One Call Medical, Wilton Brands emerge in secondary; Revel Entertainment Group gains ground

By Sara Rosenberg

New York, Aug. 22 - One Call Medical Inc. and Wilton Brands Inc. saw their credit facilities break for trading during Wednesday's market hours, and Revel Entertainment Group LLC's term loan B headed higher.

One Call Medical's credit facility hit the secondary market on Wednesday, with the $415 million seven-year covenant-light term loan quoted at 98½ bid, according to a trader.

Pricing on the term loan is Libor plus 575 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 98.

During syndication, pricing on the term loan widened from talk of Libor plus 500 bps to 525 bps and the discount was revised from 99.

The company's $450 million credit facility (Ba3/B+) also includes a $35 million six-year revolver, which was downsized from $50 million.

One Call buys MSC

Proceeds from One Call's credit facility were used to finance the recently completed acquisition of MSC Care Management, a Jacksonville, Fla.-based provider of medical products and services to post-discharge and post-injury workers' compensation claimants.

Other funds for the transaction came from $210 million of unsecured debt that was provided by GSO Capital Partners, and equity.

Leverage is 4 times through the bank deal and 6.1 times through the unsecured debt.

Jefferies & Co. and GE Capital Markets led the credit facility.

One Call is a Parsippany, N.J.-based provider of specialty services to insurance payers.

Wilton starts trading

Also breaking was Wilton Brands' credit facility, with the $400 million six-year term loan (B1/B) seen at 98½ bid, 99½ offered, according to a market source.

Pricing on the term loan is Libor plus 625 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from Libor plus 550 bps, the discount firmed at the wide end of the 98 to 99 talk, the maturity was shortened from seven years, and amortization was added at 5% in years one, two and three; 10% in years four and five; and 65% in year six.

Other changes were setting OpCo leverage at 4.5 times with steps-downs, outlining that cash interest expense to HoldCo can't be paid if OpCo leverage is more than 3.5 times and setting the accordion at $125 million, subject to 3.75 times OpCo leverage. All are subject to a $20 million cash netting cap.

Wilton getting revolver

Wilton Brands' $525 million credit facility, led by Deutsche Bank Securities Inc. and UBS Securities LLC, also provides for a $125 million ABL revolver.

Proceeds will be used to refinance existing debt.

Wilton Brands is a Woodridge, Ill.-based food crafting company and a seller of stickers, multi-dimensional embellishments, punches and writing utensils for use in scrapbooking and related paper crafts.

Revel rises

Revel Entertainment Group's term loan B headed up to 76¼ bid, 77¼ offered from 75½ bid, 76½ offered on the open on Wednesday and 74½ bid, 75½ offered on Tuesday, according to a trader.

Earlier in the week, the company said that it is in talks on an amendment to upsize its revolver, and based on conversations with lenders, $70 million of new revolver commitments are expected.

The revolver is currently sized at $50 million, but only $30 million of that amount is committed. The company is looking to increase the size and amount of commitments for the revolver to $100 million in order to cushion its liquidity.

Pricing on the revolver is expected at Libor plus 750 bps.

Revel, a gaming and entertainment company in Atlantic City, N.J., commenced operations on March 28 and opened to the public on April 2.

Town Sports wraps

In other news, Town Sports International Holdings Inc. completed the repricing of its $270.7 million senior secured term loan, reducing pricing to Libor plus 450 bps with a 1.25% Libor floor from Libor plus 550 bps with a 1.5% floor, according to a news release.

The repriced loan has 101 soft call protection for one year.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and KeyBanc Capital Markets LLC led the deal.

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

American Capital closes

American Capital Ltd. closed on its $850 million four-year credit facility that consists of a $600 million term loan B (B2/NA/BB) and a $250 million revolver (NA/NA/BB), according to a news release.

Pricing on the term loan is Libor plus 425 bps 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 and amortization of 25% per annum.

The revolver, meanwhile, is priced at Libor plus 375 bps with a 50 bps unused fee.

During syndication, pricing on the term loan was cut from talk of Libor plus 475 bps to 500 bps and the discount tightened from 99, and the revolver was upsized from $150 million.

J.P. Morgan Securities LLC, BMO Capital Markets Corp. and UBS Securities LLC led the deal that was used to refinance existing debt and is available to fund general corporate purposes.

American Capital is a Bethesda, Md.-based private equity firm and global asset manager.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.