IMS pricing chatter emerges; Bolthouse changes deadline; Great Point tweaks deal; HCA dips

By Sara Rosenberg

New York, Jan. 29 - Some unofficial price talk on IMS Health Inc.'s credit facility started making its way around the market now that the European launch took place, and the expectation is that firmer guidance will come out during the week of Feb. 1.

Also on the new deal front, Wm. Bolthouse Farms Inc. accelerated the commitment deadline for its credit facility since the deal has received a large amount of interest, and Great Point Power LLC lowered pricing and discount on its term loan.

Switching to trading happenings, HCA Inc.'s term loan B weakened slightly on revolver drawdown news, and Warner Chilcott plc's strip of term loan debt held steady after the release of earnings guidance.

IMS floats guidance

Market rumor is that IMS Health's $2 billion term loan is being unofficially guided in the mid-to-high Libor plus 300 basis points context, according to sources.

Of the total amount, about $750 million will be dollars and about $750 million will be euros. The remaining $500 million is expected to be held by left lead bank Goldman Sachs and therefore, will not be syndicated, one buyside source remarked.

The $2.275 billion senior secured credit facility (Ba3/BB) also includes a $275 million revolver.

After the initial commitment letter was obtained from Goldman, the company amended the document to insert commitments from Bank of America, Barclays, HSBC and RBC of $250 million each towards the term loan and $50 million each towards the revolver.

The deal was launched to European investors this past Thursday through a London bank meeting. A launch for U.S. investors is set for this coming Thursday with a 1:30 p.m. ET start time at the St. Regis in New York.

IMS being acquired

Proceeds from IMS Health's credit facility will be used to help fund the buyout of the company by TPG Capital and the CPP Investment Board in a transaction valued at $5.2 billion, including the assumption of debt.

Under the acquisition agreement, IMS shareholders will receive $22 in cash per share of common stock.

Equity financing for the buyout is expected to total $2.793 billion.

Other funding for the deal is anticipated to come from $1 billion of senior unsecured notes that are backed by a commitment for a $1 billion senior unsecured term loan. These notes will not be sold in the high-yield market since Goldman Sach's mezzanine fund has decided to invest in them.

Completion of the transaction is expected to occur by the end of the first quarter of 2010, subject to approval of IMS shareholders, regulatory approvals and customary closing conditions. A shareholder meeting to vote on the buyout is set to take place on Feb. 8.

IMS is a Norwalk, Conn.-based provider of market intelligence to the pharmaceutical and health care industries.

Bolthouse moves up deadline

Bolthouse Farms revised the commitment deadline on its proposed $790 million credit facility to Monday from Thursday because syndication has been going so well, according to a market source.

The facility consists of a $65 million five-year revolver (B1/B+), a $500 million six-year first-lien term loan (B1/B+) and a $225 million 61/2-year second-lien term loan (Caa1/CCC+).

The first-lien term loan is talked at Libor plus 400 bps with an original issue discount of 99, and the second-lien term loan is talked at Libor plus 800 bps with an original issue discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three.

All tranches include a 2% Libor floor.

Bolthouse refinancing debt

Proceeds from Bolthouse Farms' credit facility will be used to repay the company's existing senior credit facility and holdco payment-in-kind perpetual preferred stock.

Although the official launch didn't take place until Jan. 26, the banks were holding some one-on-one calls with investors earlier in the week.

Credit Suisse, Goldman Sachs and Bank of America are the lead banks on the deal.

Bolthouse Farms is a Bakersfield, Calif.-based farmer and distributor of fresh produce, beverages and salad dressings.

Great Point revises pricing

Great Point Power came out with some changes to its $220 million seven-year term loan (Ba1/BB+) on Friday, including reducing pricing and tightening the original issue discount, according to sources.

Pricing on the term loan is now Libor plus 350 bps, down from initial talk of Libor plus 375 bps, and the original issue discount is now 99, down from 981/2, sources said.

The Libor floor was left unchanged at 2%.

These changes came on the back of the deal being in excess of three times oversubscribed, one source remarked.

Meanwhile, the size of the loan was reworked slightly earlier in the process. Originally, it was anticipated that the term loan would be $210 million, but it was increased prior to the Jan. 14 bank meeting.

Great Point adds accordions

In addition to the pricing modifications, Great Point Power added some accordion provisions to the term loan agreement.

Specifically, an $80 million debt basket for contributed/acquired assets was added, subject to various conditions, sources said.

Also, there is now an additional carve-out of $30 million if the company wants to acquire a larger stake in the Neptune transmission facility, sources added.

Barclays and Bank of America are the lead banks on the deal that will be used to fund the acquisition of four power generation plants and a stake in the Neptune transmission facility from Energy Investors Funds.

Recommitments are due from investors on Monday.

Great Point Power is a newly formed portfolio company of ArcLight Capital Partners LLC.

HCA trades down

Moving to the secondary market, HCA's term loan B softened after the company revealed that it plans to use borrowings under its asset-based and general revolving credit facilities to help fund a roughly $1.75 billion distribution to stockholders, traders said.

Other funds for the distribution will come from cash on hand.

On a pro forma basis, to reflect the distribution, the company's estimated leverage ratio would be 5.0 times.

Following the news, the term loan A was quoted by around 94 7/8 bid, 95 3/8 offered, down a quarter of a point on the day, traders said.

Meanwhile, the term loan B was quoted by one trader at 95 1/8 bid, 95 3/8 offered, and by a second trader at 95 bid, 95 ½ offered, down from 95¼ bid, 95¾ offered.

HCA releases preliminary numbers

Also on Friday, HCA came out with preliminary results for the fourth quarter, including an expectation for net income of $216 million, compared to $276 million in the prior year.

The company anticipates that revenues for the quarter will be $7.605 billion, a 4.7% increase from $7.265 billion in the fourth quarter of 2008.

Adjusted EBITDA for the quarter is expected to total $1.343 billion, compared to $1.237 billion in the previous year.

And, long-term debt at Dec. 31 is expected to approximate $25.67 billion, a decrease of $2.738 billion from Dec. 31, 2006. The company's estimated leverage ratio at Dec. 31 is 4.7 times.

HCA is a Nashville-based owner and operator of hospitals and surgery centers.

Warner Chilcott steady

Warner Chilcott's strip of term loan B-1 and B-2 debt was pretty flat after the company announced anticipated full-year 2010 results, according to traders.

The strip of debt was quoted by one trader at par ¼ bid, par ½ offered, versus par ¼ bid, par 5/8 offered on Thursday, and by a second trader at par bid, par ½ offered, versus par 1/8 bid, par ½ offered.

For 2010, the company estimates adjusted net income in the range of $190 to $215 million, adjusted cash net income in the range of $842 to $867 million and adjusted cash net income per share in the range of $3.30 to $3.40.

And, adjusted total revenues for 2010, after excluding the impact of a distribution agreement with LEO Pharma A/S, are expected to be in the range of $2.9 to $2.95 billion.

Warner Chilcott is a Rockaway, N.J.-based specialty pharmaceutical company.

Madison Square Garden closes

In other news, Madison Square Garden Inc. closed on its new $375 million five-year senior secured revolving credit facility, according to a news release.

JPMorgan acted as the sole lead arranger on the deal.

Proceeds will be available for working capital needs, ongoing capital expenditures, and other general corporate purposes.

The Madison Square Garden business includes venues, sports teams, media properties and a live entertainment portfolio.

Vanguard closes

Vanguard Health Systems Inc. closed on its $1.075 billion credit facility (Ba2/B+) on Friday, according to a news release.

The facility consists of an $815 million term loan and a $260 million revolver, both priced at Libor plus 350 bps with a 1½% Libor floor. The term loan was sold at an original issue discount of 99.

During syndication, the term loan was upsized from $765 million after the company's senior notes offering was downsized to $950 million from $1 billion, and the discount on the term loan firmed at the tight end of initial guidance of 98½ to 99.

Bank of America and Barclays acted as the lead banks on the deal that was used to refinance debt, including repaying and terminating the existing credit facility.

Vanguard is a Nashville, Tenn.-based owner and operator of acute care hospitals and complementary facilities and services.

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