Skype, Great Point Power break; Global Tel tweaks deal; ATI, Prime Healthcare float talk

By Sara Rosenberg

New York, Feb. 22 - Skype Technologies' new term loan allocated and freed up for trading during Monday's market hours, with the U.S. piece trading above its original issue discount price, and Great Point Power LLC also broke for trading.

Also in trading, LyondellBasell's pre-petition CAM headed higher on rumors that Reliance Industries Ltd. raised its bid for the company.

Over in the primary market, Global Tel*Link Corp. reverse flexed pricing on its credit facility due to strong demand, unofficial price talk on ATI Physical Therapy's proposed loan deal started making its way around the market and Prime Healthcare Services Inc. released some price talk on its upcoming credit facility as well.

And, in more primary happenings, HHI Holdings LLC is looking at later this week for a possible launch of its proposed credit facility that is now expected to come with a smaller-than-anticipated term loan tranche, and Fresenius SE will be launching what is basically a repricing on Friday.

Skype frees to trade

Skype Technologies' term loan hit the secondary market on Monday, with the U.S. tranche seen trading higher than the discount price at which it was sold during syndication, according to traders.

The roughly $592 million term loan was quoted by two traders at par ½ bid, 101½ offered, and by a third trader at par ½ bid, 101¼ offered.

Meanwhile, the €135 million term loan was not quite as high, with one trader quoting it wide at 98½ bid, par ½ offered, a second trader quoting it right around par and a third trader quoting it at 99 bid, par offered.

Skype pricing details

Skype's U.S. term loan is priced at Libor plus 500 basis points with a 2% Libor floor and was sold at a discount of 99, and the euro term loan is priced at Euribor plus 550 bps with a 2% Libor floor and was sold at a discount of 981/2.

Both tranches include 101 soft call protection for one year.

During syndication, pricing on the U.S. loan was increased from Libor plus 400 bps, pricing on the euro loan was increased from Euribor plus 450 bps, the Libor floor on both tranches was raised from 1.75%, and the discount on the U.S. loan was lifted from 993/4.

Also, the dollar and euro-denominated term loan (B1/B+) was downsized to about $775 million from an initial size of $800 million.

Prior to the changes being made, rumors were floating around that the U.S. tranche would flex up to at least Libor plus 450 bps, the floor would move to 2% and the original issue discount would end somewhere in the range of 99 to 991/2.

Skype refinancing debt

Proceeds from Skype's new term loan will be used to refinance its existing $700 million five-year term loan that is priced at Libor plus 700 bps with a 2% Libor floor, and it was sold at an original issue discount of 971/2.

The existing term loan was obtained late last year for its buyout by an investor group led by Silver Lake and including Joltid Ltd., the Canada Pension Plan Investment Board and Andreessen Horowitz.

JPMorgan, Barclays and RBC are the lead banks on the new deal and led the existing one as well.

Skype is a Luxembourg-based software that enables individuals and businesses to make free video and voice calls, send instant messages and share files with other Skype users.

Great Point Power frees up

Great Point Power's $220 million seven-year term loan (Ba1/BB+) was another deal that began trading on Monday, with levels seen at par ¼ bid, 101¼ offered including a 100 bps funding fee and then moving up to par ½ bid, 101½ offered, according to an informed source.

With this loan, for example, if purchased at 101, buyers are entitled to receive 100 bps when it funds, so the purchase price is a net 100, the source explained.

Pricing on the term loan is Libor plus 350 bps with a 2% Libor floor, and it was sold at an original issue discount of 99.

Barclays and Bank of America are the lead banks on the deal.

Great Point funding acquisition

Proceeds from Great Point Power's credit facility will be used to fund the acquisition of four power generation plants and a stake in the Neptune transmission facility from Energy Investors Funds.

During syndication, pricing on the term loan was flexed down from initial talk of Libor plus 375 bps and the original issue discount tightened from 981/2.

Also, during syndication an $80 million debt basket for contributed/acquired assets was added, and an additional carve-out of $30 million if the company wants to acquire a larger stake in the Neptune transmission facility was added.

Great Point Power is a newly formed portfolio company of ArcLight Capital Partners LLC.

LyondellBasell CAM trades up

LyondellBasell's pre-petition CAM was better in the secondary market on rumors that Reliance raised its offer price for the bankrupt company to $14.5 billion, according to a trader.

The CAM was quoted at 71 bid, 73 offered, up from Friday's levels of 70¾ bid, 71½ offered, the trader said, adding that the paper was as high as 73 bid, 74 offered in the morning before coming back in a little.

LyondellBasell is a Netherlands-based polymers, petrochemicals and fuels companies.

Global Tel*Link trims spread

Switching to the primary market, Global Tel*Link lowered pricing on its $245 million credit facility (B1/BB-) as a result of strong interest and asked that lenders recommit to the transaction by 5 p.m. ET on Monday, according to a market source.

The $20 million revolver, $185 million term loan and $40 million delayed-draw term loan are now all priced at Libor plus 400 bps, down from initial talk at launch of Libor plus 425 bps, the source said.

The 2% Libor floor on all tranches was left unchanged as were the original issue discounts on the term loans. The funded term loan is being offered at a discount of 99 and the delayed-draw term loan is being offered at 981/2.

In addition, lenders on the delayed-draw term loan will get 50 bps paid on allocation that is not refundable.

Global Tel*Link lead banks

Credit Suisse and UBS are the lead banks on Global Tel*Link's credit facility, which will be used to refinance existing debt.

The term loan amortized at a rate of 1% per year, with the rest due at maturity.

Furthermore, the term loan includes a springing maturity. If the company's senior subordinated notes are not refinanced, the term loan will mature 61 days prior to the notes' 2016 maturity.

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

ATI talk emerges

Unofficial guidance on ATI Physical Therapy's proposed $170 million credit facility began circulating in anticipation of the deal's launch into syndication with a bank meeting on Wednesday, according to a market source.

The facility is being talked at Libor plus 500 bps with a 2% Libor floor, the source said, adding that original issue discount on the term loan is still to be determined.

Tranching on the deal is comprised of a $25 million revolver and a $145 million term loan.

Barclays and GE Capital are the lead banks on the facility that will be used to help fund the buyout of the company by GTCR Golder Rauner LLC.

ATI Physical Therapy is a Bolingbrook, Ill.-based rehabilitation provider.

Prime Healthcare sets talk

Prime Healthcare Services is another deal that saw price talk surface on its $290 million credit facility as it is getting ready to launch with a bank meeting on Thursday, according to a market source.

The $40 million five-year revolver and the $250 million six-year term loan are both being talked at Libor plus 400 bps with a 2% Libor floor, the source said.

Original issue discount on the term loan is not yet available, the source added.

RBC is the lead bank on the deal that will be used to refinance existing debt, make certain investments and for general corporate purposes.

Total leverage is 1.4 times.

Prime Healthcare is an Ontario, Calif.-based owner and operator of acute care hospitals.

HHI eyes this week launch

HHI is currently targeting holding a bank meeting later this week to launch its proposed credit facility, and the anticipation is that the deal will be smaller than the previously outlined size of $380 million, according to a market source.

The facility will still include a $140 million ABL revolver; however, it now appears as if the term loan will be smaller than its initial expected size of $240 million (B3/B+).

"Heading in that direction of being smaller, but actual size is still to be determined," the source remarked about the term loan.

Bank of America and Credit Suisse are the lead banks on the deal that will be used to refinance existing debt and fund a dividend.

HHI is a Royal Oak, Mich.-based supplier of highly engineered metal forgings and machined components, wheel bearings, and powdered metal engine and transmission components for automotive and industrial customers.

Fresenius readies repricing

Fresenius is planning to launch a term loan C with a lender call on Friday morning to refinance its existing, higher priced, term loan B, according to a market source.

The term loan C due in September 2014 - the same maturity as the existing B loan - consists of a roughly $996 million U.S. dollar piece and a roughly €165 million euro piece.

Price talk on the term loan C is Libor plus 300 bps with a 1.75% Libor floor and it will be sold at par. There is 101 soft call protection for one year.

Proceeds will be used to refinance the existing term loan B that is priced at Libor plus 350 bps with a 3.25% Libor floor.

Fresenius offering fees

Fresenius is offering to repay all existing term loan lenders 100 bps for the debt that is being taken out, which is the existing call protection.

In addition, consenting lenders to the amendment that is being launched with the new term loan C will also receive a 25 bps fee.

Deutsche Bank is the lead bank on the deal.

Fresenius is a Bad Homburg, Germany-based provider of products and services for individuals undergoing dialysis.

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