Avaya term loans slide; Berry Plastics, HealthPort, Universal Fiber Systems set launches

By Sara Rosenberg

New York, Sept. 8 – Avaya Inc.’s term loans weakened in trading on Tuesday as sellers outweighed buyers in the market, and Media General Inc.’s term loan held firm after word emerged that the company is buying Meredith Corp.

Switching to the primary market, Berry Plastics Corp. LLC, HealthPort Inc. (CT Technologies Intermediate Holdings and Smart Holdings Corp.) and Universal Fiber Systems LLC joined this week’s new issue calendar.

Avaya softens

Avaya saw its term loans drop in the secondary market on Tuesday, with a trader remarking that the fall was driven by selling pressure as opposed to any credit specific news.

The term loan B-3 was quoted 90¼ bid, 91¼ offered, down from 91 bid, 92 offered, the term loan B-6 was quoted at 91 bid, 92 offered, down from 91¾ bid, 92¾ offered, and the term loan B-7 was quoted at 82 bid, 84 offered, down from 83 bid, 85 offered, the trader said.

Avaya is a Santa Clara, Calif.-based provider of business collaboration and communications services.

Media General steady

Media General’s term loan was unchanged in trading at 99¾ bid, 100 1/8 offered following news that the company is purchasing Meredith for cash and stock valued at $51.53 per Meredith share, according to a trader. Based on Meredith’s net debt balance of $772 million at June 30, the transaction enterprise value is around $3.1 billion.

The company has received for the transaction a commitment for $2.8 billion in financing, which is expected to include term loans and bonds.

RBC Capital Markets and JPMorgan Chase Bank are leading the new debt.

Pro forma net leverage at closing is expected to be less than 5.5 times.

Closing is expected by June 30, 2016, subject to approval of Media General and Meredith shareholders, customary conditions and regulatory approvals.

Media General is a Richmond, Va.-based television broadcasting and digital media company. Meredith is a Des Moines, Iowa-based media and marketing company.

Berry Plastics on deck

Moving to the primary, Berry Plastics set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $1.9 billion first-lien term loan due in 2022 that is talked with a 1% Libor floor and 101 soft call protection for six months, according to a market source. Spread and original issue discount talk are still to be determined.

Commitments are due on Sept. 22, the source said.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., US Bank and Wells Fargo Securities LLC are leading the loan that will be used to help fund the roughly $2.45 billion acquisition of Avintiv from the Blackstone Group LP.

Closing is expected by year-end, subject to customary conditions.

Berry Plastics is an Evansville, Ind.-based manufacturer and marketer of value-added plastic consumer packaging and engineered materials. Avintiv is a Charlotte, N.C.-based developer, producer and marketer of specialty materials used in infection prevention, personal care and high performance solutions.

HealthPort readies loan

HealthPort scheduled a lender call for 10:30 a.m. ET on Wednesday to launch a $117 million incremental first-lien term loan due December 2021 talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection through Jan. 1, 2016, a source remarked.

The spread, floor and call protection on the incremental loan matches the company’s existing first-lien term loan.

Commitments are due on Sept. 16, the source added.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and Jefferies Finance LLC are leading the deal that will be used to fund the acquisition of Enterprise Consulting Solutions.

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

Universal Fiber coming soon

Universal Fiber Systems emerged with plans to hold a bank meeting at 10 a.m. ET on Thursday to launch a $240 million credit facility, according to a market source.

The facility consists of a $35 million revolver, a $165 million first-lien term loan and a $40 million second-lien term loan, the source said.

BNP Paribas Securities Corp. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by H.I.G. Capital.

Universal Fiber Systems is a Bristol, Va.-based manufacturer of high-performance, specialty synthetic fibers for segments of the commercial carpet, transportation carpet, and specialty textile industries.

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