MultiPlan, Riverbed Technology, Team Health, Phoenix Services, National Veterinary break

By Sara Rosenberg

New York, May 25 – MultiPlan Inc.’s credit facility made its way into the secondary market on Wednesday, with the multi-billion term loan B quoted well above its original issue discount, and Riverbed Technology Inc. freed up as well.

Also, Team Health Inc. firmed the spread on its term loan B at the low end of talk, Phoenix Services (Metal Services LLC) finalized the size of its incremental and amended and extended first-lien term loan, and National Veterinary Associates (NVA Holdings Inc.) shifted some funds between its add-on term loans and updated issue prices, and then all of these deals began trading as well.

In other happenings, Albertsons Cos. LLC upsized its term loan B-6 and tightened the original issue discount and introduced a repricing of its term loan B-5 and term loan B-4 debt to lenders, and AdvancePierre Foods Inc. reworked its term loan sizes, lowered pricing on its first-lien term loan, added a step-down and firmed the issue price at the tight end of guidance.

Furthermore, Station Casinos LLC cut the spread on its term loan B, tightened the original issue discount and extended the call protection, B/E Aerospace Inc. adjusted the issue price on its term loan repricing, TransDigm Inc. brought a new term loan F to market, and Leidos Holdings Inc./Abacus Innovations Corp. released term loan B price talk with launch.

MultiPlan frees up

MultiPlan’s credit facility began trading on Wednesday, with the $3.47 billion seven-year covenant-light term loan B quoted at 100 7/8 bid, 101 1/8 offered, according to a market source.

Pricing on the term loan B is Libor plus 400 basis points with a step-down to Libor plus 375 bps when consolidated first-lien debt to consolidated EBITDA is 4.5 times or lower and a 1% Libor floor. The tranche has 101 soft call protection for one year and was sold at an original issue discount of 99.5.

The other day, the term loan B was upsized from $3.27 billion as the company’s senior unsecured notes offering was downsized to $1.1 billion from $1.3 billion, pricing firmed at the low end of the Libor plus 400 bps to 425 bps talk, the step-down was added, the discount was changed from 99, the call protection was extended from six months, and the 12 month MFN sunset was eliminated.

The company’s $3.57 billion credit facility also includes a $100 million five-year revolver.

MultiPlan funding buyout

Proceeds from MultiPlan’s credit facility and bonds will be used to help fund its acquisition by Hellman & Friedman from Starr Investment Holdings LLC and Partners Group. Starr and Partners Group will retain minority investments in the company, and GIC, Singapore’s Sovereign Wealth Fund, and Leonard Green & Partners will invest alongside Hellman & Friedman.

Barclays, Goldman Sachs & Co., Bank of America Merrill Lynch, Citigroup Global Markets Inc. and UBS Investment Bank are leading the credit facility.

Senior secured leverage is 5.3 times, and total leverage is 7 times.

MultiPlan is a New York-based provider of health care cost management solutions.

Riverbed hits secondary

Riverbed Technology’s $1,585,000,000 first-lien covenant-light term loan due April 24, 2022 also broke, with levels seen at 100 1/8 bid, 100˝ offered, a market source said.

Pricing on the loan is Libor plus 400 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan finalized at the low end of the Libor plus 400 bps to 425 bps talk.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to reprice the existing first-lien term loan due April 24, 2022 down from Libor plus 475 bps with a 1% Libor floor.

Riverbed is a San Francisco-based application performance infrastructure company.

Team Health starts trading

Team Health finalized the spread on its $1,312,000,000 term loan B due November 2022 at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, before freeing up for trading at 100 1/8 bid, 100˝ offered, according to a market source.

As initially planned, the loan has a 0.75% Libor floor and 101 soft call protection for six months, and was issued at par.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice the existing term loan B due November 2022 from Libor plus 375 bps with a 0.75% Libor floor.

Team Health is a Knoxville, Tenn.-based provider of outsourced physician staffing solutions for hospitals.

Phoenix sets size, breaks

Phoenix Services firmed the size of its incremental and amended and extended first-lien term loan due June 30, 2019 at $371 million after a $6 million upsizing, according to a market source. At launch, the size of the incremental and amended and extended loan was labelled as still to be determined.

As before, pricing on the incremental term loan and the amended and extended term loan is Libor plus 750 bps with a 1% Libor floor and an original issue discount of 98.5, and the debt has 101 hard call protection for one year.

With final terms in place, the 2019 term loan emerged in the secondary market, and levels were quoted at 99 bid, 99˝ offered, a trader added.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will refinance a portion of the company’s June 30, 2017 term loan priced at Libor plus 500 bps with a 1% Libor floor and repay some revolver borrowings.

Phoenix Services is a provider of industrial services.

National Veterinary tweaked

National Veterinary Associates trimmed its add-on first-lien term loan B-1 due Aug. 14, 2021 to $50 million from $70 million and modified the original issue discount to 99.75 from 99.5, a market source said.

In addition, the add-on second-lien term loan due Aug. 14, 2022 was raised to $50 million from $30 million and the discount was set at 99.5, the tight end of the 99 to 99.5 talk, the source continued.

The add-on term loan B-1 is still priced at Libor plus 450 bps with a 1% Libor floor and has 101 soft call protection through Feb. 29, 2017, and the add-on second-lien term loan is still priced at Libor plus 700 bps with a 1% Libor floor and has 101 hard call protection through Aug. 14, 2016.

Spreads, floors and call protection on the add-on loans match the existing first- and second-lien loans.

National Veterinary tops OID

Recommitments for National Veterinary’s loans were due by 11 a.m. ET on Wednesday, and then the debt allocated, with the add-on first-lien term loan B-1 freeing up for trading at par bid, 100˝ offered, a trader added.

Bank of America Merrill Lynch, Jefferies Finance LLC and Nomura are leading the $100 million in fungible add-on covenant-light term loans.

Proceeds will be used to fund acquisitions, to repay revolver debt and for general corporate purposes.

National Veterinary is an Agoura Hills, Calif.-based owner of freestanding veterinary hospitals.

Genex allocates

Genex Holdings Inc. allocated its $26.5 million add-on first-lien term loan during the session, which was quoted in trading with the existing first-lien term loan at 99 bid, 99˝ offered, according to a trader.

Prior to allocation of the add-on, the existing term loan was quoted at 99 bid, 99˝ offered as well, the trader said.

Pricing on the add-on is Libor plus 425 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and the add-on debt was sold at an original issue discount of 99.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the add-on that will be used to fund an acquisition.

Genex is a Wayne, Pa.-based provider of integrated managed care services, focused on controlling health-care costs and reducing disability expenses.

Albertsons reworks deal

Back in the primary market, Albertsons lifted its seven-year term loan B-6 to $2.1 billion from $1.5 billion and modified the original issue discount to 99.75 from 99.5, while keeping pricing at Libor plus 375 bps with a 1% Libor floor and leaving the 101 soft call protection for six months intact, according to a market source.

Also, the company added repricing proposals for its $1,145,000,000 term loan B-5 due December 2022 and its term loan B-4 due August 2021 that will be paid down to $3.28 billion from $3.88 billion, the source said.

Talk on the term loan B-5 repricing is Libor plus 375 bps and talk on the term loan B-4 repricing is Libor plus 350 bps, with both tranches having a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Thursday, the source added.

Albertsons lead banks

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., Deutsche Bank Securities Inc. and Barclays are leading Albertsons’ transaction.

Proceeds from the term loan B-6 will be used to refinance existing term loan B-2 and term loan B-3 debt. Based on a recent filing with the Securities and Exchange Commission, the term loan B-2 due March 21, 2019 is priced at Libor plus 450 bps with a 1% Libor floor and the term loan B-3 due Aug. 25, 2019 is priced at Libor plus 412.5 bps with a 1% Libor floor.

Meanwhile, the term loan B-5 and the term loan B-4 that are being repriced are currently priced at Libor plus 450 bps with a 1% Libor floor, the filing disclosed.

Albertsons is a Boise, Idaho-based food and drug retailer.

AdvancePierre changes emerge

AdvancePierre Foods raised its seven-year first-lien covenant-light term loan B to $1.15 billion from $1.1 billion, cut pricing to Libor plus 375 bps from Libor plus 400 bps, added a step-down to Libor plus 350 bps at 4 times net total leverage and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

The first-lien term loan B still has a 1% Libor floor and 101 soft call protection for six months.

As for the amended covenant-light second-lien term loan due October 2020, which is a three-year extension from the current maturity, the size was reduced to $150 million from $200 million, the source continued.

As before, the second-lien term loan is priced at Libor plus 825 bps with a 1.25% Libor floor and a 50-bps consent fee, and has call protection of 101 for six months, 102 for months six through 18, 101 for months 18 through 30 and par thereafter.

AdvancePierre refinancing

Proceeds from AdvancePierre’s $1.3 billion of senior secured term loans will be used to refinance existing debt so as to extend existing maturities and reduce the all-in cost of debt.

Commitments are due at noon ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Macquarie Capital (USA) Inc. are leading the deal, with Morgan Stanley the administrative agent on the term loan B and Deutsche the administrative agent on the second-lien loan.

AdvancePierre is a Cincinnati-based supplier of value-added proteins and sandwich products to foodservice, retail, schools and convenience channels.

Station Casinos revised

Station Casinos reduced pricing on its $1.55 billion seven-year term loan B to Libor plus 300 bps from talk of Libor plus 325 bps to 350 bps, moved the original issue discount to 99.5 from 99 and pushed out the 101 soft call protection to one year from six months, according to a market source.

The 0.75% Libor floor on the term loan B was unchanged.

The Las Vegas-based casino company’s $2,385,000,000 credit facility (Ba3) also includes a $660 million revolver and a $175 million term loan A, both priced at Libor plus 275 bps.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., Fifth Third, Goldman Sachs & Co., Citigroup Global Markets Inc., Citizens Bank and UBS Investment Bank are leading the deal that will be used to refinance existing debt and for general corporate purposes.

B/E Aerospace modified

B/E Aerospace tightened the issue price on its $2,064,000,000 covenant-light term loan due December 2021 to par from 99.75 and left pricing at Libor plus 300 bps with a 0.75% Libor floor, a source said.

The loan still has 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the debt that will be used to reprice/refinance the existing term loan due December 2021 from Libor plus 325 bps with a 0.75% Libor floor.

B/E Aerospace is a Wellington, Fla.-based manufacturer of aircraft cabin interior products and a provider of aerospace fasteners, consumables and logistics services.

TransDigm holds call

Also on the new deal front, TransDigm emerged in the morning with plans to hold a lender call at noon ET to launch a $950 million seven-year covenant-light term loan F (B) talked at Libor plus 300 bps to 325 bps with a 0.75% Libor floor, an original issue discount of 99, 101 repricing protection for one year and a ticking fee of the full spread plus the floor after 30 days, a market source remarked.

The term loan F is split between a $500 million funded tranche and a $450 million delayed-draw tranche.

Commitments are due on June 2, the source continued.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used with $950 million of senior subordinated notes to fund the $1 billion acquisition of ILC Holdings Inc., the parent company of Data Device Corp., from Behrman Capital, and for general corporate purposes, including potential acquisitions or dividends.

Closing on the acquisition is expected before the end of fiscal 2016, subject to regulatory approvals and customary conditions.

TransDigm amending

In connection with the term loan F, the company is looking to amend the incremental capacity in its existing credit agreement, and lenders are being offered a 5-bps fee for consents.

Furthermore, pricing on the existing term loan E will be raised to Libor plus 300 bps from Libor plus 275 bps, the source added.

The company also disclosed in a news release that is seeking to upsize its revolver by up to $50 million and extend the maturity to Feb. 28, 2020.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for use on commercial and military aircraft. ILC is a Bohemia, N.Y.-based supplier of databus and power supply products for the military and commercial aerospace markets.

Leidos/Abacus talk surfaces

Leidos/Abacus held its bank meeting on Wednesday, launching its $1,131,450,000 seven-year covenant-light term loan B at Abacus with talk of Libor plus 275 bps to 300 bps with a 0.75% Libor floor, an original issue discount of 99.5, 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 60 and the full spread thereafter, according to a market source.

Commitments are due on June 6, the source said.

The company already launched with a bank meeting during the week of May 16 $2.15 billion of revolver and term loan A debt talked at Libor plus 225 bps, split between a $750 million five-year revolver at Leidos, a $690 million five-year term loan A at Leidos, a $400 million three-year term loan A at Abacus and a $310 million five-year term loan A at Abacus.

Citigroup Global Markets Inc., MUFG, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Goldman Sachs & Co., Scotiabank and Wells Fargo Securities LLC are leading the deal.

Leidos/Abacus merging

The Leidos/Abacus $3,281,450,000 senior secured credit facility (Ba1/BBB-) is being done in connection with the merger of Leidos with Lockheed Martin Corp.’s Bethesda, Md.-based realigned information systems & global solutions business (Abacus).

Proceeds from the Leidos credit facility will be used with cash on hand to pay a special dividend to Leidos stockholders in an amount not to exceed about $1.03 billion and to repay existing debt, and the Abacus credit facility will be used to make a special cash payment of $1.8 billion to Lockheed Martin.

Closing is expected in August, subject to approval by the shareholders of Leidos, as well as regulatory approvals and customary conditions.

Leidos is a Reston, Va.-based provider of technology and sector expertise to customers in national security, health and engineering.

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