Triple Point Group Holdings breaks; BioScrip revises deal; primary sees multiple deals launch

By Sara Rosenberg

New York, July 11 - Triple Point Group Holdings Inc.'s credit facility made its way into the secondary market on Thursday, with both the first- and second-lien term loans seen above their original issue discount prices.

Moving to the primary, BioScrip Inc. lifted the coupon on its funded and delayed-draw term loans, increased the Libor floor, widened the original issue discount and sweetened the call protection.

Also, Royal Adhesives and Sealants, Genex Services Inc., Atlas Energy LP, Larchmont Resources LLC, Walter Investment Management Corp., WS Packaging Group Inc., ClubCorp Club Operations Inc. and Monitronics International Inc. launched new deals, and National Surgical Hospitals Inc. joined the forward calendar.

Triple Point frees up

Triple Point's credit facility broke for trading on Thursday morning, with the $310 million seven-year first-lien covenant-light term loan (B2) quoted initially at 97 bid, 98 offered and the $125 million eight-year second-lien covenant-light term loan (Caa2) quoted initially at 95 bid, 96 offered, according to one market source. Then, shortly before midday, a second source was seeing the first-lien loan at 97½ bid, 98½ offered and the second-lien loan at 97 bid, 99 offered.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at an original issue discount of 951/2. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor and was sold at a discount of 94. This tranche has call protection of 102 in year one and 101 in year two.

In addition to the term loans, the company's $475 million credit facility provides for a $40 million revolver (B2).

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Triple Point being acquired

Proceeds from the credit facility will be used to help fund Ion Investment Group's buyout of Triple Point, a Westport, Conn.-based provider of software for end-to-end commodity management.

During syndication, the first-lien term loan was downsized from $320 million, pricing was lifted from talk of Libor plus 375 bps to 400 bps, the discount widened from revised talk of 96 and initial talk of 99, and the soft call was extended to one year and then shortened back to the originally planned six month timeframe.

Also during syndication, the second-lien term loan was downsized from $165 million, pricing was increased from talk of Libor plus 775 bps to 800 bps, the discount was moved from revised talk of 95 and initial talk of 981/2, and the call protection was modified to 103 in year one, 102 in year two and 101 in year three but then changed backed to its original structure.

As a result of the downsizing of the term loans, Ion is investing $50 million more in cash equity so the total equity check is $416 million, which is 49% of total capitalization.

BioScrip reworked

Switching to the primary, BioScrip raised pricing on its $400 million of covenant-light term loans to Libor plus 550 bps from Libor plus 450 bps, increased the Libor floor to 1.25% from 1%, moved the original issue discount to 98 from 99 and extended the 101 soft call protection to one year from six months, market sources said.

The term debt is comprised of a $250 million funded tranche and a $150 million delayed-draw tranche.

The delayed-draw term loan pricing is the full spread from day one, sources remarked.

The company's $475 million credit facility (B2) also includes a $75 million revolver.

BioScrip sets deadline

Recommitments for BioScrip's credit facility, which is being led by SunTrust Robinson Humphrey Inc., Jefferies Finance LLC and Morgan Stanley Senior Funding Inc., are due on Wednesday.

Proceeds will be used to refinance existing debt and help fund the acquisition of CarePoint Partners Holdings LLC for $223 million in cash.

Closing on the acquisition is expected to occur in the third quarter, subject to regulatory approval and customary conditions.

BioScrip is an Eden Prairie, Minn.-based provider of comprehensive infusion and home care services. CarePoint is a Cincinnati-based provider of home and alternate-site infusion therapy for patients with complex, acute and chronic illnesses.

Royal Adhesives sets talk

Royal Adhesives and Sealants held its bank meeting on Thursday, and with the event, price talk on the first- and second-lien term loans was announced, according to a market source.

The $350 million five-year first-lien term loan (B1/B) is talked at Libor plus 425 bps to 450 bps with a 1.25% Libor floor, an original issue discount of 98 to 99 and 101 soft call protection for one year, the source said.

And, the $154 million 51/2-year second-lien term loan (Caa2/CCC+) is talked at Libor plus 825 bps to 850 bps with a 1.25% Libor floor, a discount of 97 to 98 and hard call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

The company's $544 million senior secured credit facility also includes a $40 million five-year revolver (B1/B).

Royal Adhesives leads

Morgan Stanley Senior Funding Inc., Madison Capital and Jefferies Finance LLC are the joint bookrunners on Royal Adhesives' credit facility and joint lead arrangers with Nomura and KeyBanc Capital Markets LLC. MCS Capital Markets is the co-arranger.

Commitments are due on July 25, the source added.

Proceeds will be used to fund the acquisition of ADCO Global and refinance existing bank debt.

Royal Adhesives is a South Bend, Ind.-based manufacturer and marketer of high performance adhesives, sealants, encapsulants and specialty polymers.

Genex guidance emerges

Genex Services came out with price talk on its first- and second-lien term loans shortly ahead of its 10 a.m. bank meeting, according to a market source.

The $190 million first-lien term loan (B1/B) is talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

And, the $55 million second-lien term loan (Caa1/CCC+) is talked at Libor plus 825 bps to 850 bps with a 1% Libor floor, a discount of 98½ and hard call protection of 102 in year one and 101 in year two, the source continued.

The company's $270 million credit facility also includes a $25 million revolver (B1/B).

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt, fund a dividend and for general corporate purposes.

Genex is a Wayne, Pa.-based provider of cost containment and disability management services for the workers comp. industry.

Atlas Energy pricing

Atlas Energy released talk of Libor plus 600 bps to 625 bps with a 1% Libor floor, an original issue discount of 99 and hard call protection of 102 in year one and 101 in year two on its $240 million six-year term loan B (B3/B) that launched with a bank meeting during the session, a market source remarked.

Commitments are due on July 22, the source said.

Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to help fund the $800 million acquisition of natural gas proved reserves in the Raton, New Mexico, Black Warrior, Ala., and Arkoma Basin, Okla., Basins from EP Energy E&P Co. LP.

Closing is expected in the third quarter, subject to purchase price adjustments.

Atlas Energy is a Pittsburgh-based master limited partnership that owns an interest in producing natural gas and oil wells.

Larchmont discloses terms

Larchmont Resources LLC launched with a meeting its $275 million senior secured first-lien term loan with talk of Libor plus 575 bps to 625 bps with a 1% Libor floor, an original issue discount of 99 and soft call protection of 102 in year one and 101 in year two, according to a market source.

Commitments are due on July 25, the source remarked.

Barclays and Jefferies Finance LLC are leading the loan that will refinance existing debt.

Net leverage is 3.3 times.

Larchmont Resources is a privately-held entity owned by Aubrey K. McClendon (AKM) and EIG Global Energy Partners that holds oil and gas interests that AKM purchased through his participation in the Chesapeake Energy Corp. Founders Well Participation Program.

Walter holds call

Lenders were told in the morning that Walter Investment would be hosting a call at 2 p.m. ET to launch a $200 million add-on first-lien term loan due Nov. 28, 2017 that is talked at Libor plus 450 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 repricing protection until Nov. 28, 2013, according to a market source.

The add-on is fungible with the existing $1,497,000,000 first-lien term loan, and the spread, floor and call protection on the debt match each other.

Commitments are due on Monday, the source said.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays and Bank of America Merrill Lynch are leading the add-on that will be used for general corporate purposes.

Walter Investment is a Tampa, Fla.-based asset manager, mortgage servicer and mortgage portfolio.

WS Packaging talk

WS Packaging launched its $276 million credit facility with price talk of Libor plus 425 bps with a 1% Libor floor and an original issue discount of 991/2, according to a market source.

The facility consists of a $40 million five-year revolver and a $236 million six-year first-lien term loan that has 101 soft call protection for six months.

Commitments are due on July 25, the source said.

GE Capital Markets is leading the deal that will be used to refinance existing debt, including bank borrowings and mezzanine debt, the source added.

WS Packaging is a Green Bay, Wis.-based pressure sensitive label manufacturer.

ClubCorp details surface

ClubCorp held its call, at which time lenders were told that the company is looking to refinance its existing bank debt with a new roughly $350 million credit facility, according to a market source.

The facility consists of a $50 million revolver, and a roughly $300 million seven-year term loan B that is talked at Libor plus 350 bps with a 25 bps step-down after an initial public offering, a 1% Libor floor, an original issue discount of 99½ to 99¾ and 101 soft call protection for six months, the source said.

The B loan is essentially made up of about $290 million of existing debt and about $10 million of new debt.

Commitments are due at 4 p.m. ET on Wednesday for existing lenders and at noon ET on July 19 for new money investors, the source added.

Citigroup Global Markets Inc. is leading the deal for the Dallas-based owner and operator of golf courses, country clubs, private business and sports clubs, and resorts.

Monitronics launches

Monitronics launched with a call in the afternoon a $225 million term loan that is talked at Libor plus 325 bps with a 1% Libor floor, in line with existing term loan pricing, and an original issue discount in the 99 area, according to a market source.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Also, the company plans on amending its credit facility to increase its revolver by $75 million.

Proceeds, along with $150 million in 9 1/8% senior notes due 2020, $90 million of convertible senior notes due 2020 issued by parent company, Ascent Capital Group Inc., and cash on hand, will fund the acquisition of Security Networks LLC for $487.5 million of cash and 253,333 newly issued shares of Ascent Capital series A common stock.

Closing is expected in mid-August, subject to regulatory approvals.

Monitronics is a Dallas-based home security alarm monitoring company. Security Networks is a West Palm Beach, Fla.-based provider of monitored security system services.

National Surgical on deck

In more primary happenings, National Surgical set a bank meeting for 1 p.m. ET on Monday to launch a $187.5 million credit facility, according to a market source.

The facility consists of a $30 million five-year revolver and a $157.5 million six-year first-lien term loan, the source said.

BMO Capital Markets, CIT Group and Sumitomo Mitsui Banking Corp. are leading the deal that will be used to refinance existing debt.

National Surgical Hospitals is a Chicago-based owner, operator and developer of surgical hospitals and surgery centers in partnership with local physicians.

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