Iasis, Verint Systems break; iPayment, Town Sports rework deals; Springs Window sets talk

By Sara Rosenberg

New York, April 29 - Iasis Healthcare LLC's credit facility freed for trading during Friday's market hours, with the term loan B quoted above its original issue discount price, and Verint Systems Inc. began trading as well.

Over in the primary market, iPayment Holdings Inc. reduced pricing on its term loan B and tightened the original issue discount, Town Sports International Holdings Inc. raised pricing and discount on its loan, and Springs Window Fashions LLC released talk on its term loans in connection with its launch.

Also, Sensata Technologies BV is getting ready to bring a refinancing transaction to market, Chrysler Group LLC and Epicor Software Corp. firmed timing on their proposed facilities, and Pre-Paid Legal Services Inc. came out with a targeted bank meeting date for its new deal.

Iasis frees up

Iasis Healthcare's credit facility hit the secondary market on Friday, with its $1.025 billion seven-year term loan B (Ba3/B) quoted by traders at par ¼ bid, par 5/8 offered on the open and then it moved up to par 3/8 bid, par ¾ offered.

Pricing on the B loan is Libor plus 375 basis points with a 1.25% Libor floor, and it was sold at a discount of 991/2. There is 101 soft call protection for one year.

During syndication, the loan was increased from $935 million, pricing firmed at the tight end of the Libor plus 375 bps to 400 bps talk and the Libor floor was cut from 1.5%.

As a result of the term B upsizing, the Franklin, Tenn.-based owner and operator of medium-sized acute care hospitals reduced its senior notes offering to $850 million from $935 million. The 8 3/8% notes priced at 99.277 to yield 8½%.

Iasis lead banks

Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on Iasis' credit facility.

The $1.325 billion deal also provides for a $300 million five-year revolver (Ba3/BB-) priced at Libor plus 350 bps with a 150 bps upfront fee.

Proceeds from the credit facility and bonds will be used to refinance existing debt, to fund a $230 million dividend and to help fund the acquisition of St. Joseph Medical Center. The extra $5 million being raised through the term loan upsizing will be used to fund the original issue discount on the bond deal, the source added.

Closing on the credit facility will occur on May 3, concurrent with completion of the bond offering.

Verint trades atop par

Verint Systems' credit facility started trading as well, with the upsized $600 million 61/2-year term loan quoted by traders at par ¼ bid, par ¾ offered on the break. Then, by late afternoon, one trader saw the loan creep up to par 5/8 bid, par 7/8 offered.

Pricing on the loan is Libor plus 325 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $580 million, pricing was lowered from talk of Libor plus 350 bps to 375 bps, the discount was tightened from 99 and the call protection was added.

The Melville, N.Y., provider of actionable intelligence and value-added services is also getting a $200 million five-year revolver.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc. and HSBC are the leads on the $800 million deal (B1/B+) that will be used to refinance existing debt.

iPayment cuts pricing

Moving to the primary, iPayment Holdings reduced pricing on its $375 million six-year senior secured term loan B to Libor plus 425 bps from talk of Libor plus 450 bps to 475 bps, and moved the original issue discount to 99½ from 99, according to a market source.

As before, the B loan provides for a 1.5% Libor floor and 101 soft call protection for one year.

The $450 million senior secured credit facility (Ba2) also includes a $75 million revolver.

JPMorgan, Bank of America Merrill Lynch, RBC Capital Markets LLC and UBS Securities LLC are the lead banks on the deal.

iPayment selling notes

In addition to the credit facility, iPayment is issuing $400 million of senior notes due 2018 and $125 million of holco PIK toggle senior notes due 2018 and warrants to purchase common stock.

Proceeds from the new debt will be used to refinance the company's existing senior secured credit facility, redeem existing senior subordinated notes and make a distribution to its indirect parent, iPayment Investors LP.

iPayment Investors will use the distribution to redeem PIK toggle notes and all of the equity interests held by the company's chairman and chief executive officer.

iPayment is a Nashville-based provider of credit and debit card-based payment processing services.

Town Sports flexes

Also coming out with changes was Town Sports, as it lifted pricing on its $300 million seven-year term loan B to Libor plus 475 bps from talk of Libor plus 425 bps to 450 bps and widened the discount price to 99 from 991/2, according to a market source.

The 1.5% Libor floor and 101 soft call protection for one year were left intact.

The company's $350 million senior secured credit facility (B1/B) also includes a $50 million revolver.

Recommitments are due at the close of business on Monday.

Deutsche Bank Securities Inc. and KeyBanc Capital Markets LLC are the leading the deal that will be used to repay an existing credit facility and to redeem 11% senior discount notes due 2014.

Town Sports is a New York-based owner and operator of fitness clubs.

Springs Window talk emerges

Price talk on Springs Window Fashions surfaced on Friday as the company held a bank meeting to present its $475 million credit facility to lenders, according to sources.

The $300 million six-year first-lien term loan (B1/B) was launched at Libor plus 400 bps to 425 bps with a 1.5% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, sources said.

And, the $125 million seven-year second-lien term loan (Caa1/CCC+) was launched at Libor plus 775 bps to 800 bps with a 1.5% to 1.75% Libor floor, an original issue discount of 981/2, and call protection of 103 in year one, 102 in year two and 101 in year three, sources continued.

JPMorgan is the lead bank on the deal, that also includes a $50 million five-year revolver (B1/B) and will be used to refinance existing debt and fund a dividend.

Springs Window Fashions is a manufacturer of blinds, shades and drapery hardware.

Sensata plans refi

Sensata Technologies is set to hold a bank meeting on Monday with a 10:30 a.m. ET start time at the Le Parker Meridien to launch a proposed $1.45 billion credit facility that will be used to refinance existing debt and for general corporate purposes, according to sources.

The credit facility consists of a $250 million five-year revolver and a $1.2 billion seven-year term loan, sources said.

Morgan Stanley & Co. Inc. and Barclays Capital are the joint lead arrangers on the deal for the Attleboro, Mass.-based designer and manufacturer of sensors and controls, with Goldman Sachs a bookrunner.

The debt that is being taken out includes the company's existing term loans, 8% senior notes due 2014 and 9% senior subordinated notes due 2016 - with the tender offers for the notes expiring on May 25.

Other funds for the refinancing will come from $600 million of new senior notes.

Chrysler sets launch

Chrysler Group has nailed down timing on the launch of its credit facility, as a bank meeting has been set for Wednesday, according to a market source. Previously, it was rumored that the deal would come during the May 2 week.

Chatter is that the deal will include a new term loan led by Morgan Stanley and a new revolver led by Citigroup, the source said; however, official details on lead banks and structure are not yet out. It is anticipated that those details could emerge as early as Monday.

The rumor floating around the market is that the new term loan and a proposed bond offering will total $6 billion.

Chrysler repaying loans

Proceeds from Chrysler's new credit facility and bonds, along with an equity investment by Fiat, will be used to repay all of its loans provided by the U.S. Department of the Treasury and the Canadian federal and Ontario governments.

Completion of the credit facility, debt offering and equity investment are expected to occur concurrently in the second quarter.

Chrysler is an Auburn Hills, Mich.-based producer of Chrysler, Jeep, Dodge, Ram, Mopar and Fiat vehicles and products.

Epicor coming soon

Epicor Software has scheduled a bank meeting for Tuesday to launch its proposed $945 million senior secured credit facility that consists of a $75 million five-year revolver and an $870 million seven-year covenant-light term loan, according to a market source.

Official price talk on the deal is not yet available. However, filings with the Securities and Exchange Commission said that pricing on the revolver can range from Libor plus 325 bps to 375 bps and the commitment fee can range from 50 bps to 75 bps, based on leverage, and pricing on the term loan is Libor plus 375 bps with a 1.25% Libor floor.

The filings also revealed that the revolver is expected to be offered at an original issue discount of 991/2, and the term loan is expected to be offered at a discount of 99.

Bank of America Merrill Lynch and RBC Capital Markets LLC are the joint lead arrangers and bookrunners on the deal.

Epicor being acquired

Proceeds from Epicor's credit facility will be used to fund Apax Partners' buyout of the company for $12.50 per share in cash and the buyout of Activant Solutions Inc. from Hellman & Friedman LLC, Thoma Bravo, LLC and JMI Equity.

Other funds for the transaction will come from $465 million of senior unsecured notes due in 2019 and $647 million in equity.

Closing on the transactions is expected to take place in the second quarter, subject to the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.

Epicor is an Irvine, Calif.-based provider of enterprise business software services. Activant is a Livermore, Calif.-based technology provider of ERP and point-of-sale software for mid-market retailers and distributors.

Pre-Paid expected timing

Pre-Paid Legal Services is targeting to hold a bank meeting on May 17 for its proposed $440 million senior secured credit facility, although timing is still somewhat fluid, a market source told Prospect News. Prior to now, the deal was simply being labeled as May business.

The facility consists of a $30 million revolver and a $410 million term loan, with price talk not yet available.

Macquarie Capital, RBC Capital Markets, KeyBanc Capital Markets LLC and Bank of Ireland are the lead banks on the deal that will be used, along with equity, to fund the buyout of the company by MidOcean Partners for $66.50 per share, or about $650 million.

Closing is expected on or before July 31, subject to stockholder and regulatory approvals.

Pre-Paid Legal is an Ada, Okla.-based provider of legal service benefits through a network of independent law firms.

TASC well met

In other news, TASC Inc.'s $675 million senior secured credit facility (Ba2) saw strong interest from investors, resulting in oversubscription by Friday's noon ET commitment deadline, according to a market source.

The facility consists of a $100 million revolver due December 2014 and a $575 million term loan B due December 2015, with both tranches talked at Libor plus 325 bps with a 1.25% Libor floor. The B loan is being offered at 99½ and includes 101 soft call protection for six months.

Barclays Capital, Deutsche Bank Securities, KKR Capital Markets and RBC Capital Markets are the bookrunners on the deal that will be used to refinance existing senior secured bank debt.

Net senior secured leverage is 3.2 times, and net total leverage is 5.3 times.

TASC is a Chantilly, Va.-based provider of advanced systems engineering and technical assistance to the defense, intelligence, federal and homeland security markets.

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