First Data, Advantage Sales, Paragon Offshore, Red Lobster break; QoLmeds tweaks deal

By Sara Rosenberg

New York, July 11 – First Data Corp. firmed up its U.S. and euro tranche sizes, and then its new term loans freed up for trading on Friday, and Advantage Sales & Marketing LLC, Paragon Offshore and Red Lobster Management LLC hit the secondary too.

In more happenings, QoLmeds/Genoa Healthcare lowered pricing on its term loan, tightened the original issue discount and extended the call protection, and Ipreo Holdings LLC moved up the commitment deadline on its credit facility.

Also, Boulder Brands Inc. held its lender call, Paradigm Holdco Sarl price talk surfaced, Mallinckrodt International Finance S.A. disclosed timing and size on its term loan and Capsugel FinanceCo S.C.A. and Orbotech Ltd. emerged with new deal plans.

First Data sets sizes, breaks

First Data’s recently announced $350 million equivalent upsizing to its first-lien March 2018 term debt was added entirely to the U.S. portion, bringing the size to $4.6 billion from $4.25 billion, and keeping the €311 million tranche size unchanged, according to a market source.

The March 2018 term loans, as well as a $1,008,000,000 first-lien term loan due September 2018, is Libor/Euribor plus 350 basis points with no Libor floor and the debt was sold at an original issue discount of 99½ for rolled and new money commitments.

The other day, the offer price on rolled commitments was changed from 99¾.

With final tranche sizes in place, the debt surfaced in the secondary market, with both the U.S March 2018 and September 2018 loans quoted at 99¾ bid, par offered, the source said.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to refinance existing term loans due in March 2018 and September 2018 priced at Libor/Euribor plus 400 bps with no Libor floor, and, due to the recent upsizing, to repay holdco PIK notes.

First Data is a Greenwood Village, Colo.-based provider of electronic commerce and payment services.

Advantage Sales hits secondary

Advantage Sales & Marketing’s credit facility broke as well, with the $1.8 billion seven-year first-lien covenant-light term loan and $60 million delayed-draw term loan quoted at par 1/8 bid, par ½ offered and the $760 million eight-year second-lien covenant-light term loan quoted at par ½ bid, 101¼ offered, a trader said.

Pricing on the first-lien term loan and delayed-draw term loan is Libor plus 325 bps with a 1% Libor floor and the debt was sold at an original issue discount of 99¾. There is 101 soft call protection for one year and a ticking fee on the delayed-draw portion of half the spread from days 31 to 60 and the full spread thereafter.

The second-lien loan is priced at Libor plus 650 bps with a 1% Libor floor and was issued at 99¼. This debt has call protection of 102 in year one and 101 in year two.

Advantage Sales lead banks

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading Advantage Sales’ $2.82 billion credit facility, which also includes a $200 million five-year revolver.

During syndication, pricing on the first-lien term loan was lowered from talk of Libor plus 350 bps to 375 bps, the discount was revised from talk 99 to 99½ and the call protection was extended from six months, pricing on the second-lien loan was reduced from Libor plus 700 bps and the discount was changed from 99, and the delayed-draw loan was added to the capital structure.

Proceeds will help fund the buyout of the Irvine, Calif.-based sales and marketing agency by Leonard Green & Partners LP and CVC Capital Partners from Apax Partners, and the delayed-draw loan is available for four months post closing in up to two draws of $30 million each to fund acquisition, related earn-outs and/or to repay revolver debt that was used to fund acquisitions and/or earn-outs.

Closing is expected in the third quarter, subject to customary conditions.

Paragon tops OID

Paragon Offshore’s $650 million senior secured seven-year term loan B freed up, with levels quoted at 99 7/8 bid, par 3/8 offered, according to a market source.

Pricing on the loan is Libor plus 275 bps with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $545 million, and as a result, the company’s senior notes offering was downsized to $1.08 billion from $1,185,000,000, pricing firmed at the low end of the revised Libor plus 275 bps to 300 bps talk and down from initial talk of Libor plus 300 bps to 325 bps, the discount was tightened from 99 and the call protection was extended from six months.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Barclays are leading the deal that is being done in connection with the company’s spinoff from Noble Corp., which is expected to occur in the third quarter.

Paragon Offshore is a London-based provider of standard specification offshore drilling rigs.

Red Lobster frees up

Red Lobster’s credit facility began trading too, with the $380 million seven-year covenant-light term loan B quoted at 99 bid, 99¾ offered, a source remarked.

Pricing on the term loan is Libor plus 525 bps with a 1% Libor floor and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, the term loan B was upsized from $375 million, pricing was lifted from talk of Libor plus 475 bps to 500 bps, the discount widened from 99, the call protection was extended from six months, the free and clear accordion was cut to $50 million from $100 million and the unlimited prong was revised to 2.25 times first-lien leverage from 2.5 times, and the starting excess cash flow sweep was raised to 75% from 50%.

The company’s $430 million credit facility (B3/B) also includes a $50 million revolver.

Red Lobster being acquired

Proceeds from Red Lobster’s credit facility will be used with a fully executed $1.5 billion sale-leaseback agreement with American Realty Capital Properties Inc. to fund its buyout by Golden Gate Capital from Darden Restaurants Inc. for $2.1 billion in cash.

Deutsche Bank Securities Inc., GE Capital Markets and Jefferies Finance LLC are leading the credit facility.

Closing is expected in Darden’s first fiscal quarter of 2015, subject to customary conditions and regulatory approvals. The transaction is not subject to shareholder approval or financing.

Red Lobster is an Orlando, Fla.-based casual dining seafood restaurant company.

QoLmeds revises deal

Back in the primary, QoLmeds/Genoa Healthcare cut pricing on its $285 million six-year covenant-light term loan to Libor plus 450 bps from Libor plus 500 bps, moved the original issue discount to 99½ from 99, extended the 101 soft call protection to one year from six months and eliminated the MFN sunset provision, according to a market source.

As before, the term loan has a 1% Libor floor.

The company’s $315 million credit facility (B2/B) also includes a $30 million five-year revolver.

Allocations are expected on Monday, the source said.

Jefferies Finance LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used with equity to fund QoLmeds’ acquisition of Genoa.

QoLmeds, owned by Nautic Partners, is a Pittsburgh-based specialty pharmacy serving the mental health community. Genoa is a Tukwila, Wash.-based provider of pharmacy, phlebotomy and laboratory services.

Ipreo shutting early

Ipreo accelerated the commitment deadline on its $365 million senior credit facility (B1/B ) to Monday from Wednesday, according to a market source.

The facility consists of a $45 million revolver, and a $320 million seven-year term loan B talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and RBC Capital Markets LLC are leading the deal that will be used to help fund the buyout of the company by Blackstone and Goldman Sachs Merchant Banking Division from Kohlberg Kravis Roberts & Co. LP.

At close, Kohlberg Kravis Roberts will retain a minority ownership stake in the business.

Ipreo is a New York-based provider of new issuance software across the equity, fixed income, municipal and syndicated loan markets.

Boulder Brands launches

Also in the primary, Boulder Brands held its call on Friday morning, launching a $40 million upsizing to its term loan B for a total size of $290 million, with talk on the entire tranche set at Libor plus 350 bps with a leveraged-based grid that has step-ups and a 1% Libor floor, according to a market source.

With the upsizing, the existing term loan B is being repriced from Libor plus 400 bps with a 1% Libor floor.

The company also launched a $40 million upsizing to its revolver for a total size of $120 million and a credit facility that will allow for acquisition flexibility, the source said.

Lenders are offered a 25 bps upfront fee on the new money and a 25 bps amendment fee.

Lead banks, RBC Capital Markets, Citigroup Global Markets Inc., BMO Capital Markets and Barclays, are seeking commitments by July 23.

Boulder Brands, previously known as Smart Balance Inc., is a Paramus, N.J.-based health and wellness food company.

Paradigm reveals talk

Paradigm Holdco disclosed talk of Libor plus 350 bps with a 1% Libor floor on its $340 million first-lien covenant-light term loan due July 2019 and Libor plus 700 bps to 725 bps with a 1% Libor floor on its $95 million second-lien covenant-light term loan due July 2020, according to a market source.

Commitments for the company’s $475 million credit facility, which also includes a $40 million super priority revolver, are due on July 24.

UBS AG, RBC Capital Markets and Goldman Sachs Bank USA are leading the deal that launched with a call on Thursday and will be used to refinance existing debt.

Essentially the company is repricing and upsizing by $40 million its existing first-lien term loan from Libor plus 350 bps with a 1.25% Libor floor, and repricing and downsizing by $40 million its existing second-lien term loan from Libor plus 925 bps with a 1.25% Libor floor.

Paradigm is a U.K.-based provider of mission-critical software for the oil and gas exploration and production industry.

Mallinckrodt details emerge

Mallinckrodt set a bank meeting for 10 a.m. ET on Tuesday to launch its senior secured term loan, which is now known to be sized at $500 million, a market source said.

Barclays, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal that will be used to help fund the acquisition of Questcor Pharmaceuticals Inc., an Anaheim Hills, Calif.-based biopharmaceutical company, for $30.00 per share in cash and 0.897 Mallinckrodt shares per share for a total consideration of about $86.10 per Questcor share. The transaction is valued at about $5.6 billion.

Upon announcing the acquisition, the Dublin-based pharmaceutical company said that it received a term loan commitment for up to $1.35 billion and a unsecured bridge loan commitment for up to $500 million, but that it would issue senior notes to replace some of the debt commitment.

Closing is expected in the third quarter, subject to the approval of the shareholders of both companies and Hart-Scott-Rodino clearance.

Capsugel on deck

Capsugel FinanceCo scheduled a bank meeting for 8 a.m. ET in London on Tuesday to launch a €355 million seven-year term loan, according to a market source.

Commitments are due on July 28, the source said.

UBS AG, Citigroup Global Markets Inc., KKR Capital Markets, Barclays, Deutsche Bank Securities Inc. and Mizuho Securities are leading the deal that will be used to repay debt and fund a dividend.

Capsugel is a Morristown, N.J.-based manufacturer of hard capsules and drug-delivery systems.

Orbotech coming soon

Orbotech plans to hold a bank meeting on Tuesday to launch a $300 million six-year term loan B, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used with cash on hand to fund the roughly $370 million acquisition of SPTS Technologies Group Ltd. from Bridgepoint and others.

Closing is expected in the third quarter, subject to certain conditions.

Orbotech is a Yavne, Israel-based provider of yield-enhancing and production services, primarily for manufacturers of printed circuit boards, flat panel displays and other electronic components. SPTS is a U.K.-based manufacturer of etch, deposition and thermal processing equipment for the microelectronics industry.

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