Energy Transfer Equity falls with CFO news; MedRisk, Caliber Collision price talk emerges

By Sara Rosenberg

New York, Feb. 8 – Energy Transfer Equity LP’s term loan B and term loan C headed lower in the secondary market during Monday’s session following news that the company is replacing its chief financial officer.

Over in the primary market, MedRisk LLC disclosed guidance on its credit facility with launch, Caliber Collision released price talk on its in-market add-on term loan, and GCA Services Group Inc. joined this week’s new issue calendar.

Energy Transfer slides

Energy Transfer Equity’s term loans dropped in trading on the back of news that Jamie Welch, chief financial officer at LE GP LLC, the general partner of Energy Transfer Equity, is being replaced by Thomas E. Long, according to traders.

Long is currently the chief financial officer of Energy Transfer Partners LLC, which owns the general partner of Energy Transfer Partners LP. Energy Transfer Partners LLC is 100% owned by Energy Transfer Equity.

In his new role, Long will be responsible for all financial aspects of the entire family of partnerships under Energy Transfer Equity, including Energy Transfer Partners, Sunoco Logistics Partners LP and Sunoco LP.

In an 8-K filed with the Securities and Exchange Commission on Monday, Energy Transfer Equity said that it has initiated discussions with Welch towards a potential consulting arrangement related primarily to the continued development of the its LNG export project as well as other financing matters although, at this time, no agreements have been reached.

The company also said that the management change was not based on any disagreement regarding any accounting or financial matter.

Energy Transfer levels

On Monday, one trader had Energy Transfer Equity’s term loan B quoted at 74 bid, 77 offered, down from 76¾ bid, 78¾ offered on Friday, and the term loan C quoted at 76 bid, 79 offered, down from 79½ bid, 81 offered.

A second trader, meanwhile, had the term loan B quoted at 74 bid, 77 offered, down from 77 bid, 79 offered, and the term loan C quoted at 76 bid, 79 offered, down from 80 bid, 81 offered.

The first trader explained that the downward move was primarily due to the chief financial officer change, but the market being down in general by a quarter to a half a point, depending on the credit, didn’t help the situation.

Energy Transfer Equity is a Dallas-based midstream oil and gas company.

MedRisk sets guidance

Switching to the primary market, MedRisk held its bank meeting on Monday, launching its $25 million five-year revolver and a $202.5 million seven-year term loan with price talk of Libor plus 500 basis points and an original issue discount of 99, according to a market source.

The revolver has no floor and a 50 bps undrawn fee, and the term loan has a 1% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due on Feb. 23.

Antares Capital is leading the $227.5 million senior credit facility that will be used to support a significant minority investment by TA Associates in the company. The current management team will retain a majority stake and continue to operate the business.

The transaction will also be funded with $80 million of mezzanine financing primarily provided by TA Associates and management.

MedRisk is a King of Prussia, Pa.-based provider of outpatient physical medicine network services to the U.S. workers’ compensation industry.

Caliber talk surfaces

Caliber Collision came out with price talk of Libor plus 475 bps with a leveraged-based step-up to Libor plus 500 bps, a 1% Libor floor and an original issue discount of 99 on its $111 million add-on term loan due November 2019, a market source said.

The add-on term loan, which launched with a lender meeting last Thursday, will bring the total term loan size to $685 million.

Commitments are due on Feb. 18, the source said.

Antares Capital is leading the debt that will be used to fund acquisitions.

In addition to the add-on term loan, the company is looking to raise a $100 million delayed-draw term loan and a small increase to its revolver, the source added.

Caliber Collision, an Omers Private Equity portfolio company, is a Lewisville, Texas-based operator of automotive collision repair centers.

GCA readies deal

GCA Services Group set a bank meeting for Wednesday to launch $615 million credit facility, market sources said.

The facility consists of a $100 million five-year revolver and a $515 million seven-year covenant-light term loan, sources continued.

Goldman Sachs Bank USA, Barclays, UBS AG, ING and Macquarie Capital (USA) Inc. are leading the deal that will be used with a $180 million pre-placed eight-year second-lien term loan to help fund the buyout of the company by The Merchant Banking Division of Goldman Sachs and Thomas H. Lee Partners LP from Blackstone.

Closing is expected this quarter, subject to customary conditions.

GCA is a Cleveland-based provider of facility services, including janitorial/custodial services, contamination control for cleanroom manufacturing, facilities operations and maintenance services, grounds and athletic field management services, and diversified staffing.

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