BNY ConvergEx, CNO, Sunquest, Presidio, Summit, Darling break; Dynegy rises with Icahn news

By Sara Rosenberg

New York, Dec. 15 - BNY ConvergEx Group LLC, CNO Financial Group Inc., Sunquest Information Systems, Presidio Inc., Summit Materials LLC and Darling International Inc. all saw their credit facilities free up for trading during Wednesday's market hours.

In more trading happenings, Dynegy Inc.'s strip of institutional bank debt headed higher after the company announced that it will be acquired by Icahn Enterprises LP.

Over in the primary market, HDT Global pulled its deal from the market, and Transtar Industries Inc. flexed pricing lower on its first-lien term loan while tightening the original issue discount price, and it firmed terms on its second-lien term loan and revolver.

Also, Intelsat Jackson Holdings SA increased its term loan size for a second time, set pricing at the low end of guidance and shaved the original issue discount by half a point, while ConvaTec Healthcare upsized its B tranche and revised pricing.

Furthermore, Swift Holdings Corp. minimally increased its term loan while setting pricing at the tight end of talk, Hyland Software lowered spread and discount on its deal, and Targus Information Corp. increased its spread and discount.

BNY starts trading

BNY ConvergEx's credit facility made its way into the secondary market on Wednesday, with the $610 million six-year first-lien term loan B (B1/B+) quoted at par bid, par ½ offered on the open and then it moved up to par 3/8 bid, par 5/8 offered, according to a trader. By late day, a second trader was seeing it a touch lower at par 1/8 bid, par 3/8 offered.

Also, the $140 million seven-year second-lien term loan (B2/B-) was quoted at 99 bid, par offered on the break and then it moved up to 99¼ bid, par ¼ offered, the first trader said. Late day, the second trader had it all the way up at 101 bid, 102 offered.

The first-lien term loan B is priced at Libor plus 375 basis points with a step-down to Libor plus 350 bps at 3.75 times leverage. There is a 1.5% Libor floor and 101 soft call protection for one year, and the tranche was sold at a discount of 99.

Pricing on the second-lien loan is Libor plus 700 bps with a 1.75% Libor floor, and it was sold at a discount of 98. There is call protection of 103 in year one, 102 in year two and 101 in year three.

BNY getting revolver

BNY ConvergEx's $850 million credit facility also includes a $100 million five-year revolver (B1/B+).

Bank of America, Goldman Sachs, Citigroup, JPMorgan and Morgan Stanley are the lead banks on the deal, with Bank of America the left lead on the revolver and first-lien B loan and Goldman the left lead on the second-lien loan.

During syndication, pricing on the first-lien term loan B was lowered from Libor plus 400 bps with the addition of the step-down and the call protection, and pricing on the second-lien loan was reduced from Libor plus 750 bps.

Proceeds from the credit facility will be used to refinance existing debt.

BNY ConvergEx is a New York-based provider of agency brokerage and investment technology services.

CNO hits secondary

CNO Financial Group saw its $375 million senior secured term loan due in September 2016 free up for trading as well, with levels quoted at par bid, par ½ offered on the open before moving up to par ½ bid, 101 offered, according to a source. A second source had the loan at par ¾ bid, 101¼ offered.

Pricing on the term loan is Libor plus 600 bps with a 1.5% Libor floor and an original issue discount of 983/4.

During syndication, the loan was upsized from $325 million as the bonds were downsized to $275 million from $300 million, the spread was reduced from the Libor plus 625 bps area, the floor was cut from 1.75% and the discount firmed from talk of 98 to 99.

Proceeds, along with the notes and cash on hand, will be used to refinance an existing $652.1 million senior secured term loan that matures in October 2013 and for general corporate purposes.

Morgan Stanley and Barclays are the lead banks on the deal for the Carmel, Ind.-based holding company for insurance companies.

Sunquest breaks

Sunquest Information Systems was yet another deal begin trading on Wednesday, with its $385 million first-lien term loan (Ba3/B+) quoted at 99½ bid, par ½ offered, according to a market source.

And, the company's $245 million second-lien term loan (Caa1/CCC+) was quoted at 99½ bid, the source said.

Pricing on the first-lien term loan is Libor plus 450 bps, after firming at the wide end of talk of Libor plus 425 bps to 450 bps, with a 1.75% Libor floor and 101 soft call protection for one year. It was sold at an original issue discount of 981/2.

The second-lien term loan is priced at Libor plus 850 bps with a 1.25% Libor floor, and was sold at an original issue discount of 98. It is non-callable for two years, then at 104 in year three.

Sunquest funding recap

Proceeds from Sunquest's $655 million credit facility, which also provides for a $25 million revolver (Ba3/B+), will be used to refinance existing debt, to fund a dividend payment and to purchase equity.

The deal is in connection with the purchase of a 51% interest in the company by a group of investors led by Huntsman Gay Global Capital, and including Credit Suisse and Neuberger Berman, from Vista Equity Partners.

Jefferies is the lead bank on the credit facility.

Sunquest Information Systems is a Tucson, Ariz.-based provider of health care diagnostic information technology and outreach services.

Presidio frees up

Presidio's $200 million term loan B (B1/B+) was quoted at 97½ bid, 98¼ offered upon breaking for trading in the afternoon, according to a market source.

Pricing on the term loan is Libor plus 575 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 971/2. There is 101 soft call protection for one year.

During syndication, the loan was reduced from $300 million, pricing was flexed up from Libor plus 550 bps and, before that, from Libor plus 475 bps, and the discount was increased from 98 and, before that, from 981/2.

JPMorgan is the lead bank on the deal that will be used refinance debt, fund a dividend and for general corporate purposes. The amount of the dividend was reduced when the loan was downsized.

Presidio is a Greenbelt, Md.-based provider of professional and managed IT services.

Summit quoted above OID

Summit Materials' $400 million five-year senior secured term loan started trading as well, with levels quoted at 99½ bid, par offered in light activity, according to a trader.

Pricing on the term loan is Libor plus 500 bps with a 1.5% floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

During syndication, the loan was downsized from $400 million, pricing was increased from talk of Libor plus 450 bps to 475 bps and soft call protection was added.

Furthermore, the lien basket was increased to $50 million from $25 million, with that incremental $25 million only allowed to be used to secure debt on a second-lien basis, and the MFN was changed to 25 bps from 50 bps.

Summit lead banks

Citigroup, UBS and Bank of America are the lead banks on Summit Materials' deal (B2/BB-), which also includes a $25 million incremental senior secured revolver.

Proceeds will be used to refinance existing debt, fund acquisitions, including the recently completed purchase of RK Hall Construction Ltd, a Paris, Texas-based aggregates, asphalt production, paving and construction business, and for general corporate purposes.

Summit Materials is a Washington D.C.-based company that was formed in early 2009 to acquire and grow companies in the aggregates and heavy-side building materials industry.

Darling tops par

Also breaking for trading was Darling International, with its $300 million six-year term loan B (Ba2/BB+) quoted at par ¾ bid, 101 1/8 offered, according to a trader, who said that the first bid he saw on the paper was at par 1/2. A second trader was quoting the paper at par ½ bid, 101 offered.

Pricing on the B loan is Libor plus 350 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 991/2.

Pricing on the loan was reduced from Libor plus 400 bps, and the discount tightened from 99 last week as the deal was well-received.

The company's $625 million senior secured credit facility also includes a $325 million five-year revolver (Ba2) that is expected to be priced at Libor plus 325 bps with a 50 bps commitment fee.

Darling buying Griffin

Proceeds from Darling's term loan and $175 million of revolver borrowings will be used to help fund the acquisition of Griffin Industries Inc. for $740 million in cash and about $100 million of common stock.

Other funds for the transaction will come from $250 million of eight-year senior unsecured notes that already priced at par to yield 8½% and cash on hand.

Total funded debt to EBITDA will exceed 3.0 times after completion of the transaction.

JPMorgan, BMO Capital, Goldman Sachs and PNC Bank are the lead banks on the credit facility.

Darling is an Irving, Texas-based provider of rendering, recycling and recovery services to the food industry. Griffin is Cold Spring, Ky.-based provider of rendering, bakery feed and cooking oil recycling services.

Amneal levels emerge

Amneal Pharmaceuticals LLC's $155 million term loan was being quoted at 99½ bid, par offered on Wednesday after allocating on Tuesday, according to a market source.

Pricing on the term loan, as well as on a $50 million revolver, is Libor plus 450 bps, after firming recently at the tight end of the Libor plus 450 bps to 475 bps talk, with a 1.75% Libor floor, and the tranches were sold at a discount of 981/2.

GE Capital is the lead arranger on the $205 million five-year deal that is being used for a refinancing/recapitalization.

Amneal Pharmaceuticals is a Hauppauge, N.Y.-based generic pharmaceuticals company.

Dynegy up with buyout

Dynegy's strip of institutional bank debt was stronger in trading as the company revealed that it is being purchased by Icahn Enterprises in a tender offer followed by a merger for $5.50 per share in cash, or about $665 million in the aggregate, according to traders.

Under the terms of the agreement, Dynegy will continue its ongoing open strategic alternatives process, during which it will solicit superior proposals until Jan. 24.

Closing is expected in the first quarter of 2011, subject to satisfaction of a minimum tender condition and receipt of regulatory approvals.

Following the news, one trader had Dynegy's strip of bank debt quoted at 98¾ bid, 99¾ offered, up from 98 3/8 bid, 98 7/8 offered, and a second trader had the strip quoted at 99¼ bid, par offered, up from 98½ bid, 99 offered.

Dynegy is a Houston-based producer and seller of electric energy, capacity and ancillary services.

HDT pull loan

HDT Global removed its $325 million credit facility (B1/ B+) from market, according to a market source.

The facility consisted of a $275 million six-year term loan B that had been downsized from $300 million and a $50 million revolver.

Price talk on the B loan had been Libor plus 475 bps with a 1.5% Libor floor and an original issue discount of 99.

JPMorgan and Bank of America were the lead banks on the deal that was going to be used to refinance existing debt and to fund a dividend payment.

HDT Global is a Solon, Ohio-based manufacturer of deployable, expeditionary systems and high-performance aerial delivery systems for the U.S. Military, Allied Forces, Homeland Security and Emergency Management agencies.

Transtar tweaks deal

As expected, Transtar Industries trimmed pricing on its more than three times oversubscribed $240 million six-year first-lien term loan (Ba3/BB-), and the discount on the second-lien loan was finalized, according to a market source.

The first-lien term loan is now priced at Libor plus 450 bps, down from talk of Libor plus 475 bps to 500 bps, with the 1.75% Libor floor remaining, and the discount moved to 99 from 981/2, the source said.

Also, a step-down to Libor plus 425 bps at less than 4.5 times leverage and 101 soft call protection for one year were added to the loan.

Pricing on the oversubscribed $135 million seven-year second-lien term loan (B3/B-) remained at Libor plus 850 bps with a 1.75% Libor floor, while the discount firmed at 981/2, the tight end of the 98 to 98½ talk. Call protection is still 103 in year one, 102 in year two and 101 in year three.

Transtar revolver spread

As for Transtar's $50 million five-year revolver (Ba3/BB-), pricing firmed at Libor plus 475 bps, the low end of the Libor plus 475 bps to 500 bps talk, while the 1.75% Libor floor and 98½ discount were left unchanged, the source remarked.

Recommitments were due from lenders at the end of the day Wednesday and allocations are expected to go out before the end of the week, with Thursday being the targeted day.

RBC and GE Capital are the lead banks on the $425 million credit facility that will be used to help fund the buyout of the company by Friedman Fleischer & Lowe.

Transtar is a Cleveland-based transmission parts provider.

Intelsat reworks loan

Intelsat Jackson upsized its term loan to $3.25 billion from a most recent size of $2.85 billion and will use the extra proceeds for general corporate purposes, according to a market source. The loan that is also being used to refinance existing debt was already increased once last week from $2.35 billion as plans for a $500 million bond offering were eliminated.

Pricing on the term loan firmed at Libor plus 375 bps, the low end of the Libor plus 374 bps to 400 bps talk, and the original issue discount tightened to 99½ from 99, the source said. There is still a 1.5% Libor floor and 101 soft call protection for one year.

Bank of America, Credit Suisse and JPMorgan are the lead banks on the now $3.75 billion credit facility (B1), which also includes a $500 million revolver and is expected to allocate this week.

Intelsat Jackson is a subsidiary of Intelsat SA, a Luxembourg-based provider of fixed satellite services.

ConvaTec changes surface

ConvaTec Healthcare increased its six-year term loan B to $1.238 billion from $850 million, while downsizing its bond offering, and modified the spread, Libor floor and original issue discount, according to a market source.

Pricing on the term loan B is now talked at Libor plus 400 bps to 425 bps, down from Libor plus 450 bps, the Libor floor is 1.5%, down from 1.75%, and the discount is 991/2, down from 99, the source said.

The company's now $1.488 billion credit facility, which is available in dollars and euros, also includes a $250 million five-year revolver.

JPMorgan and Goldman Sachs are the lead banks on the deal that will be used by the Skillman, N.J.-based medical technologies company to refinance existing senior secured and mezzanine debt.

Swift ups loan size

Swift Holdings, a Phoenix-based transportation services company and truckload carrier, increased its six-year term loan to $1.07 billion from $1.05 billion and firmed pricing at Libor plus 450 basis points at a discount of 99, the tight end of the Libor plus 450 bps to 475 bps at a discount of 98½ to 99 talk, according to a market source.

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

The company's now $1.47 billion senior secured credit facility (B1/BB-), which also includes a $400 million five-year revolver, is expected to allocate on Thursday.

Bank of America, Morgan Stanley, Wells Fargo, PNC and Citigroup are the lead banks on the deal that is being obtained in conjunction with the company's initial public offering of common stock.

Proceeds from the facility, along with secured notes and stock proceeds, will be used to refinance the company's existing bank debt, senior secured floating-rate notes and senior secured fixed-rate notes.

Hyland revises pricing

Hyland Software lowered pricing on its $20 million revolver and $205 million term loan to Libor plus 500 bps from Libor plus 525 bps and cut the original issue discount to 99 from 98, while leaving the 1.75% Libor floor unchanged, according to a market source.

Recommitments towards the $225 million credit facility (B2/BB-) were due from lenders on Wednesday.

Credit Suisse and RBC are the lead banks on the deal that will be used to refinance existing debt and to fund a dividend.

Hyland Software is a Westlake, Ohio-based enterprise content management software vendor.

Targus lifts spread

Targus Information flexed pricing on its $230 million term loan B to Libor plus 500 bps from Libor plus 475 bps and increased the original issue discount to 98 from 99, according to a market source, who said that there is still a 1.75% Libor floor.

Additionally, amortization on the B loan was increased, the source said.

Wells Fargo is the left lead bank on the $245 million credit facility (B1/B+) that also includes a $15 million revolver and will be used to refinance existing debt and pay a dividend.

Targus is a Vienna, Va.-based provider of On-Demand Insight.

Aventine flexes up

Aventine Renewable Energy Holdings Inc. raised pricing on its $200 million senior secured term loan (Caa1/B) to Libor plus 850 bps from Libor plus 750 bps and widened the original issue discount to 96 from 98, but left the 2% Libor floor unchanged, according to a market source.

Also, the loan is now non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, as opposed to being non-callable for one year, then at 102 in year two and 101 in year three, the source said.

Citigroup is the lead bank on the deal that is expected to allocate this week, possibly as early as Thursday, and will be used to refinance the company's 13% senior secured notes due 2015 and for general corporate purposes.

Aventine is a Pekin, Ill.-based producer and marketer of fuel-grade ethanol.

Alliant cuts OID

Alliant Holdings I Inc. reduced the original issue discount on its $160 million incremental senior secured term loan (B2/B-) to 99 from 98½ and firmed pricing at Libor plus 500 bps, the tight end of the Libor plus 500 bps to 525 bps talk, according to a market source.

The term loan due August 2014 continues to have a 1.75% Libor floor.

JPMorgan and UBS are the lead banks on the deal that will be used to finance contemplated acquisitions.

Alliant Holdings is a Newport Beach, Calif.-based specialty-oriented insurance broker.

Revel deal stumbling

In other news, talk is that Revel Entertainment Group LLC's $1.287 billion credit facility is having a hard time getting done, as investors were hoping that Morgan Stanley would provide $175 million of junior debt to reduce the bank deal, but so far that doesn't seem to be happening, according to sources.

The gaming and entertainment company's facility consists of an $800 million first-lien loan talked at Libor plus 825 bps with a 2% Libor floor and a discount of 97 and a $487 million second-lien loan talked at 12.5% with a discount of 97. Price talk on the first-lien loan had been increased from Libor plus 700 bps, and the discount widened from 98 earlier in the syndication process.

The first-lien loan is non-callable for one year, then at 103 in year two, 102 in year three, and 101 in year four, while the second-lien is non-callable for three years, then at 106 in year four, 103 in year five and 101½ in year six.

JPMorgan is leading the deal that will be used to help fund the construction of a casino and hotel in Atlantic City, N.J.

Oil States closes

Oil States International Inc. closed on its $1.05 billion five-year senior credit facility, consisting of $750 million in U.S. and Canadian revolvers and $300 million in U.S. and Canadian term loan, according to a news release.

During syndication, the total revolver size was increased from $600 million.

Wells Fargo acted as the lead bank on the deal that was used to help fund the acquisition of the MAC Services Group Ltd., a provider of remote accommodations for the natural resources industry in Australia.

Oil States is a Houston-based diversified oilfield services company.

Bumble Bee buyout wraps

Lion Capital LLP completed its acquisition of Bumble Bee Foods LP from Centre Partners Management LLC in a transaction valued at $980 million, according to a news release.

In connection with the buyout, Bumble Bee got a new $225 million asset-based revolving credit facility.

JPMorgan, Wells Fargo, Barclays Capital and Jefferies acted as the lead banks on the financing.

Bumble Bee is a San Diego-based supplier of shelf-stable seafood.

AutoTrader wraps acquisition

AutoTrader.com, an Atlanta-based automotive marketplace and consumer information website, closed on its acquisition of Kelley Blue Book and its sister companies, CDMdata and CDM Dealer Services, according to a news release.

To help fund the transaction, the company got a new $950 million credit facility (Ba3/BB+) comprised of a $200 million five-year revolver and a $250 million five-year term loan A, with these tranches priced at Libor plus 300 bps, and a $500 million six-year term loan B priced at Libor plus 325 bps with a 1.5% Libor floor that was sold at an original issue discount of 991/2.

During syndication, the B loan was downsized from $600 million, the revolver was upsized from $150 million and the A loan was upsized from $200 million. Pricing on the B loan was lowered from talk of Libor plus 375 bps to 400 bps and the discount was tightened from 99, and pricing on the revolver and term A was cut from Libor plus 350 bps.

Wells Fargo, JPMorgan, Goldman Sachs, SunTrust, Fifth Third Bank and UBS acted as the lead banks on the deal.

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