Emdeon term debt dips with acquisition news; new issue calendar builds for this week

By Sara Rosenberg

New York, July 6 – Emdeon Inc.’s term loan B debt headed a bit lower in the secondary market on Monday after news surfaced that the company is purchasing Altegra Health and taking on additional debt to help fund the transaction.

Meanwhile, in the primary market, Universal Services of America, Peacock Engineering, Precyse Solutions LLC, Vistra Group and Filtration Group Corp. joined this week’s calendar.

Emdeon softens

Emdeon’s term loan B debt weakened in trading during Monday’s market hours following the announcement that the company has reached an agreement to buy Altegra Health from Parthenon Capital Partners for about $910 million, according to a trader.

The term B debt was quoted at 99¾ bid, par offered, down an eighth of a point on the day, the trader said.

To help fund the acquisition, Emdeon has obtained debt and equity commitments, the company disclosed in a news release.

Other financing for the transaction is expected to come from cash on hand.

Closing is targeted for the third quarter, subject to customary closing conditions, including expiration or early termination of the waiting period under the Hart-Scott-Rodino Act.

Emdeon is a Nashville-based provider of health-care revenue and payment cycle management and clinical information exchange solutions. Altegra is a Miami Lakes, Fla.-based provider of technology-enabled, next-generation payment solutions to health-care providers.

Universal Services on deck

Switching to the primary market, Universal Services of America set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $1.21 billion credit facility, a market source remarked.

The facility consists of a $130 million revolver, a $760 million seven-year first-lien covenant-light term loan, including a $50 million delayed-draw tranche, and a $320 million eight-year second-lien covenant-light term loan, including a $20 million delayed-draw tranche, the source said.

All of the term loan debt has a 1% Libor floor. The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on July 21, the source added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to fund the acquisition of Universal Services and Guardsmark by Warburg Pincus.

Universal Services is a provider of manned guarding and related services.

Peacock joins calendar

Peacock Engineering emerged with plans to hold a bank meeting in New York on Thursday morning to launch a $320 million senior credit facility, according to a market source.

The facility consists of a $35 million five-year revolver and a $285 million seven-year term loan, the source said, adding that the company is also getting a $55 million second-lien term loan that has been privately placed.

GE Capital Markets, RBC Capital Markets and BMO Capital Markets are leading the deal.

Proceeds will be used to help fund the acquisition of L&L Foods and a recapitalization.

Peacock is a Geneva, Ill.-based contract packager servicing blue-chip consumer packaged goods companies. L&L is an Anaheim, Calif.-based provider of turnkey procurement and packaging services.

Precyse readies deal

Precyse Solutions scheduled a bank meeting for Thursday afternoon to launch a $130 million credit facility that includes a $20 million five-year revolver and a $110 million seven-year term loan, a market source remarked.

GE Capital Markets is leading the deal.

Proceeds will be used to help fund the buyout of the company by Pamplona Capital Management.

Precyse is a Wayne, Pa.-based health information management solutions provider.

Vistra coming soon

Vistra Group set a bank meeting in London for Wednesday and one in New York for Thursday to launch $700 million in term loans, split between a $515 million seven-year U.S dollar and euro first-lien term loan and a $185 million eight-year U.S. dollar and euro second-lien term loan, according to sources.

The company’s new credit facility will also provide for a revolver.

Goldman Sachs Bank USA, Credit Suisse Securities, Jefferies Finance LLC and DBS Bank are leading the deal that will be used to help fund the buyout of the company by Baring Private Equity Asia from IK Investment Partners.

Closing is subject to regulatory approvals.

Vistra Group is a Hong Kong-based provider of company formations, trust, corporate and fund administration services.

Filtration plans call

Filtration Group scheduled a lender call for Tuesday to launch a fungible $93 million add-on first-lien term loan, a market source said.

The company’s existing first-lien term loan is priced at Libor plus 325 basis points with a 1% Libor floor.

Goldman Sachs Bank USA is leading the deal that will be used to fund an acquisition.

Filtration Group is a Chicago-based manufacturer and distributor of filtration products to end markets.

OCI closes

In other news, OCI Beaumont LLC completed its fungible $50 million add-on term loan, according to a news release.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor, and it was issued at par after firming during syndication at the tight end of the 99.75 to par talk.

Bank of America Merrill Lynch led the deal that was used to pay outstanding capital expenditures related to a recently completed de-bottlenecking project.

OCI Beaumont is a Nederland, Texas-based ammonia and methanol production complex.

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