Granite Energy, InnovaCare free to trade; Houghton Mifflin size, price guidance surface

By Sara Rosenberg

New York, Nov. 1 – Granite Energy LLC’s credit facilities broke for trading on Friday, with the term loan B quoted above its original issue discount, and InnovaCare’s (MMM Holdings LLC) bank debt freed up as well.

Over in the primary market, Houghton Mifflin Harcourt Publishers Inc. came out with details on a proposed term loan B in connection with its lender call.

Also, eResearchTechnology Inc., Terrapure Environmental (Terra Bidco B.C. Ltd.) and Polyconcept joined the near-term primary calendar.

Granite Energy breaks

Granite Energy’s $1.4 billion seven-year first-lien term loan B began trading on Friday, with levels quoted at 99¼ bid, 99¾ offered, according to a trader.

Pricing on the term loan B is Libor plus 375 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan B firmed at the high end of the Libor plus 350 bps to 375 bps talk, the Libor floor was increased from 0% and revisions were made to documentation.

The company’s $1.5 billion of senior secured credit facilities (Ba3/BB-) also include a $100 million revolver.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BMO Capital Markets, Credit Suisse Securities (USA) LLC, MUFG and RBC Capital Markets are leading the deal that will be used to refinance existing debt, fund a one-time distribution to shareholders, and pay related fees and expenses.

Closing is expected in mid-November.

Granite Energy, which is backed by LS Power, is a power producer with about 4,800 MW of clean, high-quality natural gas-fired generation located in the PJM market.

InnovaCare hits secondary

InnovaCare’s $550 million seven-year covenant-lite first-lien term loan broke too, with levels quoted at 96 bid, 97 offered, a market source said.

Pricing on the term loan is Libor plus 575 bps with a 1% Libor floor and it was sold at an original issue discount of 96. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from talk in the range of Libor plus 525 bps to 550 bps, the floor was revised from 0%, the discount widened from 99, the call protection was extended from six months and some changes were made to documentation.

The company’s $630 million of credit facilities (B1/B+) also include an $80 million revolver.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by Summit Partners.

InnovaCare is a Fort Lee, N.J.-based health care delivery system.

Houghton details emerge

Switching to the primary market, Houghton Mifflin held its lender call on Friday and launched a $330 million five-year senior secured term loan B (B3/B/BB-) talked at Libor plus 600 bps with a 0% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for one year, according to a market source.

Commitments are due at 5 p.m. ET on Nov. 13, the source said.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., BofA Securities, Inc. and Wells Fargo Securities LLC are leading the deal that will be used to help refinance an existing term loan B due May 29, 2021 that is priced at Libor plus 300 bps with a 1% Libor floor. As of Sept. 30, the company had about $766 million outstanding under the term loan B.

Closing is expected during the week of Nov. 18.

Houghton Mifflin is a Boston-based provider of K-12 core curriculum, supplemental and intervention solutions and professional learning services.

eResearch readies loan

eResearchTechnology set a bank meeting for 1 p.m. ET in New York on Tuesday to launch a $1.155 billion first-lien term loan B, a market source remarked.

The company is also getting a $395 million privately placed second-lien term loan.

Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used for a recapitalization concurrent with an investment by Astorg to acquire a significant stake in the company alongside existing majority owner Nordic Capital, the source added.

eResearchTechnology is a Philadelphia-based provider of software-enabled clinical research solutions to pharmaceutical, biopharmaceutical and contract research organizations.

Terrapure on deck

Terrapure Environmental will hold a bank meeting at 2:30 p.m. ET in New York on Tuesday and a bank meeting at 4 p.m. ET in Toronto on Wednesday to launch C$640 million U.S. dollar equivalent senior secured first-lien credit facilities, according to a market source.

The facilities consist of a C$60 million U.S. dollar equivalent five-year revolver and a C$580 million U.S. dollar equivalent seven-year first-lien term loan, the source said.

The company is also getting a C$75 million U.S. dollar equivalent privately placed eight-year senior secured second-lien term loan.

Jefferies LLC, Deutsche Bank Securities Inc., Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Pamplona Capital Management.

Terrapure is a Burlington, Ont.-based provider of environmental and industrial waste management services in Canada.

Polyconcept joins calendar

Polyconcept scheduled a bank meeting for 11 a.m. ET in New York on Tuesday to launch a fungible $183 million incremental first-lien term loan, a market source said.

Goldman Sachs Bank USA, KKR Capital Markets and RBC Capital Markets are leading the deal, which will be used for mergers and acquisitions.

Polyconcept is a New Kensington, Pa.-based supplier of promotional products.

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