BMS cuts spreads; SVP mulls changes; American Safety Razor firms pricing; Travelport floats talk

By Sara Rosenberg

New York, July 24 - Bankruptcy Management Solutions Inc. (BMS) lowered pricing on all tranches under its credit facility, and SVP Worldwide is contemplating some changes to its credit facility including increasing pricing and playing with covenants.

Also in the primary, American Safety Razor Co. finalized pricing on its in-market credit facility, with the first-lien debt ending up at the low end of talk and the second-lien debt ending up in the mid point of talk, and Travelport Inc. is whispering spread guidance around the marketplace, with the transaction, so far, receiving a lot of interest at the unofficial talk.

In secondary happenings, HCA Inc.'s term loan inched its way higher as investors are anticipating that Monday's leveraged buyout announcement will lead to a par pay down in the future.

Bankruptcy Management Solutions reverse flexed pricing on all tranches under its $360 million senior secured credit facility Monday and added a step down provision to the first-lien term loan, according to a market source.

The $220 million six-year first-lien term loan (B1/B) is now priced with an interest rate of Libor plus 275 basis points, down from original talk at launch of Libor plus 300 basis points, and pricing can step down to Libor plus 250 basis points when leverage falls below 4x, the source said.

Pricing on the $15 million five-year revolver (B1/B) was also lowered to Libor plus 275 basis points from original talk at launch of Libor plus 300 basis points, the source continued. The revolver carries a 50 basis point commitment fee.

In addition, pricing on the company's $125 million seven-year second-lien term loan (B3/CCC+) was reverse flexed to Libor plus 625 basis points from original talk at launch of Libor plus 650 basis points, the source added. This tranche contains call protection of 102 in year one, 101 in year two and par thereafter.

Earlier on in the syndication process, tranche sizes had been adjusted, with the first-lien term loan upsized to $220 million from $200 million and the second-lien term loan downsized to $125 million from $145 million.

JPMorgan and Credit Suisse are the lead banks on the deal that will be used to help fund the purchase of Bankruptcy Management Solutions by Charlesbank Capital Partners LLC and Ocwen Financial Corp. from Lincolnshire Management, Inc.

Bankruptcy Management Solutions is an Irvine, Calif., provider of bankruptcy case management solutions to Chapter 7 trustees.

SVP considers tweaks

SVP Worldwide is mulling over an increase in pricing under its $315 million senior secured credit facility (B1/B+) and is also considering adding an interest coverage covenant to the transaction; however, no official decision on the potential changes has been made as of yet, according to a market source.

The $75 million revolver and $240 million term loan were both launched with opening price talk of Libor plus 250 basis points, but spread guidance may end up widening out to the Libor plus 275 to 300 basis point range, the source said.

Commitments from lenders are now due on Wednesday as the syndicate extended the deadline from the original Monday timeframe.

UBS is the lead bank on the deal that will be used to refinance existing debt and fund seasonal working capital build.

SVP is a manufacturer, marketer, and distributor of consumer sewing machines.

American Safety Razor sets spreads

American Safety Razor firmed up pricing on its $435 million credit facility in line with where investors were expecting the deal to come based on the reception it received during the syndication process, according to a market source.

Pricing on the $35 million six-year revolver (B2/B) and the $225 million seven-year first-lien term loan B (B2/B) solidified at Libor plus 250 basis points, the low end of original talk of Libor plus 250 to 275 basis points, the source said.

Meanwhile, pricing on the $175 million 71/2-year second-lien term loan (Caa1/CCC+) solidified at Libor plus 625 basis points, right in the middle of original price talk of Libor plus 600 to 650 basis points, the source continued.

Lastly, pricing on the $35 million in holding company mezzanine loan facility, which is pay-in-kind for the first five years and cash pay thereafter, firmed up at 13.5%, the high end of original guidance of 13% to 13.5%, the source added.

UBS is the lead bank on the deal that will be used to help fund Lion Capital LLP's leveraged buyout of American Safety Razor from J.W. Childs Associates, LP in a transaction valued at $625 million.

American Safety Razor is a Cedar Knolls, N.J., manufacturer of private label wet shaving razors and blades and industrial, specialty and medical blades.

Travelport spread talk

Travelport has been unofficially whispering spread guidance in the range of Libor plus 250 to 275 basis points on its proposed $2.6 billion senior secured credit facility as the deal is getting ready to launch with a bank meeting in New York on Wednesday and in London on Thursday, according to a market source.

Tranching on the facility is comprised of a $275 million six-year revolver, a $125 million seven-year synthetic letter-of-credit facility and a $2.2 billion seven-year term loan.

Of the total term loan amount, at least $500 million will be carved out into a euro tranche, and it may even be as high as $750 million, the source said.

At this whispered pricing guidance, the transaction is "getting a lot of interest both here and Europe" even though syndication has not yet officially kicked off, the source added.

UBS Investment Bank, Credit Suisse Securities LLC and Lehman Brothers Inc. are the lead banks on the credit facility.

Proceeds will be used to help fund The Blackstone Group's leveraged buyout of Travelport from Cendant Corp. for about $4.3 billion in cash.

The transaction is subject to satisfaction of customary conditions to closing, including the receipt of applicable regulatory approvals, and is expected to close in August.

Travelport is a Parsippany, N.J.-based travel distribution services company.

Iridium downsizes, tweaks terms

Iridium Satellite LLC reduced the size of its credit facility, added a term loan A to the capital structure, increased pricing yet again and sweetened original issue discounts, according to a market source.

With the modifications, the five-year first-lien term loan B (B3) is now sized at $62 million, down from an original size of $175 million, pricing was flexed up to Libor plus 425 basis points from most recent talk of Libor plus 400 basis points and original talk at launch of Libor plus 325 basis points, and the original issue discount that was added the other week was changed to 98 from 991/2, according to a market source.

Meanwhile, a new $98 million four-year term loan A tranche was added to the capital structure to help compensate for the term loan B downsizing. This tranche is priced at Libor plus 425 basis points and contains an original issue discount of 99, the source continued.

As for the second-lien term loan (Caa1), that was reduced in size to $40 million from $50 million, pricing was flexed up to Libor plus 825 basis points from most recent talk of Libor plus 800 basis points and original talk at launch of Libor plus 650 basis points, and the original issue discount is now set at 97, the source added.

Lastly, maintenance covenants were added to the transaction.

The company's now $210 million credit facility, down from $235 million, also includes a $10 million revolver (B3).

Iridium's first-lien term loan B and the new term loan A carry soft call protection of 102 in year one and 101 in year two, and the second-lien term loan is non-callable for one year and then at 102 in year two and 101 in year three. About two weeks ago, the first-lien term loan B call premiums were added to the deal and the second-lien call premiums were sweetened from 102 in year one and 101 in year two.

Proceeds from the credit facility will be used to refinance existing debt and fund a dividend payment to shareholders. This dividend was reduced by $25 million in connection with the facility's overall $25 million reduction in size.

Lehman and Morgan Stanley are the lead banks on the deal, with Lehman the left lead.

Allocations on the transaction are expected to go out this week.

Iridium is a Bethesda, Md., provider of satellite voice and data solutions.

Endurance Business Media reduces size

Endurance Business Media Inc. downsized its second-lien term loan as it decided to reduce the dividend amount being paid with proceeds from the credit facility by $20 million, and increased pricing on the second-lien tranche, according to a market source.

The 71/2-year second-lien term loan (B3/CCC+) is now sized at $40 million, down from an original size of $60 million, and pricing was flexed up to Libor plus 725 basis points from original talk of Libor plus 700 basis points, the source said.

The company's $20 million six-year revolver (B1/B) and $120 million seven-year first-lien term loan B (B1/B) were left unchanged in terms of size and pricing, which is set at Libor plus 275 basis points, the source added.

Credit Suisse and Wachovia are the lead banks on the now $180 million credit facility (down from $200 million).

Endurance Business Media is a Tallahassee, Fla., publisher of residential real estate and rental property advertising publications.

Infor upsizes

Infor Global Solutions increased the size of its seven-year term loan B to $2.25 billion from $2 billion and downsized its proposed bond offering by the equivalent $250 million amount, according to a market source.

Pricing on the term loan B is set at Libor plus 375 basis points, the high end of most recent guidance of Libor plus 350 to 375 basis points and a 50 basis points difference from original talk at launch of Libor plus 325 basis points.

The term loan B contains call protection of 101 for one year.

JPMorgan, Credit Suisse and Merrill Lynch are joint bookrunners and co-lead arrangers on the deal, with JPMorgan the left lead.

Infor's $2.4 billion euro- and dollar-denominated credit facility (B2/B) also contains a $150 million six-year revolver with a 50 basis point commitment fee.

Proceeds from the new credit facility will be used to help fund the acquisitions of Systems Union Group and SSA Global, finance the combination of Infor and Extensity - which are both currently Golden Gate Capital portfolio companies - and to refinance debt at all four companies.

Under the SSA acquisition agreement, Infor is paying $19.50 per share in cash to SSA Global's shareholders, and, under the Systems Union agreement, Extensity will pay 215p per share in cash to Systems Union stockholders.

Infor is an Alpharetta, Ga.-based software provider focused on the manufacturing and distribution industries. Extensity is an Atlanta-based financial performance management company focused on the needs of finance professionals. SSA Global is a Chicago-based provider of enterprise software applications for manufacturing, distribution, retail, services and public organizations. Systems Union is a U.K.-based financial management, reporting and performance management solutions company.

HCA trades up

Switching to the secondary, HCA's term loan was stronger by about half a point after news emerged that the company entered into a buyout agreement with an equity consortium that's valued at about $33 billion, including the assumption or repayment of about $11.7 billion of debt, according to a trader.

The term loan closed out the session quoted at 99¼ bid, 99¾ offered, up from previous levels of 98¾ bid, 991/4, the trader said, explaining that although nothing definitive has been announced in terms of LBO financing, lenders are assuming that they'll probably get taken out at par with a new deal.

And, according to some market sources, HCA will indeed be getting a new credit facility to back the LBO, with Bank of America, Citigroup Global Markets, JPMorgan and Merrill Lynch Capital Corp. leading the transaction.

The consortium buying HCA for $51 in cash per share is comprised of Bain Capital, Kohlberg Kravis Roberts & Co., Merrill Lynch Global Private Equity and company founder Thomas F. Frist Jr.

The transaction, which is expected to close in the fourth quarter, is subject to stockholder approval, expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. The LBO is not subject to financing.

HCA is a Nashville, Tenn., health care services company.

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