inVentiv, Outerstuff, Surgery break; Southcross, Alion, Miller Heiman, CitiCenter revised

By Sara Rosenberg

New York, July 24 – inVentiv Health Inc. firmed the offer price on its term loan B-4 and Outerstuff LLC set pricing on its term loan at the low end of guidance, and then both deals freed up for trading on Thursday, while Surgery Center Holdings Inc. (Surgery Partners) surfaced in the secondary too.

In more happenings, Southcross Energy Partners LP lowered the spread on its term loan B, tightened the offer price and shortened the call protection, Southcross Holdings Borrower LP upsized its term loan and modified the pricing, discount and call protection, Alion Science and Technology Corp. restructured its first-lien loan debt, and Miller Heiman widened the original issue discount on its add-on loan.

Also, CityCenter Holdings LLC extended the call protection on its loan, and Ceridian LLC and Sterigenics International LLC (STHI Holding Corp.) moved up the commitment deadlines on their deals.

In addition, Vertellus Specialties Inc., NGB Home and National Financial Partners Corp. released price talk with launch, and Penn Engineering & Manufacturing Corp., Bowlmor AMF Corp. and Packaging Coordinators Inc. emerged with new deal plans.

inVentiv sets price, trades

inVentiv Health firmed the offer price on its $445.7 million covenant-light term loan B-4 due May 2018 at par, the low end of the 99¾ to par talk, and left pricing at Libor plus 625 basis points with a 1.5% Libor floor and the 101 soft call protection for one year intact, according to a market source.

With final terms in place, the loan made its way into the secondary market and was seen quoted at par bid, par ½ offered, a trader added.

Citigroup Global Markets Inc. is leading the deal that will be used to refinance term loans due in 2016 priced at Libor plus 600 bps with a 1.5% Libor floor.

With the loan, Thomas H. Lee Partners LP and other existing investors will invest an additional $50 million of capital in the company.

Closing is expected on Monday.

inVentiv is a Burlington, Mass.-based provider of clinical, consulting and commercial services to the health care industry.

Outerstuff firms spread, breaks

Outerstuff finalized the spread on its $155 million seven-year first-lien covenant-light term loan (B2/B+) at Libor plus 400 bps, the tight end of the Libor plus 400 bps to 425 bps talk, and kept the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a market source.

After pricing finalized, the deal broke for trading, with the term loan seen at 99½ bid, par ½ offered, another source remarked.

In addition to the term loan B, the company’s $255 million credit facility includes a $100 million ABL revolver (BB).

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to help fund Blackstone’s purchase of a 49% equity interest in the company.

Outerstuff is a New York-based designer, manufacturer and marketer of licensed children’s sports apparel for all of the major sports leagues in North America.

Surgery Center frees up

Surgery Center’s credit facility began trading as well, with the $870 million six-year first-lien term loan quoted at par bid, 101 offered and the $490 million seven-year second-lien term loan quoted at 99½ bid, par ½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor and was issued at 99. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien term loan was upsized from $820 million, pricing was reduced from talk of Libor plus 450 bps to 475 bps and the discount changed from 99, the second-lien term loan was increased from $440 million and the spread was lowered from talk of Libor plus 775 bps to 800 bps, and a $100 million holdco term loan was eliminated from the capital structure.

The holdco loan had been talked at 12% to 12.5% PIK with call protection of 103 in year one, 102 in year two and 101 in year three, with an exception in year one of 101 for a qualified equity offering.

Surgery Center getting revolver

In addition to the first- and second-lien term loans, Surgery Center’s $1.44 billion credit facility includes an $80 million five-year revolver.

Jefferies Finance LLC, KKR Capital and MCS Capital are leading the deal that will be used to fund the $792 million acquisition of Symbion Holdings Corp., a Nashville-based owner and operator of short-stay surgical facilities, from Crestview Partners.

Opco first-lien leverage is 4.73 times and total leverage is 7.2 times, including $25 million of synergies.

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

Surgery Center is a Chicago-based owner and operator of Ambulatory Surgery Centers.

Southcross Energy modified

Back in the primary, Southcross Energy cut pricing on its $450 million seven-year covenant-light term loan B (B1/B) to Libor plus 425 bps from Libor plus 475 bps, moved the discount to 99½ from 99 and shortened the 101 soft call protection to six months from one year, according to a market source.

As before, the term loan has a 1% Libor floor.

The company’s $570 million credit facility also includes a $120 million five-year revolver.

Recommitments were due at 5 p.m. ET on Thursday, the source said.

Wells Fargo Securities LLC, UBS AG and Barclays are leading the deal that will help fund the acquisition of one-third of TexStar Midstream Services LP’s midstream assets (TexStar Rich Gas System) for about $450 million, comprised of $180 million in cash and 14.633 million newly issued 7% payment-in-kind common units, and to provide additional funds for future growth capital projects and other partnership purposes.

Southcross Energy is a Dallas-based provider of natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services.

Southcross Holdings restructures

Southcross Holdings lifted its seven-year first-lien term loan (B2/B-) to $575 million from $525 million, cut pricing to Libor plus 500 bpsints from Libor plus 550 bps , changed the discount to 99½ from 99, and modified the call protection to 101 for one year from 102 in year one and 101 in year two, according to a market source.

The term loan still has a 1% Libor floor.

The Dallas-based midstream services company’s now $625 million credit facility also includes a $50 million super priority revolver.

Recommitments are due at 2 p.m. ET on Friday, the source said.

Southcross Holdings leads

UBS AG and Barclays are leading Southcross Holdings’ credit facilitty that will be used to repay debt at BlackBrush TexStar.

Southcross Energy LLC is combining with TexStar Midstream Services, and a newly formed company, Southcross Holdings LP, will own 100% of the general partner of Southcross and equity interests in Southcross as well as former TexStar assets. EIG Global Energy Partners, Charlesbank Capital Partners and Tailwater Capital will each indirectly own around one-third of Southcross Holdings.

Closing is expected in the third quarter, subject to customary conditions, including expiration of any required anti-trust filings under Hart-Scott-Rodino.

Alion Science revised

Alion Science and Technology now plans on getting $285 million in first-lien debt, split between a $110 million four-year term loan A and a $175 million five-year term loan B, instead of a $300 million five-year term B, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

The term loan A is talked at Libor plus 700 bps with a 1% Libor floor, an original issue discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, and the term loan B is talked at Libor plus 1,000 bps with a 1% Libor floor, a discount of 97 and call protection of 105 in year one, 103 in year two, 102 in year three and 101 in year four.

When the deal first launched as a single term loan B it was talked at Libor plus 700 bps to 750 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Also as part of its refinancing plans, the company will get a $65 million first-out revolver priced at Libor plus 475 bps, and a $70 million second-lien term loan, upsized from $50 million, from ASOF II Investments LLC and Phoenix Investment Adviser LLC with 14.25% PIK for life.

Alion is a McLean, Va.-based research and development, IT and operational services company.

Miller Heiman tweaks OID

Miller Heiman changed the original issue discount on its $136 million add-on term loan to 98 from 99, according to a market source.

Pricing on the add-on is Libor plus 575 bps with a 1% Libor floor, in line with existing term loan pricing.

Recommitments are due on Tuesday, the source said.

GE Capital Markets is leading the deal that will be used to fund the acquisition VitalSmarts.

Miller Heiman is a Denver-based provider of corporate sales training.

CityCenter extends call

CityCenter pushed out the 101 soft call protection on its $1,546,000,000 covenant-light term loan B due October 2020 to one year from six months, a source remarked.

Pricing on the loan is still Libor plus 325 bps with a 1% Libor floor and a par offer price.

Bank of America Merrill Lynch, Barclays, BNP Paribas Securities Corp., SMBC Nikko Capital Markets and UBS AG are leading the deal that will be used to reprice the existing term loan from Libor plus 400 bps with a 1% Libor floor.

CityCenter is the owner and operator of a mixed-use development located on the Las Vegas Strip.

Ceridian shutting early

Ceridian accelerated the commitment deadline on its $1,375,000,000 of term loans to 3 p.m. ET on Monday from Tuesday, a source remarked.

The debt is split between a $673 million term loan B-1 due May 2017 talked at Libor plus 400 bps with no Libor floor and a par offer price, and a $702 million term loan B-2 due September 2020 talked at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99½.

Deutsche Bank Securities Inc. is the sole bookrunner on the term loan B-1, and Deutsche Bank and Credit Suisse Securities (USA) LLC are the joint bookrunners on the term loan B-2.

Proceeds will be used to refinance/bifurcate the company’s existing term loan into two distinct loan tranches.

Ceridian is a Minneapolis-based provider of human resources, transportation and retail information management services.

Sterigenics moves deadline

Sterigenics moved up the commitment deadline on its $565 million credit facility (B2/B) to noon ET on Tuesday from July 31, according to a market source.

The facility consists of a $75 million revolver, and a $490 million seven-year first-lien covenant-light term loan talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets LLC and UBS Securities LLC are leading the deal that will be used to help fund the acquisition of Nordion Inc. for $13.00 per share.

Closing is expected in the second half of this year, subject to Nordion shareholder approval, receipt of regulatory approvals and other customary conditions.

Sterigenics is a Deerfield, Ill.-based sterilization services company. Nordion is an Ottawa-based health science company.

Vertellus talk emerges

Also in the primary, Vertellus Specialties held its bank meeting on Thursday, launching its $335 million seven-year first-lien term loan and $55 million seven-year first-lien delayed-draw term loan with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a source remarked.

In addition, the $85 million eight-year second-lien term loan was launched at Libor plus 750 bps to 775 bps with a 1% Libor floor, a discount of 99, and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Aug. 7.

UBS AG is leading the $475 million deal that will refinance notes and fund an acquisition.

Vertellus is an Indianapolis-based provider of specialty chemicals for the agriculture, nutrition, pharmaceutical and medical, personal care, plastics, coatings and industrial markets.

NGB Home guidance

NGB Home released talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $200 million first-lien term loan that launched with a morning meeting, a source said.

Also, talk on the $90 million second-lien term loan came out at Libor plus 825 bps to 850 bps with a 1% Libor floor and a discount of 99, the source said.

The company’s $315 million credit facility also includes a $25 million revolver.

Commitments are due on Aug. 7, the source added.

GE Capital Markets and Jefferies Finance LLC are leading the deal that will be used to help fund Nielsen Bainbridge Inc.’s acquisition of the Home Decor Cos., and the combined company will be renamed NGB Home.

Nielsen Bainbridge, a Kohlberg & Co. portfolio company, is an Austin, Texas-based designer, manufacturer and marketer of products for the custom and ready-made framing market.

National Financial add-on

National Financial came to market in the morning with a fungible $75 million add-on covenant-light term loan B due July 2020 that was done in line with talk at an original issue discount of 99¾, according to a market source.

Pricing on the add-on is Libor plus 350 bps with a 1% Libor floor, in line with the existing $867 million covenant-light term loan B due July 2020.

Commitments were due at 2 p.m. ET on Thursday, the source said.

Jefferies Finance LLC is leading the deal that will be used to fund three acquisitions for a total price of around $24 million, to pay down revolver borrowings and for general corporate purposes.

National Financial is a New York-based provider of insurance brokerage and wealth management services to middle market companies, financial advisers and high net worth individuals.

Penn Engineering coming soon

Penn Engineering & Manufacturing set a bank meeting for noon ET in New York on Monday and a bank meeting for 11 a.m. BST in London on Wednesday to launch a $645 million credit facility, according to a market source.

The facility consists of a $75 million revolver, a $220 million seven-year first-lien covenant-light term loan and a $350 million seven-year euro equivalent first-lien covenant-light term loan, with both term loans having 101 soft call protection for six months, the source said.

Commitments are due on Aug. 13.

Credit Suisse Securities (USA) LLC and RBS Citizens are leading the deal that will be used to fund the acquisition of Profil and to refinance existing debt.

Penn Engineering is a Danboro, Pa.-based manufacturer of highly engineered specialty fasteners.

Bowlmor on deck

Bowlmor scheduled a bank meeting for 3 p.m. ET in New York on Monday to launch a $430 million credit facility, according to a market source.

The facility consists of a $30 million revolver, and a $400 million seven-year first-lien term loan with 101 soft call protection for one year, the source said.

Commitments are due on Aug. 7.

Credit Suisse Securities (USA) LLC is leading the dal that that will be used with a sale-leaseback on a significant pool of real estate to fund the acquisition of Brunswick Corp.’s bowling business for $270 million.

Bowlmor is an operator of bowling centers.

Packaging readies deal

Packaging Coordinators plans to hold a bank meeting in New York on Tuesday to launch a $510 million credit facility, according to a market source.

The facility consists of a $50 million five-year revolver, a $340 million seven-year first-lien term loan and a $120 million eight-year second-lien term loan, the source said.

RBC Capital Markets, Deutsche Bank Securities Inc. and GE Capital Markets are leading the deal that will be used to refinance existing debt and to partially fund the acquisition of a related business.

Packaging Coordinators is a provider of commercial packaging and clinical trial services for the pharmaceutical industry.

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