Swift, Language Line, Transtar, Alliant Holdings break; Syniverse, ResCare, Remy revise deals

By Sara Rosenberg

New York, Dec. 16 - Swift Holdings Corp., Language Line Services, Transtar Industries Inc. and Alliant Holdings I Inc. all saw their new bank debt free up for trading on Thursday, and each of the companies' term loans was quoted above the original issue discount price.

Over in the primary market, Syniverse Technologies lowered the spread on its oversubscribed credit facility while adding soft call protection to the term loan, and ResCare Inc. increased talk on its deal.

Furthermore, Remy International Inc. reverse flexed pricing on its B loan, and Earthbound Farm and ConvaTec Healthcare finalized pricing on their credit facilities.

Swift quoted atop par

Swift Holdings' credit facility made its way into the secondary market on Thursday, with the $1.07 billion six-year term loan quoted at par bid, par ¼ offered on the open by one trader and at par 1/8 bid, par 3/8 offered by a second trader.

The term loan then moved up to par ¼ bid, par ½ offered, the first trader remarked.

Pricing on the term loan is Libor plus 450 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Since launching, the term loan was upsized from $1.05 billion, and pricing firmed at the tight end of the Libor plus 450 bps to 475 bps at a discount of 98½ to 99 talk.

The company's $1.47 billion senior secured credit facility (B1/BB-) also includes a $400 million five-year revolver.

Swift lead banks

Bank of America, Morgan Stanley, Wells Fargo, PNC and Citigroup are the lead banks on Swift's credit facility.

The deal is being obtained in conjunction with the company's initial public offering of common stock, which priced on Wednesday at $11 per share.

Proceeds from the facility, along with $500 million of 10% secured notes and the stock proceeds, will be used to refinance the company's existing bank debt, senior secured floating-rate notes and senior secured fixed-rate notes.

Swift is a Phoenix-based transportation services company and truckload carrier.

Language Line frees up

Another deal to hit the secondary market was Language Line, with its $525 million first-lien term loan (Ba3/B+) quoted at par ½ bid, 101 offered on the break and then it moved to par ¾ bid, 101 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 450 bps with a step-down to Libor plus 425 bps at less than 4.5 times leverage that was added during syndication. There is a 1.75% Libor floor and soft call protection of 102 in year one and 101 in year two, and the tranche was sold at a discount of 99.

The company's $575 million first-lien credit facility also includes a $50 million revolver (Ba3/B+).

Proceeds will be used by the Monterey, Calif.-based provider of telephone interpreting and language services to refinance existing debt, to redeem preferred stock and to fund a dividend.

Language Line second-lien

Other funds for Language Line's dividend recapitalization will come from a $175 million second-lien term loan (B3/B-) that is priced at Libor plus 900 bps with a 1.75% Libor floor and an original issue discount of 98. There is call protection of 103 in year one, 102 in year two and 101 in year three.

Bank of America, Credit Suisse and Morgan Stanley are the lead banks on the deal, with Bank of America the left lead on the first-lien debt and Credit Suisse the left lead on the second-lien.

In October, the company had come to market with a $250 million second-lien term loan with the same price talk. In order to complete that deal, the company needed to amend its existing facility to allow for the debt and revise covenants. However, first-lien lenders did not approve the amendment and, therefore, that second-lien loan never got done.

Transtar breaks

Transtar Industries started trading as well on Thursday, with the $240 million six-year first-lien term loan (Ba3/BB-) quoted at 101 bid, no offers, according to one trader. A second source had the loan quoted at 101 3/8 bid, 101 5/8 offered.

Pricing on the loan is Libor plus 450 bps with a step-down to Libor plus 425 bps at less than 4.5 times leverage. There is a 1.75% Libor floor and 101 soft call protection for one year, and it was sold at an original issue discount of 99.

During syndication, pricing was lowered from Libor plus 475 bps to 500 bps, the step-down and call protection were added, and the discount moved from 981/2.

Transtar second-lien levels

Transtar Industries' $135 million seven-year second-lien term loan (B3/B-) freed up too, with the paper seen by one source at 99¾ with no offers.

Pricing on the second-lien loan is Libor plus 850 bps with a 1.75% Libor floor, and it was sold at 981/2, after firming from talk of 98 to 981/2. Call protection is 103 in year one, 102 in year two and 101 in year three.

The company's $425 million credit facility also provides for a $50 million five-year revolver (Ba3/BB-) priced at Libor plus 475 bps, the low end of the initial Libor plus 475 bps to 500 bps talk, with a 1.75% Libor floor, and it was sold at a discount of 981/2.

RBC and GE Capital are the lead banks on the deal that will be used to help fund its buyout by Friedman Fleischer & Lowe.

Transtar is a Cleveland-based transmission parts provider.

Alliant bid surfaces

Alliant Holdings' $160 million incremental senior secured term loan (B2/B-) due August 2014 was yet another deal that broke for trading, with the paper seen at par ¼ bid, according to a trader.

Pricing on the loan is Libor plus 500 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 99.

During syndication, pricing firmed at the tight end of the Libor plus 500 bps to 525 bps talk and the discount tightened from 981/2.

JPMorgan and UBS are the lead banks on the loan that will be used to finance contemplated acquisitions.

Alliant Holdings is a Newport Beach, Calif.-based specialty-oriented insurance broker.

Syniverse trims spread

Moving to the primary, Syniverse lowered pricing on its well oversubscribed $1.175 billion senior secured credit facility (B1/BB-) to Libor plus 375 bps from Libor plus 425 bps, while leaving the 1.5% Libor floor unchanged, according to a market source.

The facility is comprised of a $150 million revolver and a $1.025 billion term loan.

As before, the revolver is being sold at an original issue discount of 98½ and the term loan is being sold at a discount of 99.

Included in Thursday morning's changes was the addition of 101 soft call protection for one year to the term loan, the source said.

Lead banks Barclays Capital, Credit Suisse and Goldman Sachs asked lenders to get their recommitments in on Thursday.

Syniverse being bought

Proceeds from Syniverse's credit facility, $475 million of 9 1/8% senior notes and up to $1.245 billion of equity will be used to fund the buyout of the company by the Carlyle Group for $31 per share. The transaction is valued at $2.6 billion.

Closing is expected in the first quarter of 2011, subject to customary conditions, including stockholder approval, which will be sought at a special meeting on Jan. 12, and various regulatory approvals. The company has already been granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Syniverse is a Tampa, Fla.-based provider of technology and business services for the telecommunications industry.

ResCare talk widens

ResCare is now talking its $190 million term loan B in the Libor plus low-500 bps area, up from initial guidance of Libor plus 450 bps to 475 bps, according to a market source.

The deal still includes a 1.5% Libor floor and is being offered at an original issue discount of 981/2.

JPMorgan and Bank of America are the lead banks on the loan that will be used, along with $200 million of 10¾% notes, to refinance existing debt, repay a portion of the amounts used to purchase the company's common shares in the tender offer by Onex Rescare Acquisition LLC and fund the purchase of any remaining ResCare shares by Onex through a second-step share exchange.

ResCare is a Louisville, Ky.-based provider of home care to the elderly and persons with disabilities.

Remy flexes

Remy International lowered pricing on its $300 million term loan B (B1/B+) to Libor plus 450 basis points from Libor plus 475 bps, while leaving the 1.75% Libor floor, 101 soft call protection for one year and original issue discount of 99 unchanged, according to a market source.

Recommitments were due from lenders on Thursday and allocations are expected to go out on Friday.

Prior to launch, there was some chatter that the term loan B would be sized at $330 million, but upon being presented to lenders, the size was revealed to be $300 million.

The company's $395 million credit facility also includes a $95 million ABL revolver.

Bank of America, UBS, Wells Fargo and Barclays are the lead banks on the deal that will be used to refinance existing debt.

Remy is a Pendleton, Ind.-based provider of alternators, starters and hybrid motors.

Earthbound sets pricing

Earthbound Farm finalized pricing on its $225 million six-year term loan B at the low-end of talk since the tranche was more than two times oversubscribed, according to a market source.

Pricing on the B loan is Libor plus 500 bps with a 1.75% Libor floor and an original issue discount of 981/2, the source said. Talk had been at Libor plus 500 bps to 525 bps with a 1.75% floor and a discount of 98 to 981/2.

The company's $250 million credit facility (B1/B+) also includes a $25 million five-year revolver.

RBC is the lead bank on the deal that will be used by the San Juan Bautista, Calif.-based organic food company to refinance existing debt and to fund a dividend payment.

Allocations and closing are expected to occur early next week, the source added.

ConvaTec spread firms

ConvaTec Healthcare determined pricing on its roughly $1.2 billion six-year term loan B to be Libor/Euribor plus 425 bps, the wide end of revised guidance of Libor/Euribor plus 400 bps to 425 bps, but lower than initial talk of Libor/Euribor plus 450 bps, according to a market source.

The loan includes a 1.5% Libor floor and is being sold at an original issue discount of 991/2. The floor was recently lowered from 1.75% and the discount was tightened from 99.

Tranching on the term loan B is divided into a $500 million piece and a €550 million piece. The euro tranche was upsized from €260 million as about €75 million was moved out of the company's senior unsecured notes offering and about €215 million was moved out of its senior secured notes offering.

As a result, senior secured leverage will now be 3.7 times, up from 3.5 times under the original structure.

ConvaTec readies allocations

ConvaTec Healthcare asked lenders to recommit to its credit facility on Thursday and allocations are expected to go out early next week, the source said.

The company's roughly $1.45 billion credit facility (Ba3/B+) also includes a $250 million five-year revolver.

JPMorgan and Goldman Sachs are the lead banks on the deal that will be used, along with the notes, to refinance substantially all of the company's debt under its existing senior secured and mezzanine facilities.

ConvaTec is a Skillman, N.J.-based developer, manufacturer and marketer of medical technologies for community and hospital care.

Sunquest closes

In other news, Sunquest Information Systems closed on its $655 million credit facility on Thursday, according to a market source.

The facility consists of a $25 million revolver (Ba3/B+), a $385 million first-lien term loan (Ba3/B+) and a $245 million second-lien term loan (Caa1/CCC+).

Pricing on the first-lien term loan is Libor plus 450 bps, after firming at the wide end of talk of Libor plus 425 bps to 450 bps, with a 1.75% Libor floor and 101 soft call protection for one year. It was sold at an original issue discount of 981/2.

The second-lien term loan is priced at Libor plus 850 bps with a 1.25% Libor floor and was sold at an original issue discount of 98. It is non-callable for two years, then at 104 in year three.

Sunquest funds recap

Proceeds from Sunquest's credit facility were used to refinance existing debt, to fund a dividend payment and to purchase equity.

The deal is in connection with the purchase of a 51% interest in the company by a group of investors led by Huntsman Gay Global Capital, and including Credit Suisse and Neuberger Berman, from Vista Equity Partners.

Jefferies acted as the lead bank on the credit facility.

Sunquest is a Tucson, Ariz.-based provider of health care diagnostic information technology and outreach services.

Trinidad wraps revolvers

Trinidad Drilling Ltd. completed its new $100 million four-year senior secured revolving credit facility, as well as a C$200 million four-year senior secured revolver, according to a news release.

Proceeds from the revolvers, along with $450 million of senior unsecured notes, are being used to refinance existing bank debt and fund the redemption of 7.75% convertible unsecured subordinated debentures.

Trinidad Drilling is a Calgary-based provider of oil and gas drilling equipment.

© 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.