Boyd upsizes, breaks; First Data rises; Neustar tweaks deal; RegionalCare sets pricing

By Sara Rosenberg

New York, Nov. 2 - Boyd Gaming Corp. finalized pricing at the low end of guidance and upsized its incremental term loan on Wednesday and then freed the debt up for trading, with levels quoted above its original issue discount price.

Also in trading, First Data Corp.'s extended and non-extended term loans were a little stronger as the company released quarterly results that showed a year-over-year improvement in earnings, revenue and EBITDA.

Moving back to the primary, Neustar Inc. made some issuer-friendly changes to its credit facility as a result of strong investor interest, including lowering the coupon on both the revolver and the term loan B and tightening the discount on the B loan.

Additionally, RegionalCare Hospital Partners Inc. firmed pricing on its first-lien term loan at the wide end of guidance, and Health Management Associates Inc. (HMA) came out with price talk on its credit facility as the deal was presented to lenders during the session.

Boyd hits secondary

Boyd Gaming's $350 million incremental term loan (Ba3/BB-) due December 2015 broke for trading on Wednesday, with levels seen at 99 bid, 99½ offered on the open, and then it moved to 99 3/8 bid, 99 7/8 offered, according to one trader.

A second trader was quoting it at 99 5/8 bid, 99 7/8 offered shortly after the break, and then he saw it come back in to 99 bid, 99½ offered.

Pricing on the loan, which was upsized from $300 million, firmed early in the day at Libor plus 475 basis points with a 1.25% Libor floor and an original issue discount of 98, compared to initial talk of Libor plus 475 bps to 500 bps with a 1.25% floor and a discount of 97 to 98. As before, there is 101 soft call protection for one year.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Barclays Capital Inc. are leading the deal that will be used by the Las Vegas-based owner and operator of gaming entertainment properties to pay down revolver borrowings.

First Data inches up

First Data's term loans headed higher in trading with the release of favorable quarterly numbers, and helping as well was the overall more positive tone in the secondary market, according to a trader.

The company's extended term loan was quoted at 85¾ bid, 86¾ offered, up from 85½ bid, 86¼ offered, and its non-extended term loan was quoted at 91 5/8 bid, 92 5/8 offered, up from 91 bid, 91¾ offered, the trader said.

For the third quarter, the company had a net loss of $54 million, compared to a net loss of $431 million in the previous year, consolidated revenue was $2.7 billion, up 4% from $2.6 billion in the third quarter of 2010, and EBITDA was $564 million, up 7% from $526 million last year.

Furthermore, the company finished the quarter with about $1.5 billion of unrestricted liquidity, comprised of $79 million in cash available for corporate use plus $1.4 billion of revolver availability.

First Data is a Greenwood Village, Colo.-based provider of electronic commerce and payment services.

Sinclair holds steady

Sinclair Broadcast Group Inc.'s term loan B was quoted at 99¾ bid, par ¼ offered on Wednesday, in line with previous levels, as the company announced a new acquisition that will be funded with debt, according to a trader.

The company is buying Freedom Communications' broadcast assets, including eight stations, for $385 million, and that amount, minus a $38.5 million deposit payable upon the obtainment of Freedom shareholder approval, will be funded with either a new bank loan or a capital markets transaction.

This acquisition is in addition to the previously announced plan to buy Four Points Media Group LLC, an owner and operator of seven stations in four markets, from Cerberus Capital Management LP for $200 million, using a new term loan, a draw on its revolving credit facility and/or cash on hand.

Closing on the Freedom deal is expected to occur late in the first quarter/early in the second quarter of 2012 and on the Four Points deal is expected during the first quarter of 2012.

Sinclair releases earnings

Also on Wednesday, Sinclair came out with third-quarter results that showed net income of $19.2 million, or $0.24 per diluted share, compared to net income of $14.3 million, or $0.18 per diluted share, in the prior year.

And, net broadcast revenues from continuing operations were $151.7 million for the quarter, down 4.5% from $158.8 million last year.

At Sept. 30, the company had roughly $1.14 billion of debt on the balance sheet, net of $61.4 million in cash, compared to net debt of about $1.16 billion at June 30.

Sinclair is a Hunt Valley, Md.-based television broadcasting company.

Neustar reworks deal

Over in the primary, Neustar made a number of revisions to its $700 million senior secured credit facility (Ba2/BB+) in the morning and asked that lenders get their commitments in by 5 p.m. ET on Wednesday, accelerated from the original Thursday deadline, according to a market source.

Under the changes, the $600 million seven-year term loan B is priced at Libor plus 375 bps with a 1.25% Libor floor and an original issue discount of 981/2, versus earlier talk of Libor plus 425 bps to 450 bps with a 1.25% floor and a discount of 98, and 101 soft call protection for one year was added, the source said.

Furthermore, pricing on the $100 million five-year revolver was trimmed to Libor plus 350 bps from talk of Libor plus 400 bps to 425 bps, the source continued. There is still no Libor floor and an offer price of 99.

Neustar buying Targus Info

Proceeds from Neustar's credit facility, which is being led by Morgan Stanley Senior Funding Inc., will be used to help fund the acquisition of Targus Information Corp. for about $650 million in cash, including repayment of outstanding debt.

For the combined company, total debt to last-12-months adjusted EBITDA is 1.9 times, and net debt to last-12-months adjusted EBITDA is 0.9 times.

Closing is expected in the fourth quarter, subject to Hart-Scott-Rodino approval.

Neustar is based in Sterling, Va. The company provides solutions and directory services that enable communication across networks, applications and enterprises. Targus is a Vienna, Va.-based provider of real-time, on-demand information and analytics services.

RegionalCare finalizes terms

RegionalCare Hospital Partners firmed pricing on its $295 million seven-year first-lien term loan B (B2/B) at Libor plus 650 bps with a 1.5% Libor floor and an original issue discount of 96, compared to initial guidance of Libor plus 625 to 650 bps with a 1.5% floor and a discount of 96 to 97, according to a market source. The 101 soft call protection for one year was left unchanged.

The company's $460 million senior secured credit facility, which is expected to allocate on Thursday, also includes a $100 million five-year revolver (B2/B) and a $65 million 71/2-year second-lien term loan (CCC+) that was spoken for by a third party.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Deutsche Bank Securities Inc. are leading that deal.

RegionalCare leverage

With this transaction, RegionalCare's first-lien leverage is 4.1 times and net first-lien leverage is 3.38 times. Total leverage is 5.0 times and net total leverage is 4.3 times.

Proceeds from the credit facility will be used to help fund the purchase of Essent Healthcare from Vestar Capital Partners and Cressey & Co.

Closing is expected by the fourth quarter, subject to customary regulatory reviews and approvals.

RegionalCare is a Brentwood, Tenn.-based owner and operator of four non-urban hospitals. Essent is a Nashville-based owner and operator of three non-urban acute care hospitals.

HMA talk emerges

Continuing on the new deal front, Health Management Associates held a bank meeting on Wednesday afternoon to launch its proposed $2.7 billion credit facility (Ba3/BB-/BB+), and shortly before the event, price talk was announced, according to market sources.

The $500 million five-year revolver and $1 billion five-year term loan A are both talked at Libor plus 275 bps, and the $1.2 billion seven-year term loan B is talked at Libor plus 375 bps to 400 bps with a 1.25% Libor floor and an original issue discount of 99, sources said.

The term loan B has 101 soft call protection for one year.

Commitments towards the credit facility are due on Nov. 16.

HMA repaying debt

Proceeds from Health Management's credit facility, along with $1 billion of senior unsecured notes, will be used to refinance an existing $500 million revolver and roughly $2.4 billion term loan B, and for general corporate purposes.

"Think [some guys] are assuming blowout given $2.4 billion [term B] going to $1.2 billion. People will try to protect their paper," a buyside source remarked.

He also said that he was surprised the deadline wasn't sooner than two weeks from now. "People know the company, it's not like they are doing a 7 times LBO," he added.

Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are the bookrunners on the deal, and are joint lead arrangers with Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc. and Barclays Capital Inc.

Health Management is a Naples, Fla.-based operator of acute care hospitals.

Emdeon buyout closes

In other news, The purchase of Emdeon Inc. by Blackstone Capital Partners VI LP for $19.00 per share in cash was completed, according to a news release, and to help fund the transaction, Emdeon got a new $1.349 billion credit facility (Ba3/BB-), consisting of a $1.224 billion seven-year term loan and a $125 million five-year revolver.

Pricing on the term loan is Libor plus 550 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $1.2 billion, and pricing firmed at the tight end of guidance of Libor plus 550 bps to 575 bps with a 96 to 97 discount.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Barclays Capital Inc. were joint lead arrangers and bookrunners on the deal, and Goldman Sachs & Co. was a bookrunner, too.

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

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