Nuveen revises term loan add-on pricing, breaks; Fundtech trades atop OID; Colfax flexes lower

By Sara Rosenberg

New York, Nov. 28 - Nuveen Investments made some revisions to its add-on term loan, including reducing the original issue discount and the Libor floor, and then proceeded to free up for trading late Monday.

Also, Fundtech Ltd.'s credit facility began trading as well, with the term loan seen above its original issue discount price.

Back over to the primary, Colfax Corp. revised the coupon and Libor floor on its term loan B due to strong demand and accelerated the commitment deadline, and Invenergy LLC allocated its term loan.

Nuveen tweaks deal

Nuveen Investments came out with changes to its $280 million add-on term loan (B) that were focused on original issue discount and Libor floor, while the coupon was left unchanged at Libor plus 600 basis points, according to a market source.

Under the new terms, the add-on was sold to investors at an original issue discount of 98 versus initial talk of 97, and the Libor floor was tightened to 1.25% from 1.5%, the source said.

As before, the add-on term loan is due on May 13, 2017 and includes 101 soft call protection for one year.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the lead banks on the deal.

Nuveen hits secondary

After the new pricing details finalized, Nuveen allocated and broke for trading its add-on term loan, with levels quoted at 98½ bid, 99½ offered, a second source remarked.

The company's existing term loan debt, meanwhile, headed lower, with the source quoting the extended term loan at 95 bid, 96 offered, down from 95½ bid, 96½ offered and the non-extended term loan at 94½ bid, 95½ offered, down from 95 5/8 bid, 96 5/8 offered, and a trader quoting both the extended and the non-extended loans at 94¾ bid, 95¾ offered, down from 95¼ bid, 96¼ offered.

Proceeds from the add-on will fund the acquisition of a 60% stake in Gresham Investment Management LLC, which is expected to close by the end of the year, subject to customary conditions.

Nuveen is a Chicago-based provider of investment services to institutions as well as individual investors. Gresham is a New York-based investment manager focused exclusively on portfolios providing investors access to commodities.

Fundtech frees up

Fundtech's credit facility also made its way into the secondary market, with the $200 million six-year term loan quoted at 98 bid, 98½ offered, according to a trader.

Pricing on the term loan firmed in line with initial talk at Libor plus 600 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

The company's $225 million senior secured credit facility (B+) also includes a $25 million five-year revolver.

RBC Capital Markets LLC and BMO Capital Markets Corp. are the joint lead arrangers and bookrunners on the deal that will be used to help fund the buyout of the company by GTCR for $23.33 in cash per ordinary share and merger with GTCR's existing portfolio company, BankServ.

In connection with the transaction, BankServ's debt will be refinanced.

Fundtech plans mez debt

In addition to the credit facility, Fundtech is getting $50 million of eight-year senior subordinated mezzanine financing from Newstone Capital Partners to help fund its buyout, and $175 million of equity will be used. When combined with BankServ, there will be close to $350 million of total equity.

Senior leverage is around 4.0 times and total leverage is just above 5.0 times.

Closing is expected this quarter, subject to satisfaction of certain conditions. Shareholder approval has already been obtained.

Fundtech is a provider of software services that facilitate payments processing, financial messaging and cash management for financial institutions, and BankServ is a Las Vegas-based software-as-a-service provider of financial services and banking technology. The combined company, Fundtech Inc., would be based in Jersey City, N.J.

Colfax reworks pricing

Moving back to the primary, Colfax updated pricing on its $900 million seven-year term loan B and moved the commitment deadline to end of day Monday from this coming Wednesday, according to a market source.

The term loan B is now offered at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99, compared to talk at launch of Libor plus 375 bps with a 1.25% floor and a discount of 99, the source remarked. The 101 soft call protection for one year was left intact.

Prior to launch, guys were unofficially hearing rumblings about term loan B talk coming in the Libor plus low-400 bps area, and previous filings with the Securities and Exchange Commission had the B loan pricing at Libor plus 400 bps with a 1.25% Libor floor.

The company's $2.1 billion credit facility (Ba2/BB+) also includes a $300 million revolver, a $200 million term loan A-1 and a $700 million term loan A-2, with all of these tranches talked at Libor plus 300 bps.

Colfax funding acquisition

Proceeds from Colfax's credit facility, along with $805 million of new equity, will fund the $2.43 billion purchase of Charter International plc for 910p per share, comprised of 730p in cash and a fixed ratio of 0.1241 of a Colfax common share per share.

Closing is expected in the first quarter of 2012, subject to approval of both companies' shareholders, court approval in Jersey and other terms and conditions.

Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are the joint lead arrangers on the credit facility. Barclays Capital Inc., SunTrust Robinson Humphrey Inc., RBS Securities Inc. and KeyBanc Capital Markets LLC are agents.

Colfax is a Fulton. Md.-based supplier of fluid-handling products, including pumps, fluid handling systems and controls and specialty valves. Charter International is a Dublin-based owner of ESAB, a welding, cutting and automation business, and Howden, an air and gas handling business.

Invenergy allocates

Invenergy gave out allocations on its $200 million term loan (BB-) late Monday, with the deal coming in line with initial talk at Libor plus 750 bps with a 1.5% Libor floor and an original issue discount of 98, according to a market source.

The loan is non-callable for one year, then there is soft call protection of 102 in year two and 101 in year three.

The deal is not expected to trade much as it is relatively small and was completed through a club-style syndication with buy and hold accounts, the source said.

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are the lead banks on the deal that is being used to refinance existing debt.

Invenergy is a Chicago-based developer, owner and operator of large-scale renewable and other clean energy generation facilities.

Health Management closes

In other news, Health Management Associates Inc. closed on its $2.625 billion credit facility (Ba3/BB-/BB+), consisting of a $500 million five-year revolver, a $725 million five-year term loan A and a $1.4 billion seven-year term loan B, according to a news release.

Pricing on the revolver and the A loan is Libor plus 275 bps, and pricing on the B loan is Libor plus 350 bps with a 1% Libor floor. The term loan B was sold at an original issue discount of 99 and includes 101 soft call protection for one year.

During syndication, the term B was upsized from $1.2 billion and the term A was downsized from $1 billion. Also, pricing on the B loan was lowered from Libor plus 375 bps and the floor tightened from 1.25%. At launch, the term B was talked at Libor plus 375 bps to 400 bps, but that quickly changed to focus on the tight end as a result of overwhelming demand.

Health Management refinances

Proceeds from Health Management Associates' credit facility were used to replace an existing $500 million revolver and roughly $2.4 billion term loan B, and are available for general corporate purposes.

Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc. and Barclays Capital Inc. acted as the joint lead arrangers on the deal, with Wells Fargo and Deutsche the bookrunners.

Other funds for the refinancing came from $875 million of 7 3/8% notes that were downsized from $1 billion.

Health Management is a Naples, Fla.-based operator of acute-care hospitals.

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