Getty Images sets bank meeting; Par Pharma upsizes; LCDX unchanged during holiday session

By Paul A. Harris

Portland, Ore., Sept. 17 - The LCDX bank loan index finished the Monday session at 101½ bid, flat on the day, according to a trader who said that the Rosh Hashanah holiday saw many participants away from work.

Cash loans were unchanged on thin volume, the trader added.

However, it was a different story in the primary market where the Monday session brought new deal announcements, tightening spread talk and repricing news.

Getty Images Inc. set a Wednesday bank meeting for its $1.7 billion term loan B.

Meanwhile, Par Pharmaceutical Cos. Inc. upsized its term loan (B1/B+) to $1.055 billion from $980 million and trimmed spread talk to Libor plus 375 basis points from previous talk of 425 bps to 450 bps.

An investor who claimed to be buried in bank books said that it is a function of a very strong market.

"Repricings are going to keep coming," said the investor.

"Covenant-lite loans will be standard and CLO/triple-A spreads will narrow. I'm seeing some deal quality that's easy to pass on, even with wide pricing, in this market."

Getty brings $1.7 billion

Barclays will host a bank meeting on Wednesday afternoon for the Getty Images $1.7 billion term loan B.

The term loan is part of a $1.85 billion credit facility, which also included a $150 million revolver.

Proceeds from the loans and from an expected $750 million of notes will be used to help fund the $3.3 billion purchase of Getty Images by the Carlyle Group and management from Hellman & Friedman.

As reported, last week the company announced an $800 million bridge loan backing the bond offering.

Pricing on the bridge loan is Libor plus 725 basis points with a 1.25% Libor floor. The spread steps up by 50 bps every three months until a cap is reached, the source added.

In addition to Barclays, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and RBC Capital Markets LLC are the lead banks on the debt, with Barclays the left lead on the credit facility and JPMorgan the left lead on the bridge loan.

Par Pharma upsizes

Par Pharmaceutical upsized its term loan (B1/B+) to $1.055 billion from $980 million.

The company trimmed spread talk to Libor plus 375 basis points from previous talk of 425 basis points to 450 bps, while leaving the 1.25% Libor floor and the original issue discount of 99 unchanged.

The term loan has 101 soft call protection for one year, the source said.

Recommitments are due on Tuesday morning.

Bank of America Merrill Lynch, Deutsche Bank, Goldman Sachs, RBC and Citigroup are the lead banks on the LBO deal.

AdvancePierre bank meeting

AdvancePierre Foods has set a bank meeting at 10 a.m. ET on Wednesday for its $825 million 4.75-year covenant-lite term loan.

Deutsche Bank is leading the deal.

Proceeeds, in addition to proceeds from a $150 million asset-based revolver and $450 million of senior notes, will be used to refinance debt and fund a dividend.

CPG tightens talk

CPG International Inc. tightened spread talk on its $355 million seven-year covenant-light first-lien term loan (B1/B) to Libor plus 450 basis points from 500 bps and trimmed discount talk to 99.5 from 99 on Monday, according to a market source.

The deal comes with a 1.25% Libor floor and has 101 repricing protection for one year.

The $465 million credit facility also features a $110 million five-year ABL revolver.

Credit Suisse and Barclays are the lead banks on the term loan, and Wells Fargo, Credit Suisse and Barclays are leading the revolver.

Proceeds will be used to help fund the acquisition of TimberTech, a Wilmington, Ohio-based subsidiary of the Crane Group that manufactures low-maintenance decking, railing and accessory products, and to refinance existing debt.

Essar hacks discount talk

Essar Steel Algoma Inc. cleaved two points off the discount talk on its $350 million two-year senior secured asset-based term loan, raising talk to 98 from 96.

The spread talk remains unchanged at Libor plus 750 basis points with a 1.25% Libor floor.

The loan is non-callable for one year, then at 102 for six months and to par thereafter, the source said.

Deutsche Bank is the lead arranger and bookrunner on the deal.

Proceeds will be used to repay in full all outstanding amounts and terminate all commitments under the company's existing senior secured asset-based revolving credit facility.

Local TV amendment

Local TV Finance LLC plans to meet with lenders on Wednesday morning regarding a credit amendment and a dividend deal.

UBS Securities LLC is leading.

SkillSoft seeks repricing

And SSI Investments II Ltd., the corporate parent of business training software provider SkillSoft Ltd., will host a lender call at 11 a.m. ET on Tuesday.

Under discussion will be a new $50 million senior secured term loan facility.

In addition, SkillSoft is seeking to reprice its current $407.825 million of term loan facilities.

Morgan Stanley, Barclays and Deutsche Bank are the joint lead arrangers.

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