Press Ganey, Intellectual Property, inVentiv loans potentially launching this month

By Sara Rosenberg

New York, Sept. 1 – Indicative timing is starting to surface on some new loan deals that are on the forward calendar as people are looking beyond the upcoming holiday weekend, with deals like Press Ganey, Intellectual Property & Science and inVentiv Health Inc. currently anticipated by sources as potential September business, Berry Plastics Group Inc. as possible September/October business and Rackspace as likely coming in the November timeframe.

Press Ganey on deck

Press Ganey’s new loan financing is expected to launch sometime this month, possibly during the week of Sept. 12, according to market sources.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Bank of America Merrill Lynch are leading the deal that will be used to help fund the buyout of the company by EQT Equity for $40.50 in cash per share, resulting in an enterprise value of about $2.35 billion.

Closing is expected in the fourth quarter, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, shareholder approval and other customary conditions.

Press Ganey is a Wakefield Mass.-based provider of patient experience measurement, performance analytics and strategic advisory solutions for health care organizations.

Intellectual readies loan

Intellectual Property & Science’s new credit facility is also being described as September business, with the bank meeting likely taking during the Sept. 12 week as well, sources remarked.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, RBC Capital Markets LLC and Citigroup Global Markets Inc. are leading the debt.

Proceeds will be used with a bond offering and about $1.6 billion in equity to fund the buyout of the company by Onex Corp. and Baring Private Equity Asia from Thomson Reuters for $3.55 billion in cash.

Closing is subject to regulatory approval and customary conditions. The transaction is not subject to financing.

Intellectual Property & Science is a Philadelphia-based provider of comprehensive intellectual property and scientific information, decision support tools and services.

inVentiv coming soon

inVentiv Health is another credit facility transaction that investors are anticipating will launch this month, according to sources.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that is being done in connection with an agreement for Advent International to make a material equity investment in the company.

The company said in recent filings with the Securities and Exchange Commission that it has received a commitment for a $1.93 billion credit facility, split between a $250 million asset-based loan and a $1.68 billion senior secured term loan, and a $720 million senior unsecured bridge loan for the transaction.

The investment agreement values inVentiv at $3.8 billion on a cash-free, debt-free basis subject to customary adjustments.

Advent is joining Thomas H. Lee Partners as an equal equity owner of the company.

inVentiv refinancing

With the Advent transaction, inVentiv will repay all of its outstanding credit facility debt, which, as of June 30, was about $575.3 million.

The company will also use its reasonable best efforts to commence offers to purchase and/or consent solicitations with respect to any or all of its outstanding $625 million 9% senior secured notes due 2018, $579.8 million 10%/12% junior lien PIK notes due 2018 and $376.3 million 10% senior notes due 2018.

Closing is expected in the fourth quarter, subject to regulatory approval and other customary conditions.

inVentiv is a Burlington, Mass.-based provider of clinical, consulting and commercial services to the health care industry.

Berry possible timeframe

Berry Plastics has a commitment for a $500 million seven-year first priority senior secured incremental term loan, which could come to market in September, however, October may be more the likely timeframe, market sources said.

Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used with cash on hand to fund the cash portion of the acquisition of AEP Industries Inc.

Under the agreement, AEP is being purchased for either $110 in cash or 2.5011 shares of Berry common stock per AEP share, subject to an overall 50/50 proration to ensure that 50% of the total outstanding AEP shares are exchanged for the cash consideration. The transaction is valued at $765 million, including AEP’s net debt.

Closing is expected in the December quarter, subject to AEP shareholder approval, regulatory approvals and other customary conditions.

Berry is an Evansville, Ind.-based provider of value-added plastic consumer packaging and engineered materials. AEP is a Montvale, N.J.-based manufacturer of flexible plastic packaging films.

Rackspace further out

Looking down the road, Rackspace’s new loan transaction is being considered by some sources as likely November business.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays and RBC Capital Markets are the leads on the deal that will be used to help fund the buyout of the company by Apollo Global Management LLC for $32.00 per share in cash. The transaction has a total value of $4.3 billion, which includes the assumption of $43 million of net cash.

In connection with the transaction, funds managed by Searchlight Capital Partners LP will make a strategic equity investment in the acquired company.

Closing is expected in the fourth quarter, subject to the conclusion of the applicable antitrust waiting periods in the United States, the European Union and Israel, stockholder approval and other customary conditions.

Rackspace is a San Antonio-based managed cloud company.

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