CareCore frees to trade; Catalent Pharma tweaks size, issue prices; Q Holdings reveals talk

By Sara Rosenberg

New York, Nov. 21 – CareCore National LLC’s add-on term loan B surfaced in the secondary market during Friday’s session with levels seen above its original issue discount price.

Switching to the primary, Catalent Pharma Solutions Inc. upsized its add-on U.S. and euro term loan, updated original issue discounts and moved up the commitment deadline, and Q Holdings released price talk on its loan with launch.

CareCore breaks

CareCore’s fungible $570 million add-on term loan B began trading on Friday, with levels seen at par bid, par ½ offered, according to a trader.

Pricing on the add-on matches the $313 million existing term loan B at Libor plus 450 basis points with a 1% Libor floor, and the add-on was sold at an original issue discount of 99¼. All of the term loan B debt is getting 101 soft call protection for one year.

During syndication, the add-on loan was upsized from $535 million, the discount was tightened from talk of 98½ to 99 and the call protection was extended from six months.

RBC Capital Markets LLC, Fifth Third Bank and GE Capital Markets Inc. are leading the deal that will be used to fund the acquisition of MedSolutions Inc., and due to the recent upsizing, to repay revolver borrowings and add cash to the balance sheet.

CareCore is a Bluffton, S.C.-based provider of specialty benefits management services to managed care organizations, self-insured entities and risk-bearing provider organizations. MedSolutions is a Franklin, Tenn.-based provider of medical cost management services.

Catalent revises deal

Moving to the primary, Catalent Pharma Solutions increased its fungible add-on U.S. and euro term loan B due May 19, 2021 to $190 million equivalent from $180 million equivalent, set the original issue discount on the U.S. tranche at 99½, the tight end of the 99 to 99½ talk, and tightened the discount on the euro tranche to 99¾ from talk of 99 to 99½, a market source said.

In addition, the commitment deadline was accelerated to end of day on Friday from noon ET on Monday, the source continued.

The add-on is priced at Libor plus 325 bps with a 1% Libor floor, and includes 101 soft call protection until May 19, 2015 – which all matches the existing term loan.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Jefferies Finance LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to repay existing revolver borrowings and senior unsecured term loan debt.

Catalent is a Somerset, N.J.-based provider of advanced technologies and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer health care companies.

Q Holdings sets talk

Q Holdings held its bank meeting on Friday, launching its $163 million seven-year term loan 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.

The company’s $188 million credit facility (B3/B) also includes a $25 million revolver.

Commitments are due on Dec. 4, the source said.

RBC Capital Markets LLC and BNP Paribas Securities Corp. are leading the deal that will be used to fund the buyout of the company by 3i Group plc for about $160 million.

Q Holdings is a Twinsburg, Ohio-based manufacturer of elastomeric products, primarily serving the automotive, medical and pharmaceutical end markets.

Multi Packaging closes

In other news, Multi Packaging Solutions Inc./Chesapeake MPS Merger Ltd. completed its acquisition of the North American and Asian print businesses from ASG Group, a news release said.

To help fund the transaction, Multi Packaging got a $135 million non-fungible incremental covenant-light term loan C due Sept. 30, 2020.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor and it was sold at an original issue discount of 98. The new loan has 101 soft call protection for six months, and the call protection also applies to the company’s existing $330 million term loan and $122 million term loan.

Barclays led the deal.

Senior secured leverage is 4.1 times, total leverage is 4.9 times and net total leverage is 4.8 times.

Multi Packaging/Chesapeake is a New York-based provider of value-added packaging services.

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