Travelport extended, Radio Systems break; CommScope, MGM rise; MedAssets timing emerges

By Sara Rosenberg

New York, Oct. 25 - Travelport Holdings Ltd.'s extended institutional bank debt hit the secondary market on Monday, and Radio Systems Corp.'s credit facility freed up for trading above its original issue discount price.

Also, CommScope Inc.'s incremental term loan B gained some ground in trading after the company confirmed that it is involved in buyout talks, and MGM Resorts International's term loans were better with news of a partial repayment.

Over in the primary market, MedAssets Inc. nailed down timing on the launch of its credit facility, as did Hanger Orthopedic Group Inc., Gymboree Corp. came out with a targeted date for its bank meeting, and Sports Authority Inc. disclosed plans to launch a new term loan.

Additionally, chatter is that Getty Images Inc.'s credit facility is going really well since its launch just a few days ago and Fifth Third Processing Solutions LLC's bank deal is seeing strong interest, too.

Travelport frees up

Travelport's extended institutional bank debt started trading on Monday, with the strip of debt quoted at 99 1/8 bid, 99 3/8 offered, according to a trader.

About $1.9 billion of the company's term loan and synthetic letter-of-credit facility was extended by two years from August 2013, leaving little non-extended debt in the capital structure, the trader said.

Pricing on the extended debt is Libor plus 450 basis points, up from pricing on the non-extended debt of Libor plus 250 bps.

During the amend and extend negotiation process, pricing on the extended was flexed up from initial talk of Libor plus 400 bps, a previously proposed pricing step-down was removed and the letter-of-credit facility was given the ability to convert into term loan debt..

Travelport amending terms

In addition to extending its institutional bank debt, Travelport's amendment was also seeking to increase the leverage ratio contained in the credit agreement.

Furthermore, the amendment allows for the refinancing of non-extended term loan debt with new second-lien or junior debt and allows for an extension of revolver commitments at a later date.

Credit Suisse and UBS acted as the lead banks on the amendment and extension.

Lenders were offered a 25 bps amendment fee.

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

Radio Systems breaks

Also freeing up for trading was Radio Systems' credit facility, with its $150 million term loan quoted at 99½ bid, par offered on the open and then moving up on the bid side to 99¾ bid, par offered, according to a market source.

Pricing on the term loan is Libor plus 450 bps with a step-down to Libor plus 425 bps at less than 2.5 times leverage and a 1.5% Libor floor. The tranche was sold at an original issue discount of 99.

During syndication, the pricing step-down was added to the term loan.

Fifth Third Bank and BMO are the lead banks on the deal.

Radio Systems revolver

Radio Systems' $225 million senior secured credit facility (B1/B+) also includes a $75 million revolver that is priced at Libor plus 450 bps with a 1.5% Libor floor, and was sold at an original issue discount of 99 as well.

Proceeds from the credit facility will be used to refinance existing debt.

Radio Systems is a Knoxville, Tenn.-based provider of electronic pet containment products, pet training products and pet doors.

CommScope strengthens

CommScope's incremental term loan B moved higher in the secondary market as the company announced that it is in discussions to be acquired by the Carlyle Group for $31.50 per share in cash, according to traders.

No agreement on a buyout has been reached as of yet between the company and Carlyle.

However, following confirmation of the talks, the company's term loan B was quoted by one trader at 99 5/8 bid, par offered, up from 98¾ bid, 99¼ offered, and by a second trader at 99 3/8 bid, 99 7/8 offered, up from 99 1/8 bid, 99 5/8 offered.

CommScope is a Hickory, N.C.-based provider of infrastructure solutions for communication networks.

MGM Resorts trades up

MGM Resorts' term loans saw a noticeable improvement in trading following the company's announcement that it will be repaying a portion of its $1.2 billion non-extended term loan using proceeds from a $500 million senior notes offering, according to traders.

The extended term loan C and E were quoted by one trader at 93 7/8 bid, 94 3/8 offered, up from 91 7/8 bid, 92¼ offered, and by a second trader at 93¾ bid, 94½ offered, up from 91 5/8 bid, 92 1/8 offered.

And, the non-extended term loan B and D were quoted by the first trader at 99 bid, 99¾ offered, up from 98¾ bid, 99¼ offered, and by the second trader at 99 7/8 bid, par ¼ offered, up from 98 7/8 bid, 99¼ offered.

MGM Resorts is a Las Vegas-based owner and operator of casino resorts.

MedAssets reveals timing

Switching to the primary, MedAssets has firmed up timing on the launch of its proposed $750 million credit facility with the scheduling of a bank meeting for Thursday morning bank meeting at the Palace in New York, according to a market source. Previously, the deal was labeled as October business, with no specific date available.

The facility, which is being led by Barclays and JPMorgan, consists of a $150 million five-year revolver and $600 million six-year term loan B, the source said.

Under the commitment letter, the company was allowed to split the term loan into a $150 million five-year term loan A and a $450 million six-year term loan B or keep it all as a term loan B. It was said in filings with the Securities and Exchange Commission that the term loan A would only be used if corporate credit ratings were more than Ba3/BB-.

MedAssets buying Broadlane

Proceeds from MedAsset's credit facility, along with $360 million of senior unsecured notes, will be used to fund the acquisition of the Broadlane Group and refinance existing bank debt.

Under the acquisition agreement, MedAssets is buying Broadlane, a Dallas-based end-to-end cost-management partner for health care providers, for roughly $850 million in cash, with $725 million to be paid at closing and $125 million to be paid in January 2012.

The total funded debt will be 5.2 times trailing pro forma adjusted EBITDA, taking into consideration the company's estimate for cost-based synergies.

MedAssets is an Alpharetta, Ga.-based provider of technology enabled products and services for hospitals, health systems and ancillary health care providers.

Hanger sets launch

Also on the topic of timing, the Nov. 1 bank meeting date that was being targeted by Hanger Orthopedic for its proposed $425 million credit facility (Ba3/BB-) has been finalized, according to a market source.

Bank of America, Jefferies, Oppenheimer, SunTrust and RBC are the lead banks on the deal that consists of a $100 million revolver and a $325 million term loan B.

Proceeds from the facility, cash on hand and $200 million of senior notes will be used to fund the acquisition of Accelerated Care Plus for about $155 million in cash and to refinance existing bank debt.

Closing is expected around Dec. 1, subject to customary conditions, including regulatory approvals and financing.

Hanger is an Austin, Texas-based provider of orthotic and prosthetic patient care services, and Accelerated Care Plus is a Reno, Nev.-based provider of integrated clinical programs for sub-acute and long-term care rehabilitation providers.

Gymboree readies deal

Gymboree is expected to launch its proposed $945 million senior secured credit facility next week, with Monday being the targeted date, according to a market source.

The San Francisco-based specialty retailer's facility consists of a $225 million five-year asset-based revolver that is being led by Bank of America and a $720 million seven-year term loan B that is being led by Credit Suisse and Morgan Stanley.

Price talk on the term loan B is Libor plus 450 bps with a 1.75% Libor floor and an original issue discount of 981/2, the source said.

The revolver is anticipated to be split into a $213 million A tranche priced at Libor plus 250 bps and a $12 million first-in, last-out A-1 tranche priced at Libor plus 400 bps. The initial commitment fee on the revolver is expected to be 62.5 bps.

Gymboree being acquired

Proceeds from Gymboree's credit facility, up to $524 million of equity and $520 million of senior unsecured notes will be used to fund its acquisition by Bain Capital Partners LLC for $65.40 per share, or $1.8 billion. A tender offer for Gymboree's shares was started by Bain on Monday.

The notes are backed by a commitment for a $520 million one-year senior unsecured bridge loan that is priced at Libor plus 800 bps, increasing by 50 bps every three months, with a 1.75% Libor floor.

Completion of the transaction is subject to, among other things, the satisfaction of the minimum tender condition of at least 66% of the company's common shares, the receipt of the Federal Trade Commission's approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Sports Authority term loan

News emerged that Sports Authority has set a bank meeting for Wednesday to launch a proposed $350 seven-year covenant-light term loan that will be used to refinance existing debt, according to a market source.

There is no price talk out on the term loan, the source said. It is known, however, that the tranche will include 101 soft call protection for one year.

Bank of America and JPMorgan are the lead banks on the deal.

Sports Authority is an Englewood, Colo.-based sporting goods retailer.

Getty Images nets orders

Getty Images' $1.37 billion credit facility (Ba3/BB-) is heard to be getting a strong reception since launching last Wednesday, and lenders still have until Friday to get their orders in towards the term loan B, according to a market source.

"Existing group out there that already knows the credit so it can move quickly," the source said.

The facility consists of a $1.27 billion six-year term loan B that is talked at Libor plus 425 bps with a 1.5% Libor floor and an original issue discount of 99, and a $100 million revolver.

Barclays, JPMorgan, GE Capital, Bank of America and Goldman Sachs are the lead banks on the deal that will be used to refinance existing debt and fund a dividend payment.

Getty Images is a Seattle-based creator, aggregator and distributor of visual and multimedia content to creative and communication professionals.

Fifth Third well met

Fifth Third Processing Solutions' $1.925 billion credit facility is also "going very well" in terms of syndication, a market source told Prospect News.

The facility consists of a $150 million revolver (Ba3/BB-), a $1.5 billion six-year first-lien term loan (Ba3/BB-) and a $275 million seven-year second-lien term loan (B2/B-).

The revolver is talked at Libor plus 350 bps with a 50 bps unused fee, the first-lien term loan is talked at Libor plus 425 bps to 450 bps with a 1.5% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 700 bps to 725 bps with a 1.75% Libor floor and an original issue discount of 98.

In addition, the second-lien term loan has soft call protection of 102 in year one and 101 in year two.

Fifth Third lead banks

Goldman Sachs, JPMorgan, Credit Suisse, Morgan Stanley and Bank of America are the lead banks on Fifth Third Processing Solutions' credit facility.

Proceeds will be used to help fund the acquisition of National Processing Co. and refinance existing debt.

The transaction is expected to close in early November, pending satisfaction of customary closing conditions.

Fifth Third Processing is a Cincinnati-based provider of payment transaction processing and acceptance services. National Processing is a Louisville, Ky.-based merchant acquirer focused on the small and medium enterprise market.

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