Ford rises; TransDigm, Harbourvest, Education tweak deals; Applied Systems ups deadline

By Sara Rosenberg

New York, Dec. 1 - Ford Motor Co.'s term loans were stronger on Wednesday as the company announced positive November sales results, although the upward turn in levels may have been more a result of the general market being higher.

In other happenings, TransDigm Group Inc. reverse-flexed pricing and tightened the original issue discount on its oversubscribed term loan after upsizing the tranche, and HarbourVest Partners LLC downsized its loan while lifting pricing.

Also, Education Management Corp. raised the spread on its proposed extended bank debt, and Applied Systems Inc. accelerated the commitment deadline on its facility due to strong demand, while ResCare Inc. reset its bank meeting.

Additionally, Advantage Sales & Marketing LLC, ConvaTec Healthcare, BNY ConvergEx Group LLC, Transtar Industries Inc. and Aventine Renewable Energy Holdings Inc. released price talk, and CCC Information Services Inc. announced original issue discount, as the transactions were launched to investors during the session.

Furthermore, iHealth Technologies Inc. came out with pricing guidance on its credit facility a day after the deal's official launch, and Ball Corp. surfaced with plans for an all pro rata deal.

Ford trades up

Ford's term loans revved higher in trading with the release of monthly sales results and strength in the overall secondary market, according to a trader.

The term loan B-1 was quoted at 99 bid, 99 3/8 offered, and the term loan B-2 was quoted at 98¾ bid, 99¼ offered, with both tranches up an eighth of a point on the day, the trader said.

For the month of November, Ford sold 147,338 vehicles, up 24.3% from 118,536 in the comparable period last year.

Car sales for the month were 52,985, up 24.7% from 42,479, while truck sales were 53,524, up 34% from 39,956, and utilities sales were 40,829, up 13.1% from 36,101.

Ford is a Dearborn, Mich.-based manufacturer and distributor of automobiles.

TransDigm revises pricing

Moving to the primary, TransDigm reduced pricing on its $1.55 billion six-year term loan to Libor plus 350 basis points from talk of Libor plus 375 bps to 400 bps and trimmed the original issue discount to 99½ from 99, according to a market source.

The change in pricing on the term loan came on the heels of an increase in the size of the tranche from $900 million.

Meanwhile, pricing on the company's $300 million five-year revolver - size unchanged - firmed up at Libor plus 375 bps with a 50 bps unused fee and a one point upfront fee.

As before, both tranches include a 1.5% Libor floor.

TransDigm sets new deadline

Following the revisions, TransDigm asked lenders to recommit to its credit facility by Thursday, with the plan being to give out allocations within a couple of days, the source remarked.

Credit Suisse, UBS, Barclays and Morgan Stanley are the lead banks on the $1.85 billion senior secured credit facility (Ba2/BB-), with Credit Suisse the left lead.

Proceeds from the credit facility will be used to help fund the $1.27 billion acquisition of McKechnie Aerospace Holdings Inc. from JLL Partners, to repay an existing credit facility and to repurchase 7¾% senior subordinated notes due 2014.

TransDigm selling notes

Other funds for TransDigm's acquisition of McKechnie and the refinancing will come from a $1.55 billion senior notes offering that was upsized from $780 million. The notes priced on Wednesday at par to yield 7.75%.

Initially, the company was not planning a full-on refinancing, which is why there was a lesser amount of term loan and notes involved. That original plan called for the repayment of about $280 million of existing term loan borrowings, leaving about $500 million outstanding, the refinancing of its $200 million revolver, and no tender offer for the $1 billion of existing 7¾% senior subordinated notes.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components. McKechnie is an Irvine, Calif.-based supplier of aerospace products.

HarbourVest reworks loan

HarbourVest Partners trimmed its term loan to $400 million from $550 million and raised pricing to Libor plus 475 bps from Libor plus 425 bps, while leaving the 1.5% Libor floor and original issue discount of 99 unchanged, according to a market source.

In addition, the loan now has 10% amortization per year and a 100% excess cash flow sweep, the source said.

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.

Education Management flexes

Education Management lifted pricing on its extended revolver and extended term loan to Libor plus 400 bps from Libor plus 350 bps, while adding a step-down to Libor plus 350 bps based on ratings, according to a market source.

By comparison, the revolver is currently priced at Libor plus 150 bps and the term loan C is currently priced at Libor plus 175 bps.

The Pittsburgh-based provider of post-secondary education is looking to push out its entire revolver by three years to June 2015 and its entire term loan by three years to June 2016.

Lenders are being offered a 10 bps amendment fee.

Barclays, Bank of America, Goldman Sachs and BNP Paribas are leading the amend and extend transaction, and asked for responses by 5 p.m. ET on Wednesday.

Applied Systems shuts early

Applied Systems moved the commitment deadline on its $485 million credit facility to Wednesday from Friday as a result of strong oversubscription, according to a market source.

The facility consists of a $30 million revolver, a $280 million first-lien term loan talked at Libor plus 450 bps to 475 bps with a 1.5% Libor floor and an original issue discount of 99 and a $175 million second-lien term loan talked at Libor plus 825 bps with a 1.5% Libor floor and an original issue discount of 981/2.

Call protection on the second-lien loan is 103 in year one, 102 in year two and 101 in year three.

Credit Suisse and JPMorgan are the lead banks on the deal that will be used to refinance existing debt and to fund a dividend payment.

Applied Systems is a University Park, Ill.-based provider of insurance agency management systems.

ResCare sets new date

ResCare has scheduled a bank meeting for Friday for its proposed $190 million term loan B that was initially supposed to launch this past Monday but was postponed because of scheduling issues, according to a market source.

JPMorgan and Bank of America are the lead banks on the loan that will be used to help refinance existing debt, repay a portion of the amounts used to purchase the company's common shares in the tender offer by Onex Rescare Acquisition LLC and fund the purchase of any remaining ResCare shares by Onex through a second-step share exchange.

Including the term loan B, the company plans to raise up to $390 million of new debt for the refinancing and buyout.

ResCare is a Louisville, Ky.-based provider of home care to the elderly and persons with disabilities.

Advantage Sales talk emerges

Advantage Sales & Marketing held a bank meeting on Wednesday to kick off syndication on its proposed credit facility, and in connection with the launch, price talk was announced, according to a market source.

The $800 million first-lien term loan was launched with talk of Libor plus 400 bps to 425 bps with a 1.5% Libor floor and an original issue discount of 99, the source said.

And, the $425 million second-lien term loan was launched with talk of Libor plus 800 bps with a 1.5% Libor floor and a discount of 981/2, the source continued. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $1.325 billion credit facility also includes a $100 million revolver.

Advantage Sales being bought

Proceeds from Advantage Sales & Marketing's credit facility will be used to help fund its buyout by Apax Partners from J.W. Childs Associates LP and BAML Capital Partners.

The transaction is expected to close prior to the end of the year, subject to customary approvals.

Following the close, senior leverage will be about 4.0 times, and total leverage will be around 6.5 times.

Credit Suisse, JPMorgan and UBS are the lead banks on the credit facility, with Credit Suisse the left lead.

Advantage Sales & Marketing is an Irvine, Calif.-based sales and marketing agency.

ConvaTec reveals guidance

ConvaTec Healthcare also held a bank meeting on Wednesday, at which time lenders were told that the company's $850 million six-year term loan B is being talked at Libor plus 450 bps with a 1.75% Libor floor and an original issue discount of 99, according to a market source.

JPMorgan and Goldman Sachs are the lead banks on the $1.1 billion credit facility, which is available in dollars and euros, and also includes a $250 million five-year revolver.

Proceeds, along with new notes, will be used to refinance substantially all of the company's debt under its existing senior secured and mezzanine facilities.

ConvaTec is a Skillman, N.J.-based developer, manufacturer and marketer of medical technologies for community and hospital care.

BNY ConvergEx pricing

BNY ConvergEx, a New York-based provider of agency brokerage and investment technology services, launched its $610 million six-year first-lien term loan B (B1/B+) at Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 99 on Wednesday, according to a market source.

And, its $140 million seven-year second-lien term loan (B2/B-) was launched at Libor plus 750 bps with a 1.75% Libor floor and an original issue discount of 98, the source said. There is call protection of 103 in year one, 102 in year two and 101 in year three on this tranche.

The company's $850 million credit facility, which also includes a $100 million five-year revolver (B1/B+), will be used to refinance existing debt.

Bank of America, Goldman Sachs, Citigroup, JPMorgan and Morgan Stanley are the lead banks on the deal, with Bank of America left on the first-lien and Goldman left on the second-lien loan.

Transtar first-lien spread

Transtar Industries announced price talk on its first-lien bank debt as the deal was launched to lenders, but is holding back on releasing guidance on its $135 million second-lien term loan (B-) until ratings are received from Moody's Investors Service, according to a market source.

The $50 million revolver (BB-) and the $240 million first-lien term loan (BB-) are both being talked at Libor plus 475 bps to 500 bps with a 1.75% Libor floor and an original issue discount of 981/2, the source said.

RBC is the lead bank on the $425 million deal that will be used to help fund the buyout of the company by Friedman Fleischer & Lowe.

Transtar is a Cleveland-based transmission parts provider.

Aventine talked in 700s

Aventine Renewable Energy is talking its $200 million senior secured term loan (Caa1) at Libor plus 750 bps with a 2% Libor floor and an original issue discount of 98, according to a market source, who said the loan is non-callable for one year, then at 102 in year two and 101 in year three.

Citigroup is the lead bank on the deal that was launched to investors on Wednesday afternoon.

Proceeds will be used to refinance the company's 13% senior secured notes due 2015 and for general corporate purposes.

Aventine is a Pekin, Ill.-based producer and marketer of fuel-grade ethanol.

CCC floats OID

Meanwhile, CCC Information Services unveiled that its $350 million five-year term loan B is being shopped at an original issue discount of 99 as it also launched during the session, according to a market source.

Price talk on the term loan B, as well as on the company's $50 million 41/2-year revolver, had been announced earlier at Libor plus 450 bps with a 1.5% Libor floor.

JPMorgan and Barclays are the lead banks on the $400 million credit facility (B1/B+) that will be used to refinance existing debt.

CCC is a Chicago-based provider of advanced software, workflow tools and enabling technologies to the automotive claims and collision repair industries.

iHealth discloses talk

iHealth Technologies went out with price talk on its $250 million six-year term loan on Wednesday of Libor plus 525 bps to 550 bps with a 1.75% Libor floor and an original issue discount of 981/2, according to a market source, who said that there is 101 soft call protection for one year.

Prior to official talk coming out, it was said that pricing was expected to be in the Libor plus 500 bps range.

The company's $300 million credit facility (B2/BB-), which launched with a bank meeting on Tuesday, also provides for a $50 million five-year revolver.

Goldman Sachs and SunTrust are the lead banks on the deal that will be used to refinance existing debt and fund a dividend payment.

iHealth Technologies is an Atlanta-based provider of payment policy services to health care payers.

Ball readies launch

Ball Corp. has scheduled a bank meeting for Thursday to launch a proposed roughly $1.4 billion five-year senior credit facility (Ba1) that is being led by Deutsche Bank, Bank of America, JPMorgan, Goldman Sachs and Barclays, according to a market source.

The facility consists of a $1 billion revolver, a $200 million term loan, a €100 million term loan and a £55 million term loan, with all tranches talked at Libor plus 175 bps, the source said.

Proceeds will be used to refinance existing debt.

Ball is a Broomfield, Colo.-based supplier of rigid metal packaging products and services, primarily to the beverage and food industries.

Fibertech closes

In other news, Fibertech Networks closed on its $272.5 million senior credit facility (B2/B) as Court Square Capital Partners completed its buyout of the company from Nautic Partners and Ridgemont Equity Partners.

The facility consists of a $235 million term loan B priced at Libor plus 500 bps with a 1.75% Libor floor, which was sold at a discount of 981/2, and a $37.5 million revolver.

During syndication, pricing on the term loan B firmed from talk of Libor plus 500 bps to 550 bps, the floor firmed from talk of 1.5% to 1.75%, and the revolver was upsized from $25 million.

TD Securities acted as the lead bank on the deal.

Fibertech is a Rochester, N.Y.-based provider of fiber optic bandwidth services.

WorldPay buyout wraps

Advent International and Bain Capital completed their acquisition of an 80.01% interest in WorldPay, a provider of global payment processing services, from RBS Group, according to a news release.

To help fund the transaction, WorldPay got a new £970 million secured credit facility (Ba2/BB), consisting of a £75 million six-year revolver, a £75 million six-year capital expenditures facility, a £160 million six-year term loan A, a £325 million seven-year term loan B-1 priced at Libor plus 500 bps, a £235 million seven-year dollar-equivalent term loan B-2 priced at Libor plus 450 bps with a 1.75% Libor floor, and a £100 million seven-year euro-equivalent term loan B-3 priced at Euribor plus 475 bps.

During syndication, pricing on the term loan B-1 was reduced from Libor plus 525 bps, pricing on the term loan B-2 was cut from Libor plus 500 bps, pricing on the term loan B-3 was reduced from Euribor plus 500 bps and the discount on all term loans firmed at 99, the tight end of the initial 98 to 99 talk.

Goldman Sachs, Barclays, Morgan Stanley, RBS and UBS acted as the lead banks on the deal.

Endo completes deal

Endo Pharmaceuticals Holdings Inc. closed on its acquisition of Qualitest Pharmaceuticals, a Huntsville, Ala.-based generics company, from Apax Partners for $1.2 billion in cash, according to a news release.

Funding for the transaction came from a $900 million five-year credit facility, comprised of a $400 million term loan and a $500 million revolver, with both tranches priced at Libor plus 250 bps with no floor.

During syndication, the term loan was upsized from $200 million.

JPMorgan and RBC acted as the lead banks on the deal.

Endo is a Chadds Ford, Pa.-based specialty health care services company focused on high-value branded products and specialty generics.

Conn's closes

Conn's Inc. completed its $100 million four-year second-lien term loan led by GA Capital, according to a news release. It priced at Libor plus 1,150 basis points with a 3% Libor floor, carrying call protection 105 in year one, 103 in year two, 102 in year three and 101 in year four.

In addition, the company expanded its asset-based facility to $375 million from $210 million and extended the maturity to 2013 from 2011. Pricing can range from Libor plus 375 bps to 400 bps based on leverage, and the unused fee can range from 50 bps to 75 bps based on use.

Bank of America and JPMorgan acted as joint book runners and co-lead arrangers for the asset-based loan.

Proceeds were used to help refinance $320 million of asset-backed securitization facilities.

Conn's is a Beaumont, Texas-based specialty retailer of consumer electronics, home appliances, furniture, mattresses, computers, and lawn and garden products.

Hanger completes loan

Hanger Orthopedic Group Inc. closed on its $400 million credit facility (Ba3/BB-), consisting of a $100 million revolver and a $300 million term loan B, both priced at Libor plus 375 bps with a 1.5% Libor floor, according to a news release. The B loan was sold at a discount of 99½ and has 101 soft call protection for one year.

During syndication, pricing on the B loan was reverse flexed from Libor plus 400 bps and the original issue discount was tightened from 99.

Proceeds were used to help 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.

Bank of America, Jefferies, Oppenheimer, SunTrust and RBC acted as the leads on the deal.

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.

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