MultiPlan breaks; Chemtura sets OID, frees up; Six Flags inches up; Toys 'R' Us tweaks size

By Sara Rosenberg

New York, Aug. 16 - MultiPlan Inc.'s credit facility allocated and freed up for trading during Monday's market hours, with the term loan quoted above its original issue discount price, and Chemtura Corp. broke after the original issue discount on the debt was finalized.

Also in trading, Six Flags Entertainment Corp. saw levels move a little higher on its first- and second-lien term loans following its release of quarterly results.

Over in the primary market, Toys 'R' Us Inc. upsized its term loan as its bond offering surfaced with a smaller-than-expected size, and talk is that the books on Pet Supplies Plus' credit facility are starting to fill out.

MultiPlan starts trading

MultiPlan's credit facility hit the secondary market on Monday, with the $1.3 billion term loan quoted at 98¼ bid, 98¾ offered on the break and then moving up to 99 5/8 bid, 99 7/8 offered, according to a trader.

Pricing on the term loan is Libor plus 475 basis points with a 1.75% 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 firmed at the high end of the initial Libor plus 450 bps to 475 bps talk, the discount firmed at the wide end of talk that was in the 98 to 98½ context, and the soft call protection was added.

The well-oversubscribed loan was said to have had a successful syndication, in part helped along by the decent amount of rollover seen from existing lenders.

MultiPlan getting revolver

MultiPlan's $1.375 billion credit facility (Ba3/B) also includes a $75 million revolver that is priced at Libor plus 475 bps with a 1.75% Libor floor as well.

Barclays Capital, Bank of America and Credit Suisse are the leads on the deal, with Barclays the left lead.

Proceeds from the facility, along with $675 million of notes, will be used to help fund the buyout of the company by BC Partners and Silver Lake from the Carlyle Group and Welsh, Carson, Anderson & Stowe.

The notes priced last Thursday at par to yield 9 7/8%.

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

Chemtura frees up

Chemtura's $295 million six-year term loan B (Ba1) was another loan that broke for trading on Monday, with levels quoted at 99¾ bid, par ¼ offered on the open and then moving up to par 1/8 bid, par 3/8 offered, according to a market source.

The loan allocated shortly after the original issue discount price firmed up at 99, the low end of the initial 98 to 99 guidance, a market source added.

Pricing on the loan is in line with original talk at Libor plus 400 bps with a 1.5% Libor floor.

Bank of America, Barclays and Citigroup are the lead banks on the deal, with Bank of America the left lead.

Proceeds will be used for exit financing.

Chemtura revolver, notes

Other funds for Chemtura's emergence from Chapter 11 will come from a $275 million five-year senior secured asset-based revolver and $455 million of notes.

Pricing on the revolver, which is led by Bank of America, is initially set at Libor plus 275 bps. The spread can range from Libor plus 275 bps to 325 bps based on availability.

And, the company's 7 7/8% eight-year senior notes priced on Friday at 99.269 to yield 8%.

The notes were upsized from $450 million and, as a result, the term loan was downsized from $300 million.

Closing on the transactions is expected to take place on Aug. 27.

Chemtura is a Middlebury, Conn.-based manufacturer and seller of specialty chemicals and polymer products.

Six Flags gains ground

Six Flags' first- and second-lien term loans were a touch better in trading after the company announced second-quarter results that showed a year-over-year improvement in income and revenue, according to a trader.

The first-lien term loan was quoted at 99 7/8 bid, par ¼ offered, up on the bid side from 99¾ bid, par ¼ offered, and the second-lien term loan was quoted at 102½ bid, 103¼ offered, up from 102¼ bid, 103 offered, the trader said.

For the second quarter, Six Flags reported net income of $743 million, compared to a net loss of $116 million in the second quarter of 2009.

Total revenue for the quarter was $321.3 million, up 8% from the prior-year quarter's total of $296.8 million.

Six Flags EBITDA improves

Also, Six Flags said that its adjusted EBITDA for the quarter was $94.7 million, compared to $56.4 million in the previous year.

Additionally, on Aug. 5, the company repaid $25 million of its first-lien term loan debt as a result of its solid results and significant liquidity.

Liquidity included about $210 million in cash at Aug. 1 and the availability of its undrawn $120 million revolving credit facility.

Six Flags is a Dallas-based regional theme park company.

Toys 'R' Us ups loan

Moving to the primary market, Toys 'R' Us increased the size of its six-year secured term loan (B1/BB-/B-) to $650 million from $500 million, according to a market source.

Meanwhile, the company's senior secured bond offering emerged with a size of $350 million and priced late day at par to yield 7 3/8%.

The company had said from the start that it was planning about $1 billion between the loan and senior secured notes, but when the term loan was launched, it was expected that the deals would be evenly sized.

Commitments towards the term loan were due at 3 p.m. ET on Monday and allocations are expected to go out on Tuesday.

Toys 'R' Us talk

Toys 'R' Us' term loan is being talked at Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 981/2. There is 101 soft call protection for one year.

Bank of America, Goldman Sachs and JPMorgan are the lead banks on the deal, with Bank of America the left lead.

Proceeds will be used to repay in full all obligations outstanding under the company's existing $800 million secured term loan and $181 million senior unsecured facility.

Toys 'R' Us is a Wayne, N.J.-based toy retailer.

Pet Supplies catching interest

Pet Supplies Plus' $120 million credit facility has been attracting some orders from investors, and the books are on their way to filling out, according to a market source.

BNP Paribas and Societe Generale are the lead banks on the deal, and KeyBank signed on as a joint lead as well.

The facility consists of a $15 million revolver, an $85 million term loan and a $20 million delayed-draw term loan, with all tranches talked at Libor plus 525 bps with a 1.75% Libor floor and an original issue discount of 98.

Proceeds will be used to help fund the buyout of the company by Irving Place Capital, which is expected to be completed in the third quarter.

Pet Supplies Plus is a Farmington Hills, Mich.-based pet supplies store chain.

EnergySolutions closes

In other news, EnergySolutions Inc. closed on its $665 million senior secured credit facility (Ba2/BB+), according to an 8-K filed with the Securities and Exchange Commission on Monday

The facility consists of a $560 million term loan B priced at Libor plus 450 bps with a 1.75% Libor floor that was sold at an original issue discount of 97½ and a $105 million revolver priced at Libor plus 450 bps.

The term loan B has 101 soft call protection for one year.

During syndication, the discount on the term loan B was increased from initial talk of 98 to 981/2, and the revolver was downsized from $125 million.

JPMorgan, Credit Suisse and Citigroup are the lead banks on the deal for the Salt Lake City-based provider of nuclear services that was used to refinance existing bank debt.

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