Sheridan Holdings bid higher; AMR softens; Las Vegas Sands, Ardagh, Endo Health release talk

By Sara Rosenberg

New York, Dec. 4 - Sheridan Holdings Inc. saw the bid on its first-lien term loan move higher after news surfaced that the company would be coming to market with some new term loans and an amendment to its existing deal, and AMR Corp.'s (American Airlines) term loan weakened with the launch of a repricing.

Over in the primary, Las Vegas Sands LLC, Ardagh Group and Endo Health Solutions Inc. disclosed price talk with launch, One Call Care Management came out with original issue discount guidance on its add-on loan, and Therakos Inc. and EquiPower Resources Holdings LLC surfaced with new loan plans.

Sheridan Holdings bid up

Sheridan Holdings' first-lien term loan was quoted at par 5/8 bid, 101 offered in trading on Wednesday afternoon, versus par ½ bid, 101 offered on Tuesday, following the announcement of new loan plans, according to a trader.

The company is planning on holding a call at 1 p.m. ET on Thursday to launch $520 million in new term debt that will be used to pay a dividend, fund an acquisition and refinance existing debt.

The deal includes an $85 million tack-on first-lien covenant-light term loan (B1) due June 2018 and a $70 million delayed-draw first-lien covenant-light term loan (B1) due June 2018, which will be sold as a strip.

Talk on the first-lien loans is Libor plus 350 basis points with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said. There is a ticking fee on the delayed-draw loan of half the spread from Jan. 1 to Feb. 15, and the full spread from Feb. 16 to April 1.

Sheridan plans second-lien

In addition to the first-lien debt, Sheridan Holdings will be launching on its call a $365 million second-lien covenant-light term loan (Caa1) due December 2021 that is talked at Libor plus 750 bps to 775 bps with a 1% Libor floor, a discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

Left lead, Credit Suisse Securities (USA) LLC, is asking for commitments by Dec. 16.

Also, in connection with this transaction, the company is seeking an amendment to its existing credit facility for which term loan lenders are being offered a 12.5 bps consent fee.

Sheridan is a Sunrise, Fla.-based provider of outsourced health care services.

AMR slides

AMR's debtor-in-possession/exit financing term loan fell to par bid, par ¾ offered from par ¼ bid, 101 offered as the company held a call in the afternoon to launch a repricing of the $1.9 billion tranche, a trader remarked.

The repricing is talked at Libor plus 300 bps to 325 bps with a 1% Libor floor and a par offer price, compared to current pricing on the loan of Libor plus 375 bps with a 1% Libor floor, a source said.

Commitments are due on Dec. 11.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal.

AMR is a Fort Worth, Texas-based airline company.

Las Vegas Sands talk

Moving to the primary, Las Vegas Sands held its bank meeting on Wednesday morning, and with the event, talk on its $3.25 billion senior secured credit facility (Ba2/BBB-/BBB-) was announced, according to a market source.

The $750 million five-year revolver is talked at Libor plus 150 bps with no Libor floor and an upfront fee of 30 bps for commitments of $50 million or more and 20 bps for commitments of less than $50 million, the source remarked.

And, the $2.5 billion seven-year covenant-light term loan B is talked at Libor plus 225 bps to 250 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, the source continued.

Commitments are due on Dec. 12.

Barclays, Citigroup Global Markets Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp., Goldman Sachs Bank USA and Scotia Bank are the bookrunners on the deal that will be used to repay an existing credit facility in full and for general corporate purposes.

Las Vegas Sands is a Las Vegas-based developer and operator of integrated resorts.

Ardagh releases guidance

Ardagh launched with its meeting the U.S. portion of its $675 million equivalent six-year covenant-light senior secured term loan B (Ba3/B+) with talk of Libor plus 350 bps to 375 bps and the euro portion with talk that is 25 bps wide of the U.S., according to market sources.

Talk on both tranches includes a 1% floor, an original issue discount of 99 and 101 soft call protection for six months, sources said.

The company is looking to do at least $500 million of the B loan in U.S. dollars and the remainder in euros but that is subject to change based on demand.

Lead bank, Citigroup Global Markets Inc., is asking for commitments by 5 p.m. ET on Tuesday, sources added. Closing is targeted for Dec. 17.

Proceeds will be used to repay in full the 9¼% first priority senior secured notes due 2016 issued by Ardagh Glass Finance plc and for general corporate purposes.

Ardagh is a Dublin-based supplier of glass and metal packaging.

Endo term B pricing

Endo Health Solutions released official talk of Libor plus 300 bps with a 0.75% Libor floor, an original issue discount in the 99½ area and 101 soft call protection for six months on its $375 million seven-year term loan B that was presented to lenders during the session, according to a market source.

The talk came in line with what the company had previously described in filings with the Securities and Exchange Commission.

Commitments are due on Dec. 12, the source said.

The company's $2,225,000,000 senior secured credit facility also includes a $750 million five-year revolver and a $1.1 billion five-year term loan A that were launched earlier and are talked at Libor plus 200 bps.

Endo lead banks

Deutsche Bank Securities Inc. and RBC Capital Markets are leading Endo's credit facility that will be used with $375 million of notes to repay some of the company's existing debt and fund the early repurchase of its convertible notes due April 2015 in connection with the acquisition of Paladin Labs Inc.

The stock-and-cash acquisition is valued at about $1.6 billion, of which around 98% will be paid in shares of stock.

Closing is expected in the first half of 2014, subject to regulatory approvals in the United States, Canada and South Africa, the approval of both companies' shareholders, the approval of the Superior Court of Quebec, the registration and listing of New Endo shares and customary conditions.

Endo is a Malvern, Pa.-based specialty health care company. Paladin is a Montreal-based specialty pharmaceutical company.

One Call discount emerges

One Call Care Management revealed original issue discount talk of 99 on its fungible $395 million add-on first-lien term loan that launched with a call in the morning, according to market sources.

The loan is priced at Libor plus 400 bps with a step-down to Libor plus 375 bps when first-lien senior secured leverage is 4.25 times and includes a 1% Libor floor.

Commitments are due at 5 p.m. ET on Tuesday, sources remarked.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., RBC Capital Markets, Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and Guggenheim are leading the deal that will be used to help fund the acquisition of Align Networks, a workers' compensation physical medicine network, from General Atlantic and the Riverside Co.

One Call is a Parsippany, N.J.-based provider of specialized cost containment services to the workers' compensation industry.

Therakos coming soon

Therakos set a call for 11 a.m. ET on Thursday to launch $71.5 million of add-on term loans, according to a market source.

The debt consists of a $46.5 million add-on first-lien term loan due Dec. 27, 2017 talked at Libor plus 625 bps with a 1.25% Libor floor and a $25 million add-on second-lien term loan due June 27, 2018 talked at Libor plus 1,000 bps with a 1.25% Libor floor, the source said.

The spreads and floors on the add-ons match existing first- and second-lien loan pricing, and original issue discounts on the new debt are still to be determined.

Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal that will be used to fund a distribution to shareholders.

Therakos is a Raritan, N.J.-based provider of integrated systems for delivering extracorporeal photopheresis, a therapy used to treat niche but serious disease states arising from immune system imbalances.

EquiPower readies deal

EquiPower scheduled a call for 3 p.m. ET on Thursday to launch a fungible $125 million add-on term loan C due Dec. 31, 2019, according to a market source.

Pricing on the add-on is Libor plus 325 bps with a 1% Libor floor and the original issue discount is still to be determined, the source said.

The spread and floor match the existing term loan C.

Commitments are due at 5 p.m. ET on Dec. 12, the source added.

Barclays, Credit Agricole and Mitsubishi UFJ Financial Group are leading the deal that will be used to fund the acquisition of Richland-Stryker assets, fund incremental amounts required for the debt service reserve account and pay related transaction fees and expenses.

EquiPower is a Hartford, Conn.-based competitive power generation company owned by Energy Capital Partners LLC.

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