grocery stores.

DSI Renal wraps

DSI Renal Inc. completed its upsized $193 million senior secured credit facility that is priced at Libor plus 500 basis points after flexing down during the syndication process from Libor plus 525 bps, according to a market source.

The facility consists of a $30 million five-year revolver, which was upsized from $25 million, a $30 million one-year revolver and a $133 million term loan, the source said.

The term loan has a 1.5% Libor floor and was sold at an original issue discount of 99 after tightening from initial talk of 981/2.

GE Capital Markets led the deal that was used to fund the acquisition of 54 dialysis clinics from Fresenius Medical Care AG.

Senior leverage is 3.2 times, and total leverage is 4.6 times.

DSI is a Nashville, Tenn.-based provider of dialysis services to patients suffering from chronic kidney failure.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.