Fidelity National dips; Scripps downsizes; Datatel nets interest; Arizona Chemical sets talk

By Sara Rosenberg

New York, Dec. 6 - Fidelity National Information Services Inc.'s term loan B softened in trading on Tuesday as the company announced and then quickly came to market with a refinancing transaction.

Over in the primary, E.W. Scripps Co. trimmed the size of its revolving credit facility after meeting some investor skepticism due to the amount of cash that the company has on its balance sheet, and amortization on the term loan was sweetened as well.

Also, Datatel Inc. is only giving lenders a little over one week to get their commitments in towards its proposed credit facility, with chatter being that the deal already had good momentum going in to the general syndication bank meeting.

Additionally, Arizona Chemical Inc. and Corrections Corp. of America disclosed price talk on their credit facilities as the deals were presented to investors during the session, and Lord & Taylor launched as well, but the release of guidance is waiting on ratings.

Furthermore, Samson Investment Co. firmed up timing on the launch of its revolver, and Fairway Market LLC emerged with plans for an incremental term loan.

Fidelity National slides

Fidelity National Information Services' term loan B was a touch weaker in the secondary market on Tuesday as news surfaced that the company is seeking new term loans and bonds to repay the existing $1.485 billion B tranche and up to $315 million of term loan A-1 debt, according to traders.

The term loan B was quoted by one trader at par bid, 101 offered, down from par ¼ bid, 101¼ offered, and by a second trader at 99¾ bid, par ½ offered.

For the refinancing, the company launched with a call in the afternoon a $1.335 billion term loan B due July 2016 talked at Libor plus 325 basis points with a 1% Libor floor, an original issue discount of 99 and 101 repricing call protection for 18 months, and a $315 million add-on term loan A-2 due July 2014.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are leading the $1.65 billion deal.

Fidelity National, a Jacksonville, Fla.-based banking and payments technology services provider, will also issue $150 million of 7 5/8% senior unsecured notes for the refinancing.

Scripps tweaks deal

In more loan happenings, E.W. Scripps made some changes to its credit facility, including reducing the revolver to $88 million from $100 million and increasing term loan amortization by 2.5% in year one and year three, according to a market source.

With these revisions, the expectation is that the credit agreement will be signed this Friday, the source said.

The downsizing of the revolver was not much of a surprise given that a few weeks ago chatter emerged that lenders were on the fence about the size of the revolver tranche as a result of the company having about $100 million in cash on the books.

The size of the company's term loan was left unchanged at $212 million.

Scripps pricing

Regarding spread on E.W. Scripps' revolver and term loan, it has firmed in line with initial talk at Libor plus 400 bps, the source added.

SunTrust Robinson Humphrey Inc. is the lead bank on the now $300 million five-year credit facility, down from $312 million, that has been marketed primarily to banks.

Proceeds will be used to fund the purchase of nine stations from McGraw-Hill Broadcasting, including four stations affiliated with the ABC television network and five low-power stations affiliated with the Spanish-language network Azteca America for $212 million in cash.

Closing on the acquisition is expected in the first half of 2012, subject to regulatory approvals and customary conditions.

E.W. Scripps is a Cincinnati-based media enterprise with interests in television stations and newspapers.

Datatel sets deadline

Datatel told investors at its bank meeting on Tuesday that books on its $1.195 billion credit facility (B+) will be closing down on Dec. 14, and there are rumors that the transaction is already largely spoken for, helped along by an early syndication round that kicked off around mid-November, sources said.

One source described the deal as "off to a very strong start," while a second source remarked that there is "momentum."

When asked about the relatively short syndication plan, the second source explained: "This is a very good credit, albeit levered. No need to go full two weeks with volatile market backdrop."

The credit facility consists of a $125 million revolver and a $1.07 billion 61/2-year term loan B.

As was previously reported, price talk on the term B is Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 98. There is 101 soft call protection for one year, sources added.

At the time of the early round launch, talk was that the yield on the term loan B was being discussed in the high-6% area.

Datatel lead banks

Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the lead banks on Datatel's credit facility.

Proceeds, along with notes backed by commitment for a $530 million senior unsecured bridge loan, will be used to fund the $1.775 billion acquisition of SunGard Higher Education by Hellman & Friedman LLC from SunGard Data Systems Inc. and the concurrent merger with Datatel, an existing Hellman & Friedman portfolio company.

The credit facility and bridge financing commitment was obtained by an entity named Sophia LP. Once SunGard Higher Education is merged with Datatel, the combined company will operate under a new name that will be announced by the parties at the closing of the transactions.

Datatel is a Fairfax, Va.-based provider of technology products, services and insight to higher education. SunGard Higher Education is a Malvern, Pa.-based provider of software and services to the higher education community.

Arizona Chem reveals talk

Arizona Chemical also held a bank meeting on Tuesday, at which time pricing guidance on its $810 million credit facility came out at Libor plus 550 bps to 575 bps with a 1.5% Libor floor, according to a market source.

The facility consists of a $60 million five-year revolver and a $750 million six-year term loan B that is offered at an original issue discount of 97 and has soft call protection of 102 in year one and 101 in year two, the source continued.

Commitments are due on Dec. 15 on the Goldman Sachs & Co.-led deal that will be used to refinance existing debt and fund a dividend.

Arizona Chemical, a Jacksonville, Fla., supplier of pine chemicals to the adhesives, inks and coatings and oleochemicals markets, will have leverage of 1.75 times.

Corrections guidance emerges

Corrections Corp. of America launched as well, with its $750 million revolving credit facility talked with initial pricing of Libor plus 150 bps, according to a market source.

Wells Fargo Securities LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are the lead arrangers on the deal that will be used with cash on hand to refinance existing bank debt, fund a tender offer that expires on Jan. 5 for $150 million of the company's $375 million of 6¼% senior notes due 2013 as well as for general corporate purposes.

Corrections Corp. of America is a Nashville, Tenn.-based owner and operator of partnership correction and detention facilities.

Lord & Taylor launches

Another deal to launch was Lord & Taylor's $450 million term loan, but price talk isn't expected to come out until Wednesday as lead bank Credit Suisse Securities (USA) LLC is waiting on ratings to emerge, according to a market source.

Proceeds will be used to help refinance the company's commercial mortgage-backed securities.

Lord & Taylor is a New York-based upscale, specialty-retail department store chain.

Landry's shuts books

Meanwhile, commitments were due towards Landry's Inc.'s $50 million add-on term loan on Tuesday, and the expectation is that the deal will remain at initial terms, a market source told Prospect News.

The add-on is priced at Libor plus 450 bps with a 1.75% Libor floor - in line with existing term loan pricing - and was offered at an original issue discount of 971/2.

Jefferies & Co. and Wells Fargo Securities LLC are leading the deal that will be used, along with $115 million of 11 5/8% senior secured notes due 2015, upsized from $90 million, to fund the roughly $131.6 million acquisition of McCormick & Schmick's Seafood Restaurants Inc.

Closing is expected in late December or early January, subject to the tender of a majority of shares, the expiration of the waiting period under Hart-Scott-Rodino and other customary conditions.

Landry's is a Houston-based full-service restaurant, hospitality and entertainment company. McCormick is a Portland, Ore.-based operator of seafood restaurants in the upscale dinning segment.

Samson sets launch

Also on the new deal front, Samson scheduled a bank meeting for Thursday morning to launch its proposed $2.25 billion senior secured revolving credit facility, and its $2.25 billion bridge loan, which backs a $2.25 billion bond deal, will launch to investors with a call on Wednesday, according to sources.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the lead arrangers on the revolver, and bookrunners with Bank of America Merrill Lynch, Barclays Capital Inc., BMO Capital Markets, Citigroup Global Capital Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC and Mizuho Securities USA Inc.

Proceeds will be used to fund the acquisition of the company by Kohlberg Kravis Roberts & Co. LP, Natural Gas Partners, Crestview Partners and Itochu Corp. for $7.2 billion, with the exception of its onshore Gulf Coast and offshore deep water Gulf of Mexico assets.

Samson, a Tulsa, Okla.-based private exploration and production company, expects to close on the buyout by year-end, subject to regulatory approval and customary conditions.

Fairway plans add-on

Fairway Market surfaced with a $25 million incremental term loan that will launch to investors with a conference call at 10 a.m. ET on Wednesday, according to a market source.

Pricing on the add-on is Libor plus 600 bps with a 1.5% Libor floor, same as existing term loan pricing. The add-on, however, will be offered at an original issue discount of 98, while the existing loan was sold at 99 when obtained earlier this year, the source said.

Credit Suisse Securities (USA) LLC is the lead bank on the deal that will be used to put cash on the balance sheet for future store development.

Fairway is a supermarket chain with locations in New York, New Jersey and Connecticut.

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