Alliance HealthCare breaks; Hawker tweaks deal; JohnsonDiversey readies allocations

By Sara Rosenberg

New York, Nov. 20 - Alliance HealthCare Services Inc.'s credit facility allocated and freed up for trading on Friday morning, with levels on the term loan quoted higher than the original issue discount price at which it was sold.

In other news, Hawker Beechcraft Acquisition Co. LLC revised the spread and original issue discount on its term loan add-on and JohnsonDiversey Inc. is getting ready to allocate its U.S. term loan B, which was largely oversubscribed before the books closed a few days ago.

Alliance HealthCare frees up

Alliance HealthCare Services' credit facility hit the secondary market early on in the session and the term loan was seen trading higher than its original issue discount price, according to a market source.

The $450 million 61/2-year term loan was quoted at 98¾ bid, 99¼ offered, the source said.

Pricing on the term loan firmed in line with talk at Libor plus 350 basis points with a 2% Libor floor, and it was sold at an original issue discount of 98.

The term loan is part of a $570 million senior secured credit facility (Ba3) that also includes a $120 million five-year revolver.

Deutsche Bank, Barclays and Morgan Stanley are the lead banks on the deal that was just launched with a bank meeting this past Monday, with Deutsche the left lead.

Alliance HealthCare refinancing debt

Alliance HealthCare is using its credit facility to help fund the purchase of the company's $300 million of 7¼% senior subordinated notes due 2012 and to refinance its existing credit facility.

Other funds for the refinancing will come from a $190 million 8% senior notes offering that priced at 98.69 to yield 8¼% and cash on hand.

Originally, the bond offering was expected to be sized at $200 million, but it was later reduced.

Alliance HealthCare is a Newport Beach, Calif.-based provider of outpatient diagnostic imaging and radiation oncology services.

Hawker Beechcraft cuts pricing

Hawker Beechcraft flexed pricing lower on its $200 million term loan add-on (Caa1/CCC+) and tightened the original issue discount, according to a market source.

The add-on is now priced at Libor plus 850 bps, down from initial talk of Libor plus 900 bps, and the original issue discount is now 94, compared to initial talk of 92 to 93, the source said.

As before, the add-on has a 2% Libor floor.

Price talk on the loan first surfaced this past Wednesday, almost a full week after the deal's actual launch.

Credit Suisse is the lead bank on the deal that will be used to provide additional liquidity.

Hawker Beechcraft is a Wichita, Kan., manufacturer of business, special-mission and trainer aircraft.

JohnsonDiversey allocations near

JohnsonDiversey is anticipated to allocate its multiply oversubscribed $450 million U.S. term loan B on Monday, according to a market source.

The U.S. term loan B is priced at Libor plus 350 bps with a 2% Libor floor and an the original issue discount of 99.

During syndication, pricing on the loan firmed at the tight end of initial talk of Libor plus 350 bps to 375 bps, and the discount was lowered from initial guidance of 981/2.

In addition to the U.S. term loan B, JohnsonDiversey is also getting a $250 million multi-currency revolver, a $500 million euro equivalent term loan and a $50 million Canadian equivalent term loan; however, only the U.S. term loan B is being marketed at this time.

Covenants include a leverage ratio and an interest expense coverage ratio.

JohnsonDiversey lead banks

Citigroup, GE Capital, Goldman Sachs and JPMorgan are the joint bookrunners on JohnsonDiversey's $1.25 billion senior secured credit facility (Ba2/BB-/BB-).

Proceeds from the credit facility, along with $400 million of senior notes, will be used to help fund a recapitalization transaction valued at $2.6 billion.

The recapitalization plan includes the repurchase of outstanding senior subordinated notes and the repayment of outstanding borrowings under its existing senior secured credit facility.

As part of the recapitalization, Clayton Dubilier & Rice Inc. will invest $477 million for a 46% equity interest in the company, while, the Johnson Family of Racine, Wis., will retain 50% ownership in the company and Unilever will retain a 4% ownership interest in the company.

JohnsonDiversey, which is changing its name to Diversey Inc., is a Sturtevant, Wis.-based provider of commercial cleaning, sanitation and hygiene products.

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