Computer Sciences frees to trade; MGM Resorts gains on REIT news; First Eagle revises loan

By Sara Rosenberg

New York, Oct. 29 – Computer Sciences Government Services Inc.’s credit facility made its way into the secondary market on Thursday, with its term loan B seen trading above its original issue discount, and MGM Resorts International’s term loan B strengthened as the company announced plans to create a real estate investment trust.

Switching to the primary market, First Eagle Investment Management Inc. lifted pricing on its term loan B, widened the issue price and sweetened the call protection.

In addition, Shearer’s Foods LLC released price talk on its term loan with launch, and NXP BV and LPL Financial Holdings Inc. joined the near-term new issue calendar.

Computer Sciences Government Services’ credit facility began trading on Thursday, with the $750 million seven-year covenant-light term loan B quoted at par 1/8 bid, par 3/8 offered, according to a trader.

Pricing on the term loan B is Libor plus 300 basis points with a step-down to Libor plus 275 bps when total net leverage is 2.5 times and a 0.75% Libor floor. The debt has 101 soft call protection for one year and was sold at an original issue discount of 99.5.

Recently, the term loan B size firmed from revised talk of up to $1 billion and an initial size of $1.25 billion, the spread finalized at the low end of the Libor plus 300 bps to 325 bps talk, the step-down was added, the call protection was extended from six months and the MFN sunset provision was removed.

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