CHS, Presidio, Ranpak, Acrisure break; Virgin, ClubCorp, Valeant, Connolly, Varsity launch

By Sara Rosenberg

New York, May 14 – Community Health Systems Inc.’s (CHS) term loan G and term loan H made their way into the secondary market on Thursday following a change in sizes and finalization of the issue price on the G loan at the tight end of talk, and Presidio Inc., Ranpak Corp. and Acrisure LLC broke for trading too.

Over in the primary market, Virgin Media and ClubCorp Club Operations Inc. details emerged with launch, Valeant Pharmaceuticals International Inc., Connolly Inc. and Varsity Brands Inc. released price talk on their transactions, and Life Time Fitness Inc. (LTF Merger Sub Inc.) revealed timing and structure on its buyout deal.

Community Health frees up

Community Health Systems’ term loans broke for trading on Thursday, with the $1.6 billion covenant-light G due December 2019 tranche quoted at par bid, par 3/8 offered and the roughly $2.94 billion covenant-light H tranche due January 2021 quoted at par 1/8 bid, par 3/8 offered, according to a trader.

Pricing on the Nashville-based hospital company’s term loan G is Libor plus 275 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.75; pricing on the term loan H is Libor plus 300 bps with a 1% Libor floor, and it was issued at par. Both term loans have 101 soft call protection for six months.

During syndication, the term loan G was upsized from $1 billion, while the discount firmed at the tight end of the 99.5 to 99.75 talk, and the term loan H was downsized from about $3.54 billion.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC; RBC Capital Markets, SunTrust Robinson Humphrey Inc., UBS AG, Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the roughly $4.54 billion in term loans (Ba2/BB/BB) that will be used to refinance an existing term loan D due January 2021 priced at Libor plus 325 bps with a 1% Libor floor.

Presidio tops par

Presidio’s $575 million first-lien covenant-light term loan due February 2022 freed up as well, with levels seen at par 1/8 bid, par ½ offered, a trader remarked.

Price talk on the term loan is Libor plus 425 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities, Barclays, Citigroup Global Markets, Goldman Sachs Bank USA, RBC Capital Markets, Apollo, PNC Capital Markets, BMO Capital Markets and Natixis are leading the deal that will be used to reprice an existing term loan from Libor plus 525 bps with a 1% Libor floor. The existing term loan is being reduced from $600 million with this transaction.

Presidio is a New York-based IT infrastructure solutions provider.

Ranpak hits secondary

Ranpak’s repriced loans began trading as well, with the $232 million first-lien term loan due October 2021 quoted at par ¼ bid, according to a market source.

Pricing on the U.S. term loan, as well as on a €157 million first-lien term loan due October 2021, is Libor/Euribor plus 325 bps with a 1% floor. The loans were issued at par and have 101 soft call protection for six months.

During syndication, the spread on the euro term loan firmed at the tight end of the Euribor plus 325 bps to 350 bps talk.

The transaction is repricing the existing U.S. term loan from Libor plus 375 bps with a 1% Libor floor and the existing euro term loan from Euribor plus 400 bps with a 1% floor.

Macquarie Capital (USA) Inc. is leading the deal.

Ranpak is a Concord Township, Ohio-based manufacturer of paper-based systems for protective packaging needs.

Acrisure breaks

Another deal to begin trading was Acrisure, with its $410 million first-lien term loan (B2/B) quoted at 99½ bid, par offered, according to a trader.

Pricing on the term loan is Libor plus 425 bps, after firming recently at the high end of the Libor plus 400 bps to 425 bps talk. There is a 1% Libor floor and 101 soft call protection for six months, and it was issued at an original issue discount of 99.

The company’s $590 million credit facility also includes a $75 million revolver (B2/B), a $45 million delayed-draw first-lien term loan that was added during syndication and a $60 million second-lien term loan (Caa2/CCC+).

JPMorgan is leading the deal that will be used to refinance existing debt and fund an acquisition.

Acrisure is a Caledonia, Mich.-based retail insurance brokerage.

Virgin Media launches

Switching to the primary market, Virgin Media hosted a lender call at 11 a.m. ET on Thursday, during which investors were presented with a proposed minimum $1.2 billion term loan F due June 2023 talked at Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Proceeds will be used to extend/refinance a portion of the company’s existing $1,855,000,000 term loan due June 2020 that is priced at Libor plus 275 bps with a 0.75% Libor floor.

Commitments are due at 2 p.m. ET on Tuesday, the source said.

Bank of America Merrill Lynch, Scotiabank and Goldman Sachs are leading the deal.

Virgin Media, a subsidiary of Liberty Global plc, is a U.K.-based provider of broadband, TV, mobile phone and home phone services.

ClubCorp seeks repricing

ClubCorp held its call in the morning, launching a repricing of its $901.1 million covenant-light senior secured term loan due July 24, 2020 that is talked at Libor plus 300 bps to 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

The repricing will take the term loan down from Libor plus 350 bps with a 1% Libor floor.

Cashless roll commitments are due on May 20, new money commitments are due on May 21, and closing is expected late in the week of May 25, the source added.

Citigroup Global Markets is leading the deal.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs, business, sports and alumni clubs.

Valeant discloses guidance

Valeant Pharmaceuticals released price talk of Libor plus 250 bps to 275 bps with a 0.75% Libor floor and a par issue price on the repricing of its $853 million series C term loan due December 2019 and $1,109,000,000 series D term loan due February 2019, a source said.

Deutsche Bank Securities and Barclays are leading the deal that launched with a morning call.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

Connolly sets talk

Connolly came out with talk of Libor plus 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its first-lien term loan repricing that launched with a morning call, according to a market source.

The repricing will take the loan down from Libor plus 400 bps with a 1% Libor floor.

Commitments are due at noon ET on May 21, the source continued.

Goldman Sachs Bank USA is leading the deal.

Upon closing last year, the term loan was sized at $810 million.

Connolly is a Wilton, Conn.-based technology-enabled provider of recovery audit services.

Varsity holds call

Varsity Brands had its lender call in the morning, and its first-lien term loan B repricing was launched with talk of Libor plus 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a source remarked.

This transaction will take pricing on the term loan down from Libor plus 500 bps with a 1% Libor floor.

Commitments are due on May 20, the source added.

Goldman Sachs Bank USA, Barclays and Jefferies Finance LLC are leading the deal.

At close in December, the term loan B was sized at $755 million.

Varsity Brands is a Memphis-based portfolio of brands that promote student participation while celebrating academic and athletic achievement.

Life Time readies launch

Life Time Fitness set a bank meeting for noon ET in New York on Monday to launch a $1.35 billion credit facility that includes a $250 million revolver and a $1.1 billion seven-year covenant-light term loan B, according to a market source.

Additionally, the company will then hold east coast one-on-ones on Tuesday and Wednesday.

Proceeds will be used with $600 million of senior notes and a $900 million sale leaseback to help fund the buyout of the company by Leonard Green & Partners and TPG for $72.10 per share in cash. The transaction is valued at more than $4 billion.

Other funds for the buyout are expected to come from equity.

The structure of the financing is different than what the company had outlined last month in a DEFM14A filed with the Securities and Exchange Commission. That filing had the credit facility at $1,947,000,000 – split between a $250 million revolver and a $1,697,000,000 first-lien term loan – and the senior notes sized at $800 million. The filing also said that a potential sale leaseback financing could reduce the debt commitment amount.

Life Time lead banks

Deutsche Bank Securities, Goldman Sachs Bank USA, Jefferies Finance, BMO Capital Markets, RBC Capital Markets, Macquarie Capital, Nomura and Mizuho are leading Life Time Fitness’ credit facility.

Commitments are due on June 2, the source added.

Closing is expected in the first week of June, subject to shareholder approval and other customary conditions.

Life Time Fitness is a Chanhassen, Minn.-based operator of sports, professional fitness, family recreation and spa destinations.

TransDigm closes

In other news, TransDigm Inc. closed on its loan financing, a news release said, which provides for a $1.54 billion seven-year term loan E (Ba3) priced at Libor plus 275 bps with a 0.75% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

Proceeds were used with $450 million of senior subordinated notes to fund the $496 million acquisition of Pexco LLC’s aerospace business, to replenish cash on the balance sheet, to repay a $490 million term B due February 2017 priced at Libor plus 275 bps with a 0.75% Libor floor, and to refinance/extend $500 million of a term loan C due February 2020 priced at Libor plus 300 bps with a 0.75% Libor floor.

TransDigm lead banks

Credit Suisse Securities, Citigroup Global Markets, Morgan Stanley Senior Funding, UBS AG, Barclays, RBC Capital Markets, Credit Agricole and HSBC Securities (USA) Inc. led TransDigm’s deal.

Initially, the company was seeking a $450 million first-lien covenant-light tack-on term loan D due June 2021 that was talked at Libor plus 300 bps with a 0.75% Libor floor, a discount of 99.5 to 99.75 and 101 soft call protection through June, but the add-on was later cancelled as the company opted for a $1.04 billion term loan E, which is when the term loan B paydown was added to the use of proceeds.

Upon adding the term loan E, the company sought a repricing of its entire $2,553,000,000 term loan C due February 2020 to Libor plus 275 bps with a 0.75% Libor floor from Libor plus 300 bps with a 0.75% Libor floor, but that proposal was later terminated and, instead, an extension and repricing of $500 million of the term loan C was done, with that debt being fungible with the term loan E.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components.

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