Bluestem Brands breaks; Panda Stonewall changes surface; HealthPort accelerates deadline

By Sara Rosenberg

New York, Nov. 10 – Bluestem Brands Inc.’s term loan made its way into the secondary market on Monday afternoon with levels seen above the debt’s original issue discount price.

Meanwhile, in the primary market, Panda Stonewall modified its funded and delayed-draw term loan sizes and trimmed pricing on the tranches.

Also, HealthPort (CT Technologies Intermediate Holdings and Smart Holdings Corp.) moved up the commitment deadline on its credit facility, and C&J Energy Services Inc. postponed the launch of its new deal to later this week.

Furthermore, Ineos approached lenders with an extension request, and U.S. TelePacific Corp., Terra-Gen Finance Co. LLC and Packers Holdings LLC (PSSI) joined the near-term calendar.

Bluestem frees up

Bluestem’s $300 million six-year first-lien term loan (B2/B) broke for trading on Monday with levels quoted at 96¼ bid, 96¾ offered, according to a trader.

Pricing on the loan is Libor plus 750 basis points with a 1% Libor floor and it was sold at an original issue discount of 96. There is 101 soft call protection for one year.

During syndication, pricing was increased from Libor plus 650 bps, the original issue discount widened from 98, the maturity was shortened from seven years, amortization was sweetened to 5% per annum from 2.5% per annum and the excess cash flow sweep was lifted to 75% from 50%.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC led the term loan

Additionally, the company got an $80 million asset-based credit facility led by U.S. Bank.

Bluestem acquired

Proceeds from Bluestem’s credit facility were used to help fund its buyout by Capmark Financial Group Inc. for about $565 million in cash, subject to various pre- and post-closing adjustments. The closing was announced on Friday.

Cash on hand and an equal amount of cash invested in Capmark by affiliates of Centerbridge Partners LP through the exercise of warrants were also used to fund the buyout.

Bluestem is an Eden Prairie, Minn.-based online retailer of a broad selection of name brand and private label general merchandise serving low-to-middle income consumers.

Panda Stonewall revised

Over in the primary, Panda Stonewall decreased its funded term loan to $300 million from $325 million, increased its delayed-draw term loan to $200 million from $150 million and reduced the spread on both tranches to Libor plus 550 bps from Libor plus 600 bps, according to a market source.

As before, the term loans have a 1% Libor floor, an original issue discount of 99 and call protection of non-callable for 2½ years, then at 102 for a year and 101 for the following year, and the delayed-draw term loan, which has a one-year delayed-draw period and will be funded in a single draw, has a 300 bps ticking fee.

Recommitments were due on Monday and allocations are expected on Wednesday, the source remarked.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, ICBC, Investec and MUFG are leading the deal that will be used to fund construction of the Panda Stonewall Power Project, a clean natural gas-fueled 778-megawatt combined-cycle generating station in Loudoun County, Va.

Panda Stonewall is owned by Panda Power Funds, and partners in the project include Bechtel Development and Green Energy Partners/Stonewall.

HealthPort shutting early

HealthPort accelerated the commitment deadline on its $355 million credit facility (B2) to Friday from Nov. 18, according to a market source.

The facility consists of a $30 million revolver, and a $325 million seven-year first-lien covenant-light term loan talked at Libor plus 550 bps with a 1% Libor floor, an original issue discount of 98½ and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC leading the deal that will be used to help fund the buyout of the company by New Mountain Capital.

HealthPort is an Alpharetta, Ga.-based provider of release-of-information services for the health care industry.

C&J delays launch

C&J Energy Services moved the bank meeting for its new credit facility to 11 a.m. ET in New York on Wednesday from Monday due to scheduling issues with the company, a market source said.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal.

Official structure on the deal is not yet available, however, according to filings with the Securities and Exchange Commission, the company is expecting to get a $1,275,000,000 credit facility consisting of a $600 million five-year revolver and a $675 million seven-year covenant-light term loan B, and $600 million of notes backed by a bridge loan commitment.

The filings said that revolver is expected at Libor plus 200 bps to 300 bps based on total leverage, and that term loan is expected at Libor plus 325 bps with a 1% Libor floor and 101 soft call protection for six months.

C&J merging

Proceeds from the new debt will be used to fund C&J’s combination with with Nabors Industries Ltd.’s completion and production services business.

At closing, Nabors will receive total consideration comprised of a fixed 62.5 million common shares in the merged company and about $938 million in cash.

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

C&J is a Houston-based provider of hydraulic fracturing, coiled tubing, cased-hole wireline, pumpdown and other oilfield services.

Ineos proposes extension

Also in the primary, Ineos launched on Monday an extension of its roughly $365.6 million term loan to Dec. 31, 2016 from May 2015 and is offering pricing of Libor plus 250 bps with no Libor floor on the extended debt, versus current pricing of Libor plus 200 bps with no floor, a market source remarked.

In addition, the extended loan will have 101 soft call protection for six months and lenders are being offered a 12.5 bps extension fee, the source continued.

Commitments are due at 5 p.m. ET on Nov. 17.

Bank of America Merrill Lynch and Barclays are leading the deal.

Ineos is a Switzerland-based manufacturer of petrochemicals, specialty chemicals and oil products.

U.S. TelePacific readies deal

U.S. TelePacific set a conference call on Wednesday to launch a $530 million credit facility, and commitments for the transaction will be due on Nov. 19, according to a market source.

The facility consists of a $25 million revolver, and a $505 million six-year first-lien term loan 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 one year, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing bank debt.

This past summer, the company was expected to bring a $530 million refinancing credit facility to market, but the bank meeting was postponed with sources citing scheduling conflicts as the reason.

Like the newly announced deal, the shelved credit facility consisted of a $25 million revolver and a $505 million six-year first-lien term loan, however, the bookrunners were Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC.

U.S. TelePacific is a Los Angeles-based competitive local exchange carrier.

Terra-Gen on deck

Terra-Gen Finance emerged with plans to hold a bank meeting on Wednesday to launch a $300 million term loan B, according to a market source.

Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal.

Terra-Gen is a New York-based renewable energy company that owns 653 MW of generating capacity across 21 projects.

Packers coming soon

Packers Holdings will hold a bank meeting at 9:30 a.m. ET in New York on Thursday to launch a $385 million senior credit facility, a market source said.

The facility consists of a $50 million revolver and a $355 million first-lien term loan, the source added.

Morgan Stanley Senior Funding Inc. and GE Capital Markets are leading the deal for the Kieler, Wis.-based contract sanitation service provider.

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