IWCO reworks structure, pricing; Nursefinders flexes up; LCDX, cash trade higher; Bragg breaks

By Sara Rosenberg

New York, Aug. 7 - IWCO Direct Inc. revised its credit facility, lifting pricing on all tranches, adding original issue discounts and carving out a holdco pay-in-kind loan from the second-lien loan, and Nursefinders Inc. increased pricing on its credit facility.

Over in the secondary, LCDX and the cash market were both noticeably stronger on Tuesday as stocks rallied, and Bragg Communications Inc.'s credit facility freed up for trading, with the term loan B wrapping around par.

IWCO Direct made a round of changes to its credit facility, including increasing pricing, adding discounts, downsizing the second-lien loan, revising second-lien call premiums and adding a holdco PIK loan to the capital structure, according to a market source.

The $25 million revolver, $230 million first-lien term loan B and $20 million delayed-draw term loan are now all priced at Libor plus 337.5 basis points, up from original talk at launch of Libor plus 275 bps, the source said.

In addition, the first-lien funded and delayed-draw term loans are now both being sold at an original issue discount of 981/2, as opposed to at par, the source continued.

Meanwhile, the second-lien term loan is now sized at $110 million, down from $135 million, and pricing was increased to Libor plus 650 bps from original talk of Libor plus 600 bps.

Furthermore, call protection on the second-lien was changed to 103 in year one, 102 in year two and 101 in year three from just 102 in year one and 101 in year two, and the paper is now being sold at an original issue discount of 99, as opposed to at par, the source remarked.

Lastly, a new $25 million holdco PIK loan was added to the capital structure with pricing of Libor plus 650 bps, an original issue discount of 91 and call protection of 103 in year one, 102 in year two and 101 in year three, the source added.

With the changes, first-lien leverage remained at 4.2 times, opco leverage was reduced to 6.3 times from 6.7 times and total leverage remained at 6.7 times.

The first-lien credit facility will include a net opco leverage covenant starting at 8.85 times, an interest coverage covenant starting at 1.05 times and a capital expenditures covenant.

The second-lien credit facility will include a net opco leverage covenant starting at 9.35 times and a capital expenditures covenant.

The holdco PIK loan will be incurrence-based.

Prior to the changes, the revolver, first-lien term loan B and delayed-draw term loan were rated B1/B+, and the second-lien term loan was rated Caa1/CCC+.

Deutsche Bank is the lead arranger on the $410 million deal, which will be used to help fund Avista Capital Partners' acquisition of the company from Court Square Capital Partners.

IWCO is a Chanhassen, Minn., provider of integrated direct mail production services.

Nursefinders ups spreads

Nursefinders flexed pricing higher on all tranches under its $158 million credit facility and is on schedule to allocate and close the deal on Thursday, according to a market source.

The $20 million revolver and the $93 million first-lien term loan B are now both priced at Libor plus 325 bps, up from original talk of Libor plus 300 bps, the source said.

And, the $45 million second-lien debt is now priced at Libor plus 650 bps, up from original talk of Libor plus 600 bps, the source added.

Call protection on the second-lien debt is 102 in year one and 101 in year two.

GE Capital is the lead bank on the deal.

Proceeds will be used to help fund the buyout of the company by Goldman Sachs Urban Investment Group from Gryphon Investors.

Nursefinders is an Arlington, Texas, provider of health care staffing services.

LCDX, cash stronger

Moving to the secondary, LCDX and the cash market both moved higher during market hours as stocks were better, according to traders.

The index went out around 95.25 bid, 95.50 offered, up from Monday's levels of 94.35 bid, 94.55 offered, traders said.

Meanwhile, cash was said to be better by about a point to a point-and-a-half pretty much across the board, traders continued.

For example, Freescale Semiconductor Inc., an Austin, Texas, designer and manufacturer of embedded semiconductors, saw its term loan end the day at 92 bid, 93 offered, up from previous levels of 91 bid, 92 offered, one trader said.

And, General Motors Corp., a Detroit-based automaker, saw its revolver move up by about a point or so to 91 bid, 92 offered, a second trader added.

As for the stock market, Nasdaq closed up 14.27 points, or 0.56%, Dow Jones Industrial Average closed up 35.52 points, or 0.26%, S&P 500 closed up 9.04 points, or 0.62%, and NYSE closed up 52.30 points, or 0.55%.

Bragg frees to trade

Also in trading, Bragg Communications' facility hit the secondary, with the $250 million U.S. term loan B quoted at 99¾ bid, par ¼ offered, according to a market source.

The U.S. term loan B is priced at Libor plus 250 bps, with 101 soft call protection for one year.

Bragg's C$1.491 billion credit facility also includes a C$203.4 million term loan B at Libor plus 250 bps, with 101 soft call protection for one year, a C$75 million revolver and a C$949.025 million term loan A.

Originally, the term loan B was sized at $675 million, with the flexibility to raise some term loan B funds in Canadian dollars, but it was downsized when the term loan A was increased from C$700 million.

In addition, during syndication, pricing on the U.S. and Canadian term loan Bs was raised from original talk at launch of Libor plus 225 bps, with the addition of the soft call.

Furthermore, the term loan B debt was changed during syndication to completely funded, as opposed to having a delayed-draw component.

TD Securities is the bookrunner on the deal, with CIBC and BMO involved as well.

Proceeds will be used to help fund the acquisition of Persona Communications Corp., a St. John's, Newfoundland, cable operator, from HM Capital Partners, Birch Hill Equity Partners and CIBC Capital Partners.

The credit facility received strong support from Bragg's and Persona's existing lenders, the source added.

Bragg Communications is a Halifax, N.S., media company.

Allison Transmission closes

Allison Transmission's $3.5 billion credit facility (B1/BB-) funded on Tuesday by the lead banks as Carlyle Group and Onex Corp. completed their $5.575 billion buyout of the company from General Motors Corp., according to a market source.

An institutional syndication of the deal did not take place due to market conditions, and it has not yet been decided whether there will be a formal institutional syndication later on or if the lead banks will just sell some of it off piece by piece, the source added.

Citigroup, Lehman Brothers and Merrill Lynch acted as the lead banks on the credit facility, which consists of a $3.1 billion term loan B and a $400 million revolver.

During the brief time it was in the retail syndication process, price talk on the tranches was Libor plus 250 bps, and the term loan B was being offered to lenders with an original issue discount of 991/2.

Even though institutional syndication was stopped, banks were given the chance to look at the deal in its entirety, making it kind of like a senior managing agents syndication.

Allison Transmission is a Speedway, Ind., designer and manufacturer of automatic transmissions for on-highway trucks and buses, off-highway equipment and military vehicles.

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