Affordable Care sets talk; Plaskolite lines up financing; Realogy plans $1.15 billion loans

By Paul A. Harris

Portland, Ore., Oct. 6 – Cash loans traded basically flat on Tuesday, according to a trader.

Investors attempting to move high beta bank loan paper are not getting much traction, the trader remarked.

The LCDX22 index of bank loan credit default swaps ended the session an eighth of a point higher at 100 1/8 bid, 101 1/8 offered, according to a hedge fund manager.

Dedicated bank loan funds saw $85 million of outflows on Monday, the most recent session for which data was available at press time, a market source said.

Affordable Care talk

Affordable Care Inc. talked a $325 million first-lien term loan with a 425 basis points to 450-bps spread to Libor atop a 1% Libor floor at an original issue discount of 99.

The loan comes with six months of soft call protection at 101.

Commitments are due Oct. 19.

The company’s $500 million credit facility also includes a $40 million revolver.

In addition there is a $135 million second-lien term loan that has been privately placed, the source said.

Jefferies and Golub are the joint bookrunners on the buyout deal.

Plaskolite buyout financing

A meeting for first-lien lenders is scheduled to take place on Oct. 13 for a $345 million credit facility supporting the acquisition of Plaskolite by Charlesbank Capital Partners.

Antares Capital is slated to lead the financing which includes a $40 million five-year revolver and a $305 million covenant-light seven-year term loan.

Key Banc Capital Markets is the co-lead arranger.

Park Resorts downsizes

Park Resorts downsized its seven-year term loan B (B1/B+) to £530 million from £550 million.

Spread talk increased to 525 bps from previous talk of 475 bps to 500 bps.

Price talk deepened the discount to 98.5 from 99.

There is no Libor floor.

The 101 soft call protection was extended to one year from six months.

The changes do not impact the net leverage of the financing.

There is a margin ratchet at 0.25-times reduction in thresholds. The first step-down would come into play at 4.25-times leverage.

The unconditional commitment deadline is Oct. 7.

Barclays, J.P. Morgan and RBS are the bookrunners on the deal.

Proceeds will be used to refinance existing debt and to support the merger of Park Resorts and Parkdean.

Park Resorts and Parkdean are holiday park operators in the United Kingdom.

Realogy plans $1.15 billion

Realogy Holdings Corp. announced in a Tuesday press release that it intends to put in place $1.15 billion of senior secured credit facilities.

The financing includes an amendment and upsizing of its existing five-year revolver to $750 million.

In addition there is a new $400 million five-year term loan A.

The financing is expected to be completed by the end of October.

Proceeds, along with cash on hand, will be used to retire approximately $789 million of the company’s highest-cost debt by the end of 2015, including the retirement of $593 million of 7 5/8% first-lien notes and $196 million of 9% first-and-a-half-lien notes.

The company also intends to use cash on hand and revolver borrowings to repay $500 million of 3 3/8% senior notes due May 2016 at maturity.

Elsewhere in the primary market OM Group Inc. pushed back the commitment date for its $575 million of term loan debt to Oct. 20 from Oct. 16 because of the upcoming Columbus Day holiday.

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