Global Tel*Link breaks; Hanger, Sheridan tweak deals; Renal, HarbourVest set launches

By Sara Rosenberg

New York, Nov. 10 - Global Tel*Link Corp.'s credit facility freed up for trading on Wednesday, with the first-lien term loan quoted above its original issue discount price and the second-lien term loan pretty much wrapped around its discount level.

Over in the primary market, Hanger Orthopedic Group Inc. and Sheridan Holdings Inc. revised pricing and discounts on their term loans, Renal Advantage came out with timing and structure on its credit facility and HarbourVest Partners LLC surfaced with plans for a new deal.

Also, Armstrong World Industries Inc., Race Point Power, Pelican Products Inc., Presidio Inc. and ClubCorp revealed price talk on their credit facilities as all of these transactions were presented to lenders during market hours.

Furthermore, TransDigm Group Inc.'s credit facility has been met with really strong demand in the few days that is has been in market, leaving some to anticipate that the commitment deadline may be accelerated.

Global Tel*Link frees up

Global Tel*Link's credit facility began trading on Wednesday, with the $395 million first-lien term loan B (B1) quoted by one trader at 98¼ bid, 99¼ offered and by a second trader at 98½ bid, 99½ offered in light activity.

Meanwhile, the $105 million second-lien term loan (Caa1) was quoted by traders at 97½ bid, 98½ offered.

Pricing on the first-lien term loan B is Libor plus 550 basis points, and pricing on the second-lien term loan is Libor plus 1,125 bps. Both tranches have a 1.75% Libor floor and were issued at a discount of 98. The second-lien is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

The company's deal also includes a $20 million revolver (B1) and a $40 million deposit letter-of-credit facility (B1), both priced Libor plus 550 bps with a 1.75% Libor floor and sold at a discount of 98.

Global Tel dividend recap

Proceeds from Global Tel*Link's $560 million credit facility will be used to refinance existing debt and to fund a dividend payment.

Credit Suisse, UBS and Goldman Sachs are the lead banks on Global Tel*Link's senior secured credit facility, with Credit Suisse the left lead.

During syndication, the first-lien term loan B was upsized from $370 million, the second-lien term loan was downsized from $160 million and the deposit letter-of-credit facility was reduced from $45 million.

As a result, total leverage at close will be 4.78 times, down from 5.07 times originally.

Global Tel*Link is a Mobile, Ala.-based correctional communications technology company.

Hanger modifies pricing

Moving to the primary, Hanger Orthopedic reverse flexed pricing on its $325 million term loan B to Libor plus 375 bps from Libor plus 400 bps and cut the original issue discount to 99½ from 99, while leaving the 1.5% Libor floor and 101 soft call protection for one year unchanged, according to a market source.

Bank of America, Jefferies, Oppenheimer, SunTrust and RBC are the lead banks on the $425 million credit facility (Ba3/BB-) that also includes a $100 million revolver.

Proceeds from the facility, cash on hand and $200 million of senior notes will be used to fund the acquisition of Accelerated Care Plus, a Reno, Nev.-based provider of integrated clinical programs for sub-acute and long-term care rehabilitation providers, for about $155 million in cash and to refinance existing bank debt.

Hanger, an Austin, Texas-based provider of orthotic and prosthetic patient care services, expects to close on the transaction around Dec. 1, subject to regulatory approvals and financing.

Sheridan reworks loan

Sheridan Holdings raised pricing on its $160 million incremental first-lien term loan (B1/B) to Libor plus 375 bps from Libor plus 350 bps, but reduced the original issue discount to 95 from 931/2, according to a market source.

The loan still does not include a Libor floor.

Recommitments are due by noon ET on Friday.

Credit Suisse and Jefferies are the lead banks on the deal that will be used to fund acquisitions and to repay revolver borrowings.

Sheridan is a Sunrise, Fla.-based provider of physician services to hospitals and ambulatory surgical facilities.

Renal details emerge

Renal Advantage firmed up timing on the launch of its proposed credit facility, with the scheduling of a bank meeting for noon ET at the Essex House in New York on Tuesday, according to a market source.

Previously, it was known that the deal would be next week's business, but a firm date was unavailable.

Also, with timing set, structure on the facility was announced as a $50 million revolver and a $350 million term loan, the source said.

Price talk on the tranches is not being disclosed just yet, the source added.

Renal funding merger

Proceeds from Renal Advantage's $400 million credit facility, along with roughly $200 million of mezzanine debt, will be used to help fund its merger with Liberty Dialysis.

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.

HarbourVest readies deal

HarbourVest Partners is set to hold a bank meeting on Friday to launch a proposed $550 million term loan that is being talked at Libor plus 425 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

Credit Suisse is the lead bank on the deal that will be used for a recapitalization.

HarbourVest is a Boston-based investment firm that provides private equity services to institutional clients.

Armstrong sets talk

Armstrong World Industries held a bank meeting on Wednesday to kick off syndication on its proposed credit facility, and in connection with the event, price talk on the $550 million 61/2-year term loan B emerged as Libor plus 350 bps to 375 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2, according to a market source.

The $1.05 billion senior secured credit facility (BB-) also includes a $250 million five-year revolver and a $250 million five-year term loan A.

Bank of America, Barclays and JPMorgan are the lead banks on the deal that will be used, along with cash on hand, to help fund a special cash dividend of $13.74 per share to common shareholders, or about $800 million in the aggregate, and refinance an existing $430 million credit facility.

Completion of the transaction is expected by year-end.

Armstrong is a Lancaster, Pa.-based designer and manufacturer of floors, ceilings and cabinets.

Race Point pricing

Race Point Power disclosed talk of Libor plus 600 bps with a 1.75% Libor floor and an original issue discount of 98 on its $370 million seven-year term loan at its bank meeting, according to a market source.

There is 101 soft call protection for one year, the source added.

Barclays and Credit Suisse are the lead banks on the deal that will be used to refinance existing debt, for acquisition financing and to fund a dividend payment.

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

Pelican talk surfaces

Pelican Products launched its $435 million credit facility - comprised of a $30 million revolver and a $405 million term loan - on Wednesday with price talk of Libor plus 425 bps to 450 bps with a 1.5% Libor floor and an original issue discount of 99, according to sources.

Credit Suisse and GE Capital are the lead banks on the deal that will be used to refinance existing debt.

Pelican Products is a Torrance, Calif.-based designer and manufacturer of advanced lighting systems and virtually indestructible cases.

Presidio guidance

Presidio also came out with price talk as it launched a $300 million term loan B (B+) on Wednesday that is being led by JPMorgan, 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 981/2, the source said, adding that there is 101 soft call protection for one year.

Proceeds will be used to refinance debt, pay a dividend to shareholders and for general corporate purposes.

Presidio is a Greenbelt, Md.-based provider of professional and managed IT services.

ClubCorp reveals pricing

ClubCorp divulged price talk of Libor plus 425 bps to 450 bps with a 1.5% Libor floor and an original issue discount of 99 on its $310 million six-year term loan that was presented to lenders at 12:30 p.m. ET bank meeting, according to a market source.

Citigroup is the lead bank on the $360 million credit facility (BB), which also includes a $50 million five-year revolver.

Proceeds from the facility, along with $415 million of notes, will be used to repay existing debt.

ClubCorp is a Dallas-based owner and operator of golf courses, country clubs, private business and sports clubs, and resorts.

American Gilsonite launches

Also holding a bank meeting on Wednesday was American Gilsonite Co., as it launched a $102 million credit facility that is being led by GE Capital and KeyBank, according to a market source.

As was previously reported, the facility consists of a $6 million revolver and a $96 million term loan, with both tranches talked at Libor plus 550 bps with a 1.75% floor and an original issue discount 98.

Proceeds will be used for a dividend recapitalization.

Closing leverage is 3.25 times senior and 4.25 times total.

American Gilsonite is a Bonanza, Utah-based miner and processor of Gilsonite.

MailSouth comes to market

MailSouth was another company to launch a deal during the session, and its $130 million facility is comprised of a $20 million revolver and a $110 million term loan, according to a market source.

Price talk on the revolver and the term loan is Libor plus 500 bps with a 1.75% floor and an original issue discount of 981/2.

GE Capital is the lead bank on the 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.

Atlantic Broadband holds call

Meanwhile, Atlantic Broadband Finance LLC launched its $600 million senior secured credit facility (B+) with a 9 a.m. ET conference call on Wednesday, according to a market source.

The facility consists of a $575 million five-year term loan B talked at Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 99, and a $25 million four-year revolver.

Credit Suisse and SunTrust are the lead banks on the deal that will be used to replace an existing $40 million revolver due in 2012 and a $436.5 million term loan due in 2013, to fund a $110 million cash dividend payment and to pay $39 million to redeem preferred stock.

Atlantic Broadband is a Quincy, Mass.-based cable provider.

TransDigm well met

TransDigm's $1.2 billion senior secured credit facility (Ba2/BB-) was already "significantly oversubscribed" by Wednesday morning as investors have been piling into the deal since its Nov. 3 launch, according to a market source.

Commitments towards the loan are not due until Nov. 19, but because of the strong reception, some are expecting that date to be moved up, the source said.

The facility consists of a $900 million six-year term loan and a $300 million five-year revolver, with both tranches currently talked at Libor plus 375 bps to 400 bps with a 1.5% Libor floor. The revolver has a 50 bps unused fee.

The term loan is being offered at an original issue discount of 99 and the revolver is being offered with a one point upfront fee.

TransDigm lead banks

Credit Suisse, UBS, Barclays and Morgan Stanley are the lead banks on TransDigm's credit facility, and are targeting closing and funding for Nov. 24.

Proceeds from the facility, allowing with $780 million of new senior subordinated notes, will be used to fund the $1.27 billion acquisition of McKechnie Aerospace Holdings Inc., repay about $280 million of existing term loan borrowings at TransDigm and refinance its existing $200 million revolver.

McKechnie, an Irvine, Calif.-based supplier of aerospace products, is being bought from JLL Partners.

Pro forma net debt to EBITDA will be 5.8 times, up from 3.9 times at July 3, and total debt will be 6.3 times, up from 4.6 times at July 3.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components.

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