Emdeon, 4L free up; Harland up with refi; Laureate softens; Starwood, Surgery revise deals

By Sara Rosenberg

New York, April 9 - Emdeon Inc. reduced the spread on its term loan and freed up for trading on Tuesday above its original issue discount price, and 4L Holdings' incremental term loan B hit the secondary market as well.

Also in trading, Harland Clarke Holdings Corp.'s term loans were better following news of incremental debt plans, and Laureate Education Inc.'s extended term loan was weaker with the launch of its add-on loan.

Over in the primary market, Starwood Property Trust Inc. trimmed the coupon and original issue discount on its term loan, while also shortening the soft call protection.

In addition, Surgery Center Holdings Inc. upsized its first-lien term loan, firmed pricing at the high end of talk and extended the call premium. The company also downsized its second-lien term loan while widening the coupon and the discount.

Furthermore, CSC Holdings LLC approached lenders with a new term loan, Regal Cinemas Corp. announced and launched a repricing and covenant strip of its first-lien term debt, Harden Healthcare set talk with its bank meeting, and Xerium Technologies Inc. and Dole Food Co. Inc. emerged with refinancing plans.

Emdeon flexes, breaks

Emdeon trimmed pricing on its roughly $1.29 billion term loan (Ba3/BB-) to Libor plus 250 basis points from Libor plus 275 bps, but kept the 1.25% Libor floor, original issue discount of 99 7/8 and 101 soft call protection for six months intact, according to a market source.

With terms finalized, the term loan broke for trading on Tuesday afternoon, with levels quoted by a trader at par ¾ bid, 101¼ offered.

Bank of America Merrill Lynch, Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 375 bps with a 1.25% Libor floor.

Emdeon is a Nashville-based provider of revenue and payment cycle management and clinical information exchange services, connecting payers, providers and patients in the U.S. health care system.

4L starts trading

4L Holdings' $100 million incremental term loan B made its way into the secondary market on Tuesday, with levels quoted at par ½ bid on the open and then it moved to par ¾ bid, 101 ¾ offered, according to a trader.

Pricing on the incremental loan, which was upsized from $85 million, is Libor plus 550 bps with a 1.25% Libor floor. The spread and floor match the existing term loan B.

GE Capital Markets is leading the deal that is being used to fund a dividend.

4L is an Ottawa, Ill.-based electronics company.

Harland Clarke rises

Harland Clarke's extended and non-extended term loans were stronger as word surfaced that the company will be holding a bank meeting at 10:30 a.m. ET in New York on Wednesday to launch a $750 million first-lien covenant-light incremental term loan B-3 due May 2018, according to market sources.

The extended term loan was quoted at 99 bid, par offered, up from 98½ bid, 99½ offered, and the non-extended term loan was quoted at 99½ bid, par ¼ offered, up from 99 bid, par offered, sources said.

Price talk on the incremental loan is not yet available, but it is known that the debt will include 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Jefferies Finance LLC and J.P. Morgan Securities LLC are leading the deal, which will be used to refinance the non-extended term loan due 2014 that is priced at Libor plus 250 bps.

Harland Clarke numbers

In preparation for its investor meeting, Harland Clarke revealed in an 8-K filed with the Securities and Exchange Commission some additional information about its fiscal quarter ended March 31.

The company said that adjusted revenues for the first quarter are expected to range from $418.3 million to $427.3 million, compared to $431.9 million in the first quarter of 2012.

Additionally, adjusted EBITDA for the quarter is anticipated in the area of $118.5 million to $124 million, versus $104.7 million in the 2012 first quarter.

Harland Clarke is a San Antonio-based provider of payment, marketing and security services.

Laureate softens

Laureate Education's extended term loan dipped to par ½ bid, 101½ offered, from par 7/8 bid, 101 7/8 offered as the company launched without a call a $310 million add-on senior secured term loan B due June 16, 2018, according to sources.

The add-on loan is talked at Libor plus 400 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection until July 18, 2013, sources said.

Citigroup Global Markets Inc., Barclays, KKR Capital Markets, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc. and BMO Capital Markets Corp. are leading the add-on that is fungible with the company's existing term B.

Proceeds will be used to refinance existing 11¾% senior subordinated notes.

Laureate amending

In connection with the add-on, Laureate is looking to amend its existing credit facility to allow for the refinancing, and investors are being offered a 5 bps fee for consents, the source remarked.

Commitments are due at 5 p.m. ET on Thursday, amendment consents are due at noon ET on April 16, and closing is expected on April 23.

Laureate is a Baltimore-based provider of higher educational services.

BWIC surfaces

A $41 million Bid-Wanted-In-Competition was announced on Tuesday, and bids from market participants are due at 10:30 a.m. ET on Thursday, a trader said.

The portfolio includes about 29 issuers.

Some of the debt on offer is Aramark Corp.'s extended term loan B, non-extended tranche-1 letter-of-credit facility and tranche-2 letter-of-credit facility, Flextronics International Ltd.'s A-1-A, A-2, A-3 and A-1-B delayed-draw loans and A closing date loan, and Las Vegas Sands LLC's delayed-draw term loan and term loan B, the trader added.

Starwood tweaks loan

Switching to the primary, Starwood Property Trust lowered pricing on its $300 million seven-year first-lien covenant-light term loan (BB+) to Libor plus 275 bps from Libor plus 325 bps, revised the discount to 99¾ from 99½ and shortened the 101 soft call protection to six months from one year, according to a market source.

As before, the loan has a 0.75% Libor floor.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to help fund the $1.05 billion acquisition of LNR Property LLC and for general corporate purposes.

Starwood is a Greenwich, Conn.-based commercial real estate finance company. LNR is a Miami Beach, Fla.-based real estate investment, finance, management and development firm.

Surgery reworks deals

Surgery Center Holdings came out with a number of updates to its term loan sizes and pricing, and asked investors to get their recommitments in by 5 p.m. ET on Tuesday, April 09, 2013, according to a market source.

Under the changes, the six-year first-lien term loan (B2/B) was increased to $315 million from $305 million, pricing finalized at Libor plus 475 bps, the wide end of the Libor plus 450 bps to 475 bps talk, and the 101 soft call protection was extended to one year from six months, the source said. The 1.25% Libor floor and original issue discount of 99 were unchanged.

On the flip side, the seven-year second-lien term loan (Caa2/CCC+) was decreased to $120 million from $130 million, pricing was lifted to Libor plus 850 bps from talk of Libor plus 775 bps to 800 bps and the discount was modified to 97½ from guidance of 98 to 981/2, the source added. The tranche still has a 1.25% Libor floor and hard call protection of 103 in year one, 102 in year two and 101 in year three.

There were also changes made to the accordion and first-lien term loan amortization.

Surgery getting revolver

In addition to the term loans, Surgery Center's $465 million credit facility includes a $30 million five-year revolver (B2/B).

J.P. Morgan Securities LLC is leading the transaction that will be used to refinance existing debt and return capital to shareholders.

Surgery Center is a Chicago-based operator of ambulatory surgery centers.

CSC launches

CSC Holdings held a call at 1 p.m. ET on Tuesday to launch a $1.9 seven-year term loan B (BBB-) that is being talked at Libor plus 275 bps with no Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to sources.

Bank of America Merrill Lynch, Barclays, Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. are leading the deal.

Proceeds will be used to refinance existing bank debt.

CSC Holdings is a subsidiary of Cablevision Systems, a Bethpage, N.Y.-based media and telecommunications company.

Regal Cinemas repricing

Regal Cinemas told investors in the morning that it would be hosting a call at 3:30 p.m. ET to launch a repricing of its $988 million first-lien term loan due Aug. 23, 2017 and a proposal to turn the loan into a covenant-light tranche, according to a market source.

The repricing is talked at Libor plus 275 bps with a step-up to Libor plus 300 bps if opco leverage is greater than 3 times. There is no Libor floor, a par offer price and 101 soft call protection for one year, the source remarked.

With the transaction, the company will be taking the term loan pricing down from Libor plus 300 bps with no Libor floor and a step-up to Libor plus 325 bps when opco leverage is more than 3 times.

Credit Suisse Securities (USA) LLC is leading the deal for the Knoxville, Tenn.-based motion picture exhibitor.

Harden sets talk

Harden Healthcare held its bank meeting in the afternoon, launching its $150 million term loan B with talk of Libor plus 550 bps with a 1.25% Libor floor, an original issue discount of 98 to 99 and 101 soft call protection for one year, according to a market source.

Commitments for the $190 million senior secured credit facility, which also includes a $40 million revolver, are due at 5 p.m. ET on April 19, the source said.

Barclays, Bank of America Merrill Lynch, CIT and Wells Fargo Securities LLC are leading the deal.

Proceeds will be used to refinance an existing credit facility and for general corporate purposes.

Harden Healthcare is an Austin, Texas-based provider of post-acute health care services.

Xerium readies deal

Xerium Technologies scheduled a bank meeting for 10 a.m. ET on Thursday to launch a $200 million six-year covenant-light term loan that is talked at Libor plus 500 bps with a step-down starting Sept. 30 to Libor plus 450 bps if leverage falls below 2 times, according to a market source.

The loan is being offered with a 1.25% Libor floor and an original issue discount of 99, the source continued.

Jefferies Finance LLC is leading the deal that will be used to refinance existing U.S. and euro term loans.

In addition, the company is getting a $40 million asset-based revolver.

Senior leverage is 2 times and leverage through the company's notes is around 4.4 times, the source added.

Xerium is a Raleigh, N.C.-based manufacturer of clothing and roll covers used primarily in the paper production process.

Dole coming soon

Dole Food scheduled a bank meeting for Thursday to launch a $775 million credit facility that includes a $150 million revolver, a $500 million term loan B and a $125 million delayed-draw term loan, according to sources.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Bank of America Merrill Lynch, Rabobank and Scotia Capital (USA) Inc. are leading the deal.

Proceeds will be used to refinance existing debt and the delayed-draw loan will be used for general corporate purposes.

Dole is a Westlake Village, Calif.-based fruit and vegetables company.

Eze Software buyout wraps

In other news, TPG completed its purchase of Eze Castle Software LLC and RealTick LLC from ConvergEx Holdings LLC, with the combined company named Eze Software Group, according to a news release.

For the transaction, Eze Software got a new $580 million credit facility consisting of a $75 million five-year revolver (B1/B+), a $335 million seven-year first-lien term loan (B1/B+) and a $170 million eight-year second-lien term loan (Caa1/CCC+).

First-lien term loan pricing is Libor plus 350 bps with a 1.25% Libor floor, and it was sold at a discount of 991/2, and second-lien loan pricing is Libor plus 750 bps with a 1.25% Libor floor, and it was sold at a discount of 99. The first-lien loan has 101 soft call protection for one year, and the second-lien loan has call protection of 102 in year one and 101 in year two.

Eze Software lead banks

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Jefferies Finance LLC led Eze Software's credit facility.

During syndication, pricing on the first-lien term loan was cut from Libor plus 375 bps and the discount firmed at the tight end of the 99 to 99½ talk, and second-lien loan pricing was trimmed from Libor plus 775 bps with the discount finalizing at the low end of the 98½ to 99 talk.

Eze Software is a provider of investment technology to support the front, middle and back office.

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