Burt's Bees opens for trading in the 101s; LifePoint nets early orders; Infor Global reveals price talk

By Sara Rosenberg

New York, March 24 - Burt's Bees Inc. allocated its $190 million credit facility on Thursday morning, with the first-lien term loan quoted in the low-to-mid-101 context.

Meanwhile, in the primary LifePoint Hospitals Inc. is off to a good start as early orders had already been placed by the end of the launch day, and price talk came out on Infor Global Solutions $550 million credit facility.

Burt's Bees $150 million six-year first-lien term loan B broke into the secondary market on Thursday with the paper quoted on the break at 101½ bid for $2 million with no offers, according to a buyside source.

However, by early afternoon, the paper dipped a little on the bid side and found an offer, with levels of 101¼ bid for $2 million and 101½ offered for $1 million, the source said.

The tranche, which was upsized from $138 million during syndication, is priced with an interest rate of Libor plus 275 basis points. Price talk at launch on the term loan had been Libor plus 300 to 325 basis points.

As for allocations on the B loan, they were "terrible," the source said, adding that he only got about 8% of what he put in for.

Burt's Bees' facility also contains a $25 million seven-year second-lien term loan with an interest rate of Libor plus 675 basis points and a $15 million five-year revolver with an interest rate of Libor plus 275 basis points.

Pricing on the revolver was also reduced during syndication from original price talk of Libor plus 300 to 325 basis points.

"The second lien ended up being syndicated entirely to one investor that I believe was an affiliate of the sponsor," the buyside source added.

Proceeds from the facility will be used to refinance existing debt and pay a dividend. The size of the planned dividend payment was increased through the upsizing of the term loan B.

CIBC is the lead bank on the deal.

Burt's Bees is a Durham, N.C., producer of lip balm, bath oils, soaps, and other personal care products made from beeswax, nut oils, and other natural ingredients.

LifePoint catches interest

LifePoint's syndication process has started off well with "a lot of early commitments" in the books within hours on the Thursday bank meeting, according to a market source.

And, despite the fact that the session was somewhat of a short one because of the long holiday weekend approaching, the meeting did see "good attendance," the source added.

LifePoint's $1.4 billion credit facility (Ba3/BB) consists of a $300 million five-year revolver talked at Libor plus 175 basis points and a $1.1 billion seven-year term loan B talked at Libor plus 175 basis points. The term loan B has a roughly $200 million carve-out for delayed draw.

The term loan B is being offered to investors at par. Upfront fees on the revolver have not yet been disclosed.

Commitments are due from lenders on April 4, with closing targeted for April 15.

Citigroup is the sole lead bank on the deal.

Proceeds will be used to finance the acquisition of Province Healthcare Co., refinance Province Healthcare's existing debt, refinance LifePoint's credit facility and provide for the ongoing working capital and general corporate needs of LifePoint Hospitals.

Under the acquisition agreement, LifePoint will purchase Province for about $1.7 billion in cash, stock and the assumption of debt. The businesses of LifePoint and Province will be combined under a newly formed company.

LifePoint is a Brentwood, Tenn., operator of hospitals. Province is a Brentwood, Tenn., is an owner, leaser and manager of hospitals.

Infor price talk

Infor Global Solutions set opening price talk of Libor plus 275 basis points on the $50 million revolver and the $300 million first-lien term loan, and opening price talk of Libor plus 525 to 550 basis points on the $200 million second-lien term loan, according to a market source.

Commitments toward the revolver get an upfront fee of 100 basis points, and the term loan is being issued to investors at par.

Lehman Brothers is the lead bank on the deal that launched via a bank meeting Wednesday afternoon, and Wells Fargo Foothill is syndication agent.

Proceeds from the $550 million credit facility will be used to help finance the acquisition of Mapics Inc. and refinance existing senior and subordinated debt.

Furthermore, Infor has received a commitment from its existing sponsors - Golden Gate Capital and Summit Partners - for equity capital to help finance the transaction as well.

Under the terms of the acquisition agreement, Infor will pay $12.75 per share in cash to Mapics shareholders. Mapics has about 27.2 million shares outstanding on a fully diluted basis.

Infor is an Alpharetta, Ga., provider of vertical specific, enterprise-wide business solutions to the manufacturing and distribution industries. Mapics is an Alpharetta, Ga., global solutions provider focused exclusively on manufacturing.

HealthTronics closes

HealthTronics Inc. closed on its new $175 million senior secured credit facility (Ba3/BB-) consisting of a $125 million six-year term loan B with an interest rate of Libor plus 175 basis points and a $50 million five-year revolver.

At launch in February, the term loan was talked at Libor plus 250 basis points but was reverse flexed during syndication on strong demand.

JPMorgan acted as lead arranger and administrative agent on the deal, and bank of America was syndication agent.

Proceeds will be used by the company to refinance the $100 million 8.75% senior subordinated notes due 2008 and the outstanding debt under the previous credit facility, which as of March 22 was $32 million.

"The company's projected annual interest savings of $3 million from this refinancing combined with the accelerated integration efforts relating to the Prime/HealthTronics merger further enhances our ability to execute our near-term strategic objectives. In fact, we have already exceeded our previously stated post-merger synergy target of $10 million on an annualized basis. Additionally, this transaction will strengthen our financial position and lower our weighted average cost of capital. We are more confident than ever in the prospects for the 'new' HealthTronics," said John Q. Barnidge, chief financial officer, in a company news release.

HealthTronics is an Austin, Texas, provider of healthcare services, primarily to the urology community, and manufacturer of medical devices and specialty vehicles used for the transport of high technology medical and broadcast & communications equipment.

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