American Gaming breaks; Novelis, Physiotherapy Associates, Hyland Software update deals

By Sara Rosenberg

New York, May 27 – American Gaming Systems allocated its upsized incremental term loan on Wednesday, and the debt freed up for trading above its original issue discount.

Over in the primary market, Novelis Inc. firmed pricing on its term loan at the wide end of talk, Physiotherapy Associates reduced the spread on its second-lien term loan and tightened original issue discounts on the second-lien debt as well as on a first-lien term loan, and Hyland Software Inc. tweaked issue price guidance on its first-lien term loan with launch.

Also, U.S. Shipping Corp., Retail Solutions Group, FHC Health Systems Inc. (Beacon Health), Pregis Corp. North America and Internet Brands Inc. released talk on their deals, and Navios Maritime Midstream Partners LP, Survey Sampling International LLC and Progressive Waste Solutions Ltd. emerged with new loan plans.

American Gaming tops OID

American Gaming Systems’ $265 million fungible incremental term loan made its way into the secondary market on Wednesday, with levels quoted at 99˝ bid, 100˝ offered, according to a trader.

Pricing on the loan, which was upsized from $250 million, is Libor plus 825 basis points with a 1% Libor floor, in line with the company’s existing term loan, and it was sold at an original issue discount of 99. There is call protection of 102 until December 2015 and 101 until December 2016.

Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used with $115 million in senior secured PIK notes to fund the acquisition of Cadillac Jack Inc. from Amaya Inc. for C$476 million, consisting of C$461 million in cash and a C$15 million 5% PIK note. The funds from the upsizing will be used for general corporate purposes and a potential acquisition.

Closing on the Cadillac Jack transaction is expected this year, subject to gaming regulatory and antitrust approvals and other customary closing conditions.

American Gaming is a Las Vegas-based manufacturer and operator of gaming machines. Cadillac Jack is a designer and supplier of electronic games and systems for the regulated global gaming industry.

Novelis sets spread

Switching to the primary market, Novelis finalized pricing on its $1.8 billion seven-year covenant-light term loan (Ba2/BB) at Libor plus 325 bps, the high end of the Libor plus 300 bps to 325 bps talk, and left the 0.75% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months intact, a source remarked.

Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal.

Proceeds will be used to repay a term loan due in 2017 and ABL revolver borrowings.

Novelis is an Atlanta-based aluminum-rolled products and aluminum recycling company.

Physiotherapy revises deal

Physiotherapy Associates trimmed pricing on its $45 million seven-year second-lien term loan to Libor plus 850 bps from talk of Libor plus 875 bps to 900 bps and changed the original issue discount to 99 from 98.5, according to a market source, who said the 1% Libor floor and hard call protection of 102 in year one and 101 in year two were unchanged.

As for the $105 million six-year first-lien term loan, the discount was tightened to 99.5 from 99, while pricing remained at Libor plus 475 bps with a 1% Libor floor, the source continued.

The company’s $175 million credit facility also includes a $25 million five-year revolver priced at Libor plus 475 bps with a 1% Libor floor.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

GE Capital Markets is leading the deal that will be used to refinance existing debt remaining from a bankruptcy restructuring in 2013.

Physiotherapy Associates is an Exton, Pa.-based provider of outpatient rehabilitation services and orthotics and prosthetics services.

Hyland first-lien OID

Hyland Software launched at its bank meeting on Wednesday its $600 million seven-year first-lien covenant-light term loan with an original issue discount of 99.5, versus guidance prior to launch of 99.75, a source remarked.

As before, price talk on the first-lien term loan is Libor plus 375 bps with a 1% Libor floor, and there is 101 soft call protection for six months.

The company’s $820 million credit facility also includes a $40 million revolver, and a $180 million eight-year second-lien covenant-light term loan talked at Libor plus 750 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 Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition and recapitalization of the company by Thoma Bravo Equity Fund XI. Thoma Bravo, the current owner of Hyland, is basically selling the company from one fund to another.

Commitments are due on June 10.

Hyland is a Westlake, Ohio-based enterprise content-management software developer.

U.S. Shipping guidance

Also in the primary, U.S. Shipping held its bank meeting during the session, launching its $215 million six-year first-lien term loan B (B+) with talk of Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on June 9, the source added.

The company’s $255 million credit facility also includes a $10 million five-year revolver (B+) and a $30 million seven-year second-lien term loan that was privately placed.

RBC Capital Markets is leading the deal that will be used to refinance existing debt.

U.S. Shipping is an Edison, N.J.-based provider of long-haul marine transportation services, principally for refined petroleum products.

Retail Solutions launches

Retail Solutions Group disclosed talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $150 million term loan B (B3) that launched with an afternoon bank meeting, according to a market source.

The company’s $165 million credit facility (B3) also includes a $15 million revolver.

Commitments are due on June 10, the source added.

Jefferies Finance LLC, Macquarie Capital (USA) Inc. and Nomura are leading the deal.

Proceeds will be used to fund a distribution to shareholders and to capitalize the company.

Retails Solutions Group is a provider of omni-channel solutions for mid-sized and large retailers. The company is being spun off from Epicor Software Corp. into a separate privately held company under common ownership by funds advised by Apax Partners.

Completion of the spinoff is expected in June.

FHC holds call

FHC Health hosted a lender call at 11 a.m. ET on Wednesday to launch a $265 million add-on first-lien term loan due Dec. 12, 2021 that is talked at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99, a market source said.

The spread and floor on the add-on loan matches existing first-lien term loan pricing, and all of the first-lien term loan debt is getting 101 soft call protection for six months.

UBS AG and Nomura are leading the add-on that will be used to fund a dividend.

FHC Health is a Boston-based managed behavioral health care company.

Pregis reveals pricing

Pregis launched during the session its $57 million add-on first-lien term loan and repricing of its existing roughly $227 million first-lien term loan with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99.5 on the add-on, a par issue price on the repricing and 101 soft call protection for six months, according to a market source.

With this transaction, existing lenders will get a 10 bps amendment fee, the source said.

Commitments are due on June 5.

Goldman Sachs Bank USA and Barclays are leading the deal.

Proceeds from the add-on loan will be used to repay some second-lien term debt and for acquisition financing, and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Pregis is a Deerfield, Ill.-based protective packaging materials and systems manufacturer.

Internet Brands discount talk

Internet Brands released original issue discount talk of 99.5 on its $100 million incremental first-lien term loan due July 8, 2021 that launched with a call in the morning, according to a market source.

The incremental loan is priced at Libor plus 375 bps with a step-up to Libor plus 400 bps and a 1% Libor floor and has 101 soft call protection through July 2015, which matches the existing first-lien term loan.

Commitments are due at 5 p.m. ET on Friday.

Credit Suisse Securities (USA) LLC, RBC Capital Markets and KKR Capital Markets are leading the edal that will be used for general corporate purposes.

The borrowers are MH Sub I LLC and Micro Holding Corp.

Internet Brands is an El Segundo, Calif.-based provider of vertically focused online media and software services.

Navios readies loan

Navios Maritime Midstream Partners emerged with plans to hold a lender call at 2 p.m. ET on Thursday to launch a $205 million senior secured first-lien term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to finance the proposed acquisition of up to two vessels from Navios Maritime Acquisition Corp. and to refinance existing term debt.

Navios Maritime is a Monaco-based publicly traded master limited partnership which owns and operates crude oil tankers under long-term employment contracts.

Survey Sampling on deck

Survey Sampling set a conference call for Thursday to launch a fungible $36 million incremental term loan talked at Libor plus 500 bps with a 1% Libor floor and an original issue discount that is still to be determined, a market source remarked.

The spread and floor on the incremental loan matches the company’s existing $212 million term loan.

GE Capital Markets is leading the deal that will be used for merger and acquisition purposes.

Survey Sampling is a Shelton, Conn.-based provider of data solutions and technology for consumer and business-to-business research.

Progressive Waste coming soon

Progressive Waste Solutions is scheduled to launch on Thursday a $500 million term loan A that is talked at Libor plus 150 bps, according to a market source.

Bank of America Merrill Lynch is leading the deal.

Proceeds will be used to refinance a term loan B.

Progressive Waste is a Vaughan, Ont.-based full-service, vertically integrated waste management company.

HealthPort readies allocations

In other news, HealthPort Inc. (CT Technologies Intermediate Holdings and Smart Holdings Corp.) wrapped syndication of its $155 million first-lien incremental term loan due December 2021 and repricing of its existing $324.2 million first-lien term loan due December 2021 at talk, and the expectation is that allocations will go out on Thursday, a market source said.

Pricing on the incremental term loan and the repricing is Libor plus 425 bps with a 1% Libor floor, and the debt has 101 soft call protection for six months. The incremental was offered at a discount of 99.5, and the repricing was offered at par.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the incremental term loan that will be used to fund the acquisition of IOD Inc., and Credit Suisse is leading the repricing that will take the existing term loan pricing down from Libor plus 500 bps with a 1% Libor floor.

Closing on the acquisition is expected to close this quarter, subject to regulatory approvals and conditions.

HealthPort is an Alpharetta, Ga.-based provider of medical information access management and compliance services to health care organizations. IOD is a health information management company.

Black Knight closes

Black Knight InfoServ LLC completed its $1.6 billion senior secured credit facility (Ba2/BB) that consists of a $400 million five-year revolver, an $800 million five-year term loan A and a $400 million seven-year term loan B, according to a news release.

Pricing on the term loan B is Libor plus 300 bps with a step-down to Libor plus 275 bps at less than 2.5 times senior leverage and a 0.75% Libor floor, and the debt was sold at an original issue discount of 99.75. There is 101 soft call protection for six months.

During syndication, pricing on the term loan B was reduced from talk of Libor plus 325 bps to 350 bps, the step-down was added, and the discount was changed from 99.5.

JPMorgan, Bank of America Merrill Lynch, U.S. Bank and Wells Fargo Securities LLC led the deal that was used to repay, in part, a mirror loan and intercompany loans from Fidelity National Financial Inc., the indirect parent of Black Knight InfoServ.

Black Knight is a Jacksonville, Fla.-based provider of integrated technology, services, data and analytics.

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