inVentiv, Vertafore revise spread, set discount; Vertis sets talk; MultiPlan structure emerges

By Sara Rosenberg

New York, July 26 - inVentiv Health Inc. and Vertafore Inc. both made some issuer-friendly changes to their credit facilities on Monday due to strong demand from investors, including reducing pricing and firming up original issue discounts.

Also on the new deal front, Vertis Holding Inc. came out with price talk on its first-out term loan as the deal was presented to lenders during the session, and the structure on MultiPlan Inc.'s credit facility was revealed.

inVentiv changes pricing

inVentiv Health came out with modifications to its $525 million term loan B, including reducing the spread and tightening the original issue discount, being that the tranche was well oversubscribed, according to a market source.

Pricing on the term loan B is now set at Libor plus 475 basis points, down from Libor plus 500 bps, and the original issue discount is now 981/2, down from 98, the source said.

As before, the term loan B carries a 1.75% Libor floor and 101 soft call protection for one year.

The $600 million senior secured credit facility (Ba3/BB-) also includes a $75 million revolver.

Citigroup and Bank of America are the joint lead arrangers and bookrunners on the deal, with Credit Suisse and Deutsche Bank acting as bookrunners as well.

inVentiv books close

After the revisions were made, inVentiv asked that lenders get their recommitments in by the end of the day on Monday and allocations are expected to go out later this week, the source continued.

Proceeds will be used to help fund the buyout of the company by Thomas H. Lee Partners LP for $26 per share in cash. The acquisition is valued at $1.1 billion.

Other funds for the transaction will come from $275 million of senior unsecured notes, which are backed by a commitment for a senior unsecured bridge loan, and up to $384 million in equity.

Closing on the transaction is expected to take place in early August, subject to customary conditions.

inVentiv is a Somerset, N.J.-based provider of end-to-end clinical development, launch and commercialization services to the pharmaceutical and health care industries.

Vertafore cuts spread

Also making changes on Monday was Vertafore, as it lowered pricing on its $625 million senior credit facility to Libor plus 500 bps from Libor plus 525 bps, according to a market source.

Additionally, the original issue discount on the term loan finalized at 98, the low end of the initial 97 to 98 talk, the source said.

The facility, which still includes a 1.75% Libor floor, is comprised of a $75 million revolver and a $550 million term loan.

Credit Suisse, Bank of America and Barclays are the lead banks on the deal, with Credit Suisse the left lead. RBC is a documentation agent.

Vertafore being acquired

Proceeds from Vertafore's credit facility will be used to help fund the buyout of the company by TPG Capital from Hellman & Friedman and JMI Equity for a total consideration of $1.4 billion.

Other funding for the transaction will come from $240 million of junior debt and equity.

The acquisition is expected to close in the third quarter, subject to customary regulatory approvals.

Leverage will be 4.5 times through the first lien and 6.5 times total, and the equity contribution is 47%.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

Vertis price talk surfaces

In more primary happenings, Vertis Holding held a conference call on Monday at 1 p.m. ET to kick off syndication on its proposed $425 million five-year first-out term loan (B2/B-), and in connection with the launch, price talk was announced, according to a market source.

The first-out term loan is being talked at Libor plus 900 bps with a 2% Libor floor and an original issue discount of 97, the source said.

There is call protection of 104 in year one, 103½ in year two, 102 in year three, 101 in year four and par thereafter, the source continued.

The company is also getting a $150 million second-out term loan that is being backstopped by existing holders.

Credit Suisse and Citadel are leading the term loans.

Previously, the company had said that it was looking to get $600 million in new first-lien debt.

Vertis getting revolver

Vertis Holding's $765 million credit facility also includes a $190 million senior secured asset-based revolver that is being clubbed up with relationship banks.

Originally, it was expected that the revolver would be sized at $200 million, but it has since been downsized.

GE Capital, Bank of America and Citibank have provided commitments towards the revolver, with GE the left lead.

Proceeds from the credit facility will be used to refinance an existing term loan and $225 million revolver, and fund the cash consideration for an exchange offer for its 18½% senior secured second-lien notes due 2012.

Vertis Holding is a Baltimore-based marketing communications company.

MultiPlan structure revealed

Details on MultiPlan's proposed credit facility surfaced as the transaction may be launching soon, with it now known that the total facility size will be $1.375 billion - divided into a $75 million revolver and a $1.3 billion term loan, according to a market source.

Proceeds will be used, along with $675 million of bonds, to help fund the buyout of the company by BC Partners and Silver Lake from the Carlyle Group and Welsh, Carson, Anderson & Stowe.

Bank of America, Barclays Capital and Credit Suisse are the leads on the debt, with Barclays the left lead on the credit facility and Bank of America the left lead on the bonds.

MultiPlan is a New York-based provider of health care cost management services.

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