Global Healthcare breaks; Getty Images declines; Multiple primary deals undergo revisions

By Sara Rosenberg

New York, Aug. 12 – Global Healthcare Exchange LLC’s credit facility surfaced in the secondary market on Wednesday, and Getty Images Inc.’s term loan fell with chatter that the company may be getting new debt.

Meanwhile, in the primary market, Knowledge Universe Education LLC finalized pricing on its first-lien term loan at the high end of guidance, lifted the spread on its second-lien term loan, widened the original issue discount on both tranches and modified call premiums.

Also, Sitel Worldwide Corp. raised pricing on its first- and second-lien term loans, firmed the issue price on the second-lien tranche at the wide end of talk while sweetening the call protection and shortened maturities.

Furthermore, AMAG Pharmaceuticals Inc. tightened the spread and issue price on its term loan, Vistage lifted the spread on its term loan B, Duff & Phelps Corp. increased pricing on its first-lien term loan debt, and Acrisure LLC changed the original issue discount, call protection and ticking fee on its add-on term loan.

Global Healthcare frees up

Global Healthcare Exchange’s credit facility broke for trading on Wednesday, with the $375 million seven-year term loan B quoted at 99¾ bid, 100¼ offered, according to a trader.

Pricing on the term loan B is Libor plus 450 basis points with a step-down to Libor plus 425 bps when leverage is below 4 times and a 1% Libor floor. The loan has 101 soft call protection for six months and was issued at a discount of 99.5.

During syndication, pricing on the B loan firmed at the low end of the Libor plus 450 bps to 475 bps talk, the step-down was added and the discount was tightened from 99.

The company’s $400 million credit facility (B2/B) also includes a $25 million revolver.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt.

Net total leverage is about 4.9 times.

Global Healthcare Exchange is a Louisville, Colo.-based provider of health care supply chain solutions.

Getty Images retreats

Also in trading, Getty Images’ term loan softened as talk surfaced that the company is looking to raise additional debt, a trader said.

The term loan was quoted by one trader at 65 bid, 67 offered in the afternoon, and had traded as low as 62 bid, 65 offered during the session, versus levels on Tuesday of 68 bid, 70 offered. A second trader was quoting the term loan at 64 bid, 67 offered, down from 68¾ bid, 69¾ offered.

Getty Images is a Seattle-based creator and distributor of still imagery, video and multimedia products.

Knowledge Universe revised

Moving to the primary market, Knowledge Universe firmed pricing on its $645 million seven-year first-lien covenant-light term loan (B1/B) at Libor plus 500 bps, the high end of the Libor plus 475 bps to 500 bps talk, moved the original issue discount to 98.5 from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

Also, pricing on the $200 million eight-year second-lien covenant-light term loan (Caa1/CCC+) was increased to Libor plus 925 bps from talk of Libor plus 875 bps to 900 bps, the discount was changed to 98 from 99, and the call protection was sweetened to 103 in year one, 102 in year two and 101 in year three, from 102 in year one and 101 in year two, the source said.

As before, both term loans have a 1% Libor floor.

The company’s $925 million credit facility includes an $80 million revolver (B1/B) as well.

Knowledge Universe leads

Credit Suisse Securities (USA) LLC, Barclays and BMO Capital Markets are leading Knowledge Universe’s credit facility

Commitments were due at noon ET on Wednesday, the source added.

Proceeds will be used to help fund the buyout of the company by Partners Group, which is expected to close later this year.

Knowledge Universe is a for-profit provider of early childhood education in the United States and the parent company of KinderCare Learning Centers, as well as the brands Children’s Creative Learning Centers and Champions.

Sitel reworks deal

Sitel Worldwide lifted pricing on its $365 million first-lien term loan (B1/B) to Libor plus 550 bps from talk of Libor plus 475 bps to 500 bps and shortened the maturity to six years from seven years, while keeping the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, a market source remarked.

Additionally, pricing on the $120 million second-lien term loan (Caa2/B-) was changed to Libor plus 950 bps from talk of Libor plus 875 bps to 900 bps, the discount was set at 98, the wide end of the 98 to 98.5 guidance, the call protection was adjusted to 103 in year one, 102 in year two and 101 in year three, from 102 in year one and 101 in year two, and the maturity was modified to seven years from eight years, the source said. This tranche still has a 1% Libor floor.

Furthermore, changes made to both term loans included adding a total net leverage covenant, with step-downs, eliminating the MFN sunset provision and the reducing the “free and clear” incremental facility to $30 million from $60 million, the source continued.

Sitel getting revolver

Along with the first- and second-lien term loans, Sitel’s $545 million credit facility provides for a $60 million revolver (B1/B).

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

Societe Generale and BNP Paribas Securities Corp. are leading the deal, with Societe Generale the left lead on the first-lien debt and BNP the left lead on the second-lien debt.

Proceeds will be used to help fund the buyout of the company by Groupe Acticall from Onex Corp. Acticall’s primary partner shareholder is Creadev.

Sitel is a Nashville, Tenn.-based provider of customer care outsourcing services.

AMAG trims pricing

AMAG Pharmaceuticals reduced pricing on its $350 million six-year senior secured covenant-light term loan (Ba2/BB) to Libor plus 375 bps from Libor plus 400 bps, changed the issue price to 99.75 from talk of 99 to 99.5 and eliminated the MFN sunset provision, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due on Wednesday, the source added.

Jefferies Finance LLC and Barclays are leading the deal that will be used to help fund the acquisition of Cord Blood Registry from GTCR for $700 million, and to repay AMAG’s existing roughly $320 million senior secured term loan.

The company is also issuing $500 million of senior notes. The notes were upsized from $450 million with the extra proceeds going towards adding cash to the balance sheet.

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

AMAG is a Waltham, Mass.-based specialty pharmaceutical company. Cord Blood is a stem cell collection and storage company serving pregnant women and their families.

Vistage tweaks loan

Vistage increased pricing on its $150 million term loan B to Libor plus 550 bps from talk of Libor plus 475 bps to 500 bps and raised amortization to 2.5% per annum from 1%, a source remarked.

The 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months were left unchanged.

The company’s $165 million credit facility also includes a $15 million revolver.

SunTrust Robinson Humphrey Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing debt and fund a dividend.

Vistage is a San Diego, Calif.-based for-profit membership organization of CEOs.

Duff & Phelps ups spread

Duff & Phelps widened pricing on its $41 million incremental first-lien term loan (B2/B) due April 23, 2020 to Libor plus 375 bps from Libor plus 350 bps due to Moody’s Investors Service decision to change the company’s rating outlook to negative, according to a market source.

Furthermore, the company will now lift the spread on its existing $634 million first-lien term loan (B2/B) to Libor plus 375 bps from Libor plus 350 bps, the source said.

As before, the incremental first-lien term loan has a 1% Libor floor and an original issue discount of 99.75, and all of the fist-lien debt is getting 101 soft call protection for six months.

The company is still seeking a $110 million six-year second-lien term loan (Caa1/CCC+) talked at Libor plus 775 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the $151 million in new term loans that will be used to fund a dividend to shareholders.

Duff & Phelps is a New York-based financial advisory and investment banking firm.

Acrisure changes surface

Acrisure widened the original issue discount on its $139 million add-on first-lien term loan, of which $29 million is funded and $110 million is delayed-draw, to 98 from talk of 99 to 99.5, a market source said.

Also, the 101 soft call protection was extended to six months from the date of the last draw from November 2015 and the ticking fee was revised to the full spread and Libor floor from half the margin after 30 days and the full margin after 60 days, the source continued.

The add-on term loan is still priced at Libor plus 425 bps with a 1% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will be used to fund acquisitions.

Acrisure is a Caledonia, Mich.-based retail insurance brokerage.

Electrical Components closes

In other news, Electrical Components International Inc. completed its $50 million add-on term loan B due May 2021, a news release said.

Pricing on the add-on term loan matches existing term loan B pricing at Libor plus 475 bps with a step-down to Libor plus 450 bps when total net leverage is less than 3.5 times and a 1% Libor floor, and it was sold at an original issue discount of 99.75, after firming during syndication at the tight end of the 99.5 to 99.75 talk.

Bank of America Merrill Lynch led the deal that was used to fund a dividend.

Electrical Components is a St. Louis-based manufacturer of wire harnesses and value-added assembly services for consumer appliance and specialty-industrial applications.

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