IMS Health, Capital Automotive, Novelis, Transtar, JMC break; Advantage Sales pulls loan

By Sara Rosenberg

New York, March 10 - IMS Health Inc.'s credit facility freed up for trading on Thursday right around its issue price, and Capital Automotive, Novelis Inc., Transtar Industries Inc. and JMC Steel Group broke as well.

Switching to the primary, Advantage Sales & Marketing LLC removed its refinancing/repricing deal from market after some investor pushback, and Universal Health Services Inc. added a pricing step-down to its B loan.

Also, iStar Financial Inc. made some revisions to its term loan A-2, including increasing pricing and adding soft call protection, while its term loan A-1 tranche was left at initial talk.

In more primary happenings, Quintiles and Jarden Corp. came out with price talk on their credit facilities as the transactions were presented to lenders during the session, and some unofficial guidance began circulating on Asurion's newly launched loan.

Additionally, Presidio Inc. released guidance on its in market credit facility now that some price discovery has been completed, and Sprouts Farmers Market is getting ready to bring a new loan to market.

IMS starts trading

IMS Health's credit facility broke early on in the day, with the $1.29 billion term loan quoted at par bid, par 3/8 offered by one trader and at par bid, par ½ offered by a second trader.

Pricing on the loan is Libor plus 325 basis points with a 1.25% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

The company's credit facility (Ba3) also includes a €565 million term loan that is priced at Euribor plus 350 bps with a 1.5% floor and was sold at par. This tranche also has 101 soft call protection for one year.

During syndication, the U.S. loan was upsized by $52.2 million, and the euro loan was upsized by €20.6 million, while a $100 million delayed-draw term loan was removed from the capital structure.

The delayed-draw term had been talked at Libor plus 325 bps with a 1.25% Libor floor and a par offer price. It had a 50 bps ticking fee starting June 1 and rising through Aug. 15 and was going to be used to fund the acquisition of SDI Health, a privately held health care market insights and analytics firm.

IMS repricing debt

IMS Health is using its new term loans to reprice the existing term loan borrowings obtained last year to help fund the buyout of the company by TPG Capital and the CPP Investment Board.

At close, pricing on the originally sized $1.25 billion U.S. piece was Libor plus 350 bps and pricing on the originally sized €550 million euro piece was Euribor plus 375 bps. Both term loans include a 1.75% floor and were sold at an original issue discount of 99.

Goldman Sachs and Bank of America Merrill Lynch are the lead banks on the deal.

IMS Health is a Norwalk, Conn.-based provider of market intelligence to the pharmaceutical and health care industries.

Capital Auto frees up

Capital Automotive was another deal to begin trading on Thursday, with levels on the $1.5 billion six-year term loan B quoted at 99¼ bid, 99½ offered, according to a market source.

Pricing on the loan is Libor plus 350 bps 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 that was added during syndication.

The company's $1.7 billion senior secured credit facility (Ba3/B+) also includes a $200 million five-year revolver priced at Libor plus 350 bps with a 1.5% Libor floor, that was sold with a 100 bps upfront fee.

Barclays Capital Inc. is the lead bank on the deal that is being used to refinance existing debt.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

Novelis par bid

Novelis' $1.5 billion six-year senior secured term loan B freed up at par bid, par 3/8 offered on Thursday, according to a market source.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at par. There is a step-down to Libor plus 275 bps when total net leverage is less than 3.5 times and 101 soft call protection for six months, followed by par ½ in the next six months.

Proceeds are being used to reprice a term loan obtained in December as part of a dividend recapitalization at pricing was Libor plus 375 bps with a step-down to Libor plus 350 bps at less than 3.5 times leverage. There is a 1.5% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 99.

Bank of America Merrill Lynch, Citigroup, JPMorgan, RBS and UBS are the lead banks on the deal for the Atlanta-based aluminum-rolled products and beverage can recycling company.

Transtar breaks

Transtar's $240 million first-lien term loan B also made its way into the secondary market on Thursday, with levels quoted at par 1/8 bid, par ¼ offered, according to a market source.

Pricing on the Cleveland-based transmission parts provider's loan is Libor plus 325 bps with a 1.25% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

RBC is the left lead bank on the deal that is being used to reprice an existing term loan that was obtained late last year for a buyout by Friedman Fleischer & Lowe.

The 2010 term loan B is priced at 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, which lenders are receiving with the repricing, and it was sold at an original issue discount of 99.

JMC tops OID

JMC Steel Group's $400 million six-year term loan (B1/BB-) broke for trading as well, with levels quoted at par bid, par ½ offered, compared to the 99½ original issue discount price that investors received, according to a market source.

Pricing on the loan is Libor plus 325 bps with a 1.5% Libor floor, and there is 101 soft call protection for one year.

During syndication, pricing was reduced from Libor plus 375 bps and the original issue discount tightened from 99.

The company's $800 million credit facility also includes a $400 million ABL revolver.

JMC being acquired

Proceeds from JMC Steel's credit facility will be used to help fund the acquisition of the company by the Zekelman family from the Carlyle Group and to refinance existing debt.

Other funds for the transaction will come from $725 million of senior notes that priced last week at par to yield 8¼%. Price talk had been in the 8½% area.

The buyout is expected to close by March 31.

J.P. Morgan is the lead bank on the credit facility.

JMC Steel is a Beachwood, Ohio-based manufacturer of steel pipe and tubes that was formed through the combination of John Maneely Co. and Atlas Tube in December 2006.

Advantage Sales cancels deal

Over in the primary, Advantage Sales & Marketing decided to remove its repricing/refinancing credit facility from market, as lenders failed to jump on board at initial talk and it appeared as if pricing would get too expensive for the deal to make sense, according to a market source.

Under the original proposal, the company was looking to change pricing on the $875 million first-lien term loan to Libor plus 325 bps with a 1.25% Libor floor, and the debt was being offered at par with 101 soft call protection for six months.

By comparison, when obtained in December for a buyout by Apax Partners, the first-lien loan was priced at Libor plus 375 bps with a step-down to Libor plus 350 bps when first-lien leverage is less than 3.5 times. There is a 1.5% Libor floor and 101 soft call protection for one year, and the tranche was sold at a discount of 991/2.

Advantage Sales second-lien

Additionally, Advantage Sales & Marketing was looking to cut pricing on its $350 million second-lien term loan to Libor plus 725 bps with a 1.5% Libor floor, and the debt was being offered at par offer with soft call protection of 102 for six months, followed by one year at 101.

Pricing on the second-lien loan when it closed in December was Libor plus 775 bps with a 1.5% Libor floor, and it was sold at 981/2. There is call protection of 102 in year one and 101 in year two.

As part of the transaction, the company was also looking to remove the maintenance covenants from its first-and second-lien term loans.

Credit Suisse, J.P. Morgan and UBS were acting as the lead banks on the deal.

Advantage Sales is an Irvine, Calif.-based sales and marketing agency.

Universal Health adds step

Universal Health Services added a pricing step-down to Libor plus 275 bps at less than 3.25 times leverage to its $1.6 billion term loan B due Nov. 15, 2016, while leaving all other terms unchanged, according to a market source.

Initial pricing on the B loan is Libor plus 300 bps, and there is a 1% Libor floor and a par offer price.

The company's $3.45 billion credit facility also includes an $800 million revolver due Nov. 15, 2015 and a $1.05 billion term loan A due Nov. 15, 2015.

J.P. Morgan and Deutsche Bank are the lead banks on the deal that will be used to refinance existing debt.

Universal Health is a King of Prussia, Pa.-based health-care management company.

iStar reworks A-2

iStar Financial lifted pricing on its $1.5 billion term loan A-2 (B2/NA/B+) due June 2014 to Libor plus 550 bps from Libor plus 475 bps, while leaving the 1.25% Libor floor and original issue discount of 98½ unchanged, according to a market source.

Also, 18 months of soft call protection was added to the term loan A-2, broken down into 101 for one year and par ½ for the six months thereafter, the source said.

As for the company's $1.5 billion term loan A-1 (B1/NA/BB-) due June 2013, talk was left at initial levels of Libor plus 325 bps with a 1.25% Libor floor and an original issue discount of 991/2, the source remarked.

Amortization payments will be applied first to the A-1 tranche and then to the A-2 tranche.

iStar repaying debt

Proceeds from iStar Financial's $3 billion senior secured credit facility will be used to refinance secured loan facilities due in June 2011 and 2012, as well as to repay some unsecured debt maturing in 2011.

J.P. Morgan and Barclays are the lead banks on the credit facility.

Security is a first lien on a diversified $3.75 billion collateral pool, comprised primarily of performing loans and corporate tenant lease assets.

iStar is a New York-based finance and investment company focused on the commercial real estate industry.

Quintiles talk emerges

Quintiles held a bank meeting on Thursday to launch its proposed credit facility, and in connection with the event, price talk on the $2.2 billion covenant-light term loan B due in 2018 was disclosed as being Libor plus 300 bps to 325 bps with a 1.25% Libor floor and an original issue discount of 991/2, according to a market source, who said the tranche also includes 101 soft call protection for six months.

J.P. Morgan, Morgan Stanley, Barclays and Citigroup are the lead banks on the $2.425 billion credit facility, which provides for a $225 million revolver due in 2016 as well.

Proceeds will be used to refinance $1.695 billion of existing debt, including $525 million of 9½% senior notes due December 2014.

Quintiles is a Durham, N.C.-based biopharmaceutical services company offering clinical, commercial, consulting and capital solutions.

Jarden reveals guidance

Jarden also held a bank meeting on Thursday, at which it launched its $250 million five-year revolver and $500 million five-year term loan A at Libor plus 225 bps, and its $500 million seven-year term loan B at Libor plus 300 bps, according to a market source. There is no Libor floor on the tranches and the B loan is being offered at par.

There is a cashless roll option available for term B lenders. Commitments for the cashless roll are due at 5 p.m. ET on March 17. Pro rata commitments are due at 5 p.m. ET on March 24, the source said.

Barclays, Deutsche Bank, J.P. Morgan, SunTrust and Wells Fargo are leading the $1.25 billion senior secured deal that will be used by the Rye, N.Y.-based consumer products company to refinance existing debt.

At Dec. 31, the company had about $1.06 billion of term loans outstanding and no borrowings under its revolver. The debt includes a $364 million extended term loan B-5 due January 2015 that was obtained in August at pricing of Libor plus 325 bps.

Asurion unofficial pricing

Unofficial guidance on Asurion's $3.5 billion seven-year first-lien term loan (B+) and $1.02 billion eight-year second-lien term loan (B-) began making its way around the market as the deal launched with a bank meeting on Thursday, according to a source.

The first-lien term loan is being guided at Libor plus 375 bps and the second-lien term loan is being guided at Libor plus 750 bps to 775 bps, with both having a 1.25% to 1.5% Libor floor, the source said.

The company's $4.64 billion covenant-light credit facility also includes a $120 million five-year revolver (B+).

Bank of America Merrill Lynch, Barclays, Credit Suisse, Morgan Stanley, Goldman Sachs and Deutsche Bank are leading the deal.

Asurion refinancing

Proceeds from Asurion's new credit facility will be used to refinance existing debt.

In 2010, the company got a $900 million incremental first-lien term loan to fund a dividend priced at Libor plus 525 bps with a 1.5% Libor floor. It was sold at an original issue discount of 96 and includes call protection of 102 in year one and 101 in year two.

And, the company's original credit facility was obtained in 2007 in connection with its buyout by Madison Dearborn Partners, Providence Equity Partners and Welsh, Carson, Anderson & Stowe. At closing, the deal consisted of a $100 million revolver priced at Libor plus 200 bps, a $1.755 billion first-lien term loan priced at Libor plus 300 bps and a $580 million second-lien PIK toggle term loan priced at Libor plus 650 bps cash pay.

Asurion is a Nashville, Tenn.-based provider of technology protection services.

Presidio sets talk

Presidio revealed price talk on its $325 million term loan B now that the leads have done some price discovery in the market since launching the deal on March 4, according to a market source.

The term loan B is being talked at Libor plus 450 bps with a 1.5% Libor floor, an original issue discount of 99½ and 101 call protection for one year, the source said.

The company's $360 million credit facility (Ba3/B+) also includes a $35 million revolver.

Barclays and Morgan Stanley are the joint lead arrangers and bookrunners on the deal, and GE Capital Markets is a bookrunner as well.

Proceeds will be used to help fund the buyout of the Greenbelt, Md.-based provider of advanced technology infrastructure services by American Securities.

Presidio struggled in past

A market source had previously explained that the price discovery process was needed on Presidio because when the company came to the loan market in December with a dividend recapitalization deal led by J.P. Morgan, there was a rough road getting syndication done.

In the end, the company ended up with a $200 million term loan B priced at Libor plus 575 bps with a 1.75% Libor floor that was sold at an original issue discount of 971/2. There is 101 soft call protection for one year.

However, it took a bunch of changes to get the deal done. During syndication, the loan had to be reduced from $300 million and, as a result, the dividend was also reduced, pricing was flexed up from Libor plus 550 bps and, before that, from Libor plus 475 bps, and the discount was increased from 98 and, prior to that, from 981/2.

Harron pro rata talk

Harron Communications LP is talking its $100 million revolver and $200 million term loan A at Libor plus 300 bps, according to a market source. As was already reported, the $300 million term loan B is being talked at Libor plus 325 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year.

SunTrust Robinson Humphrey, Wells Fargo and Credit Agricole are the lead banks on the $600 million credit facility that will launched with a bank meeting on Tuesday.

Proceeds will be used to refinance existing debt.

Harron is a Frazer, Pa.-based provider of digital television, high speed internet, digital phone and business services.

Sprouts readies deal

Sprouts Farmers Market will come to market within the next two weeks with a new $370 million senior secured credit facility, according to a market source.

Jefferies and BMO Capital Markets are the lead banks on the deal that consists of a $60 million revolver and a $310 million term loan, the source said.

Proceeds will be used to help fund the buyout of the company by Apollo Management LP and merger with Henry's Farmers Market, an Irvine, Calif.-based grocer.

The transaction is expected to close early in the second quarter.

Sprouts Farmers Market is a Phoenix-based grocer that operates in the farmers market specialty segment of the retail food industry.

Isle of Capri well met

In other news, Isle of Capri Casinos Inc. already has over $1 billion in orders towards its $500 million six-year term loan B, which just launched to investors one week ago, according to a market source.

Talk on the term loan B is Libor plus 350 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for one year.

The company's $825 million credit facility (Ba3/BB-) also includes a $325 million five-year revolver talked at Libor plus 350 bps. Pricing on this tranche is subject to a grid.

Prior to the official launch, sources told Prospect News that the revolver was already moving well among relationship banks and that a number of existing institutional lenders were rolling over into the new term loan B.

Isle of Capri lead banks

Wells Fargo, Credit Suisse and Deutsche Bank are the lead banks on Isle of Capri's credit facility, which will be used, along with $300 million of senior notes, to refinance an existing credit facility.

The notes priced last week at 99.264 to yield 7 7/8%. Price talk on the offering had been for a yield in the 7¾% area.

The company expects to close on the new facility shortly after completing the notes offering and prior to the end of the fourth quarter of fiscal 2011.

Isle of Capri is a St Louis-based owner and operator of gaming, lodging and entertainment facilities.

Rock-Tenn shuts books

The commitment deadline on Rock-Tenn Co.'s $3.7 billion senior credit facility passed on Thursday, and all tranches were oversubscribed by the time the books were closed, according to a market source.

The facility consists of a $1.2 billion five-year revolver and a $1.25 billion five-year term loan A, both talked at Libor plus 200 bps, and a $1.25 billion six-year term loan B talked at Libor plus 275 bps with a 0.75% Libor floor and a par offer price.

Of the total revolver amount, $632 million is expected to be drawn at close.

Wells Fargo, SunTrust, Rabobank, Bank of America Merrill Lynch and J.P. Morgan are the lead banks on the deal.

Pro forma leverage will be 2.76 times.

Rock-Tenn buying Smurfit

Proceeds from Rock-Tenn's credit facility will be used to help fund the acquisition of Smurfit-Stone Container Corp. in a transaction valued at $3.5 billion, consisting of $1.8 billion of cash and the issuance of 30.9 million shares of common stock, and to refinance some debt at both companies.

In addition to the equity consideration, Rock-Tenn will assume Smurfit-Stone's net debt and pension liabilities. As of Dec. 31, Smurfit-Stone's net debt was $700 million, and its pension liabilities were $1.1 billion.

Closing on the transaction is expected in the second quarter, subject to customary conditions, regulatory approvals, and approval by both Rock-Tenn and Smurfit-Stone stockholders.

Rock-Tenn is a Norcross, Ga.-based manufacturer of paperboard, containerboard and consumer and corrugated packaging. Smurfit-Stone is a Chicago-based containerboard and corrugated packaging producer and a paper recycler.

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