Travelport upsized loan breaks; BRSP sees many recommits; Weight Watchers firm; LCDX slides

By Sara Rosenberg

New York, June 18 - Travelport Ltd. allocated its term loan on Thursday after a quick upsizing and tightening of pricing and original issue discount during the previous session, and the loan hit the secondary market with levels trading higher than the discount price.

In other news, BRSP LLC's term loan saw very little pushback from investors after coming out with changes the other day, leaving the transaction oversubscribed.

Back over in trading news, Weight Watchers International Inc.'s term loan debt held steady as the company's amendment was launched and the LCDX 12 index softened even though stocks were mostly up.

Travelport frees to trade

Travelport's incremental term loan allocated and broke for trading early on in the day, with levels on the well received drive-by deal quoted above the original issue discount price at which it sold during syndication, according to market sources.

The $150 million term loan was quoted at 96½ bid, 97½ offered on the break and then it moved up to around 97 bid, 98 offered, one source remarked. Another source had the loan quoted at 97½ bid, 98½ offered by the end of the day, and he had heard that it was as good as 98 bid earlier on. And, a third source said that the loan was 98¼ bid late in the day.

Pricing on the term loan is Libor plus 750 basis points with a 3% Libor floor, and it was sold to investors at an original issue discount of 96.

Travelport upsized

Travelport's incremental term loan had been launched on Wednesday morning with a size of $105 million and price talk of Libor plus 800 bps with a 3% Libor floor, and an original issue discount of 95.

However, as a result of strong demand, the loan size was increased by $45 million, the spread was decreased by 50 bps, the discount was trimmed by a point and the commitment deadline was moved up to Wednesday at 5 p.m. ET from Thursday afternoon.

One source explained that the deal was so well received in such a quick fashion because it's a well known issuer that has a very large existing bank group, so no credit work needed to be done.

Travelport proceeds use vague

Travelport did not really indicate to lenders what proceeds from the new term loan will be used for other than to say it's going towards general corporate purposes.

However, one source told Prospect News that he is wishing for a debt repayment: "I think they'll buy back the PIK with this or at least that's what I hope. But, don't know for sure. No specific use of proceeds, so who knows. I don't think it will go in Blackstone's pocket. A lot of people would be up in arms if that happened."

Credit Suisse acted as the lead bank on the new term loan that was done under the company's existing credit facility accordion feature.

Travelport existing holds steady

Travelport's existing strip of letter-of-credit and term loan debt held firm on Thursday after the new loan freed up for trading, one source said.

The strip of debt was quoted at 79½ bid, 80½ offered, pretty much unchanged on the day, the source continued.

Travelport is a Parsippany, N.J.-based travel distribution services company that is owned by the Blackstone Group, One Equity Partners, Technology Crossover Ventures and Travelport management.

BRSP still well oversubscribed

Even with the changes that were recently made to BRSP's term loan, the deal is still around three times oversubscribed as almost everyone recommitted by the Wednesday deadline, according to a market source.

The $290 million five-year senior secured term loan (B1/BB-) is priced at Libor plus 450 bps with a 3% floor, and it was sold at an original issue discount of 94.

On Wednesday morning, the loan was upsized from $275 million and the original issue discount was trimmed from initial guidance in the 92 to 93 area because of strong investor demand.

In addition, call protection on the loan was changed to 102 in year one, and 101 in years two and three, from 104 in year one, 102 in year two and 101 in year three.

BRSP readies allocations

As was previously reported, BRSP is targeting allocating its revised term loan sometime early next week.

Proceeds from the new term loan will be used to refinance an existing term loan that was put in place in 2006. The extra $15 million in proceeds raised from the upsizing is going towards the reduction of out of pocket expenses.

Covenants include a debt service coverage ratio.

Barclays Capital is the lead bank on the deal.

Sources had previously told Prospect News that syndication of the loan was going so well because investors were attracted to the pricing and the original issue discount.

BRSP is a special purpose entity covering two gas-fired power plants - Broad River and South Point - that are operated by Calpine Corp.

Weight Watchers flat with amendment

Switching back to the secondary market, Weight Watchers' bank debt was pretty much flat on the day even after the company held its lender call to launch an amendment, according to a trader.

The company's term loan A was quoted at 94¼ bid, 95 offered, the term loan A-1 was quoted at 91 bid, 93 offered and the term loan B was quoted at 94½ bid, 95¾ offered, with all tranches unchanged from previous levels, the trader said.

At noon ET on Thursday, the company held a call to discuss an amendment that would give flexibility to extend loan maturities and reduce amortization.

The company is not looking to make any actual changes at this point; it just wants the option to be able to in the future, the trader explained.

Credit Suisse is leading the amendment.

Weight Watchers is a New York-based provider of weight management services.

LCDX falls

The LCDX 12 index was weaker on Thursday, and the cash market, although really quiet, felt like it was down about a quarter to a half a point as well, according to traders.

The index was quoted at 85.40 bid, 85.70 offered, down from 86.25 bid, 86.55 offered on Wednesday, traders said.

Meanwhile, stocks were mostly better with Dow Jones Industrial Average up 58.42 points, or 0.69%, S&P 500 up 7.66 points, or 0.84%, and NYSE up 41.65 points, or 0.71%. Nasdaq, however, was down 0.34 points, or 0.02%.

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