Renal Advantage, MailSouth break; FilmYard moves deadline; Race Point, Northland tweak deals

By Sara Rosenberg

New York, Dec. 8 - Renal Advantage and MailSouth saw their credit facilities free up for trading on Wednesday, and Neiman Marcus Inc.'s term loans were flat to lower despite good earnings as the market in general felt weaker.

Over in the primary, FilmYard Holdings LLC accelerated the commitment deadline on its oversubscribed term loans, and Advantage Sales & Marketing LLC is likely to make a similar move, while Race Point Power reduced the size of its deal while leaving price talk unchanged.

Also, Northland Communications downsized its credit facility while increasing pricing, Smile Brands Group Inc. upped the spread on its deal, and Saxco International upsized its loan and reduced pricing, floor and discount.

Additionally, Choice Cable came out with original issue discount talk on its term loan as the deal was presented to lenders during the session, and Remy International Inc. released price talk on its in market deal.

Furthermore, GT Solar International Inc. is oversubscribed, and Hyland Software and Mirion Technologies Inc. have been attracting interest from lenders, Sunquest Information Systems closed the books on its first-and second-lien credit facility, and Evergreen International Aviation Inc. and Big West Oil LLC announced plans to bring new deals to market.

Renal starts trading

Renal Advantage's credit facility hit the secondary market on Wednesday, with the $365 million term loan quoted at 99½ bid on the open and then it moved up to par bid, par ½ offered, according to traders. By late afternoon, another trader was seeing it as high as par ½ bid.

Pricing on the term loan is Libor plus 425 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $350 million, pricing was reduced from Libor plus 450 bps, the original issue discount tightened from 98½ and the soft call protection was added.

The $415 million credit facility (Ba3/B) also includes a $50 million revolver.

Renal merging with Liberty

Proceeds from Renal Advantage's credit facility, along with $191 million of mezzanine debt, will be used to help fund the company's merger with Liberty Dialysis.

The mezzanine financing was downsized from $206 million when the term loan was upsized.

Closing on the merger is expected to occur by Dec. 31.

Barclays and Bank of America are the lead banks on the credit facility, with Barclays the left lead.

Brentwood, Tenn.-based Renal Advantage and Mercer Island, Wash.-based Liberty Dialysis are providers of dialysis services.

MailSouth frees up

MailSouth's credit facility also broke for trading, with the $110 million term loan quoted at 98½ bid, 99 offered, according to a market source.

Pricing on the term loan, as well as on a $20 million revolver, is Libor plus 500 bps with a 1.75% floor, and the tranches were sold at an original issue discount of 981/2.

GE Capital is the lead bank on the $130 million deal that will be used to help fund the buyout of the company by Court Square Capital Partners from New Mountain Capital.

Closing leverage is 3.5 times senior and 5.0 times total.

MailSouth is a Helena, Ala.-based marketer of shared-pack coupons.

Neiman unchanged to down

Neiman Marcus' term loans were flat to a bit weaker in trading even though fiscal 2011 first-quarter numbers were pretty good as the overall market was off, according to traders.

One trader had the non-extended term loan quoted at 97 3/8 bid, 97 7/8 offered, and the extended term loan quoted at 98 bid, 98½ offered, with both tranches in line with previous levels.

However, a second trader had the non-extended term loan quoted at 97½ bid, 98½ offered, down from 97¾ bid, 98¾ offered, and the extended term loan quoted at 98 1/8 bid, 98 5/8 offered, down from 98¼ bid, 98¾ offered.

Neiman earnings results

Neiman Marcus' first-quarter numbers showed a year-over-year improvement in earnings, revenues and EBITDA.

Specifically for the quarter, the company reported net earnings of $25.7 million, compared to $8.5 million in the prior year.

Total revenues for the quarter were $927.2 million, compared to $868.9 million in the fiscal year 2010 first quarter.

And, EBITDA for the quarter was $150.9 million versus $128.9 million in the previous year.

Neiman Marcus is a Dallas-based high-end specialty retailer.

FilmYard accelerated

Moving to the primary, FilmYard Holdings, a New York-based film company, has revised the commitment deadline on its $408 million of first- and second-lien term loans to Thursday from Dec. 15 as a result of strong demand, according to a market source.

The debt is comprised of a $325 million 51/2-year first-lien term loan (Ba2) talked at Libor plus 600 bps with a 1.75% Libor floor and an original issue discount of 98 as well as an $83 million six-year second-lien term loan (B2) talked at Libor plus 1,000 bps with a 2% Libor floor and an original issue discount of 98.

The first-lien loan has 101 soft call protection for one year, and the second-lien is non-callable for one year, then at 104 in year two, 102 in year three and 101 in year four.

Barclays and Jefferies are the lead banks on the deal that will be used to help fund the acquisition of Miramax Films by Ron Tutor, Tom Barrack, Colony Capital LLC and other individuals from Walt Disney Co.

Advantage may move deadline

Advantage Sales & Marketing is anticipated to accelerate the commitment deadline on its $1.325 billion credit facility as the transaction has reached oversubscription levels after being in market for about a week, according to a market source.

As launched, the facility consists of a $100 million revolver (B+), an $800 million first-lien term loan (B+) talked at Libor plus 400 bps to 425 bps and a $425 million second-lien term loan (B-) talked at Libor plus 800 bps.

Both term loans include a 1.5% Libor floor.

The first-lien term loan is being offered at an original issue discount of 99, while the second-lien loan is being offered at 981/2.

And, call protection on the second-lien term loan is 103 in year one, 102 in year two and 101 in year three.

Advantage funding buyout

Proceeds from Advantage Sale's credit facility will be used to help fund the buyout of the company by Apax Partners from J.W. Childs Associates LP and BAML Capital Partners.

The transaction, which is subject to customary approvals, is expected to close prior to the end of the year.

Senior leverage is about 4.0 times, and total leverage is around 6.5 times.

Credit Suisse, JPMorgan and UBS are the lead banks on the credit facility.

Advantage Sales is an Irvine, Calif.-based sales and marketing agency.

Race Point downsizes

Race Point Power cut the size of its seven-year term loan (Ba2/BB-) to $275 million from $370 million and left price talk at Libor plus 600 bps with a 1.75% Libor floor and an original issue discount of 98, according to a market source.

The loan still includes 101 soft call protection for one year.

Barclays and Credit Suisse are the lead banks on the deal and are asking for recommitments by Friday.

Because of the downsizing, net leverage is now 4.3 times versus 5.7 times under the original structure.

Ratings on the original structure were Ba2/BB-.

Race Point funding recap

Proceeds from Race Point Power's term loan will still be used to refinance existing debt and to fund a dividend payment. As a result of the size reduction, however, less existing debt will be taken out and the dividend was trimmed to $177 million from $205 million, the source said.

Also changed is that the term loan will no longer be used for acquisition financing. This is because of delays with respect to the acquisition, the source added.

Race Point Power is an enterprise that holds interests in a number of power plants and is owned by ArcLight Capital Partners LLC.

Northland reworks facility

Northland Communications made a number of changes to its credit facility, including reducing the size, increasing pricing and widening the original issue discount. The company is asking for recommitments next week, according to a market source.

Under the revisions, the term loan is now sized at $83 million, down from $95 million, pricing on the tranche, as well as on a $15 million 51/2-year revolver, was raised to Libor plus 600 bps from Libor plus 550 bps, and the discount on the facility was moved to 97 from 98, the source said. As before the entire facility includes a 1.75% Libor floor.

Furthermore, the term loan saw the addition of hard call protection of 102 in year one and 101 in year two, and amortization was increased.

Northland ups mezzanine

In connection with the term loan downsizing, Northland Communications' mezzanine debt was upsized to $57 million from $50 million, the source remarked.

With the changes, senior leverage at close will now be 2.8 times, down from 4.6 times under the original structure.

Proceeds from the now $98 million, down from $110 million credit facility, and the mezzanine financing will be used to refinance existing debt.

GE Capital is the lead bank on the cable company's deal.

Smile Brands revises pricing

Smile Brands raised pricing on its $275 million senior secured credit facility (Ba3/B) to Libor plus 525 basis points from Libor plus 500 bps, while leaving the 1.75% Libor floor and an original issue discount of 98½ unchanged, according to a market source.

The facility consists of a $35 million revolver and a $240 million term loan.

As part of the changes, 101 soft call protection for one year was added to the term loan, the source continued, adding that the deal is now oversubscribed.

Credit Suisse is the lead bank on the facility that will be used to help fund Welsh, Carson, Anderson & Stowe's purchase of a majority interest in the Irvine, Calif.-based dental support services organization from Freeman Spogli & Co.

The transaction is expected to close this month.

Saxco changes size, pricing

Saxco International upsized its credit facility to $100 million from $95 million, lowered pricing to Libor plus 475 bps from talk of Libor plus 550 bps to 575 bps, reduced the Libor floor to 1.5% from 1.75% and tightened the original issue discount tighten to 99½ from 981/2, according to a market source.

The upsizing was done by increasing the term loan to $85 million from $80 million. The revolver size was left unchanged at $15 million.

BNP Paribas is the lead bank on the deal and is asking for recommitments by Friday.

Proceeds from the facility, along with $23 million of mezzanine debt that was downsized from $28 million, will be used to help fund the buyout of the company by the Sterling Group.

Saxco is a Horsham, Pa.-based provider of packaging products and services to the liquor, wine, craft brewing and specialty food industries.

Choice Cable OID talk

Choice Cable held a bank meeting on Wednesday to kick off syndication on its proposed credit facility, and in connection with the event, original issue discount talk on the term loan was announced, according to a market source.

The $95 million six-year term loan is being offered to lenders at a discount of 99, the source said.

Prior to the launch, it was revealed that price talk on the term loan, as well as on a $10 million five-year revolver, is Libor plus 400 bps with no Libor floor.

SunTrust is the lead bank on the $105 million credit facility that will be used to refinance existing debt and to pay a shareholder distribution.

Choice Cable, a Ponce, Puerto-Rico-based cable operator, will have closing leverage of around 3.75 times.

Remy guidance surfaces

Remy International came out with price talk on its $330 million term loan B now that a B1 rating has been received form Moody's Investors Service, according to a market source.

The term loan B is being talked at Libor plus 475 bps with a 1.75% Libor floor and an original issue discount of 99 and has 101 soft call protection for one year, the source said.

The company's $425 million credit facility, which launched with a bank meeting on Monday, also includes a $95 million ABL revolver.

Bank of America, UBS, Wells Fargo and Barclays are the lead banks on the deal that will be used to refinance existing debt.

Remy is a Pendleton, Ind.-based provider of alternators, starters and hybrid motors.

GT Solar nets orders

GT Solar's $200 million three-year pro rata senior secured credit facility is oversubscribed at initial terms, and allocations were given out on Wednesday with the plan being to close early next week, according to a market source.

The facility consists of a $75 million revolver and a $125 million term loan, with both tranches priced at Libor plus 425 bps with no Libor floor and an original issue discount of 98.

Credit Suisse is the lead bank on the deal that will replenish cash used to fund the purchase of 26.5 million shares of the company's common stock from private equity investors at a price of $7.66 per share, for a total purchase price of about $203 million.

GT Solar is a Merrimack, N.H.-based provider of polysilicon production technology and sapphire and silicon crystalline growth systems and materials for the solar, LED and other specialty markets.

Hyland attracts interest

Hyland Software's $225 million credit facility (B2/BB-) is heard to be "going very well," with the deal "almost fully subscribed a week ahead of [the commitment] deadline," according to a market source.

The facility consists of a $20 million revolver and a $205 million term loan, and both tranches are talked at Libor plus 525 bps with a 1.75% Libor floor and an original issue discount of 98.

Credit Suisse and RBC are the lead banks on the deal that will be used to refinance existing debt and to fund a dividend.

Hyland Software is a Westlake, Ohio-based enterprise content management software vendor.

Mirion gets orders

Also seeing "lots of orders in the book" is Mirion Technologies' $235 million credit facility and there are still "many accounts working on it," a market source told Prospect News.

The facility is comprised of a $30 million revolver, a $145 million first-lien term loan talked at Libor plus 475 bps with a 1.75% Libor floor and an original issue discount of 981/2, and a $60 million second-lien term loan talked at Libor plus 900 bps with a 1.75% Libor floor and an original issue discount of 98.

Call protection on the second-lien loan is 103 in year one, 102 in year two and 101 in year three.

Credit Suisse is the lead bank on the deal that will be used to refinance existing debt.

Mirion is a San Ramon, Calif.-based provider of products to detect, monitor and identify radiation.

Sunquest readies allocations

Sunquest Information Systems' $655 million credit facility is anticipated to allocate and free up for trading next week now that the Wednesday commitment deadline has passed and no changes are expected, according to a market source.

The facility consists of a $25 million revolver (Ba3/B+), a $385 million first-lien term loan (Ba3/B+) and a $245 million second-lien term loan (Caa1/CCC+).

As was previously reported, pricing on the first-lien loan firmed at Libor plus 450 bps, the high end of the initial Libor plus 425 bps to 450 bps talk. The tranche includes a 1.75% Libor floor and 101 soft call protection for one year, and was offered at an original issue discount of 981/2.

Pricing on the second-lien loan is Libor plus 850 bps with a 1.25% Libor floor and an original issue discount of 98, and it is non-callable for two years, then at 104 in year three.

Sunquest being acquired

Sunquest Information Systems' credit facility is being done in connection with the purchase of a 51% interest in the company by a group of investors led by Huntsman Gay Global Capital, and including Credit Suisse and Neuberger Berman, from Vista Equity Partners.

Proceeds from the new debt will be used to refinance existing debt, fund a dividend payment and purchase equity.

Jefferies is the lead bank on the credit facility.

Sunquest Information Systems is a Tucson, Ariz.-based provider of health care diagnostic information technology and outreach services.

Evergreen sets launch

Evergreen International Aviation is scheduled to hold a bank meeting on Thursday to launch a proposed $330 million credit facility that consists of a $10 million revolver and a $320 million term loan, according to a market source.

Price talk is expected to come out at launch, the source said.

Goldman Sachs is the lead bank on the deal that will be used to refinance existing debt.

Evergreen is a McMinnville, Ore.-based aviation services company.

Big West Oil holding call

Big West Oil is scheduled to hold a conference call on Thursday to launch a proposed $285 million term loan that is being talked at Libor plus 550 bps with a 1.5% Libor floor and an original issue discount of 991/2, according to a market source

There is 101 soft call protection for one year.

Bank of America is the lead bank on the deal, which will be used to refinance the company's exit term loan.

Big West Oil, a wholly owned subsidiary of Flying J Inc., is a Salt Lake City-based complex high conversion refinery.

Alliant Holdings guidance

Alliant Holdings I Inc. is talking its $160 million incremental senior secured term loan (B2/B-) due August 2014 at Libor plus 500 bps to 525 bps with a 1.75% Libor floor and an original issue discount of 981/2, according to a market source.

JPMorgan and UBS are the lead banks on the deal that was launched with a conference call on Monday.

Proceeds will be used to finance contemplated acquisitions.

Alliant Holdings is a Newport Beach, Calif.-based specialty-oriented insurance broker.

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