Global Payments, Huntsman, First Data hit secondary; Quorum Health, TruGreen on deck

By Sara Rosenberg

New York, March 24 – Global Payments Inc.’s term loan B emerged in the secondary market on Thursday, with levels quoted above its original issue discount, and Huntsman International LLC’s term loan B freed to trade as well.

Also, First Data Corp. finalized the size of its extended term loan, firmed the original issue discount at the tight end of talk, and then it too broke for trading.

In more happenings, a bank meeting date emerged on Quorum Health Corp.’s credit facility, and, with timing announced, price talk was released on the term loan, and TruGreen Holdings Inc. joined the near-term calendar.

Global Payments frees up

Global Payments’ $1,045,000,000 seven-year covenant-light term loan B (Ba2/BBB-) began trading on Thursday, with levels quoted at par bid, 100 3/8 offered, according to a trader.

Pricing on the term B is Libor plus 350 basis points with a step-down to Libor plus 325 bps at 3.25 times total leverage. The debt has no Libor floor and 101 soft call protection for six months and was issued at an original issue discount of 99.5.

During syndication, the 0.75% Libor floor was removed from the loan due to overwhelming demand.

Bank of America Merrill Lynch, MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC, SunTrust Robinson Humphrey Inc., Fifth Third Bank and Barclays are leading the deal.

Global buying Heartland

Proceeds from Global Payments’ credit facility will be used to help fund the acquisition of Heartland Payment Systems Inc. in a cash-and-stock transaction for $100.00 per share, representing a transaction value of about $4.3 billion. Consideration for the transaction will consist of 0.6687 of a share of Global Payments stock and $53.28 for each share of Heartland stock at closing.

Closing is expected in Global Payments’ fiscal 2016 fourth quarter, subject to regulatory approval and customary conditions, and approval by Heartland’s shareholders.

Global Payments is an Atlanta-based provider of payment technology services. Heartland is a Princeton, N.J.-based payment processor.

Huntsman tops OID

Huntsman’s $550 million seven-year senior secured term loan B also broke, with levels seen at par bid, 100½ offered, a trader remarked.

Pricing on the loan is Libor plus 350 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. The tranche has 101 soft call protection for six months.

Recently, the discount on the loan was tightened from 99 and a springing maturity was added for senior notes due 2020, 2021 and 2022, under which, if 91 days prior to the maturity of the senior notes, the sum of cash/cash equivalents, unused revolver availability and unused receivables financing availability is not greater than the sum of the then outstanding amount of senior notes plus $200 million, the term loan will mature on such date.

Citigroup Global Markets Inc. is the lead arranger on the deal. J.P. Morgan Securities LLC is the administrative agent.

Proceeds will be used to refinance term loan B debt due in 2017 and term loan C debt due in 2016.

Huntsman, a The Woodlands, Texas-based manufacturer and marketer of differentiated chemicals, is expected to close on the term loan B by the end of this month.

First Data updated, trades

First Data set the size on its extended term loan due March 24, 2021 at $3,713,517,089 and the original issue discount at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

As before, the loan is priced at Libor plus 400 bps with no Libor floor, and there is 101 soft call protection for six months on the entire 2021 tranche.

The company’s existing $1,004,000,000 term loan due March 24, 2021 will be combined with the extended term loan into one fungible tranche, so pro forma for the transaction, the 2021 loan will total about $4.72 billion.

With final terms in place, the extended term loan made its way into the secondary market, and levels were quoted at 99¾ bid, par offered, another source said.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used with proceeds from a recent $900 million 5% senior secured notes offering to refinance the company’s term loan due March 2018 in full.

First Data is an Atlanta-based provider of payment processing solutions.

Quorum readies deal

Quorum Health set a bank meeting for 1 p.m. ET in New York on Tuesday to launch a $980 million credit facility (B1) that includes a $100 million five-year revolver and an $880 million six-year first-lien term loan, according to a market source.

The term loan is talked at Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, the source said.

Commitments are due on April 8.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the spin-off of the company from Community Health Systems Inc. and for general corporate purposes.

Along with the revolver and term loan, the company is also getting a $125 million ABL revolver that is expected to be undrawn at closing.

Quorum is a Brentwood, Tenn.-based operator and manager of general acute care hospitals and outpatient services.

TruGreen coming soon

TruGreen scheduled a bank meeting for Tuesday to launch a $706 million credit facility, a market source said.

The facility consists of a $146 million revolver and a $560 million term loan B, the source continued.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, ING Capital Markets and Natixis are leading the deal that will be used to help fund the merger of TruGreen, a portfolio company of Clayton, Dubilier & Rice, with Scotts LawnService, which is currently owned by Scotts Miracle-Gro Co.

The company is also getting a $200 million second-lien term loan that was privately placed.

At closing, ScottsMiracle-Gro will own an equity stake of about 30% in the combined business, and Clayton, Dubilier & Rice will own the controlling interest.

Closing is expected by the end of the second quarter of fiscal 2016, subject to customary conditions and the receipt of debt financing by TruGreen.

TruGreen is a Memphis, Tenn.-based lawn care company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.