RedPrairie, National Vision free up; DaVita retreats; Blue Buffalo, CDC Software rework deals

By Sara Rosenberg

New York, July 31 - RedPrairie Corp. and National Vision Inc. broke for trading on Tuesday, and DaVita Inc.'s term loan B was softer on the back of the company's announcement of a proposed term loan B-2.

Meanwhile, in the primary market, Blue Buffalo Co. reworked its term loan B, reducing the size, widening the original issue discount and adjusting covenants, and CDC Software raised pricing on its credit facility.

In addition, CPM Holdings Inc. came out with price talk on its loans in connection with its morning bank meeting, and Regent Seven Seas Cruises surfaced with plans to bring a new deal to market this week.

RedPrairie starts trading

RedPrairie's credit facility made its way into the secondary market on Monday, with the $360 million six-year first-lien term loan quoted at par bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 500 basis points with a 1% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

The company's $400 million credit facility (B2/B+) also provides for a $40 million five-year revolver that is priced at Libor plus 500 bps with a 1% floor, and was offered with a 100 bps upfront fee.

During syndication, the term loan was upsized from $340 million and the discount was revised from 99. Also, the Libor floor on the term loan and the revolver was tightened from 1.25%.

RedPrairie refi/dividend

Proceeds from RedPrairie's credit facility will be used to refinance existing bank debt and fund a dividend that was increased by $9 million because of the term loan upsizing. The remaining $11 million from the loan size increase is being used to add cash to the balance sheet.

Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC are the lead banks on the deal.

RedPrairie is an Alpharetta, Ga.-based provider of supply chain software services.

National Vision tops OID

National Vision was another deal to break for trading, with the $300 million six-year term loan B quoted at 99 bid, par offered, according to a trader.

Pricing on the term loan B is Libor plus 575 bps, after firming at the wide end of the Libor plus 550 bps to 575 bps guidance. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 981/2.

J.P. Morgan Securities LLC and UBS Securities LLC are the lead banks on the $325 million credit facility (B1/BB-), which also includes a $25 million revolver.

Proceeds will be used to refinance existing and pay a distribution to shareholders.

National Vision is a Lawrenceville, Ga.-based optical retailer.

DaVita slides

Also in trading, DaVita's term loan B dropped as investors were told late Monday that the company will be launching a new $1.65 billion term loan B-2 due 2019, according to a market source.

One trader had the loan quoted at to 99¾ bid, par ¼ offered, down from par 3/8 bid, par 7/8 offered, while a second trader had it at 99 7/8 bid, par 3/8 offered, down from par ¼ bid, par ¾ offered.

As previously reported, the term loan B-2, which is being led by J.P. Morgan Securities LLC, will be presented to lenders at a bank meeting at 10 a.m. ET on Thursday.

In addition to the term loan B-2, the Denver-based provider of kidney care services is getting a $1.35 billion term loan A-3 due 2017 that is talked at Libor plus 250 bps.

DaVita buying HealthCare

Proceeds from DaVita's $3 billion of term loans (BB-) will be used to help fund the acquisition of HealthCare Partners, a Torrance, Calif.-based operator of medical groups and physician networks, for about $4.42 billion, consisting of $3.66 billion in cash and roughly 9.38 million shares of DaVita common stock.

In addition, there is potential for an additional up to $275 million cash payment if HealthCare Partners achieves certain performance targets in 2012 and 2013.

Closing is expected early in the fourth quarter, subject to receipt of Hart-Scott-Rodino approval and the approval of HealthCare Partners' owners.

At close, the combined company will be named DaVita HealthCare Partners Inc.

Blue Buffalo tweaks deal

Switching to the primary, Blue Buffalo made some changes to its seven-year term loan B on Tuesday, including trimming the size to $350 million from $430 million and moving the original issue discount to 98 from 99, according to a market source.

This wasn't the first change to size as, prior to launch, the term loan was being guided at $400 million. However, at the bank meeting, it was revealed to be $30 million larger than original expectations.

As before, the loan is priced at Libor plus 525 bps with a 1.25% Libor floor, and has 101 soft call protection for one year.

With the size and discount change, the secured leverage ratio on the accordion was set at 3.5 times, and the secured leverage covenant was revised to 5.0 times, stepping down by increments of 0.25 times over the life of the loan until it hits 3.75 times, the source remarked.

Blue Buffalo revolver

Blue Buffalo's $390 million credit facility (B1/B+), down from $470 million, also provides for a $40 million five-year revolver that is expected to be undrawn at close.

Recommitments were due at the end of the day on Tuesday.

Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund a dividend. Because of the term loan downsizing, the planned dividend amount was reduced, the source added.

Blue Buffalo is a Wilton, Conn.-based pet food company.

CDC flexes

CDC Software revised the coupon on its $150 million term loan B to Libor plus 600 bps from Libor plus 550 bps and left the 1.25% Libor floor and original issue discount of 99 intact, according to a market source.

Furthermore, the company increased pricing on its $10 million revolver and $100 million term loan A to Libor plus 550 bps from Libor plus 525 bps, the source said.

BMO Capital Markets Corp. and Golub Capital are leading the $260 million deal that will help fund the purchase of Consona Corp. by Vista Equity Partners, CDC's current sponsor, and the merger of Consona with CDC.

CDC is an Atlanta-based enterprise software provider of on-premise and cloud technologies. Consona is an Indianapolis-based provider of customer relationship management and enterprise resource planning software and services.

CPM guidance emerges

CPM Holdings held a bank meeting on Tuesday morning to launch its credit facility, and with the event, price talk on the first- and second-lien term loans was disclosed, according to a market source.

The $275 million first-lien term loan (Ba3/B+) is being talked at Libor plus 500 bps to 525 bps and the $185 million second-lien term loan (Caa1/B) is being talked at Libor plus 900 bps, with both tranches having a 1.25% Libor floor, the source said.

The first-lien loan is being offered at an original issue discount of 99 and includes 101 soft call protection for one year, and the second-lien loan is being offered at a discount of 98 and has call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

Commitments towards the $500 million credit facility, which also provides for a $40 million revolver (Ba3/B+), are due on Aug. 13.

CPM leverage multiples

With this transaction, CPM's net first-lien leverage will be 2.4 times and net total leverage will be 4.3 times. Gross first-lien leverage will be 2.8 times and gross total leverage will be 4.8 times, the source added.

Jefferies & Co. is leading the deal that will be used to refinance existing bonds and to fund a distribution to shareholders.

CPM is a Waterloo, Iowa-based supplier of process equipment used for oilseed processing and animal feed production.

Regent Seven readies loan

In more primary happenings, Regent Seven Seas Cruises joined the new deal calendar, setting a bank meeting for 10 a.m. ET on Wednesday to launch a $340 million credit facility, sources said.

The deal includes a $40 million five-year revolver and a $300 million 61/2-year term loan B.

Price talk on the facility is not yet available, sources added.

Deutsche Bank Securities Inc., Barclays Capital Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing bank debt.

Regent Seven Seas is a Miami-based cruise ship company.

Intelligrated closes

Permira completed its purchase of Intelligrated from Gryphon Investors in a transaction valued at more than $500 million, according to a news release.

For the buyout, Intelligrated got a new $340 million credit facility consisting of a $35 million revolver (B1/B), a $215 million six-year covenant-light first-lien term loan (B1/B) and a $90 million 71/2-year covenant-light second-lien term loan (Caa1/CCC+).

Pricing on the first-lien loan is Libor plus 550 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 98. There is soft call protection of 102 in year one and 101 in year two.

The second-lien term loan is priced at Libor plus 925 bps with a 1.25% floor, and it was sold at a discount of 98. The debt includes call protection of 103 in year one, 102 in year two and 101 in year three.

Intelligrated lead banks

RBC Capital Markets LLC and Morgan Stanley Senior Funding Inc. led Intelligrated's credit facility, with RBC the left lead on the first-lien and Morgan Stanley the left lead on the second-lien.

During syndication, the maturity on the first-lien loan was shortened from seven years and pricing firmed at the wide end of the Libor plus 525 bps to 550 bps talk. Meanwhile, the spread on the second-lien loan finalized at the low end of the Libor plus 925 bps to 950 bps guidance.

Net first-lien leverage is 3.4 times, and net total leverage is 4.8 times.

Intelligrated is a Mason, Ohio-based provider of automated material handling services and products.

Integrated Power wraps

Integrated Power Services LLC's buyout by Odyssey Investment Partners LLC from Riverside Co. has closed, according to a news release.

To help fund the transaction, Integrated Power got a $133.8 million senior credit facility that priced in line with initial talk at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99.

The facility consists of a $25 million five-year revolver and a $108.8 million six-year term loan.

GE Capital Markets, BNP Paribas Securities Corp. and BMO Capital Markets Corp. led the deal.

Integrated Power Services is a Greenville, S.C.-based provider of electrical and mechanical motors.

Cheniere completes loan

Cheniere Energy Partners LP closed on its $3.6 billion seven-year credit facility for Sabine Pass Liquefaction LLC, according to a news release.

The loan is priced at Libor plus 350 bps during construction and Libor plus 375 bps during operations.

Societe Generale acted as sole and exclusive financial advisor to Sabine Liquefaction in connection with the loan.

Proceeds will be used to fund the costs of developing, constructing and placing into service the first two liquefaction trains of the Sabine Pass LNG liquefaction project.

Cheniere is a Houston-based energy company.

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