Caesars sets final pricing; Aptalis downsizes, widens spread talk; Getty loans move lower

By Paul A. Harris

Portland, Ore., Sept. 27 - Cash loans were unchanged on thin volume, a trader said on Friday afternoon.

The LCDX20 index of bank loan credit default swaps finished the session at 103 5/8 bid, 104 1/8 offered, down 1/4.

The loan paper of Getty Images continued a downward arc seen throughout the past week, according to a trader, who marked them 89 bid, 89¾ offered, down 2 points from Wednesday's close.

The new loan paper of Allegion U.S. Holding Co. was par bid, par ½ offered on Friday, the trader said. The $500 million Libor plus 225 basis points seven-year term loan B was priced at 99.75.

And the Information Resources Inc. seven-year covenant-light term loan B was par bid, the trader said, adding that the $617.5 million was issued at 99.5.

In a relatively quiet primary market Caesars Entertainment Resort Properties, LLC set final pricing on its downsized $2.5 billion first-lien term loan at Libor plus 600 bps. The deal allocates on Monday.

And Aptalis Pharma Inc. downsized its seven-year term loan B to $1.25 billion from $1.4 billion, also cutting its planned dividend by $150 million.

Allegion prices upsized loan

Allegion U.S. Holding priced its upsized $500 million Libor plus 225 bps seven-year term loan B at 99.75, and the deal traded to par bid, par ½ offered, a market source said on Friday.

The loan was upsized to $500 million from $300 million with the downsizing of the senior unsecured notes offering.

Pricing on the term loan B was reduced to Libor plus 225 bps from Libor plus 275 bps and a step-down was added to Libor plus 200 bps when gross total leverage is less than 2.5 times, the source said.

The term loan B still has a 0.75% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months.

Included in the B loan is a ticking fee of half the spread from days 31 to 90 and the full spread from days 91 to 120, at which point the facility will either be funded or terminated.

Recommitments are due at 5 p.m. ET on Tuesday, the source added.

The company's now $1.5 billion credit facility (Ba1/BBB), up from $1.3 billion, also provides for a $500 million five-year revolver and a $500 million five-year term loan A, both talked at Libor plus 200 bps.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Bank of America Merrill Lynch, BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are the lead banks on the deal.

Proceeds will be used to pay a dividend to Ingersoll Rand in connection with Allegion's spinoff from Ingersoll.

Allegion is a Dublin, Ireland-based provider of security products and solutions.

Caesars sets final pricing

Caesars set final pricing on its downsized $2.5 billion first-lien term loan at Libor plus 600 bps on Friday, according to an informed source.

The deal is downsized from $3 billion.

The spread is 50 bps wider than earlier spread talk of 550 bps.

The deal will be discounted to 98; earlier OID talk was 99.

Allocations will come on Monday.

There is a 1% Libor floor.

Joint lead arranger Citigroup is the administrative agent. BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., JPMorgan, Goldman Sachs & Co, Macquarie, Morgan Stanley & Co. and UBS Investment Bank are also joint lead arrangers.

On Friday Caesars priced $2.15 billion of senior secured notes.

Proceeds from the notes and bank loan, along with $200 million of proceeds from an offering of common stock from Caesars Entertainment Corp. (increased from $100 million), will be used to help refinance about $4.4 billion of CMBS debt and the $450 million senior secured credit facility entered into by Octavius Linq Holding Co. LLC, an indirect subsidiary of Caesars.

Caesars is a Las Vegas-based diversified casino-entertainment company.

Aptalis downsizes

Aptalis Pharma downsized its seven-year term loan B to $1.25 billion from $1.4 billion, a market source said on Friday.

As a result the planned dividend is cut to $400 million from $550 million.

Along with the downsizing, spread talk widened and the price talk richened.

The deal is now talked to come at a Libor spread of 500 bps, up from the previously talked range of 425 bps to 450 bps.

The discount is also trimmed by 50 cents, to 99.5 from 99.

The 101 soft call protection is increased to one year from six months.

The 1% Libor floor remains in place.

The deal comes with a 50 bps step-down in the spread, pegged to the combination of an IPO plus deleveraging to 3.25-times (reduced from 3.5-times).

Commitments are due on Monday.

Bank of America Merrill Lynch, Barclays, RBC Capital Markets LLC, JPMorgan and Goldman Sachs Bank USA are the lead banks on the deal that launched on Thursday.

Proceeds will be used to refinance existing debt and fund the reduced dividend.

Aptalis, formerly known as Axcan Holdings Inc., is a Bridgewater, N.J.-based specialty pharmaceutical company.

HealthPort upsizes

HealthPort (CT Technologies Intermediate Holdings Inc.) upsized $380 million of term loans and tightened spread talk, a market source said on Friday.

The Libor spread on the upsized $255 million six-year first-lien term loan (B1/B+) was trimmed to 400 bps from 425 bps. The first-lien loan, which was upsized from $250 million, has a 1.25% Libor floor and is coming with an original issue discount of 99.

The Libor spread on the upsized $125 million seven-year second-lien term loan (Caa1/CCC+) was decreased to 800 bps from 825 bps. The second-lien loan, which was upsized from $115 million, comes with a 1.25% Libor floor and a discount of 981/2.

The first-lien term loan has 101 soft call protection for one year, and the second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Covenants include a maximum total net leverage ratio, the source added.

Credit Suisse Securities, Ares Capital and GE Capital Markets are leading the first-lien debt, and Credit Suisse is the sole lead on the second-lien loan.

Proceeds will be used to refinance existing debt and fund a dividend.

HealthPort is an Alpharetta, Ga.-based provider of release of information services for the health care industry.

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