24 Hour, Covis break; SourceHOV, Harland Clarke, CDW, Caraustar, Harden, Truven tweak deals

By Sara Rosenberg

New York, April 24 - 24 Hour Fitness Worldwide Inc.'s term loan B hit the secondary market on Wednesday, with levels seen above its issue price, and Covis Pharma Holdings Sarl freed up for trading as well.

Over in the primary, SourceHOV LLC tightened spreads and original issue discounts on its first- and second-lien term loans, Harland Clarke Holdings Corp. set the coupon on its loan at the wide end of talk while increasing the Libor floor and sweetening call premiums, and CDW LLC modified the discount on its loan, added a pricing step-down and extended the soft call.

Also, Caraustar Industries Inc. upsized its term loan, trimmed pricing and revised the discount, Harden Healthcare firmed the original issue discount on its term loan B at the high end of guidance, and Truven Health Analytics Inc. added a pricing step-down to its B loan.

In addition, CompuCom Systems Inc., Fairway Group Acquisition Co., SS&C Technologies Holdings Inc., Peninsula Gaming LLC, OtterBox and Packaging Coordinators Inc. released talk on their deals, and Constellation Brands Inc. (CIH International SARL) set original issue discount guidance.

Furthermore, Catalent Pharma Solutions Inc. launched an unsecured term loan, Albertson's LLC emerged with a repricing, and Surgical Care Affiliates LLC, SI Organization and La Frontera Generation are getting ready to bring new deals to market.

24 Hour frees up

24 Hour Fitness' $585 million term loan B due April 2016 broke for trading on Wednesday, with levels quoted at par ½ bid, 101¼ offered, according to a trader.

Pricing on the loan is Libor plus 400 basis points with a step-down to Libor plus 375 bps when senior leverage is less than 2.75 times. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was issued at par.

During syndication, pricing on the loan was reduced from talk of Libor plus 425 bps to 450 bps and the step-down was added.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to reprice/refinance an existing term loan B.

Senior leverage as of Dec. 31 was around 3.2 times.

24 Hour Fitness is a San Ramon, Calif.-based fitness-club operator.

Covis tops par

Covis Pharma's credit facility made its way into the secondary market too, with the $205 million six-year first-lien term loan quoted at par ¼ bid, par ¾ offered, a market source remarked.

Pricing on the loan is Libor plus 475 bps with a 1.25% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

Earlier this week, pricing on the loan was reverse flexed from talk of Libor plus 525 bps to 550 bps and the offer price was revised from 99.

Also part of the company's new $240 million credit facility (B3/B) is a $35 million five-year revolver that was upsized from $25 million.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund the acquisition of select off-patent drugs.

Covis is a Zug, Switzerland-based specialty pharmaceutical company.

SourceHOV flexes lower

Moving to the primary, SourceHOV cut pricing on its $400 million five-year first-lien term loan B (B1/B+) to Libor plus 400 bps from Libor plus 450 bps and modified the original issue discount to 99½ from 99, while keeping the 1.25% Libor floor and 101 soft call protection for one year in place, according to a market source.

Also, the company reduced the coupon on its $110 million six-year second-lien term loan (Caa1/CCC+) to Libor plus 750 bps from Libor plus 850 bps and changed the discount to 99 from 981/2, the source remarked. This tranche still has a 1.25% Libor floor and is non-callable for one year, then at 102 in year two and 101 in year three.

In addition to the term loans, the company's $570 million credit facility includes a $60 million five-year revolver (B1/B+).

Commitments are due at 5 p.m. ET on Thursday, moved up from noon ET on Monday due to the strong demand, the source added.

SourceHOV being acquired

Proceeds from SourceHOV's credit facility will be used to help fund its buyout by CVCI Private Equity from Apollo Global Management LLC and certain minority holders.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the credit facility.

SourceHOV is a Dallas-based provider of business process outsourcing and knowledge process outsourcing services.

Harland updates terms

Harland Clarke firmed pricing on its $750 million first-lien covenant-light incremental term loan B-3 (B1/B+) due May 2018 at Libor plus 550 bps, the wide end of the Libor plus 525 bps to 550 bps, raised the Libor floor to 1.5% from 1.25% and revised call protection to 102 in year one and 101 in year two, from 101 for one year, according to a market source.

The original issue discount of 99 was unchanged.

In addition, the loan saw amortization increased to 2.5% from 1%, and minimum amortization to the term loan set at the lesser of 5% total first-lien debt and $75 million, the source remarked.

Recommitments were due at 5 p.m. ET on Wednesday.

Harland lead banks

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Jefferies Finance LLC and J.P. Morgan Securities LLC are leading Harland Clarke's deal that will repay a non-extended term loan due 2014 priced at Libor plus 250 bps.

Pro forma leverage is 4 times last-12-months March 31 adjusted EBITDA of $510 million.

Harland Clarke is a San Antonio-based provider of payment, marketing and security services.

CDW reworked

CDW changed the original issue discount on its $1.35 billion seven-year senior secured covenant-light term loan (Ba3/B+) to 99¾ from 991/2, added a pricing step-down to Libor plus 225 bps at 4 times net total leverage and extended the 101 soft call protection to one year from six months, a market source said.

Opening pricing on the loan is still Libor plus 250 bps with a 1% Libor floor.

Recommitments are due at noon ET on Thursday, the source continued.

Barclays, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal that will refinance the company's existing senior secured bank debt.

CDW is a Vernon Hills, Ill.-based provider of integrated information technology services.

Caraustar revises loan

Caraustar Industries lifted its six-year covenant-light first-lien term loan (B2/B+) to $350 million from $330 million, lowered pricing to Libor plus 625 bps from Libor plus 650 bps and moved the original issue discount to 99¼ from 99, according to a market source.

The loan still has a 1.25% Libor floor and soft call protection of 102 in year one and 101 in year two.

The company's now $400 million credit facility also provides for a $50 million five-year ABL revolver (Ba2/BB).

Recommitments were due at 5 p.m. ET on Wednesday, the source said.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Jefferies Finance LLC are leading the deal that will help fund the buyout of the company by H.I.G. Capital.

As a result of the term loan upsizing, the amount of equity being used for the buyout was reduced.

Caraustar is an Austell, Ga.-based manufacturer of recycled paperboard products and packaging.

Harden sets OID

Harden Healthcare finalized the original issue discount on its $150 million term loan B at 98, the wide end of the 98 to 99 talk, and is expecting to give out allocations later this week or early next week, according to a market source.

As before, the loan is priced at Libor plus 550 bps with a 1.25% Libor floor, and has 101 soft call protection for one year.

The company's $190 million senior secured credit facility also includes a $40 million revolver.

Barclays, Bank of America Merrill Lynch, CIT and Wells Fargo Securities LLC are leading the transaction that will be used to refinance an existing credit facility and for general corporate purposes.

Harden Healthcare is an Austin, Texas-based provider of post-acute health care services.

Truven adds step

Truven Health Analytics added to its $535 million term loan B (B+) due May 2019 a step-down in pricing to Libor plus 300 bps when consolidated total leverage is less than 5.5 times, a market source said. Current consolidated total leverage is about 6 times.

Opening pricing on the loan was unchanged at Libor plus 325 bps with a 1.25% Libor floor and a par offer price, and there is still 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance/reprice the existing term loan B.

Truven is a provider of health care data and data analytics.

CompuCom details surface

In more primary happenings, CompuCom Systems revealed with its bank meeting on Wednesday that it is looking to get a $580 million seven-year senior secured term loan B (B1/B) talked at Libor plus 350 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BMO Capital Markets, Jefferies Finance LLC and Sumitomo Mitsui Banking Corp. are leading the deal, for which commitments are due on May 3, the source remarked.

Proceeds will help fund the buyout of the Dallas-based IT services specialist by Thomas H. Lee Partners LP from Court Square Capital Partners.

Closing is expected the week of May 6, the source added.

Fairway talk emerges

Fairway held its call on Wednesday, launching its $314.3 million credit facility and disclosing price talk on the transaction, according to a market source.

The roughly $274.3 million first-lien term loan due August 2018 and $40 million revolver due August 2017 are being talked at Libor plus 400 bps with a 1% Libor floor, the source said.

The term loan has a 50 bps pricing step-down if ratings are B2/B, a par offer price and 101 repricing protection for six months, the source continued.

Proceeds will be used to reprice an existing term loan and revolver from Libor plus 550 bps with a 1.25% Libor floor.

Commitments are due on Tuesday, the source added.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal for the supermarket chain with locations in New York, New Jersey and Connecticut.

SS&C launches

SS&C Technologies launched with its call $700.1 million in term loans (BB) due June 2019 that are talked at Libor plus 275 bps with no Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

The debt consists of a $634.5 million term loan B-1 and a $65.6 million term loan B-2, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B-1 due June 2019 and term loan B-2 due June 2019 from Libor plus 400 bps with a 1% Libor floor.

Commitments are due at the close of business on April 30, the source added.

SS&C is a Windsor, Conn.-based provider of financial services software and software-enabled services.

Peninsula Gaming pricing

Peninsula Gaming released talk on its roughly $823 million term loan B at Libor plus 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to sources.

Proceeds will be used to reprice an existing term loan B from Libor plus 450 bps with a 1.25% Libor floor.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the deal that launched with a call on Wednesday.

Peninsula is an owner and operator of casinos and off-track betting parlors.

OtterBox releases guidance

OtterBox disclosed talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year on its $400 million six-year term loan B that launched with a bank meeting during the session, according to market sources.

In addition to the term loan, the company's $550 million credit facility includes a $150 million three-year revolver that is talked at Libor plus 175 bps.

Lead bank, Wells Fargo Securities LLC, is asking for commitments by May 10, sources said.

Proceeds will be used to help fund the acquisition of LifeProof.

OtterBox is a Fort Collins, Colo.-based producer of protective services for global handheld manufacturers, wireless carriers and distributors. LifeProof is a San Diego-based maker of protective cases for Smartphones and Tablet PCs.

Packaging Coordinators talk

Packaging Coordinators launched with a bank meeting its $175 million first-lien term loan and announced price talk of Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 99, according to market sources.

The company's $280 million credit facility also includes a $30 million revolver and a $75 million second-lien term loan that has already been placed.

GE Capital Markets, SunTrust Robinson Humphrey Inc. and Fifth Third Securities Inc. are leading the deal that will be used to fund the $308 million acquisition of AndersonBrecon from AmerisourceBergen Corp.

Packaging Coordinators is a Philadelphia-based pharmaceutical and biotechnology packaging company. AndersonBrecon is a contract pharmaceutical packaging business.

Constellation reveals OID

Constellation Brands came out with original issue discount talk of 99¾ on its $1 billion seven-year term loan B that launched with a call in the morning, according to a market source, who said the deal has 101 soft call protection for one year.

Price talk on the loan had been released earlier at Libor plus 200 bps to 225 bps with a 0.75% Libor floor.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC and Barclays are leading the term loan B that will be used to help fund the acquisition of Grupo Modelo's U.S. business.

Constellation Brands is a Victor, N.Y.-based wine company.

Catalent comes to market

Catalent Pharma Solutions held a call in the morning to launch a $275 million senior unsecured term loan due Dec. 31, 2017 that is talked at Libor plus 550 bps to 575 bps with a 1.25% Libor floor, an original issue discount of 99½ to 99¾ and soft call protection of 102 in year one and 101 in year two, according to a market source.

Then, by late day, pricing on the loan was reverse flexed to Libor plus 525 bps and the discount firmed at 993/4, the tight end of talk, the source said.

Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to repay the company's 9½%/10¼% senior PIK-election notes due 2015.

Catalent is a Somerset, N.J.-based provider of advanced technologies and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer health care companies.

Albertson's repricing

Albertson's launched $1.15 billion in senior secured term loan B debt that is split between a $450 million three-year tranche talked at Libor plus 350 bps and a $700 million six-year tranche talked at Libor plus 375 bps, according to a market source. Both tranches have a 1% Libor floor and a par offer price.

Additionally, the three-year loan has 101 soft call protection for six months and the six-year loan has 101 soft call protection for a year.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to reprice and extend existing term loan B debt that is priced at Libor plus 450 bps with a 1.25% Libor floor.

Commitments are due on May 1. Closing is targeted for May 6, the source added.

Albertson's is a food and drug retailer.

Surgical Care on deck

Surgical Care Affiliates plans to hold a lender call at 10:30 a.m. ET on Thursday to launch a new $390 million term loan B due June 2018 that is talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the loan that is expected to be rated B1/B, the source said.

Proceeds will refinance an existing term loan B due in 2014, a term loan B due in 2018 and PIK notes due in 2015.

Surgical Care is a Birmingham, Ala.-based operator of surgical facilities.

SI readies loan

SI Organization set a lender call for 2 p.m. ET on Thursday to launch a $339 million term loan B that will fund an acquisition and refinance existing debt, according to a market source.

The size of the new term loan B is a $45 million increase from the company's existing term loan B, the source said.

J.P. Morgan Securities LLC is the lead bank on the deal.

SI Organization is a Valley Forge, Pa.-based provider of high-end systems engineering and integration services to the U.S. intelligence community.

La Frontera plans deal

La Frontera Generation scheduled a bank meeting for Thursday to launch a $1 billion term loan B that has 101 soft call protection for one year, according to sources.

Bank of America Merrill Lynch is leading the transaction.

Proceeds will be used to fund a dividend.

Hub closes

In other news, Hub International Holdings completed its $1,125,000,000 term loan due June 13, 2017 that is priced at Libor plus 350 bps with no Libor floor, according to a news release. The debt was issued at par and has 101 soft call protection for six months.

During syndication, pricing on the loan was reduced from Libor plus 375 bps.

Proceeds were used to reprice an existing $828 million term loan from Libor plus 450 bps with no Libor floor, and the $297 million of incremental debt was used to refinance a $168 million term loan due December 2017, to repay $100 million in borrowings under the U.S. revolver and to repay $25 million of preferred equity owned by legacy third-party shareholders.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and RBC Capital Markets led the deal for the Chicago-based insurance company.

© 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.