First Data down with incremental launch; Neiman slides with sector concerns; Amneal bid dips

By Sara Rosenberg

New York, May 11 – First Data Corp.’s 2022 term loan weakened in the secondary market on Wednesday following news of incremental term loan plans, and Neiman Marcus Group LLC’s term loan dropped as the retail sector in general came under pressure.

In more happenings, Amneal Pharmaceuticals LLC joined this week’s new issue calendar with an add-on term loan, and its existing term loan was bid lower in trading after intentions for the new debt surfaced, and J. Jill approached lenders with an add-on term loan B.

First Data softens

First Data’s 2022 term loan dipped in trading on Wednesday after the company launched without a lender call fungible incremental U.S. and euro term loans due July 10, 2022, according to traders.

One trader had the 2022 loan at 99 5/8 bid, 100 1/8 offered, down by a quarter of a point from Tuesday’s levels, and another trader had the loan quoted at 99¾ bid, par offered, down from par bid, 100¼ offered.

Talk on the incremental term loans is Libor/Euribor plus 375 basis points with no floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source said.

Sizes on the incremental term loans are still to be determined.

Commitments for the U.S. loan are due at noon ET on Friday and commitments for the euro loan are due at 11 a.m. ET on Friday.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the new debt that will be used to refinance a portion of the company’s U.S. term loans due September 2018 and euro term loans due March 2018.

The Atlanta-based provider of payment processing solutions saw its 2018 U.S. term loan unchanged in trading following the news, with levels quoted at 99 7/8 bid, 100 1/8 offered, the second trader added.

Neiman retreats

Neiman Marcus, a Dallas-based luxury retailer, experienced a weakening in its term loan to 93 bid, 93¾ offered from 94½ bid, 95¼ offered as the overall retail sector was negatively impacted by Macy’s Inc.’s release of disappointing first quarter results, according to market sources.

For the quarter, Macy’s reported sales of $5.77 billion, down from $6.23 billion in the first quarter of 2015, and net income attributable to shareholders of $116 million, or $0.37 per diluted share, versus net income of $193 million, or $0.56 per diluted share, in the prior year.

Department store chain, Macy’s, also revised its guidance for earnings per diluted share (excluding settlement charges) in fiscal 2016 to a range of $3.15 to $3.40 from previous guidance of $3.80 to $3.90 per diluted share.

Amneal bid falls

Amneal Pharmaceuticals emerged with plans to hold a lender call at 11 a.m. ET on Thursday to launch a fungible $225 million add-on term loan B due November 2019 talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.266 and 101 soft call protection for six months, a market source remarked.

The spread and floor on the add-on term loan matches pricing on the existing term loan.

Following the add-on news, the existing term loan was quoted in the secondary market at 99½ bid, 100¼ offered, down on the bid side from prior levels of par bid, 100¼ offered, a trader said.

J.P. Morgan Securities LLC is leading the new loan that will be used to fund a dividend and for general corporate purposes.

Along with the add-on term loan, the company is looking to amend its existing credit facility and lenders are being offered a 25-bps amendment fee.

Amneal Pharmaceuticals is a Bridgewater, N.J.-based manufacturer of generic pharmaceuticals.

J. Jill holds call

J. Jill hosted a lender call on Wednesday, launching a fungible $85 million add-on term loan B that is talked at Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

Pricing on the add-on term loan matches existing term loan B pricing, and all of the term loan B debt will get 101 soft call protection for six months, the source said.

Jefferies Finance LLC is leading the deal that will be used to fund a dividend.

With the add-on, the company is asking to amend its existing credit facility to allow for the new debt, and lenders are being offered a 25-bps amendment fee, the source added.

Consents for the amendment are due on Tuesday and commitments for the add-on loan are due on May 20.

J. Jill is a Quincy, Mass.-based multi-channel fashion retailer of women’s apparel, accessories and footwear.

ATI Physical closes

In other news, the buyout of ATI Physical Therapy, a Bolingbrook, Ill.-based outpatient physical therapy provider, by Advent International from KRG Capital Partners has been completed, a news release said.

To help fund the transaction, ATI got a new $955 million senior secured credit facility that includes a $70 million five-year revolver (B1), a $660 million seven-year first-lien covenant-light term loan and a $225 million eight-year second-lien term loan that was privately placed.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor, and the debt was sold at an original issue discount of 99. Included in the loan is 101 soft call protection for one year.

During syndication, the first-lien term loan was upsized from $635 million, the spread was lowered from Libor plus 500 bps, the discount firmed at the tight end of the 98 to 99 talk, the call protection was extended from six months, and the MFN sunset was removed.

Barclays, HSBC Securities (USA) Inc. and Jefferies Finance LLC led the deal.

First-lien leverage is 4.4 times, and total leverage is 5.9 times.

WideOpenWest wraps

WideOpenWest Finance LLC closed on its $432.5 million add-on term loan B due April 1, 2019, according to a news release.

Pricing on the add-on term loan is Libor plus 350 bps with a 1% Libor floor, which matches existing term loan B pricing, and the add-on was sold at an original issue discount of 99.51.

During syndication, the add-on loan was upsized from $382.5 million.

Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. led the loan that was used to repay term loan B-1 borrowings, to pay related fees and expenses, and due to the upsizing, to add cash to the balance sheet, for general corporate purposes and for debt repayment.

WideOpenWest is a Denver-based provider of data, video and telephone services.

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