NAPA Management frees to trade; ERT revises deadline; Micron Technology talk surfaces

By Sara Rosenberg

New York, April 11 – NAPA Management Services Corp. (NMSC Holdings Inc.) saw its credit facility make its way into the secondary market on Monday, and levels on the term loan B were quoted above the original issue discount.

Meanwhile, in the primary market, ERT (eResearchTechnology Inc.) accelerated the commitment deadline on its credit facility, Micron Technology Inc. released price talk on its term loan B in connection with its bank meeting, and Ciena Corp. joined this week’s new issue calendar.

NAPA breaks

NAPA Management Services’ credit facility began trading on Monday, with the $340 million seven-year covenant-light term loan B quoted at 99¾ bid, 100½ offered, according to a market source.

Pricing on the term loan B is Libor plus 500 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. The loan has 101 soft call protection for one year and 50 bps MFN for life.

During syndication, the B loan was upsized from $320 million, the spread was reduced from talk of Libor plus 525 bps to 550 bps, the discount tightened from 98, and the call protection was extended from six months.

The company’s $380 million credit facility (B1/B) also includes a $40 million revolver (B1/B).

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC and BMO Capital Markets Corp. are leading the deal.

NAPA being acquired

Proceeds from NAPA Management Services’ credit facility will be used to help its buyout by American Securities LLC.

As a result of the recent term loan B upsizing, the company reduced the equity for the buyout by $10 million and a privately placed second-lien term loan by $10 million to $150 million from $160 million.

NAPA is a Melville, N.Y.-based outsourced anesthesia and perioperative management services company.

ERT shutting early

Moving to the primary market, ERT moved up the commitment deadline on its $540 million credit facility (B1/B) to 5 p.m. ET on Monday from Wednesday, according to a market source.

The facility consists of a $495 million seven-year covenant-light first-lien term loan and a $45 million five-year revolver.

Talk on the first-lien term loan is Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the debt that will be used to help fund the purchase of the company by Nordic Capital Fund VIII from Genstar Capital.

Other funds for the buyout will come from $220 million of privately placed second-lien debt and equity.

Closing is expected in the second quarter, subject to regulatory approvals and customary conditions.

ERT is a Philadelphia-based provider of patient data collection solutions for use in clinical drug development.

Micron releases talk

Micron Technology held its bank meeting on Monday, and with the event, talk on its $500 million six-year senior secured covenant-light term loan B (Baa2/BBB-) came out at Libor plus 600 bps to 625 bps with a 0.75% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, a market source said.

Commitments are due on April 20, the source added.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., HSBC Holdings plc and J.P. Morgan Securities LLC are leading the loan that will be used for general corporate purposes, including working capital and capital expenditures, and to pay related fees and expenses.

Closing is subject to, among other things, successful syndication, negotiation, execution and delivery of definitive loan documentation and various customary conditions.

Along with the term loan B, the company is contemplating issuing up to $1 billion of senior secured notes.

Micron is a Boise, Idaho-based semiconductor company.

Ciena coming soon

Ciena emerged with plans to hold a bank meeting at 1:30 p.m. ET in New York on Tuesday to launch a $200 million five-year covenant-light term loan B, a market source remarked.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the loan that will be used to add cash to the balance sheet, and, in the future, to help repay convertibles due in 2017.

Ciena is a Hanover, Md.-based supplier of communications networking equipment and software.

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