Westmoreland Coal, Emcore, Sonneborn, Emdeon free to trade; Compuware changes surface

By Sara Rosenberg

New York, Dec. 9 – Westmoreland Coal Co. increased the size of its term loan and Emcore Photovoltaics set pricing on its term loan at the wide end of guidance, and then both deals freed up for trading during Tuesday’s market hours, and term loans from Sonneborn LLC and Emdeon Inc. hit the secondary market too.

In more happenings, Compuware Corp. reworked sizes on its term loan B-1, asset-sale loan and second-lien term loan, widened pricing on all tranches in its credit facility, updated offer prices on its B-1, B-2 and second-lien debt and sweetened the call protection on the second-lien loan.

Also, Cengage Learning Acquisitions Inc. disclosed offer price talk with launch, and ATI Physical Therapy Inc. emerged with new deal plans.

Westmoreland upsizes, trades

Westmoreland Coal raised its six-year term loan to $350 million from $300 million, according to a market source, who said the loan is priced at Libor plus 650 basis points with a 1% Libor floor and an original issue discount of 97½.

The loan was upsized in response to a downsizing of the company’s bond offering to $350 million from $400 million.

After details finalized, the term loan freed up for trading on Tuesday with levels seen at 98½ bid on the break and then it moved up to 98¾ bid, 99¾ offered, the source said.

BMO Capital Markets is leading the deal that will be used with the new notes to refinance existing debt, including 10¾% senior secured notes.

The tender offer for the company’s existing notes will expire on Friday.

Westmoreland is an Englewood, Colo.-based coal company.

Emcore firms spread, breaks

Emcore Photovoltaics finalized pricing on its $57.5 million term loan at Libor plus 475 bps, the high end of the Libor plus 450 bps to 475 bps talk, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, according to a market source.

The company’s $72.5 million credit facility also includes a $15 million revolver.

With final terms in place, the deal made its way into the secondary market and levels on the term loan were quoted at 99½ bid, par offered, the source said.

Citizens Financial Group is leading the deal that will be used to help fund the buyout of the company by Veritas Capital from Emcore Corp. for $150 million in cash.

Closing is expected in December or January, subject to Emcore shareholder approval and other customary conditions.

Emcore Photovoltaics is an Albuquerque, N.M.-based provider of products for space power applications.

Sonneborn tops OID

Sonneborn’s $280 million six-year first-lien term loan (B1/B) began trading as well, with levels quoted at par bid, par ½ offered, a market source remarked.

Pricing on the loan is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 99¾, after tightening during syndication from 99½. The debt has 101 soft call protection for six months.

Macquarie Capital (USA) Inc. is leading the deal that will be used to refinance existing debt and fund a distribution to the sponsor, One Equity Partners.

Sonneborn is a Parsippany, N.J.-based manufacturer and supplier of high-purity specialty hydrocarbons.

Emdeon frees up

Emdeon’s $160 million term loan B-3 (B+) due Nov. 2, 2018 also broke, with levels quoted at 98½ bid, 99 offered, a trader said.

Pricing on the loan is Libor plus 250 bps with a 1.25% Libor floor and it was sold at an original issue discount of 98½ after tightening from initial talk of 98¼.

Bank of America Merrill Lynch is leading the deal that will be used for general corporate purposes, including acquisitions.

Emdeon is a Nashville-based provider of health care revenue and payment cycle management and clinical information exchange services.

Compuware restructures

Back in the primary, Compuware increased its five-year first-lien covenant-light term loan B-1 to $340 million from $300 million, raised pricing to Libor plus 525 bps from Libor plus 450 bps and revised the discount to 98 from 99, according to a market source. The tranche has a 1% Libor floor and 101 soft call protection for one year.

Meanwhile, the $950 million seven-year first-lien covenant-light term loan B-2 saw pricing lifted to Libor plus 525 bps from talk of Libor plus 475 bps to 500 bps and the discount widen to 95 from 98½, the source said. This debt also has a 1% Libor floor and 101 soft call protection for one year.

The one-year asset sale covenant-light bridge loan was upsized to $145 million from $105 million and the spread was flexed to Libor plus 525 bps from Libor plus 450 bps, while the 1% Libor floor and discount of 99½ were unchanged.

Additionally, the eight-year second-lien covenant-light term loan was trimmed to $460 million from $550 million, pricing was increased to Libor plus 825 bps from Libor plus 800 bps, the discount widened to 92 from 98, and the call protection as changed to non-callable for one year, then at 102 in year two and 101 in year three, from 103 in year one, 102, in year two and 101 in year three, the source continued. The 1% Libor floor was left intact.

Compuware getting revolver

Compuware’s now $1,995,000,000 senior secured credit facility also provides for a $100 million revolver that saw pricing lifted to Libor plus 500 bps from Libor plus 450 bps.

About $50 million of the revolver will be drawn to compensate for the $10 million total reduction in the amount of term loan debt being obtained and larger original issue discounts, the source explained.

Jefferies Finance LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that is expected to allocate on Thursday.

Proceeds, along with equity, will be used to fund the buyout of the Detroit-based technology performance company by Thoma Bravo LLC for about $10.92 per share in a transaction valued at around $2.5 billion.

Net total leverage is about 5.5 times, based on $308 million of EBITDA.

Closing is expected by early 2015, subject to regulatory approvals, the completion of a disposition of Covisint and other customary conditions.

Cengage reveals discount

Cengage Learning held its call on Tuesday, launching its fungible $300 million tack-on covenant-light senior secured term loan due March 31, 2020 with original issue discount talk of 99, a market source said.

Prior to the launch, it was disclosed that pricing on the tack-on term loan is Libor plus 600 bps with a 1% Libor floor, in line with the existing term loan, and that the tack-on, as well as the existing $1,741,000,000 term loan, will get 101 soft call protection for six months.

Commitments are due on Friday.

Credit Suisse Securities (USA) LLC is leading the deal that will be used with $50 million of issuer’s cash to fund an up to $350 million dividend to shareholders.

Cengage, a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets, expects to pay the dividend on Dec. 30.

ATI on deck

ATI Physical Therapy set a call for 10:30 a.m. ET on Wednesday to launch a $140 million add-on term loan and an amendment to its existing credit facility, according to a market source.

Consents for the amendment are due on Monday and commitments for the add-on are due on Dec. 17, the source remarked.

Jefferies Finance LLC is leading the deal that will be used to fund an acquisition, pay a dividend and add cash to the balance sheet.

ATI Physical Therapy is a Bolingbrook, Ill.-based operator of physical therapy clinics.

Bright Horizons closes

In other news, Bright Horizons Family Solutions Inc. completed its $165 million non-fungible incremental term loan due January 2020, the company revealed in an 8-K filed with the Securities and Exchange Commission.

The loan is priced at Libor plus 325 bps with a 1% Libor floor and was issued at an original issue discount of 99.

During syndication, the loan was upsized from $150 million.

Goldman Sachs Bank USA led the deal that is being used for general corporate purposes.

Bright Horizons is a Watertown, Mass.-based leading provider of employer-sponsored child care, back-up care, early education, educational advisory services and other work/life services.

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