Concentra, Switch and Data, Aspect Software set price talk; Panolam nets orders; Charter trades up

By Sara Rosenberg

New York, Sept. 7 - Concentra Operating Corp. and Switch and Data Management Co. LLC came out with price talk on their credit facilities as the deals were launched into syndication via bank meetings Wednesday. And, Aspect Software price talk surfaced ahead of its Thursday bank meeting.

In secondary doings, Charter Communications Inc.'s bank debt was stronger as the market in general had a better tone, and Delphi Corp.'s revolver traded around but as to whether the paper was weaker or unchanged on the day varied by which trader was asked.

Meanwhile, Panolam Industries Inc.'s newly launched credit facility has started its syndication process on a very positive note as a good number of commitments have already come in from lenders.

Concentra Operating launched its new deal with opening price talk of Libor plus 225 basis points on both its $150 million five-year revolver and its $525 million six-year term loan B Wednesday, according to a market source.

JPMorgan is the lead bank on the $675 million credit facility (B1/B+) that will be used to refinance existing bank debt, to purchase Beech Street Corp and to purchase Occupational Health & Rehabilitation Inc.

Concentra is an Addison, Texas, provider of services designed to contain health care and disability costs.

Switch and Data price talk

Switch and Data Management Co. LLC set price talk on its $155 million credit facility as the deal also kicked off its syndication process with a bank meeting Wednesday.

Both the $10 million revolver and the $25 million term loan A were launched with opening price talk of Libor plus 400 basis points, while the $75 million term loan B was launched with opening price talk of Libor plus 425 basis points and the $45 million second-lien term loan was launched with opening price talk of Libor plus 725 basis points, according to a market source.

Deutsche and BNP Paribas are the lead banks on the deal, with Deutsche the left lead.

Proceeds will be used to refinance existing debt.

Switch and Data is a Tampa, Fla., provider of exchange and managed infrastructure services.

Aspect spread guidance

Price talk on Aspect Software's proposed $725 million credit facility surfaced ahead of its Thursday bank meeting, with both the revolver and term loan B talked in the Libor plus 275 basis points area and the second-lien term loan priced at Libor plus 775 basis points, according to a market source.

Both the $425 million term loan B (B1/B) and the $50 million revolver (B1/B) have a five-year tenor, while the $250 million second-lien term loan has a 51/2-year tenor.

JP Morgan and Deutsche Bank Securities are the lead banks on the term loan B and the revolver, with Wells Fargo Foothill acting as documentation agent.

JP Morgan and Lehman Brothers are the lead banks on the second-lien term loan, with D.B. Zwirn Finance acting as administrative agent.

This second-lien tranche was pre-syndicated to various investors so there will be no further marketing effort on that front, a company spokesman previously told Prospect News.

Proceeds from the credit facility will be used to help fund the acquisition of Aspect Communications Corp.

Concerto, a Westford, Mass.-based portfolio company of Golden Gate Capital that provides contact center software and services, is purchasing Aspect for $1 billion. Golden Gate and Oak Investment will contribute equity toward the deal.

Panolam sparks investor interest

Panolam held a "very well" attended bank meeting on Wednesday to launch its new deal into syndication - a process that has started off with a bang as a number of orders were already placed by late afternoon, according to a market source.

In fact, the company's proposed $135 million term loan was "already over 50% subscribed" before the day was through, the source said.

The term loan was launched with opening price talk of Libor plus 300 basis points.

Panolam's $155 million credit facility (B2/B+) also contains a $20 million revolver that is talked at Libor plus 300 basis points as well.

Credit Suisse First Boston and Jeffries are joint lead arrangers on the deal.

Proceeds will be used to fund the acquisition of the company by Genstar Capital, The Sterling Group and management from the Carlyle Group.

The company will also be issuing $150 million of eight-year senior notes for acquisition financing.

Panolam is a Shelton, Conn., provider of decorative surfaces for commercial and residential interiors, store and store fixtures and furniture.

Charter heads higher

Charter's bank debt was stronger by about a quarter of a point during Wednesday's session as the general market felt like it had "better buyers out there", according to a trader.

The term loan A was quoted closing out the day at 99½ bid, par offered and the term loan B was quoted closing out the day at par ½ bid, 101 offered, the trader said.

Charter is a St. Louis-based provider of broadband services.

Delphi active

Delphi's bank debt traded around during Wednesday's session with some calling the paper lower on the day as bankruptcy fears continue to affect the bank debt, while others found the paper to be unchanged.

According to traders, Delphi's revolving bank debt was quoted at 94 bid, 94½ offered by the close; however, one trader said that these levels were lower by about half a point when compared to Tuesday, and another trader said that these levels were unchanged when compared to Tuesday.

Delphi is looking to former corporate parent General Motors Corp. for some sort of financial bailout and has warned that it could be forced into Chapter 11 if it does not get concessions from the United Auto Workers union and help from GM.

Many had thought that Chapter 11 was a very unlikely course of action for the company, but over the past two weeks or so, bankruptcy concerns have flared up as media reports have been saying that UAW wouldn't support all the concessions being sought by the companies.

Delphi is a Troy, Mich., supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology to vehicle manufacturers.

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