Travelport, Evertec break; Schiff tweaks deal; Esselte, Elo Touch, Lord & Taylor set talk

By Sara Rosenberg

New York, May 7 - Travelport Ltd.'s 11/2-lien term loan made its way into the secondary market on Monday afternoon, with levels quoted well above the original issue discount price, and Evertec LLC broke too.

Moving to the primary, Schiff Nutrition Group Inc. made some changes to its credit facility, including moving some funds between its term loan and revolver, setting the coupon at the wide end of guidance and widening the term loan's discount price.

Additionally, Esselte released pricing guidance on its term loan as the deal was presented to lenders during the session, Elo Touch Solutions and Lord & Taylor began floating talk on their upcoming transactions, and SS&C Technologies Inc. nailed down a meeting date for its loan.

Furthermore, AmWINS Group Inc. set timing on the launch of its credit facility while releasing tranching details as well, and Ascend Learning and CAMP International Holding Co. emerged with new deal plans.

Travelport starts trading

Travelport's $175 million 11/2-lien term loan (Caa1/CCC) due Nov. 22, 2015 freed up on Monday, with levels seen at par bid, 101 offered, according to a market source.

Pricing on the loan is Libor plus 950 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 97. There is hard call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the coupon was reduced from Libor plus 1,100 bps and the discount tightened from 96.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are the lead banks on the deal that will be used to repay the company's non-extended term loan due in 2013.

Travelport is an Atlanta-based provider of transaction processing services to the travel industry.

Evertec hits secondary

Another deal to begin trading was Evertec's $170 million incremental term loan B (BB-) due Sept. 30, 2016, with levels quoted at 99¾ bid, par ¼ offered, a trader remarked.

Pricing on the loan is Libor plus 400 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 991/4, after firming the other day in the middle of the 99 to 99½ talk. There is 101 soft call protection for one year that was extended from six months during syndication.

The spread and floor match that of the existing term loan, which was sold in early 2011 at par, and also includes 101 soft call protection for one year.

Proceeds from the new term loan and a $40 million 11% senior notes offering will be used to pay a cash dividend to the parent company.

Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are leading the deal.

Evertec is a San Juan, Puerto Rico-based diversified processing business, offering transaction and payment processing services.

BWIC emerges

A new Bid Wanted in Competition (BWIC) was announced in the afternoon with the size of the portfolio being around $84 million, a trader said.

Some of the larger pieces of debt being offered include Community Health Systems Inc.'s term loan B, HCA Inc.'s term loan B-1, Sabre's term loan B, SunGard Data Systems' term loan B and VNUY N.V.'s term loan B.

The portfolio includes just fewer than 70 issuers.

Bids on the debt are due at 11 a.m. ET on Wednesday, the trader added.

Schiff restructures

Over in the primary, Schiff Nutrition revised tranche sizes and updated pricing on its $200 million credit facility (B1/B), and with the changes, the deal was oversubscribed ahead of the 5 p.m. ET recommitment deadline on Monday, according to a market source.

Under the new structure, the term loan is sized at $140 million, matures in six years and is priced at Libor plus 475 bps with a 1.25% Libor floor and an original issue discount of 981/2, the source said. This compares to initial terms of a size of $150 million, a seven-year tenor and price talk of Libor plus 450 bps to 475 bps talk with a 1.25% floor and a discount of 99.

Meanwhile, the five-year revolver is now sized at $60 million, up from $50 million, and pricing firmed at Libor plus 475 bps, the high end of the Libor plus 450 bps to 475 bps talk, the source continued. The tranche still has no floor and an original issue discount of 99.

Schiff funds acquisition

Proceeds from Schiff Nutrition's credit facility were used to finance the purchase of Airborne Inc. for $150 million, the closing of which took place on March 30.

The coupon that the credit facility is ending up with as a result of the syndication process is in line with the pricing that the company got when the deal funded.

RBC Capital Markets is the lead arranger on the deal and a joint bookrunner with BMO Capital Markets.

Allocations are targeted to go out later this week, the source added.

Schiff Nutrition is a Salt Lake City-based nutritional supplement company.

Esselte discloses guidance

Also in the primary, Esselte held a bank meeting on Monday afternoon to kick off syndication on its $200 million term loan (B2), and with the launch, price talk was announced, according to a market source.

The loan is talked at Libor plus 600 bps to 650 bps with a 1.25% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year, the source said.

Commitments are due on May 18, the source added.

Jefferies & Co. and Citigroup Global Markets Inc. are the lead banks on the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Esselte is a Stamford, Conn.-based office supplies manufacturer.

Elo reveals talk

Also on the topic of pricing, Elo Touch Solutions began distributing guidance on its $285 million credit facility in preparation for its 10 a.m. ET bank meeting on Thursday in New York, according to a market source.

The $15 million five-year revolver and $180 million six-year first-lien term loan are talked at Libor plus 525 bps, and the $90 million seven-year second-lien term loan is talked at Libor plus 950 bps, with all tranches having a 1.25% Libor floor and an original issue discount of 98, the source said.

Included in the first-lien term loan is 101 repricing for one year. Second-lien call protection is not yet out, the source remarked.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are leading the deal that will help fund the purchase of the company by the Gores Group from TE Connectivity for $380 million in cash.

Elo, a Menlo Park, Calif.-based supplier of touch screens, touch monitors and all-in-one touch computers, expects the buyout to close this quarter, subject to customary regulatory approvals.

Lord & Taylor pricing

Lord & Taylor will hold a conference call on Tuesday to launch a repricing of its roughly $450 million term loan, with the new pricing being talked at Libor plus 350 bps with a 1.25% Libor floor and a par offer price, a source said.

By comparison, current pricing on the loan is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99 in December 2011.

Existing lenders are getting paid down at 101 as a result of soft call protection, the source continued.

Credit Suisse Securities (USA) LLC is the lead bank on the deal for the New York-based upscale specialty-retail department store chain.

SS&C firms launch

In more primary news, SS&C set a bank meeting for Thursday to launch its previously announced $1.225 billion credit facility (Ba3/BB-) that is actually dated as of March 14, according to a market source.

The facility consists of a $100 million 51/2-year revolver, a $300 million 51/2-year term loan A talked at Libor plus 275 bps, a $725 million seven-year term loan B-1 with 101 soft call protection for six months and a $100 million seven-year term loan B-2 with 101 soft call protection for six months, the source said.

Official price talk on the term loan B's is not yet out, the source continued, but, based on filings with the Securities and Exchange Commission, the debt is expected to be priced at Libor plus 325 bps with a 1% Libor floor.

Deutsche Bank Securities Inc., Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are the joint lead arrangers and bookrunners on the deal.

SS&C bridge loan

With the credit facility, the company is also planning a $142 million 364-day bridge loan that is priced at Libor plus 275 bps, the source added.

Proceeds will be used to fund the acquisition of GlobeOp Financial Services SA for 485p per share in cash, refinance existing bank debt and, possibly, to fund the purchase of Thomson Reuters' Portia business, a middle-to-back office investment operations platform, for $170 million.

SS&C is a Windsor, Conn.-based provider of financial services software and software-enabled services. GlobeOp, with headquarters in London and New York, is a provider of business process outsourcing, financial technology services and analytics to hedge funds and other sectors of the financial industry.

AmWINS timing, structure

AmWINS came out with the structure on its credit facility as a bank meeting has been set for 11 a.m. ET in New York on Tuesday to launch the transaction, a market source told Prospect News.

The $720 million deal consists of a $75 million five-year revolver, a $295 million seven-year first-lien term loan with 101 repricing protection for one year and a $350 million71/2-year second-lien term loan with call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Macquarie Capital and Wells Fargo Securities LLC are leading the deal that will help fund the buyout of a majority stake in the Charlotte, N.C.-based specialty insurance broker by New Mountain Capital from Parthenon Capital Partners.

Employee shareholders will continue to own more than 30% of AmWINS equity - valued at over $160 million - at the conclusion of the roughly $1.3 billion recapitalization.

Closing is subject to regulatory approvals and customary conditions.

Ascend joins calendar

Ascend Learning will also be holding a bank meeting on Tuesday, at which time it will launch a $330 million term loan that will be used to refinance existing first-lien debt, according to a market source.

Bank of America Merrill Lynch and GE Capital Markets are the lead banks on the deal.

Ascend Learning is a Stilwell, Kan.-based provider of technology-based learning services focused on student training and testing results in health care and other vocational fields.

CAMP readies deal

CAMP International set a bank meeting for Wednesday in New York to launch a $375 million credit facility that is being led by Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets and UBS Securities LLC, according to a market source.

The facility consists of a $30 million five-year revolver, a $230 million seven-year covenant-light first-lien term loan with 101 soft call protection for one year and a $115 million 71/2-year covenant-light second-lien term loan with call protection of 103 in year one, 102 in year two and 101 in year three, the source remarked.

Proceeds will be used to help fund the buyout of the company by GTCR from Warburg Pincus.

CAMP is a Ronkonkoma, N.Y.-based provider of maintenance tracking for business aviation.

Misys holds U.S. meeting

In other news, Misys plc launched its roughly $1.18 billion credit facility in New York on Monday, with price talk coming out in line with earlier guidance, according to a market source.

As was previously reported, the $125 million five-year revolver is talked at Libor plus 500 bps to 525 bps with a 50 bps unused fee and a 100 bps upfront fee, the $730 million seven-year first-lien term loan is talked at Libor plus 500 bps to 525 bps and the €250 million seven-year first-lien term loan is talked at Euribor plus 550 bps to 575 bps. Both term loans have a 1.25% floor, an original issue discount of 99 and 101 repricing protection for one year.

Commitments are due on May 18.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Jefferies Finance LLC are the joint lead arrangers and bookrunners on the deal.

Misys being bought out

Proceeds from Misys' credit facility will be used to help fund its acquisition by Vista Equity Partners for 350p per share and to refinance certain debt. The transaction values the entire existing and to be issued ordinary share capital of the company at around £1.27 billion.

Other funds for the buyout will come from equity and a commitment for a $615 million 71/2-year unsecured term loan with expected pricing of 9%. This tranche would be non-callable for three years, then at 106¾ in 2015, 104½ in 2016 and 102¼ in 2017.

Misys is a London-based application software and services provider for the financial services industry.

© 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.