Vanguard Health, Integra break; eResearch, Sorenson, Eze, Internet Brands tweak deals

By Sara Rosenberg

New York, March 11 - Vanguard Health Systems term loan made its way into the secondary market on Monday, with levels quoted above its offer price, and Integra Telecom's second-lien add-on broke too.

Moving to the primary, eResearchTechnology Inc. upsized its term loan and set the original issue discount at the wide end of guidance, and Sorenson Communications Inc. raised its loan size.

Also, Eze Software Group reduced pricing on its term loans while firming discounts at the low end of talk, and Internet Brands Inc. increased the coupon on its term loan and shortened the maturity.

Furthermore, EMG Utica LLC released price talk on its term loan that was presented to lenders during the session, and Reddy Ice Corp. and Ability Network Inc. announced new debt plans.

Vanguard starts trading

Vanguard Health's roughly $1.1 billion term loan freed up on Monday, with levels quoted at par ¾ bid, 101¼ offered, according to a trader.

Pricing on the loan, which includes a $300 million add-on, is Libor plus 275 basis points with a 1% Libor floor, and it was issued at par.

During syndication, the add-on amount was increased from $200 million, pricing was cut from talk of Libor plus 300 bps to 325 bps and the offer price tightened from 993/4.

Bank of America Merrill Lynch and Barclays are the lead banks on the deal.

Proceeds from the add-on will be used to fund capital expenditures, and the remainder will be used to reprice a roughly $800 million term loan from Libor plus 350 bps with a 1.5% floor.

Vanguard Health is a Nashville, Tenn.-based operator of regionally focused integrated health care delivery networks.

Integra Telecom breaks

Integra Telecom's $20 million add-on to its second-lien term loan due 2020 also hit the secondary, with levels quoted at 103 bid, a source remarked.

The add-on is priced at Libor plus 850 bps with a 1.25% Libor floor, in line with existing second-lien pricing, and was issued at a premium of 1021/2, after firming at the tight end of the 102 to 102½ talk.

Proceeds will be used for general corporate purposes.

Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch are leading the deal that launched in the morning.

Integra Telecom is a Portland, Ore., fiber-based telecommunications carrier.

BWIC emerges

In more secondary news, a roughly $89.2 million Bid-Wanted-In-Competition was announced on Monday, and market players are being asked to get their bids in by 11 a.m. ET on Wednesday, according to a trader.

Some of the larger pieces of debt offered in the portfolio are Berry Plastics Group Inc.'s term loan C, Harlan Laboratories Inc.'s term loan, Harland Clarke Holdings Corp.'s term loan B-1, Koosharem LLC's first-lien term loan, Las Vegas Sands LLC's non-extended delayed-draw term loan, Mattress Holding Corp.'s term loan B-1, SunGard Data Systems Inc.'s U.S. term loan A and Weight Watchers International Inc.'s term loan B.

There are about 28 issuers included in the portfolio, the trader added.

eResearch updates deal

Over in the primary, eResearchTechnology lifted its first-lien term loan (B1/B+) due May 2, 2018 to $255 million from $220 million, and these additional funds, along with $15 million of cash on the balance sheet, will be used to fund a $50 million dividend to equity holders, according to a market source.

Also, the original issue discount on the loan firmed at 991/2, the high end of the 99 to 99½ talk, while pricing was left at Libor plus 475 bps with a 1.25% Libor floor, the source said. There is still 101 repricing protection for one year.

And, the maximum leverage and interest coverage ratios were increased slightly to accommodate the increase in funded debt, the source remarked.

Proceeds from the original amount will be used to repay existing bank debt. Existing lenders are getting paid out at 101 with the refinancing.

Leads, Credit Suisse Securities (USA) LLC and Jefferies Finance LLC, were asking for recommitments by 5 p.m. ET on Monday.

eResearchTechnology is a Philadelphia-based technology-driven provider of health outcomes research services and customizable medical devices.

Sorenson upsizes

Sorenson Communications revised the size on its term loan B (B1/B-) due Oct. 31, 2014 to $550 million from $500 million, according to a market source.

As before, the loan is talked at Libor plus 825 bps with a 1.25% Libor floor and an offer price of 99½ to par, and has hard call protection of 102½ for six months and 101 for six months.

Recommitments were due at 5 p.m. ET on Monday.

J.P. Morgan Securities LLC and Goldman Sachs & Co. are leading the deal that will be used to repay an existing term loan, and, as a result of the upsizing, put cash on the balance sheet, the source added.

Sorenson is a Salt Lake City-based provider of Video Relay telecommunication and interpreting and CaptionCall telephone service for deaf and the hard-of-hearing.

Eze Software flexes

Eze Software cut pricing on its $335 million seven-year first-lien term loan (B1/B+) to Libor plus 350 bps from Libor plus 375 bps and firmed the original issue discount at 991/2, the tight end of the 99 to 99½ talk, according to a market source.

The first-lien term loan still has a 1.25% Libor floor and 101 soft call protection for one year.

Also, pricing on the $170 million eight-year second-lien term loan (Caa1/CCC+) was trimmed to Libor plus 750 from Libor plus 775 bps and the discount was set at 99, the low end of the 98½ to 99 guidance, the source said.

The second-lien loan still has a 1.25% Libor floor and call protection of 102 in year one and 101 in year two.

The loans have a ticking fee of 50% of the spread after 45 days and the full spread starting on day 76.

The company's $580 million credit facility, for which commitments are due at 5 p.m. ET on Tuesday, also includes a $75 million five-year revolver (B1/B+).

Eze lead banks

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Jefferies Finance LLC are leading Eze Software's credit facility.

Proceeds will be used to help fund the buyout of Eze Castle Software, a provider of global order management and related investment technologies, and RealTick, a multi-broker, cross-asset electronic execution platform, by TPG from ConvergEx Group to form Eze Software Group.

Then, following the close of the transaction, Eze Software will acquire Tradar, a supplier of portfolio management and accounting solutions.

Eze Software Group is a provider of investment technology to support the front, middle and back office.

Internet Brands lifts pricing

Internet Brands flexed pricing higher on its $330 million term loan to Libor plus 500 bps from talk of Libor plus 350 bps to 375 bps and revised the maturity to six years from seven years, according to a market source.

The 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were left unchanged.

The company's $380 million credit facility (B1/B+) also includes a $50 million five-year revolver.

RBC Capital Markets, Bank of America Merrill Lynch and GE Capital Markets are leading the deal that will be used to refinance existing debt and fund a dividend.

Internet Brands is an El Segundo, Calif.-based consumer-facing internet media company.

EMG Utica sets talk

Also in the primary, EMG Utica disclosed talk on its $325 million seven-year senior secured term loan (B2) at Libor plus 450 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 repricing protection for one year in connection with its bank meeting on Monday, a source said.

Commitments are due on March 21, the source said.

Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are leading the deal.

Proceeds, along with over $650 million of equity, will help fund growth capital expenditures associated with the development of the EMG Utica joint venture and to pre-fund interest during the construction period.

EMG Utica is a joint venture between the Energy & Minerals Group and MarkWest Energy Partners LP that will develop midstream infrastructure on behalf of natural gas producers operating throughout the liquids-rich Utica Shale formation in Ohio.

Atkins launches

Atkins Nutritionals Holdings II Inc. held its afternoon bank meeting to launch a $425 million credit facility, and investors have been given until March 22 to place their orders, a market source said.

As previously reported, the facility consists of a $20 million revolver (B1/B-), a $280 million six-year first-lien term loan (B1/B-) talked at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99, and a $125 million 61/2-year second-lien term loan (Caa1/CCC) talked at Libor plus 850 bps with a 1.25% Libor floor and a discount of 98.

Included in the first-lien loan is 101 soft call protection for one year and the second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

Atkins is a Denver-based weight management brand.

Philadelphia Energy deal

Philadelphia Energy Solutions Refining and Marking LLC launched in the afternoon its $500 million five-year term loan B (BB-) at previously outlined talk of Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 98, according to a market source.

The loan is non-callable for one year, then at 102 in year two and 101 in year three.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes and to fund a dividend.

Philadelphia Energy Solutions is a Philadelphia-based owner and operator of the Philadelphia refinery complex, which includes the Girard Point and Point Breeze refineries.

Reddy Ice joins calendar

Reddy Ice will be holding a bank meeting at 2 p.m. ET in New York on Tuesday to launch $345 million in term loans that will be used to refinance existing debt and for general corporate purposes, according to a market source.

The debt includes a $225 million six-year first-lien term loan and a $120 million 61/2-year second-lien term loan, the source said.

J.P. Morgan Securities LLC is leading the deal.

Reddy Ice is a Dallas-based manufacturer and distributor of packaged ice products.

Ability Network coming soon

Ability Network scheduled a bank meeting for Tuesday morning to launch a $130 million credit facility that is talked at Libor plus 450 bps to 475 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The facility consists of a $15 million five-year revolver and a $115 million six-year term loan, the source said, adding that commitments are due on March 25.

GE Capital Markets is leading the deal that will be used with $43 million of mezzanine debt from Morgan Stanley Credit Partners to fund a merger with Ivans.

With the merger, Ability Network will sell the property and casualty business of Ivans to Applied Systems Inc.

Senior leverage is 3.9 times and total leverage is 5.4 times.

Ability Network is a Minneapolis-based healthcare technology company. Ivans is a Stamford, Conn.-based provider of secure communication services to the healthcare and property-casualty insurance industries.

Leap wraps loan

In other news, Leap Wireless International Inc. closed on its $1,425,000,000 seven-year delayed-draw term loan C (Ba3/B+), according to a news release.

Pricing on the loan is Libor plus 350 bps with a 1.25% Libor floor, and it has 101 soft call protection for one year. The debt was sold at an original issue discount of 991/4, after tightening from 99, and includes a 50 bps ticking fee that starts on March 15, a feature that was added during syndication.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, UBS Securities LLC and Citigroup Global Markets Inc. led the loan.

Leap, a San Diego-based provider of digital wireless services, will use the new term loan to refinance 7¾% secured notes and 4.5% convertible notes.

ACI closes

ACI Worldwide completed its acquisition of Online Resources for $3.85 per share, according to a news release.

For the transaction, ACI got a $300 million incremental term loan due Nov. 10, 2016 that is priced at Libor plus 225 bps.

Wells Fargo Securities LLC led the deal.

ACI is a Naples, Fla.-based provider of payment systems. Online Resources is a Chantilly, Va.-based provider of online banking and full-service bill pay services.

Omnova completes deal

Omnova Solutions Inc. said in a news release that it completed the 125 bps pricing reduction and one-year extension of its $195.5 million term loan.

With this transaction, pricing on the loan is Libor plus 300 bps, after firming a the low end of talk of Libor plus 300 bps to 325 bps. There is a 1.25% Libor floor and 101 soft call protection for six months, and the debt was issued at par.

Deutsche Bank Securities Inc. led the deal.

Omnova is a Fairlawn, Ohio-based provider of emulsion polymers, specialty chemicals, and decorative and functional surfaces for commercial, industrial and residential end uses.

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