Beaver-Visitec tweaked deal frees to trade; Dayton Power, Eastern Power break above OIDs

By Sara Rosenberg

New York, Aug. 18 – Beaver-Visitec’s (TPG Bedrock Acquisition Inc.) credit facility freed up for trading on Thursday following pricing on the first-lien term loan (B2/B) finalizing at the wide end of guidance and a tweak to the soft call protection.

Also making their way into the secondary market were Dayton Power & Light Co. and Eastern Power LLC, with both companies’ new term loans trading above par.

Returning to the primary market, LANDesk Software emerged with plans to bring new term loans to market after the Labor Day holiday weekend.

Beaver-Visitec updated, trades

Beaver-Visitec firmed pricing on its $170 million seven-year first-lien covenant-light term loan (B2/B) at Libor plus 500 basis points, the high end of the Libor plus 475 bps to 500 bps talk, and pushed out the 101 soft call protection to one year from six months, according to a market source.

The first-lien term loan still has a 1% Libor floor and an original issue discount of 99.

Meanwhile, pricing on the company’s $80 million pre-placed eight-year second-lien covenant-light term loan (Caa2/CCC+) finalized at talk at Libor plus 875 bps with a 1% Libor floor and a discount of 98. This tranche has call protection of 102 in year one and 101 in year two.

With final terms in place, the term loans emerged in the secondary market on Thursday, with the first-lien debt quoted at 99¼ bid, 100¼ offered and the second-lien debt quoted at 98 bid, par offered, a trader remarked.

Beaver-Visitec getting revolver

Along with the first- and second-lien term loans, Beaver-Visitec’s $280 million senior secured credit facility includes a $30 million five-year revolver (B2/B).

UBS Investment Bank, Deutsche Bank Securities Inc., Antares Holdings and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by TPG Capital from RoundTable Healthcare Partners.

Closing is expected in the third quarter.

Beaver-Visitec is a Waltham, Mass.-based developer, manufacturer and marketer of specialized surgical devices for the ophthalmic marketplace.

Dayton hits secondary

Dayton Power and Light’s $445 million senior secured six-year first-lien covenant-light term loan B (Baa2/BBB-) began trading too, with levels quoted at 100¼ bid, 100¾ offered, a trader said.

Pricing on the term loan is Libor plus 325 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for one year.

On Wednesday, the spread on the term loan was lowered from Libor plus 350 bps, and the discount was tightened from 99.

Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance the company’s existing 1.875% first mortgage bonds due 2016.

Closing is expected on Wednesday.

Dayton Power is a Dayton, Ohio-based power company.

Eastern Power breaks

Another deal to break was Eastern Power’s $1,501,912,314 senior secured term loan B due Oct. 2, 2021, with levels quoted at 100 1/8 bid, 100 5/8 offered, according to a trader.

Pricing on the loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. Included in the debt is 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that is being used to reprice an existing term loan B down from Libor plus 450 bps with a 1% Libor floor.

Closing is expected on Tuesday.

Eastern Power, formerly known as TPF II Power LLC, is an owner of gas-fired electric generating stations.

LANDesk on deck

Back in the primary market, LANDesk Software set a bank meeting for Sept. 6 to launch new first- and second-lien term loans, a market source said.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

Further details on the loans are not yet available, the source added.

LANDesk is a South Jordan, Utah-based user-centered IT management company.

Continental Building closes

In other news, Continental Building Products Operating Co. LLC closed on its $350 million credit facility (BB+) that includes a $75 million revolver and a $275 million seven-year covenant-light first-lien term loan, according to a news release.

Pricing on the term loan is Libor plus 275 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC led the deal that was used to refinance an existing first-lien credit facility.

Continental Building is a Herndon, Va.-based manufacturer of wallboard and gypsum-based products.

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