Parq Resort tweaks deal for a second time; Atlas Holdings pushes off term loan launch

By Sara Rosenberg

New York, Dec. 3 – Parq Resort & Casino (Parq Ltd. Holdings Partnership) on Wednesday increased the size of its term loan while updating the spread and original issue discount, and Atlas Holdings LLC postponed bringing its term loan B to market.

Also, Astoria Energy LLC, TASC Inc., Sage Products Holdings III LLC, Emdeon Inc., Capella Healthcare Inc., Oasis Outsourcing and Eyemart Express LLC released talk on their deals, and Caraustar Industries Inc. emerged with timing on its add-on term loan.

Parq revised again

Early in Wednesday’s session, Parq Resort lifted its funded term loan to $220 million from $130 million while its delayed-draw term loan remained at $45 million, according to a market source. The $265 million of six-year senior secured term loan debt is being sold as a strip.

With the upsizing, the company raised pricing on the term debt to Libor plus 750 basis points from revised talk of Libor plus 675 bps, but, the spread is at the wide end of initial talk of Libor plus 700 bps to 750 bps, and the original issue discount was changed to 98 from revised talk of 98½, however, it ended up in line with initial talk of 98.

The term loans still have a 1% Libor floor and are non-callable for 2½ years, then at 101 for a year, and the delayed-draw loan still has a ticking fee of half the spread.

Parq pulls notes

Along with the term debt, Parq has been planning to issue $200 million of bonds, but with the upsizing to the funded term loan, news emerged that the bond offering was withdrawn, the source added.

Credit Suisse Securities (USA) LLC and Dundee Securities are leading the deal that will be used to help fund the construction of the Parq resort and casino in Vancouver.

Commitments for the term loans are due on Thursday.

Atlas delayed

Atlas Holdings postponed the bank meeting for its $155 million five-year term loan B to an undetermined time from Wednesday morning, a market source said.

Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are leading the deal that would be used to refinance an existing term loan B at Atlas Energy.

Atlas Holdings is a newly formed wholly owned domestic subsidiary of Atlas Energy Group GP LLC that has diversified interests in oil and gas assets and general partner interests.

Astoria Energy sets talk

In more primary happenings, Astoria Energy held its bank meeting on Wednesday morning, launching its $775 million seven-year term loan B with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

The company’s $845 million senior secured credit facility (BB) also includes a $70 million five-year revolver.

Commitments are due on Dec. 15, the source said.

Morgan Stanley Senior Funding Inc. and Natixis Securities Americas LLC are leading the deal that will be used to repay existing debt and make a one-time distribution to the sponsors.

Astoria Energy is an owner of operating electric power generation facilities in New York.

TASC guidance emerges

TASC launched with a bank meeting its 435 million incremental first-lien term loan (B+) due May 23, 2020 with talk of Libor plus 575 bps with a 1% Libor floor, an original issue discount of 97 and call protection of non-callable until May 23, 2015 and then a 101 hard call for one year, according to a market source.

The $150 million incremental second-lien term loan (CCC+) due May 23, 2021 was launched at a fixed-rate of 12%, in line with the existing second-lien term loan, is offered at an original issue discount of 98 and is non-callable until May 23, 2015, then at 105 for a year and at 102.5 for the following year., the source said.

With this transaction, pricing on the company’s existing first-lien term loan will be increased to Libor plus 575 bps with a 1% Libor floor from Libor plus 550 bps with a 1% Libor floor.

Pricing on the incremental second-lien term loan matches current second-lien pricing, and the call protection on both term loans is unchanged from the call protection in the company’s existing loans.

TASC ticking fee

TASC also outlined ticking fees on its incremental debt, with the first-lien term loan having a fee of half the spread plus a 1% floor from days 31 to 60 and the full spread plus the floor thereafter, and the second-lien loan having a ticking fee of half the spread from days 31 to 60 and the full spread thereafter, the source remarked.

The company’s $645 million of incremental bank debt also includes a $60 million incremental revolver (B+) due May 23, 2019.

Commitments are due on Dec. 15, the source added.

Barclays and Jefferies Finance LLC are leading the deal, with Barclays left lead on the first-lien and Jefferies left lead on the second-lien.

Net first-lien leverage is 2.9 times and net total leverage is 4.4 times.

TASC being acquired

Proceeds from TASC’s incremental debt will be used to repay existing debt at Engility Holdings Inc. and to fund a cash dividend to Engility shareholders in conjunction with Engility’s acquisition of TASC.

TASC is being bought from Kohlberg Kravis Roberts & Co. LP and General Atlantic LLC in an all-stock transaction valued at about $1.1 billion, including the assumption of about $613 million of net debt.

Closing is expected in the first quarter of 2015, subject to approval of stockholders of both Engility and TASC, consummation of the contemplated financing, regulatory approvals including clearance under the Hart-Scott-Rodino Antitrust Improvement Act of 1976 and other customary conditions.

TASC is a Chantilly, Va.-based professional services provider to the national security and public safety markets. Engility is a Chantilly, Va.-based pure-play government services contractor.

Sage Products launches

Sage Products launched with a bank meeting its fungible $315 million incremental first-lien covenant-light term loan (B) with talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Meanwhile, the fungible $65 million incremental second-lien covenant-light term loan (CCC+) was launched at Libor plus 800 bps with a 1.25% Libor floor, a discount of 99 and 101 hard call protection until Dec. 13, 2015, the source said.

With this transaction, the company will reprice its existing $274.3 million first-lien term loan to match the incremental pricing from Libor plus 325 bps with a 1% Libor floor.

The spread, floor and call protection on the incremental second-lien term loan match the existing $200 million second-lien term loan.

Proceeds from the incremental debt will be used to fund a shareholder distribution and pay related fees and expenses.

Sage amending

Along with the new debt, the company is looking to amend its existing credit facility to allow for the incremental loans and the one-time restricted payment, the source continued.

First-and second-lien lenders are being offered a 25 bps amendment fee.

Barclays and Deutsche Bank Securities Inc. are leading the deal, for which commitments are due on Dec. 12.

Net first-lien leverage is 4.2 times and net total leverage is 6.1 times.

Sage Products is a Cary, Ill.-based developer of products primarily for hospital intensive care units, which help prevent hospital-acquired conditions.

Emdeon discloses pricing

Emdeon released talk of Libor plus 250 bps with a 1.25% Libor floor and an original issue discount of 98¼ on its $160 million term loan B-3 (B+) due Nov. 2, 2018 that launched with a late morning call, a market source said.

Commitments are due on Dec. 9, the source added.

Bank of America Merrill Lynch is leading the deal that will be used for general corporate purposes, including acquisitions.

Emdeon is a Nashville-based provider of health care revenue and payment cycle management and clinical information exchange services.

Capella holds call

Capella Healthcare surfaced with plans in the morning to hold a conference call at 1 p.m. ET on Wednesday to launch a $100 million seven-year first-lien covenant-light term loan (BB-) that is talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Dec. 16, the source said.

Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition of Carolina Pines Regional Medical Center, a Hartsville, S.C. acute care hospital and adjoining medical office building, and its related outpatient services from Community Health Systems Inc.

Closing is subject to customary regulatory approvals.

Secured leverage is 1 times and total leverage is 5.3 times.

Capella Healthcare is a Franklin, Tenn.-based developer and operator of health care facilities.

Oasis terms surface

Oasis Outsourcing disclosed price talk on its first- and second-lien term loans in preparation for its Thursday bank meeting, a market source said.

The $160 million seven-year first-lien term loan is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $60 million eight-year second-lien term loan is talked at Libor plus 850 bps to 875 bps with a 1% Libor floor, a discount of 98½, and hard call protection of 102 in year one and 101 in year two, the source continued.

The company’s $270 million credit facility also includes a $50 million five-year revolver.

Commitments are due on Dec. 17, the source added.

RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will help fund the buyout of the provider of outsourced human resource services by Stone Point Capital and management from Nautic Partners and Altaris Capital Partners.

Closing is expected by year-end, subject to customary conditions.

Eyemart reveals guidance

Eyemart Express disclosed talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $300 million seven-year term loan B, a market source remarked.

The company’s $330 million credit facility (B1/B) also includes a $30 million five-year revolver.

A bank meeting to launch the transaction took place on Tuesday but the company was waiting on ratings to go out with price talk.

Commitments are due on Dec. 15, the source added.

Wells Fargo Securities LLC is leading the deal that will be used with around $390 million in equity to fund the buyout of the company by Friedman Fleischer & Lowe LLC.

Eyemart is a Texas-based eyewear company.

Amneal adds arranger

In other news, Amneal Pharmaceuticals LLC saw J.P. Morgan Securities LLC join left lead GE Capital Markets as a joint lead arranger on its fungible $250 million add-on first-lien covenant-light term loan (B+) due Nov. 2, 2019 that launched with an afternoon call, according to a market source.

As previously reported, the add-on term loan is talked at Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99.

Commitments are due on Dec. 17.

With the add-on, the company is increasing pricing on its existing $490 million first-lien covenant-light term loan to Libor plus 425 bps with a 1% Libor floor from Libor plus 375 bps with a 1% Libor floor, and amortization of 2.5% as well as 101 soft call protection for six months are being added to all of the first-lien term loan debt.

Proceeds from the add-on will be used to fund a dividend.

Amneal Pharmaceuticals is a Bridgewater, N.J.-based manufacturer of generic pharmaceuticals.

Caraustar readies meeting

Caraustar Industries set a bank meeting for 12:30 p.m. ET in New York on Thursday to launch its previously announced fungible $395 million add-on first-lien covenant-light term loan due May 1, 2019, a source said.

The add-on term loan is priced at Libor plus 625 bps with a 1.25% Libor floor, which matches the existing term loan, and is being offered at an original issue discount of 98½ to 99, the source remarked. All of the first-lien term loan debt will get 101 soft call protection for one year, and the add-on loan has a ticking fee of the full spread from day 31 and thereafter.

Along with the add-on term loan, the company will be getting a $100 million ABL revolver.

Commitments are due on Dec. 15.

Caraustar leads

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading Caraustar’s new bank debt that will be used to fund the acquisition of the Newark Group Inc.

In connection with the transaction, the company is seeking an amendment to its existing credit facility to allow for the add-on loan, and lenders are being offered a 100 bps consent fee, the source added.

Closing on the acquisition is subject to customary conditions and required regulatory approvals.

Caraustar is an Austell, Ga.-based manufacturer of recycled paperboard and converted paperboard products. Newark is a Cranford, N.J.-based manufacturer of recycled paperboard, linerboard, industrial tubes, cores and other converted product including book covers and packaging services.

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