CommScope, P.F. Chang’s, CSC break; athenahealth, Cole Haan updated; Brooks accelerated

By Sara Rosenberg

New York, Feb. 7 – CommScope Inc. reduced the size of its term loan B, finalized pricing at the low end of guidance and revised the issue price, and then the debt broke for trading on Thursday above its original issue discount.

Also, P.F. Chang’s China Bistro Inc. (PFC Acquisition Corp.) cut pricing on its term loan, added a step-down and modified the original issue discount, and CSC Holdings LLC set the spread on its term loan at the low end of revised guidance, and then both of these deals freed to trade as well.

In more happenings, athenahealth Inc. firmed the spread on its first-lien term loan B at the tight side of talk and extended the call protection, and Cole Haan tightened the spread and issue price on its term loan.

Furthermore, Brooks Automation Inc. accelerated the commitment deadline on its term loan B, and Institutional Shareholder Services Inc. (ISS) joined the near-term primary calendar.

CommScope revised, trades

CommScope scaled back its seven-year term loan B to $3.2 billion from $3,869,000,000, firmed pricing at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, and set the original issue discount at 99, the narrow side of revised talk of 98.5 to 99 and tighter than initial talk of 98, market sources said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

The company’s now $4.2 billion of credit facilities also include a $1 billion asset-based revolver.

On Thursday, the term loan B emerged in the secondary market, and levels were seen at 99½ bid, par offered, a trader added.

J.P. Morgan Securities LLC is the left lead on the deal that will be used with $3.75 billion of bonds, upsized from $3 billion with the term loan downsizing, cash on hand and convertible preferred equity from the Carlyle Group, to fund the acquisition of Arris International plc for $31.75 per share, or a total purchase price of around $7.4 billion, including the repayment of debt.

Closing is expected in the first half of this year, subject to regulatory approvals.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks. Arris is a Suwanee, Ga.-based telecommunications company.

P.F. Chang’s reworked, breaks

P.F. Chang’s China Bistro trimmed pricing on its $430 million seven-year first-lien term loan to Libor plus 650 bps from talk in the range of Libor plus 675 bps to 700 bps, added a 25 bps step-down at 4 times net total leverage and moved the original issue discount to 99 from 98, according to a market source.

The term loan still has a 0% Libor floor, and call protection of 102 in year one and 101 in year two.

The company’s $485 million of credit facilities (B/B+) also include a $55 million revolver.

Commitments were due at noon ET on Thursday and the term loan began trading in the afternoon, with levels quoted at 99¼ bid, par ¼ offered, another source added.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to help fund the acquisition of P.F. Chang’s by TriArtisan Capital Partners LLC and Paulson & Co. Inc. from Centerbridge Partners LP.

Closing is expected this quarter.

P. F. Chang’s is a Scottsdale, Ariz.-based Asian-themed casual dining restaurant chain.

CSC updated, frees up

CSC Holdings firmed pricing on its $1 billion senior secured term loan (BB-/BB+) due April 15, 2027 at Libor plus 300 bps, the tight end of revised talk of Libor plus 300 bps to 325 bps and down from initial talk of Libor plus 325 bps, a news release said.

As before, the term loan has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The loan broke for trading on Thursday, with levels quoted at 99 1/8 bid, 99 5/8 offered, a market source added.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to redeem $894.7 million in 10 1/8% senior notes due 2023 and fund cash on the balance sheet.

CSC Holdings, an indirect wholly owned subsidiary of Altice USA Inc., is a Bethpage, N.Y.-based cable operator.

athenahealth tweaks deal

In other news, athenahealth finalized pricing on its $3.66 billion seven-year first-lien term loan B (B2/B/BB) at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, pushed out the 101 soft call protection to one year from six months and made some documentation changes, a market source remarked.

The first-lien term loan still has a 0% Libor floor and an original issue discount of 98.

Recommitments were due at 1:30 p.m. ET on Thursday, the source added.

The company’s $4.86 billion of senior secured credit facilities also include a $400 million revolver (B2/B/BB) and an $800 million eight-year second-lien term loan (//B-).

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays, Ares Capital Management LLC and KKR Capital Markets LLC are leading the deal.

athenahealth being acquired

Proceeds from athenahealth’s credit facilities, up to $600 million preferred equity and cash on hand will be used to fund its buyout by Veritas Capital and Evergreen Coast Capital for $135 in cash per share. The transaction is valued at about $5.7 billion.

Following the closing, Veritas and Evergreen expect to combine athenahealth with Virence Health, the GE health care value-based care assets that Veritas acquired earlier this year. The combined company is expected to operate under the athenahealth brand.

Closing is expected this quarter, subject to the approval of the holders of a majority of athenahealth’s outstanding shares, regulatory approvals and customary conditions.

athenahealth is a Watertown, Mass.-based provider of network-enabled services for hospital and ambulatory customers.

Cole Haan flexes

Cole Haan cut the spread on its $290 million first-lien term loan (B2/B) to Libor plus 550 bps from Libor plus 600 bps and adjusted the original issue discount to 98.75 from talk in the range of 97.5 to 98, according to a market source.

In addition, among other things, amortization, MFN and the incremental under the term loan were revised, the source said.

The term loan has a 0% Libor floor and 101 soft call protection for one year.

Recommitments were due at 3 p.m. ET on Thursday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan.

Cole Haan is a New York-based designer and retailer of footwear, apparel and accessories.

Brooks moves deadline

Brooks Automation accelerated the commitment deadline on its $349,125,000 million senior secured covenant-light term loan B due Oct. 4, 2024 to 5 p.m. ET on Monday from Tuesday, a market source remarked.

Talk on the term loan is Libor plus 275 bps to 300 bps with a 0% Libor floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used for general corporate purposes, including the previous acquisition of Genewiz Group, a South Plainfield, N.J.-based genomics service provider, and to refinance existing debt.

Brooks is a Chelmsford, Mass.-based provider of automation and cryogenic solutions.

ISS joins calendar

Institutional Shareholder Services set a lender meeting in New York for Tuesday to launch $735 million of credit facilities, according to a market source.

The facilities consist of a $40 million revolver, a $495 million first-lien term loan and a $200 million second-lien term loan, the source said.

Antares Capital and Golub Capital are leading the deal that will be used to refinance existing debt and fund the acquisition of Strategic Insights.

ISS is a Rockville, Md.-based provider of corporate governance and responsible investment solutions to financial market participants. Strategic Insights is a New York-based provider of critical and proprietary data, business, intelligence, research and marketing services to the asset management community. Both companies are owned by Genstar Capital.

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