Wednesday, August 14, 2013 LCD News Today Wednesday commentary Top stories Primary loan market M&A, page 4
A couple more issuers jumped in to take advantage of market
Revlon sets lender call for tomorrow to launch new TLB
conditions even as the current slate of deals sees mixed results. Two opportunistic transactions were in the process of being
Refi nancing, page 6
shelved today as investors demanded higher pricing.
MEI Conlux tightens OID on refi nancing to 99.5
WaveDivision, which was seeking to reprice its loan to L+275, Secondary, page 8
with a 75 bps fl oor, from L+300 with a 1% fl oor, probably won't
RadioShack bonds edge higher on loan refi nancing reports
proceed, investors were told today. Northeast Wind Capital II's recap deal was also understood to be shelved. These deals Distressed, page 10
follow last week's mothballing of Consolidated Container's
AMR, Ch. 11 stakeholders grapple with DOJ suit aftershocks
Morgan Stanley and Bank of America Merrill Lynch launched
prices today, while Live Nation upsized its loan and trimmed
a $500 million fungible add-on B term loan for Crown Castle Operating Co. at 99-99.5. Proceeds will be used to refi nance revolver outstandings. The loan is fungible with the Secondary loan market
communications-tower operator's recently repriced $1.58
Traders continue to focus on a handful of credit-specifi c
billion term loan, which matures in January 2019. The loan
situations amid quiet market conditions that are typical of mid-
is priced at L+250, with a 0.75% LIBOR fl oor, with a step to
August. For one, loans backing ServiceMaster dropped about a
L+225 when total leverage is less than 4.5x.
point early in the session, to a 97/98 context, after the company posted disappointing second-quarter results.
As well, a Citigroup-led arranger group has scheduled a lender call for 10:00 a.m. EDT tomorrow, Aug. 15, to launch a new
The issuer's two term loans - a roughly $1 billion TLB due 2017
term loan for Revlon Consumer Products.
(L+450) and a $1.2 billion TLB due 2017 (L+325, 1% LIBOR fl oor) - typically trade in a similar context. Second-quarter
Additional details will emerge on tomorrow's call, but the issuer
revenue fell 12% from the year-ago quarter, to $307.6 million,
has previously disclosed it plans to seek an approximately $700
while adjusted EBITDA slumped about 27%, to $148.6 million,
million incremental term loan backing its $660 million purchase
ServiceMaster is one of a handful of issuers to come under
The new issues have kept coming because loans continue to see
pressure of late following soft results. Getty Images term debt
strong demand, generally. Kinetic Concepts, Totes-Isotoner,
due 2019 (L+350, 1.25% fl oor) remains choppy this week after
MEI Conlux, and the repricing for Ceridian all tightened offer
the company posted weak numbers last week. The paper was
Recent price flexes Secondary loan break prices Pricing (spread/floor/OID) Post-flex New-issue Original Post-flex
Source for tables: S&P Capital IQ LCD
Note: yield calculations are based on current LIBOR
August 14, 2013 LCD News Today
pegged in a 96.5/97 context this morning, which is off from the
report that said company management is holding refi nancing talks
low pars prior to the results. The NuSil Technology TLB due
with some of the holders of the gaming concern's propco debt.
2017 (L+400, 1.25% fl oor) is quoted at 99/100, which is off from
The propco debt is also fi rmer, quoted at 96/97, from 95/95.5 late
either side of par. The issuer released its results to its lenders late
Elsewhere, a few more deals allocated as arrangers wrap up
Elsewhere, J.C. Penney's covenant-lite TLB due 2018 (L+500,
summer business. The Zest Anchors TLB due 2020 (L+550, 1%
1% LIBOR fl oor) extended recent losses amid the company's
fl oor) opened at 98.5/99.25, from issuance at 98, while the $100
boardroom drama, sliding to 95.5/96.25, from 96.25/96.75 late
million institutional tranche of Tip Trailer's cross-border LBO
yesterday. And the AMR Corp. exit/DIP term loan due 2019
loan (L+550, 1% fl oor) opened at 95/96, versus issuance at 95.
(L+375, 1% fl oor) was quoted at 99.5/99.875, down about three quarters of a point since yesterday's news that the U.S. Justice
Primary high-yield market
Department is seeking to block the airline's merger with U.S.
Activity picked up again today with drive-by deals for Access Midstream Partners and T-Mobile USA, a couple of small tack- ons for Cogent Communications and Flex-Van Leasing, and
Not all of the movement was to the downside. Loans backing
NuStar Logistics completing its debut high-yield offering. Also, Caesars Entertainment were stronger - the B-6 term loan due
price talk was released for DS Waters of America. Pro forma
2018 (L+525) rose a point, to a 91/92 context - on a Debtwire
issuance for the week thus far is $4.6 billion. High-yield stats Volume ($ billion) Average flow-name bid Difference Difference Difference High-yield forward calendar This week Price talk Amount ($ million) Price talk Amount ($ million) LCD News Today August 14, 2013
Access Midstream Partners was back in market to tack on
the company this morning reported second-quarter results that
another $400 million to its 5.875% notes due 2021 through joint
showed declines in revenue and adjusted EBITDA on a year-
bookrunners Barclays, BBVA, Citi, RBS, and Wells Fargo. The
over-year basis. The 7% notes due 2020 slumped to 90.5/91.5,
notes were priced at the midpoint of talk, at 101.5, to yield 5.5%,
while the 8% notes due 2020 declined to 95.25/96.25, according
offering around a 1.75-point discount to where existing notes were
to sources. Second-quarter revenue fell 12% from the year-ago
indicated before the deal was announced. The additional notes
quarter, to $307.6 million, while adjusted EBITDA slumped
will be immediately fungible and increase the total issue size to
about 27%, to $148.6 million, fi lings show.
$750 million. Proceeds from the SEC-registered offering will be used for general partnership purposes, including working capital,
Both issues were active and posted as the top-traded issues in
debt repayment, funding capital expenditures or acquisitions.
market today until being eclipsed late in the day by U.S. Airways 6.125% notes due 2018. That paper was trading in heavy volume at
NuStar Logistics placed $300 million of 7.5-year bullet notes at
91-91.5, down four points since yesterday's news that the federal
the wide end of guidance, yielding 6.75%. This marks the fallen-
government seeks block the airline's merger with American
angel issuer's high-yield primary market debut and proceeds
Airlines. As for the latter, the company's 6.25% convertible notes
from the BB+/Ba1 offering will be used to fund general corporate
due 2014 have traded down 20 points since the news, at 96, trade
purposes, including repayment of RC borrowings used to pay
down existing bonds in March and June. The deal was led by J.P. Morgan, Mizuho, and SunTrust.
Bonds backing RadioShack edged higher, just as CDS in the name tightened, following press reports that the struggling
T-Mobile USA launched its fi rst bond deal since closing its
retailer is seeking to refi nance its high-interest-rate loans. The
acquisition of MetroPCS. The $500 million offering of fi ve-
6.75% notes due 2019 added half a point, to bracket 72, for a
year (non-call two) senior notes was shopped in the 5.375% area
2.5-point gain on the week, given trades were at 69.5 on Monday,
by sole bookrunner Deutsche Bank. The wireless provider will
according to sources and trade data. Five-year CDS on the credit
use funds raised from the BB/Ba3 issue for general corporate
cinched inward by roughly 6% today, at 27.75/29.5 points upfront,
according to Markit. RadioShack is looking to secured new, lower-cost loans by the end of the year, according to a Reuters
Meanwhile, price guidance was released for the bond deal backing
report late on Tuesday afternoon. The costly debt was put in place
the buyout of DS Waters of America by Crestview Partners
in October and pays L+1,000, with a 1% LIBOR fl oor.
following a structural revision and a downsizing by $50 million, to $300 million, in favor of a larger term loan. Call structure of
High-grade market
the eight-year second-lien notes was revised to four years, which
Primary volume continued to dwindle today with only $3.2
is standard for the tenor, from three years initially. With that, the
billion of straight, corporate bonds sold, which is almost half
fi rst call price was reset to par plus 50% of the coupon, from 75%.
of Monday's roughly $6.5 billion total, and a billion less than
Price talk is for a yield of 10-10.5%, inclusive of a material OID.
Pricing for the B-/B3 deal will be tomorrow via joint bookrunners Credit Suisse, Barclays, Jefferies, and BMO.
Still, pricing conditions continue to hold up, enticing infrequent borrowers to brave the higher-rate environment. Much like
Secondary high-yield market
yesterday, some issuers ended lengthy absences from the bond
Caesars Entertainment bonds traded higher today as investors
market to ink smaller deals in order to refi nance upcoming
mulled press reports that the struggling casino giant was in talks
over restructuring property company debt. The fi rst-lien 11.25% notes due 2017 traded up three eighths of a point, at 102.875,
Broadridge Financial Solutions returned after more than six
while second-lien 10% notes due 2018 surged three points, to
years, to place $400 million of 3.95% notes due September 2020
58/59, according to sources and trade reports. The unsecured, pre-
at T+185, or 3.971%. The fi nancial-industry-servicing company
buyout legacy 5.625% notes due 2015 surged six points, to 87/89,
plans to use proceeds to repay debt under its senior revolving
sources say. A report in Debtwire cited unnamed sources as saying
credit facility, which has roughly the same amount outstanding.
the company is engaged in negotiations with some debtholders
Broadridge was last in the market in May 2007 when it placed
who have recently become "restricted" holders. Some of the
propco CMBS holders include Perry Capital, Brigade Capital, Silver Point, Third Point, and Oaktree, according to the report.
Electric utility Jersey Central Power & Light has been absent since 2007 but returned today to sell $500 million of 4.7% notes
In one of the few recent earnings-season-disruption events, bonds
due April 2024 at T+205, or 4.762%, which will be used to repay
backing ServiceMaster were two points lower this morning after
debt and for general corporate purposes. The company last tapped
August 14, 2013 LCD News Today
the bond market in November 2007 to place 6.15% notes due
purchase and provide the company with an additional quarter
turn of headroom under its fi rst-lien-secured-leverage test, among other items (see "Revlon launches amendment ahead of Colomer
Spice company McCormick & Co. returned to print $250
purchase," LCD News, Aug. 13, 2013). Consents are due Friday.
million of 3.5% notes due September 2023 at T+90, or 3.603%. The company earmarked proceeds, together with cash on hand,
The issuer's existing $675 million term loan due 2019 is priced
to repay the $250 million of 5.25% notes due Sept. 1. Proceeds
at L+300, with a 1% LIBOR fl oor. Pro forma for the transaction,
from that issue were used to repay a portion of the company's
net leverage would run about 3.4x through the fi rst-lien debt and
4.8x on a total basis, according to an SEC fi ling. On a gross basis, leverage would run about 5.1x.
Meanwhile, split-rated credit American Tower (BB+/Baa3/ BBB) placed a $1.25 billion, two-part offering after last week
The Colomer Group is a privately held beauty-care company
being placed on S&P's CreditWatch with positive implications,
that markets and sells professional products to salons and other
following the initiation of a sector review on U.S. wireless-tower
professional channels. About 50% its sales are in Europe, the
operators. The agency anticipates a one-notch, from BB+, and
Middle East, and Africa, with 40% in the U.S., and the balance in
aims to complete its sector review and resolve the CreditWatch
Revlon is a global producer of cosmetics and beauty-care
American Tower's deal included $750 million of 3.4% notes
products. Corporate ratings are B+/Ba3, though Moody's has
due February 2019, placed at T+195, or 3.418%, and $500
placed the company's ratings on review for a downgrade in light
million of 5% notes due February 2024, priced at T+230, or
5.014%. The REIT, which operates as a wireless and broadcast
communications-infrastructure company, will use proceeds to refi nance existing debt and for recently announced acquisitions
DS Waters outlines price talk for LBO bonds, shifts $50M to TL
Price guidance is circulating for the bond deal backing the buyout of DS Waters of America after the structure was revised and size JPMorgan Chase rounded out today's slate with a $750 million
was trimmed by $50 million, to $300 million, in favor of a larger
offering of 5.625% subordinated notes due 2043 at T+190, or
5.678%. The new 2043 issue was the New York bank's fi rst long-bond offering since December and second subordinated notes
Books will close tomorrow morning at 10:00 a.m. EDT and
pricing will follow later in the day via joint bookrunners Credit Suisse, Barclays, Jefferies, and BMO.
Elsewhere, the CDX IG 20 remained roughly unchanged ahead of equity closed, at 75.3 bps, versus yesterday's fi nish, according
Call structure of the eight-year second-lien notes offering was
revised to four years, which is standard for the tenor, from three
years initially. With that, the fi rst call price was reset to par plus 50% of the coupon, from 75% for the shorter non-call period.
M&A news
Price talk is for a yield of 10-10.5%, inclusive of a material OID, sources note. That price talk works out to about L+775 on a swap-
Revlon sets lender call for tomorrow to launch new TLB
A Citigroup-led arranger group has scheduled a lender call for 10:00 a.m. EDT tomorrow, Aug. 15, to launch a new term loan for
Issue ratings for the notes are B-/B3, and S&P's recovery rating
Revlon Consumer Products, according to sources.
for the debt is 5, indicating an expectation for modest (10-30%) recovery in the event of a payment default.
Additional details will emerge on tomorrow's call, but the issuer has previously disclosed it plans to seek an approximately $700
Proceeds from the deal will help fund Crestview Partners'
million incremental term loan backing its $660 million purchase
acquisition of DS Waters of America, a direct-to-consumer
of The Colomer Group. Citigroup, Credit Suisse, Deutsche Bank,
beverage-services provider to more than 1.4 million home and
J.P. Morgan, Bank of America Merrill Lynch and Wells Fargo are
offi ce locations across the country.
First-lien fi nancing for the transaction includes a $75 million,
As reported, the issuer is in market with an amendment that
asset-based revolver and a now $360 million term loan.
would allow for the incremental term loan to fi nance the Colomer
LCD News Today August 14, 2013 Refi nancing news Live Nation upsizes loan fi nancing; trims LIBOR fl oor on TLB J.P. Morgan is seeking recommitments by 3:00 p.m. EDT today Smile Brands seeks recommitments after tweaking terms
on its $1.4 billion senior secured refi nancing for Live Nation
Credit Suisse, Jefferies, SunTrust, and Wells Fargo are seeking
Entertainment after fi rming pricing on the institutional tranche
recommitments by 2:00 p.m. EDT today on their $310 million
inside of original talk and upsizing the pro rata component of the
refi nancing for Smile Brands after tweaking some terms of the
deal by $50 million, according to sources.
deal. The loan has been oversubscribed in-line with earlier talk.
Pricing on the TLB has fi rmed at L+275, with a 0.75% LIBOR
The $260 million, six-year B term loan is set to price at L+625,
fl oor and a 99.75-100 offer price, for a yield to maturity of 3.55-
with a 1.25% LIBOR fl oor, offered at 98. The loan would yield
3.59%. By comparison, the loan was originally talked at L+275-
300, with a 1% LIBOR fl oor, offered at 99.75, offering a yield to maturity of 3.85-4.11%.
Among the revisions, the loan now includes 102 and 101 hard call premiums in years one and two, respectively, except for change of
As before, the TLB includes six months of 101 soft call protection.
control, which carries a 101 premium for one year.
Following a $35 million increase to the revolver and a $15 million
The leads have set 25% covenant cushions for leverage and
increase to the TLA, the loan package is now structured as a $950
interest coverage and added a capex covenant to the transaction.
million, seven-year B term loan; a $115 million, fi ve-year A term
Furthermore, cash payment of holdco mezzanine interest will be
loan and a $335 million, fi ve-year revolving credit, which will be
contingent on meeting a fi xed-charge-coverage test, sources said.
undrawn at closing. The incremental proceeds from the increase to the TLA will go as cash on the balance sheet.
The deal refi nances the issuer's 2010 LBO debt, sources said. The new deal will extend maturity, alter pricing, and revise covenants,
Proceeds will be used to refi nance existing bank debt. The deal
including adding a cash cap on new EBITDA adjustments.
will be governed by leverage and interest-coverage covenants.
The refi nancing will also include a $50 million, fi ve-year
As reported, the ticking-and-marketing company last week placed
revolving credit, according to sources. The deal will be governed
a $200 million add-on to its 7% notes due 2020, which priced
by net total-leverage and interest-coverage tests.
at 104.5, to yield 5.954%, via a J.P. Morgan-led bookrunner group. This morning the notes are pegged at either side of 104,
Current issuer and loan ratings are B-/B3 and B-/B1 respectively.
sources said. Proceeds from the notes will be used to redeem all outstanding 8.125% notes due 2018, which carry a make-whole
The 2010 LBO of Smile Brands was backed by a $240 million
provision, at T+50, until the fi rst call next year.
term loan that cleared at L+525, with a 1.75% LIBOR fl oor. Welsh, Carson, Anderson & Stowe purchased a majority interest
Live Nation is rated BB-/B1 following a recent one-notch upgrade
in the company from an investor group led by Freeman Spogli &
from Standard & Poor's. The bank debt is rated BB/Ba3, with a 2
Co., according to sources. Freeman Spogli remained a minority
investor in the company. Leverage was roughly 4x through the loan and in the mid-to-high 5x area through a $100 million issue
Live Nation trades on the New York Stock Exchange under the
of holdco unsecured notes, sources said.
ticker LYV with an approximate market capitalization of $3.38 billion.
Standard & Poor's downgraded the dental-practice-management
fi rm and its debt in December 2012, citing negative free operating cash fl ow after elevated capital spending for the previous four
Knowledge Universe withdraws refi nancing facility
quarters, resulting in depleted liquidity.
Knowledge Universe U.S. has withdrawn a proposed refi nancing that would have addressed a $260 million issue of 7.75%
At the time, the rating agency raised the possibility that Smile
subordinate notes due 2015 and a $75 million revolver due June
Brands could deplete the $13.5 million of funds available from its
$35 revolving credit or breach a covenant.
As reported, BNP Paribas and Bank of America Merrill Lynch
Smile Brands provides comprehensive business-support services,
launched the transaction, which was split between a $267 million
non-clinical personnel, facilities and equipment through exclusive
B term loan due 2019 and a $75 million revolver due 2018, in late
long-term agreements with affi liated dental groups.
June. Price talk had been at L+500, with a 1.25% LIBOR fl oor,
offered at 99. The six-year term loan included 12 months of 101
August 14, 2013 LCD News Today
soft call protection. At that talk, the term loan would have yielded
due 2023. The 2021 paper trades around 101.25, yielding in the
6% area, while the longer-dated issue is pegged around 100.75, yielding 6.5%, according to S&P Capital IQ.
S&P yesterday withdrew its B- rating on the term loan and
revolver and affi rmed the CCC corporate issuer rating. Totes-Isotoner tightens offer price on add-on term loan
Knowledge Universe, which was co-founded by Michael Milken,
Credit Suisse has tightened the offer price on its add-on term loan
operates over 3,000 schools and child-care programs worldwide
for Totes-Isotoner to 99.75, and is seeking recommitments by
through its KinderCare, Champions, and Children's Creative
- Richard Kellerhals/Chris Donnelly
The $25 million add-on backs a dividend to the company's owners, sources added. The loan will be fungible with the issuer's
Crown Castle preps launch of $500M add-on TLB
Morgan Stanley and Bank of America Merrill Lynch have set a lender call for tomorrow at 11:00 a.m. EDT to launch a $500
Pricing is L+575, with a 1.5% LIBOR fl oor. The new money was
million add-on B term loan for Crown Castle Operating Co.,
initially offered at 99.5. The term loan due July 2017 includes six
sources said. Other details have not emerged yet.
The communications-tower operator in April wrapped a repricing
Of note, the loans are governed by total leverage and fi xed-charge
of its $1.58 billion term loan, which matures in January 2019. The
coverage tests. Totes has B/B3 fi rst-lien and issuer ratings.
loan is priced at L+250, with a 0.75% LIBOR fl oor, and includes six months of 101 soft call protection. Bank of America Merrill
The company has also pre-placed a $20 million add-on to its
Lynch, RBS, and Morgan Stanley arranged the transaction.
second-lien term loan as part of the transaction.
The deal is governed by a 6x net-total-leverage test that steps
Totes last tapped the market in 2011 via Credit Suisse, for a
to 5.5x on March 31, 2014, as well as a 2.5x minimum-interest-
fi rst- and second-lien dividend recapitalization. The transaction
coverage test, sources said. The loan is rated B+/Ba2 with a 4
included an $85 million, fi ve-year asset-based revolver; a $160
million, six-year fi rst-lien term loan; and an $80 million, 6.5-year
second-lien term loan. The second-lien loan is priced at L+925 with a 1.5% fl oor. T-Mobile USA offers price guidance for 5-year notes Price talk is in the 5.375% area for T-Mobile USA's proposed
MidOcean Partners acquired Totes Isotoner in early 2007.
$500 million offering of fi ve-year (non-call two) senior notes,
according to sources. That guidance works out to about L+375 on a swap-adjusted basis. Books will close at 1:30 p.m. EDT and
MEI Conlux tightens OID on refi nancing to 99.5
pricing follows via sole bookrunner Deutsche Bank.
A Goldman Sachs-led arranger group has set a recommitment deadline at noon EDT on the refi nancing for MEI Conlux after
Note that size of the deal will not grow and that funds being raised
tightening the offer price to 99.5, from 99, sources said.
are for general corporate purposes. Ratings are not yet assigned but accounts are being told to expect BB/Ba3, sources note.
Pricing on the refi nancing remains at L+400, with a 1% LIBOR fl oor, according to sources.
The wireless provider has various debt instruments outstanding - specifi cally, 14 bonds sized between $600 million and $1.75
Goldman Sachs, Bank of America Merrill Lynch, and Nomura
billion each, with 5.5-7.875% coupons, maturing 2018-2023,
are leading the all fi rst-lien, dollar-denominated deal, which
according to its bond-offering memorandum. Together with other
includes a $60 million, fi ve-year revolver and a $395 million,
debts, T-Mobile USA has pro forma total debt of $20.7 billion.
seven-year covenant-lite term loan, which has been increased
Adjusted EBITDA for the 2012 fi nancial year was $4.9 billion,
from $390 million. The term loan includes 12 months of 101 soft
and for the six-months ended June 30, 2013, it was $2.3 billion.
T-Mobile USA, a Bellevue, Wash.-based subsidiary of Deutsche
The issuer was acquired in 2006 by Bain Capital, Advantage
Telekom, earlier this year completed the acquisition of MetroPCS.
Partners, and management. That transaction was fi nanced by a
As part of the fi nancing for the transaction, Metro PCS issued
yen-denominated senior loan and mezzanine deal, sources said.
$1.75 billion each of 6.25% notes due 2021 and 6.625% notes
In December 2012, MEI struck a deal to be acquired by Crane
LCD News Today August 14, 2013
Co. for $820 million, but closing was delayed after the European
at the midpoint of talk and at the target size of $400 million.
Union granted only conditional approval to the merger, tying fi nal
Proceeds from the SEC-registered offering will be used for general
partnership purposes, including working capital, debt repayment, funding capital expenditures or acquisitions, according to the
A portion of MEI's debt comes due in December, driving the need
for a refi nancing ahead of the sale, sources noted.
The new notes will be immediately fungible with the existing
Malvern, Pa.-based MEI provides payment-technology products
paper, increasing the total issue size to $1.8 billion.
for unattended-transaction systems, serving customers in the transportation, gaming, retail, service-payment and vending
Original issuance in April 2011 by Chesapeake Midstream Partners
markets. Roughly half of the issuer's revenue comes from the
was as a 10-year maturity with four years of call protection, so the
U.S. market. In 2012, the company posted sales of roughly $400
fi rst call price in April 2015 is at par plus 75% of the coupon.
million and EBITDA of roughly $85 million.
Oklahoma City-based Access Midstream Partners owns, operates, develops, and acquires natural-gas-gathering systems and other
TPF II revises recap TLB, increasing pricing, lowering dividend
Goldman Sachs has offered revisions to the recapitalization loan
for TPF II/TPF II Rolling Hills, including sweetened pricing and a reduction in the dividend, sources said. Kinetic Concepts tightens OID on $350M add-on TL Bank of America Merrill Lynch, Goldman Sachs, and Morgan
Pricing has increased to L+550, with a 1% LIBOR fl oor at 97.5.
Stanley have tightened the issuer price to 99.875 on the $350
As before, the loan includes 103 and 102 call premiums in years
million add-on term loan for Kinetic Concepts and are seeking
recommitments by 4:00 p.m. EDT, sources said. Allocations are expected tomorrow.
The term loan has been reduced to $350 million, from $475 million. The reduction reduces the proposed dividend to $233
The add-on, which will be fungible with KCI's U.S. dollar D-1
loan due May 2018, backs an acquisition, sources said. Pricing is L+350, with a 1% LIBOR fl oor. The loan was offered initially in
The deal backs a dividend recapitalization of two vehicles
controlled by power developer Tenaska Capital Management. The six-year term loan for TPF II LLC and TPF II Rolling Hills was
KCI wrapped the $1.61 billion repriced D-1 term loan in June,
talked initially at L+500, with a 1% LIBOR fl oor, offered at 99,
along with a $321 million D-2 term loan due November 2016,
which priced at L+300, with a 1% fl oor. Both loans included six months of 101 soft call protection.
Proceeds will be used to refi nance existing debt, fund liquidity reserves and fund the pay-out.
The issuer's loans are governed by total-leverage and interest-coverage covenants. The Apax Partners-controlled medical-
The fi nancing also includes a $20 million, fi rst-priority revolver.
device company is rated B/B2, while its term loans are rated BB-/Ba2, with a 1 recovery rating from S&P.
The original structure drew ratings of B+/B2 with a 1 recovery
rating, but those rating are still to be reconfi rmed and may change. Cogent Communications prices add-on secured notes at 109
TPF II is a portfolio of two natural-gas-fi red peaking-power-
Cogent Communications today completed an add-on offering of
generation projects, the 328-megawatt Crete Energy Venture and
8.375% secured notes due 2018 via joint bookrunners Deutsche
the 656 megawatt Lincoln Generating Facility located 30 and
Bank, Citi, Jefferies, and Morgan Stanley, according to sources.
48 miles, respectively, outside of Chicago. The 850-megawatt Rolling Hills is in southeastern Ohio.
The additional $65 million of notes bring the total issue size
to $240 million. Proceeds will be used for general corporate purposes, including prefunding convertible debt, funding share
Access Midstream add-on notes price at 101.5 to yield 5.5%
repurchases, and dividends. Washington, D.C.-based Cogent
Access Midstream Partners today completed an add-on offering
provides high-speed Internet access and IP communications
of 5.875% notes due 2021 via joint bookrunners Barclays, BBVA,
services to small and medium-sized businesses.
Citi, RBS, and Wells Fargo, according to sources. Pricing was
August 14, 2013 LCD News Today Flexi-Van Leasing add-on notes price at par to yield 7.875%
Fidelity National Financial and Thomas H. Lee Partners acquired
Flexi-Van Leasing today completed an add-on offering of its
the Minneapolis-based provider of business services in late 2007.
7.875% notes due 2018 via sole bookrunner Bank of America,
Pricing for the additional notes came at par, versus 99.49 at
Secondary news
original issuance on July 31, the fi rm's debut in market.
RadioShack bonds edge higher on loan refi nancing reports
The privately held the truck-chassis rental-company will used
Bonds backing RadioShack edged higher, just as CDS in the
proceeds from the add-on to fund a dividend to its 100% owner
name tightened, following press reports that the struggling retailer
and chairman, David H. Murdock, and pay related fees, according
is seeking to refi nance its high-interest-rate loans. The 6.75%
notes due 2019 added half a point, to bracket 72, for a 2.5-point
gain on the week, given trades were at 69.5 on Monday, according to sources and trade data. NuStar Logistics notes price at par to yield 6.75% NuStar Logistics today completed an offering of senior notes
Five-year CDS on the credit cinched inward by roughly 6%
via bookrunners J.P. Morgan, Mizuho, and SunTrust, according
today, at 27.75/29.5 points upfront, according to Markit. That's
to sources. Terms were fi nalized at the wide end of talk but at the
essentially a $175,000 lower upfront payment, at $2.86 million at
the mid-market, in addition to the $500,000 annual payment, to protect $10 million of RadioShack bonds.
Proceeds from the SEC-registered transaction will be used to fund general corporate purposes, including repayment of
RadioShack is looking to secured new, lower-cost loans by the
RC borrowings that were used to pay down a March and June
end of the year, according to a Reuters report late on Tuesday
previously outstanding bond maturities, the fi lings show.
afternoon, citing unnamed sources and fl agging Wells Fargo, Bank of America, and GE Capital as potential leads. Shares were
While the company has bond issues outstanding, this marks the
approximately unchanged, at $2.76 per.
fallen-angel credit's debut in the speculative-grade corporate primary market.
The costly debt was put in place in October with the help of agents Wells Fargo and Pathlight Capital in an effort to raise money
NuStar Logistics is a subsidiary of San Antonio,
for working capital and general corporate purposes. The $100 million, fi ve-year second-lien term loan facility due September
Texas-based NuStar Energy, and it engages in the terminalling,
2017 (L+1,000, with a 1% LIBOR fl oor) is behind an ABL, but
storage, and transportation of petroleum products, transportation
ahead of the company's bonds in the capital structure.
of anhydrous ammonia, and marketing of asphalt and fuel products.
As reported two weeks ago, bonds backing RadioShack traded
down, and CDS pushed wider, after the latest S&P downgrade on the credit pushed issuer and bond ratings deeper, to CCC from
Ceridian seeks recommitments on repriced $1.42B TLB
CCC+, on a view that a default could occur in the next 12 months
Deutsche Bank is looking for recommitments on its repricing for
absent a major business turnaround or increased liquidity. The
Ceridian Corp. by noon EDT after tightening the issue price to
outlook was left at negative. The bonds traded two points lower,
par, from 99.75, and adding a step-down, sources said.
at 69, and fi ve-year CDS in the name widened roughly 5%, to 30.8/32.8 points upfront, according to trade reports and Markit.
The issuer is lowering pricing on the $1.419 billion B loan due May 2017 to L+425, with no LIBOR fl oor. The repriced loan
RadioShack's non-call senior notes total $325 million and are
would include six months of 101 soft call protection. Current
now rated CCC/Caa2, with a negative outlook on both sides
and an S&P recovery rating of 4, indicating expectations for an average (30-50%) recovery in the event of a payment default. The
Beginning two quarters after closing, the spread on the repriced
fresh downgrade follows downgrades in November and March,
loan may now step down by 25 bps when net secured leverage is
respectively, due to continued poor operating and fi nancial
performance trends. The paper was issued two years ago with BB/Ba2 ratings backing general corporate purposes and via a Bank of
The issuer is rated B/B3. The fi rst-lien loan is rated B-/B1 with a
3 recovery rating. The deal is governed by a secured-leverage test. LCD News Today August 14, 2013 TIP Trailer allocates cross-border LBO loan
sources added. The issuer's two term loans - a roughly $1 billion
Accounts today received allocations of the cross-border LBO
TLB due 2017 (L+450) and a $1.2 billion TLB due 2017 (L+325,
fi nancing for TIP Trailer Services. The $100 million term loan
1% LIBOR fl oor) - typically trade in a similar context.
freed to trade at 95/96, versus issuance at 95, sources said. The seven-year loan is priced at L+550, with a 1% LIBOR fl oor and
Second-quarter revenue fell 12% from the year-ago quarter,
includes 12 months of 101 soft call protection.
to $307.6 million, while adjusted EBITDA slumped about 27%, to $148.6 million, from about $203.6 million. Operating
At 95, the loan yields 7.67% to maturity.
performance declined 28.9%, to $151 million.
The fi nancing also includes a €203 million, seven-year term loan,
"Our second-quarter 2013 results did not meet our expectations,"
which was issued at 95 and is priced at E+550, with a 1% fl oor.
CEO Rob Gillette said in a statement. Gillette largely attributed the decline in revenue and operating performance to its TruGreen
Both tranches cleared wide of original talk, while about $50
segment, which posted a 74.6% drop in operating performance.
million was shifted to the euro tranche from the dollar loan. Initial price talk was L+425, with a 1% LIBOR fl oor on the dollar
ServiceMaster is rated B/B3, while the term loans are rated B+/
tranche, and E+450, with a 1% fl oor on the euro tranche. Both
B1, with a 2 recovery rating from S&P. The unsecured debt is
loans were previously offered at 99. The fi nancing also includes a
The company last tapped the loan market in February via J.P.
The issuer, a provider of trailer leasing, rental, and maintenance
Morgan for the roughly $1.22 billion C term loan, proceeds of
services in Europe, is being sold by GE Capital to China's HNA
which were used to refi nance its non-extended term debt maturing
Group, according to sources. The transaction will leverage the
in 2014. Citigroup is administrative agent for the company's term
issuer at 2.2x and 1.8x on a net basis.
Closing is not expected until the fall. As a result, lenders will begin
Clayton, Dubilier & Rice acquired the provider of outsourcing
receiving a ticking fee next week set at 50% of the drawn spread,
services for residential and commercial customers in 2007.
which steps up to the full drawn spread on Sept. 16, sources said.
TIP Trailer has been assigned ratings of BB/B1, while the loan
Zest Anchors TLB breaks into secondary above 98 issue price
will be rated BB+/B1, with a 2 recovery rating from Standard &
The $160 million term loan for Zest Anchors broke for trading
Poor's. The rated entity is Global TIP Holdings One B.V.
late this morning at 98.5/99.25, above its 98 issue price, sources said. The seven-year loan is priced at L+550, with a 1% LIBOR
The loan will be governed by fi ve maintenance covenants,
fl oor, and includes 12 months of 101 soft call protection.
including total leverage, interest coverage, fi xed-charge coverage, loan-to-value, and maximum capex. The excess-cash-fl ow sweep
At 98, the loan yields about 7.06% to maturity; the yield narrows
starts at 75% with step-downs.TIP Trailer operates a network of
to 6.88% at the midpoint of the opening market.
48 branches across 16 European countries, with an equipment fl eet of more than 45,000 units.
Deutsche Bank, Fifth Third, and RBS Citizens Capital Markets
arranged the loan, proceeds of which back Avista Capital Partners' purchase of the maker of dental implants. ServiceMaster debt slides as 2Q revenue, EBITDA fall Debt backing the ServiceMaster Company is 1-2 points lower
The transaction also includes a $20 million revolver and an $80
this morning after the company this morning reported second-
million second-lien term loan, which has been placed with friends
quarter results that showed declines in revenue and adjusted
and family of the sponsor, sources said.
The deal cleared wide of original price talk of L+475-500, with
In the bond market, ServiceMaster 7% notes due 2020 slumped
a 1% LIBOR fl oor and a 99 offer price. In addition, the arrangers
roughly two points, changing hands in a 90.5/91.5 context,
made other investor-friendly revisions to the deal, including
sources said, while the 8% notes due 2020 declined similarly, to
extending the soft call protection by six months, boosting the
excess-cash-fl ow sweep to 75% and scaling back the initial portion of the incremental tranche by $15 million, to $25 million.
In the loan market, the company's covenant-lite term loans both
Additional amounts are subject to 3.75x net-fi rst-lien leverage
fell about a point on the news, quoted at 97/98 this morning,
August 14, 2013 LCD News Today
The issuer drew ratings of B/B3, with the fi rst-lien loan at B/B2.
adopting an analytical approach in arguing that the DOJ position
Standard & Poor's assigned a 3 recovery rating and noted the loan
was fl awed, said that it "looks forward to the opportunity to
would be governed by a secured-leverage test. Leverage will be
highlight the merger's many benefi ts."
4x fi rst-lien and 6x total, according to sources.
APFA president Laura Glading was a bit more defi ant. Distressed news
"The fact that Attorney General Holder and the Justice Department have decided to stand in the way of this merger is outrageous and the height of hypocrisy," Glading said. Arguing that American
AMR, Ch. 11 stakeholders grapple with DOJ suit aftershocks
landed in bankruptcy court, in part, because of its inability to
Reactions to the lawsuit fi led by the Department of Justice seeking
compete with Delta and United - much larger airlines formed as a
to block American Airlines' plans to merge with US Airways
result of mergers that were approved by the DOJ - Glading said,
continued last night and this morning as the two companies, along
"Now the game is in the third quarter and they want to change the
with key stakeholders in American's Chapter 11 case, grappled
Ominously, the DOJ lawsuit and comments surrounding it suggest
According to a notice of agenda fi led yesterday with the
that the government is intent on blocking the merger, not simply
bankruptcy court in Manhattan overseeing the Chapter 11
wresting remedial concessions form the parties
proceedings, the hearing to confi rm the company's reorganization plan, which is premised on a merger with US Airways, apparently
As reported, the DOJ, joined by attorneys general of Arizona,
Florida, Pennsylvania, Texas, Virginia, and Washington, D.C., argued that the merger "threatens substantial harm to consumers"
But regardless of the results of that hearing, the merger, and with
by reducing the number of so-called "legacy" airlines in the U.S.
it American's emergence from Chapter 11, is clearly on hold for
from four to three, making it easier for airlines to cooperate, rather
the time being. American CEO Tom Horton told employees in a
message yesterday that the matter would now move to the courts, saying resolution "would likely take a few months."
The DOJ suit also argued that American and US Airways are each seeing record profi ts and can survive as standalone companies.
"In the meantime," Horton explained, "American and US Airways will continue to operate as independent companies and
Prepared comments from Assistant Attorney General Bill Baer
competitors," adding, "All recent leadership announcements for
yesterday morning ahead of a press conference on the lawsuit
the new merged American will be on hold until such time as the
"We simply cannot approve a merger that would result in U.S.
As for formal confi rmation of the reorganization plan, according
consumers paying higher fares, higher fees and receiving less
to the Allied Pilots Association, the union representing American's
service," Baer said in the comments, adding, "If this merger were
pilots, the reorganization plan provides for an automatic 30-day
to go forward, consumers will lose the benefi t of head-to-head
stay if there is a regulatory objection to the merger - a stay that
competition between US Airways and American on thousands of
was triggered by the fi ling of the DOJ lawsuit. As a result, the
airline routes across the country - in cities big and small."
union said, American would not emerge from Chapter 11 before the fourth quarter of 2013.
Baer further stated, "Both US Airways and American have publicly stated that they can do well without this merger. American
Meanwhile, American, its key stakeholders in the bankruptcy
has used the bankruptcy process to lower its costs and revitalize
case, and US Airways, all said they remain committed to the
its fl eet. It has repeatedly said that it can thrive as a standalone
merger. American and US Airways, in a joint statement yesterday,
vowed to "mount a vigorous and strong defense" against the Department of Justice suit. And the three unions representing
Similarly, Baer said, US Airways has also stated it "does not need
American's employees, the APA, the Transport Workers Union,
the merger - that it can thrive as a standalone fi rm."
and the Association of Professional Flight Attendants, all said yesterday they believed the merger would ultimately go through.
What's more, as American and US Airways challenge the DOJ and each side presents their respective legal arguments in connection
In subsequent news releases last night and this morning, the
with what is a complicated area of law, time may not be on the
company's unions stepped up their rhetoric a notch. The APA,
LCD News Today August 14, 2013
"It seems doubtful that American can wait in Chapter 11 until
In the secondary loan market, the airline's $1.9 billion exit/DIP
this antitrust case is resolved," wrote Seton Hall University
term loan is quoted at 99.5/99.875 following the news, down
bankruptcy law professor Stephen Lubben on The New York
about three-quarters of a point from prior to the announcement
Times' DealBook blog. "Unless the case is quickly settled,
American is pretty much going to have to put off the merger for now."
The loan, which is priced at L+375, with a 1% LIBOR fl oor, provides for a one-year DIP commitment, rolling into a six-year
Lubben suggested that the company could "reinvent itself as
term loan upon exit from Chapter 11. For reference, both the
a kind of specialty carrier, or a largely domestic carrier like
original $1.05 billion facility and the $850 million fungible add-
JetBlue," calling into question the airline's ability to compete on
on that was placed last month were issued at 99.5 via a Deutsche
the international stage in the absence of the merger.
That sounds logical enough, but American could fi nd itself stuck between the proverbial rock and a hard place if it is forced to
Patriot Coal fi les amended CBA following union settlement Patriot Coal fi led a motion late Tuesday seeking bankruptcy court approval of an amended collective bargaining agreement with the
Part of the dynamic that led American to fi le Chapter 11 in the
United Mineworkers of America. The motion follows Monday's
fi rst place, and then ultimately opt for a merger with US Airways
announcement that the company fi nally reached an agreement
as the path out of Chapter 11, stemmed from its inability to
on benefi t cuts that will allow Patriot to save money and avoid
resolve longstanding labor disputes and negotiate new deals with
a far-reaching strike that threatened to drive the company into
its unions. Indeed, those unions reaching their own unilateral
deal with US Airways, even as American insisted it wanted to emerge from Chapter 11 as a standalone company, helped propel
The UMWA fi led a brief joinder this morning declaring its
American toward the merger as a means to exit bankruptcy.
support for the deal. About 1,800 active or laid-off UMWA members in West Virginia and Kentucky are scheduled to vote
Obviously, the playing fi eld and relative negotiating leverage
on the settlement on Aug. 16. Patriot has proposed an Aug. 20
of those parties would be signifi cantly different if the DOJ
bankruptcy court hearing in St. Louis to approve the deal.
eliminates the US Airways merger as an option. Lubben predicts that American switching to a standalone plan would have "real
"The settlements are possibly the most signifi cant development
implications for the creditors and shareholders of American, who
in these Chapter 11 cases," Patriot said in the motion Tuesday.
will now probably get less of their money back as American
Throughout its bankruptcy, Patriot has repeatedly emphasized its
decides it needs a much stronger balance sheet to survive alone.
need to modify the UMWA's CBAs to adjust wages, benefi ts and
Indeed, many of the American bondholders should probably
work rules to levels "more consistent with the regional market
expect to become involuntary shareholders in the reorganized
and reduce their retiree healthcare obligations to UMWA retirees,
which total more than $1 billion if they are to successfully reorganize and emerge from bankruptcy," the motion says.
If there is one thing that is beyond dispute in the case over the last twenty-four hours, it is that the whole matter has been unpleasant
The UMWA represents more than 1,650 of Patriot's roughly 4,200
Yesterday, AMR stock - the fulcrum security in the current
Patriot launched negotiations with the UMWA in November
reorganization plan - fell 45.44% to $3.17 per share, on volume
2012, but this March, after more than a dozen bargaining sessions,
of 110.8 million (versus average daily volume of 6.5 million).
Patriot fi led Section 1113/1114 motions seeking bankruptcy court
That trajectory continued this morning, as the stock fell more than
approval to unilaterally make changes to its union employee and
25% in early morning trading to $2.30. All told, since Monday's
retiree benefi ts. Following a fi ve-day trial, U.S. Bankruptcy Judge
close of $5.81, prior to the DOJ news, AMR shares have lost up
Kathy Surratt-States issued a 102-page ruling granting the motion.
"There is no dispute that for debtors' survival, concessions are
AMR's 6.25% convertible notes due 2014, meanwhile, are also
necessary," Judge Kathy Surratt-States wrote in her opinion.
active this morning in the low 90s, with a low print at 89, after
Still, the judge went on, "[T]his court cannot make heads nor
going out last night at around 103, trade data show. That's a
tails of where the UMWA believes these additional savings could
plunge from a 116 handle in trading late last week for the $460
reasonably come. It appears that at times, the UMWA has merely
made arbitrary reductions to debtors' October 2012 business
August 14, 2013 LCD News Today
plan and then determined through self-consultation that those
Patriot will contribute 3% of gross wages into a 401(k) or similar
additional savings are 'achievable.' It goes without saying that
proffers of this nature are insuffi cient for the court to accept."
"There are several events that catalyzed [Patriot's] bankruptcy
Eastman Kodak names post-bankruptcy board members
fi ling," Surratt-States wrote. "Above all other reasons however
Eastman Kodak released the names of its new board of directors
are the liabilities that debtors inherited from Peabody and
today, selected by the parties providing the backstop to Kodak's
Arch. [Patriot's] retiree health care obligations are presently
recently completed rights offering and the creditors' committee in
at astronomical levels. The estimated present value of debtors'
retiree benefi t obligations exceeds $1.6 billion. Additionally, debtors inherited below-cost coal contracts from both Peabody
Kodak CEO Antonio Perez will remain on the post-bankruptcy
and Arch whereby the cost to debtors to excavate and prepare
board, for now. Kodak recently announced that Perez would
the coal exceeds the price at which debtors must sell the coal.
continue to serve as CEO for up to one year following the
Consequently, the cost to debtors to service some of these below-
company's emergence from bankruptcy, or until the new board
market coal contracts has contributed to the deterioration of
names a successor. Kodak hopes to emerge from Chapter 11
by Sept. 3. A confi rmation hearing on its reorganization plan is scheduled for Aug. 20.
The UMWA fi led an appeal, and Patriot continued to negotiate with the union to fi nd agreeable cuts. After several more stops and
Kodak has said Perez would be "actively involved" in identifying
starts, the two sides reached a settlement on Aug. 9.
his successor, and serve as a consultant for up to an additional two years.
Patriot has said it expects the cuts approved by Surratt-States will save the company $150 million annually, but the new settlement
Until then, he'll be joined on the new board by Mark Burgess,
motion does not specify how much the company expects to save
chairman of the Clondalkin Group; James Continenza, president
of STi Prepaid, LLC; George Karfunkel, chairman of Sabr Group; Jason New, a senior managing director of The Blackstone Group
Under the terms of the new CBAs, Patriot will provide retiree
and Head of Special Situation Investing for GSO Capital Partners;
benefi ts through the end of 2013, after which a voluntary
William G. Parrett, former senior partner of Deloitte & Touche
employee-benefi ts association (VEBA) will take over. Once
USA; Derek Smith, a managing principal and senior portfolio
Patriot exits Chapter 11, between 35-38% of the equity in the
manager at BlueMountain Capital Management; Matt Doheny,
reorganized company can be monetized to fund the VEBA.
president of North Country Capital; and John Janitz, co-founder and chairman of Evergreen Capital Partners.
To the extent post-bankruptcy Patriot's liquidity exceeds the
greater of $125 million or 125% of its applicable minimum liquidity requirements in the debt covenants under its exit fi nancing, 15% of net income over $75 million for 2014 and 2015,
High-grade news
and 15% of net income over $150 million for 2016 and beyond - subject to an annual cap of $75 million and a lifetime cap of $300
Jersey Central Power sells $500M deal at talk Jersey Central Power & Light Co. today completed a $500 million offering of 4.7% notes due April 2024 at T+205, or
Wage rates for employees at underground mines, surface mines,
4.762%. The issue was inked in-line with price talk and initial
and coal preparation plants will be reduced to those wage rates in
effect on June 1, 2012, with a raise of 50 cents per hour on Jan. 1, 2015, 2016, 2017, and 2018. Premium overtime pay will be
Proceeds will be used to repay debt and for general corporate
eliminated, but overtime pay after 40 hours will be 1.5 times the
Jersey Central last tapped the bond market in November 2007 to
Patriot will implement a healthcare plan designed to more closely
place 6.15% notes due June 2037, with $293 million outstanding.
match the plan currently available to non-union employees although, among other things, UMWA employees will be subject
The Akron, Ohio-based company operates an electric public
to lower out-of-pocket maximums than non-union employees,
utility company in New Jersey, and is a subsidiary of FirstEnergy
and UMWA members will not be required to pay healthcare
LCD News Today August 14, 2013 McCormick prints 2023 notes to repay Sept. maturity
cell towers have limited alternative use which reduces the
McCormick & Co. today completed a $250 million offering of
defensive characteristics of this asset class."
3.5% notes due September 2023 at T+90, or 3.603%.
Boston-based American Tower, a real-estate-investment trust,
The issue - the spice company's fi rst in two years - was inked
develops, owns, and operates communications sites.
at the tight end of guidance in the T+90 area, and through initial whispers in the T+120 area.
Proceeds from today's offering will be used to repay debt under its 2013 credit facility to fi nance recently announced acquisitions,
Proceeds will be used, together with cash on hand, to repay the
and for general corporate purposes, according to regulatory fi lings.
$250 million of 5.25% notes due Sept. 1. Proceeds from that
In July, the company borrowed $322 million under the facility to
issue were used to repay a portion of the company's outstanding
repay amounts outstanding under its 2012 credit facility.
commercial paper, regulatory fi lings show.
McCormick was last in the market in July 2011, when it placed
JPMorgan places 2043 sub notes at 5.678%
$250 million of 3.9% notes due 2021 at T+80, or 3.94%. For
JPMorgan Chase today completed a $750 million offering of
reference, the issue last traded at the end of July at 3.13% and at a
5.625% subordinated notes due August 16, 2043 at T+190, or
G-spread of 93 bps, according to MarketAxess.
Earlier today, Standard & Poor's assigned an A- rating to the
The issue was inked at the midpoint of guidance. Proceeds from the
new 2023 issue. The company's credit rating refl ects "its strong
self-funded offering will be used for general corporate purposes.
business profi le based on its worldwide leadership in supplying
In April, JPMorgan placed $2 billion of 3.375% subordinated
spices, seasonings, and fl avors to the food service segment, food
processors, and retail outlets," the agency said today.
The New York bank's last bond deal was completed in May, when it placed $2 billion of 1.625% senior notes at T+92, or 1.66%. American Tower completes $1.25B, two-part offering American Tower today completed a $1.25 billion, two-part offering, including $750 million of 3.4% notes due February 2019 Broadridge inks $400M deal to repay revolver
at T+195, or 3.418%, and $500 million of 5% notes due February
Broadridge Financial Solutions today completed a $400 million
offering of 3.95% notes due September 2020 at T+185, or 3.971%. The issue was inked at the tight end of guidance in T+190 area.
Earlier today, Standard & Poor's assigned a BB+ rating to the proposed offering. Last Thursday, S&P placed its below-
Proceeds will be used to repay debt under the company's senior
investment grade BB+ credit rating on CreditWatch with positive
credit facility. As of yesterday, there was roughly $400 million of
implications, following the initiation of a sector review on U.S.
term loans outstanding under the facility, regulatory fi lings show.
wireless-tower operators. S&P said it aims to complete its sector review and resolve the CreditWatch placement over the next
Broadridge was last in the market in May 2007 when it placed
month and believes the upgrade potential is limited to one notch.
$250 million of 6.125% notes due June 2017. That issue currently has $125 million outstanding.
On Friday, the company agreed to acquire telecommunication towers in Brazil and Mexico from NII Holdings, a Latin American
The Lake Success, N.Y.-based company provides technology
telecom-service provider, for $811 million.
products and services to the fi nancial services industry in the U.S., Canada, and the U.K.
Yesterday, Moody's affi rmed its Baa3 rating, with stable outlook, following the acquisition announcement. The assessment refl ects
Earlier today Standard & Poor's assigned a BBB rating to the
the company's stable cash fl ow, underpinned by long-term
proposed 2020 senior unsecured notes. "The corporate credit
leases, but the agency noted that: "American Tower has been an
rating refl ects Broadridge's 'satisfactory' business risk profi le with
aggressive acquirer in recent years, and many of its acquisitions,
a strong franchise in its core businesses and consistent operating
including the proposed transactions, have been largely fi nanced
performance, and its 'intermediate' fi nancial risk profi le with
with leverage. With net debt/EBITDA for the fi rst half of 2013
leverage of 1.5x as of June 2013, partly offset by a moderately
at 4.9x (including Moody's adjustments) and projected to remain
acquisitive and shareholder-friendly fi nancial policy," the agency
at approximately that level, we believe that the REIT has little
said. S&P maintains a positive outlook on its rating.
cushion in its outlook for further leverage increases. In addition,
S&P Capital IQ LCD LCD News - U.S. LCD News - Europe
Nidhi Tulli (212) 438-1970nidhi.tulli@spcapitaliq.com
Leveraged loans Leveraged loans/High-yield bonds High-yield bonds LCD News Editorial News & Research sales
Brenn Jones (212) 438-2704brenn.jones@spcapitaliq.com
Distressed/Bankruptcy LCD Global Research High-grade bonds IT/Social Media Trends and Analysis News & Research sales
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Wednesday, August 14, 2013