Charter rises with bankruptcy exit; Booz Allen, Butler Schein talk emerges; Datatel going well

By Sara Rosenberg

New York, Nov. 30 - Charter Communications Inc.'s old and new bank debt were stronger during Monday's trading session following news that the company exited from Chapter 11.

Over in the primary market, Booz Allen Hamilton Inc. released pricing guidance on its proposed term loan add-on as the company is gearing up to launch the deal to investors on Tuesday, and Butler Schein Animal Health came out with talk on its credit facility ahead of its Wednesday bank meeting.

In other news, Datatel Inc.'s first- and second-lien tranches are heard to moving along nicely, and Advo Services has decided to forego the retail launch for its proposed credit facility as the deal was met with enough interest from a select group of investors to fully syndicate.

Charter trades higher

Charter Communications' bank debt gained some ground in trading after the company announced that it successfully completed its financial restructuring, which significantly improved its capital structure by reducing debt by approximately 40%, according to a trader.

The old bank debt was quoted at 93 bid, 93½ offered, up from 91½ bid, 92½ offered on Friday and 92¼ bid, 93 offered on Wednesday, the trader said.

The new bank debt was quoted at 102¼ bid, 103¼ offered, up from par ½ bid, 102 offered on Friday and 101 bid on Wednesday, the trader added.

Under the company's pre-arranged joint plan of reorganization, the current debt of its subsidiaries CCO Holdings LLC and Charter Communications Operating LLC will be reinstated under pre-existing pricing and maturity dates.

Charter will receive approximately $1.6 billion in proceeds from an equity rights offering to support the overall refinancing and the reduction of approximately $8 billion of debt.

In addition, the company will exchange existing CCH II notes for about $1.7 billion of new 13.5% CCH II notes due 2016.

Charter is a St. Louis-based broadband communications company and cable operator.

Booz Allen sets talk

Moving to new deal happenings, price talk on Booz Allen Hamilton's $350 million term loan add-on started making its way around the market ahead of the Tuesday conference call that will officially launch the transaction to lenders, according to a market source.

The add-on is being talked at Libor plus 400 basis points with a 2% Libor floor, the source said.

Investors will be offered the loan at an original issue discount of 99, the source added.

Credit Suisse and Bank of America are the lead banks on the deal that will be used to help pay a $550 million dividend and retire a portion of a deferred payment obligation.

Other funds for the dividend payment will come from cash on hand.

Booz Allen Hamilton is a McLean, Va.-based strategy and technology consulting firm.

Butler Schein pricing guidance

Butler Schein Animal Health revealed price talk on its $330 million credit facility as the deal is getting ready to launch with a bank meeting on Wednesday morning, according to market sources.

The $300 million term loan B is being talked at Libor plus 350 bps with a 2% Libor floor and an original issue discount of 99, and the $30 million revolver is being talked at Libor plus 350 bps, sources said.

JPMorgan is the lead bank on the deal that will be used to help finance the combination of Henry Schein Inc.'s U.S. animal health businesses and Butler Animal Health Supply, and to refinance debt.

The new company will be 50.1% owned by Henry Schein and 49.9%-owned by the owners of Butler Animal Health Supply, including Oak Hill Capital Partners and the Ashkin Family Group.

Closing on the transaction is expected by year-end.

Butler Schein Animal Health is a Dublin, Ohio-based companion animal health distribution company with combined revenues for the last 12 months of approximately $850 million.

Datatel sees demand

Datatel's first- and second-lien term loans are "going very well" during their syndication process, since first kicking off with a bank meeting on Nov. 19, according to a buyside source.

The $165 million six-year first-lien term loan (Ba3) is being talked at Libor plus 450 bps with a 2% Libor floor and an original issue discount of 98, and the $100 million seven-year second-lien term loan (B3) is being talked at Libor plus 900 bps with a 2% Libor floor and an original issue discount of 97.

Datatel's $305 million credit facility also includes a $40 million five-year revolver (Ba3) that is being talked at Libor plus 450 bps with a 2% Libor floor.

Credit Suisse is the lead bank on the deal that will be used to help fund the buyout of the company by Hellman & Friedman LLC from Thoma Bravo.

Datatel is a Fairfax, Va.-based provider of higher education software, services and insight.

Advo wraps without retail launch

Advo Services' proposed credit facility has already fully syndicated through a club style process and therefore the retail launch that was previously expected to take place on Monday was eliminated, according to a market source.

It was previously said that the facility would be sized at $93 million consisting of an $83 million term loan and a $10 million revolver.

Final details on the facility, including pricing, will likely not be available until the transaction closes, the source added.

GE Capital is the lead bank on the deal that will be used to help fund the buyout of the company by GI Partners.

Advo Services is a behavioral health 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.