Open Text, Allison, Alcatel, Consolidated, Vantage, FCI, Advantage Sales, ARC, ATI break

By Sara Rosenberg

New York, Dec. 19 - Open Text Corp., Allison Transmission Holdings Inc., Alcatel-Lucent USA Inc., Consolidated Communications Holdings Inc., Vantage Energy LLC, FCI, Advantage Sales and Marketing Inc., ARC Document Solutions Inc. and ATI Physical Therapy Inc. all emerged in the secondary market on Thursday.

Over in the primary, Answers Corp. increased pricing on its first- and second-lien term loans once again, while also revising the original issue discount on the second-lien tranche and call protection on the first-lien tranche.

Open Text trades

Open Text's $800 million seven-year senior secured term loan B (BBB) started trading on Thursday, with levels quoted at 99¾ bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 250 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 991/2. The debt has 101 soft call protection for six months.

Recently, the spread on the loan was increased from Libor plus 225 bps and the MFN sunset provision was eliminated.

Barclays and RBC Capital Markets are leading the deal that will be used with $265 million of cash and $100 million of equity to fund the $1,165,000,000 acquisition of GXS Group Inc.

Closing is subject to customary regulatory approvals and conditions.

Open Text is an Ontario-based provider of enterprise information management software that helps companies manage, secure and leverage their unstructured business information. GXS is a Gaithersburg, Md.-based B2B integration services provider.

Allison levels emerge

Allison Transmission's $650 million add-on senior secured covenant-light term loan B-3 due Aug. 23, 2019 broke during the session, with levels seen at par bid, par ¾ offered, a trader said.

Pricing on the loan is Libor plus 275 bps with a 1% Libor floor, and it was sold at a discount of 991/2. There is 101 soft call protection until Feb. 26, 2014.

Earlier this week, the term loan was upsized from $500 million and the discount was tightened from 99.

Citigroup Global Markets Inc. is leading the deal that will be used by the Indianapolis-based automatic transmission company to refinance some term loan debt due in 2017.

Closing is expected to occur on Dec. 27.

Alcatel-Lucent breaks

Another deal to free up was Alcatel-Lucent's $1,736,874,999 term loan C due Jan. 30, 2019, with levels quoted at par ¼ bid, par ¾ offered, a market source said.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor and it was issued at par. There is 101 soft call protection for six months.

The other day, pricing on the loan firmed at the wide end of the Libor plus 325 bps to 350 bps talk, and the ticking fee was changed to the full spread starting on Jan. 1 from half the spread starting on Jan. 6 until the repricing is effective on Feb. 18.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to reprice the existing term loan C from Libor plus 475 bps with a 1% Libor floor.

Alcatel is a Paris-based telecommunications services and equipment company.

Consolidated wraps 101

Consolidated Communications' credit facility also broke, with the $910 million seven-year term loan B quoted at par ¾ bid, 101¼ offered, according to a market source.

The B loan is priced at Libor plus 325 bps with a 1% Libor floor and was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

During syndication, the spread on the term B was reduced from Libor plus 350 bps.

The company's $985 million credit facility also includes a $75 million five-year revolver.

Wells Fargo Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt.

Consolidated Communications is a Mattoon, Ill.-based rural local exchange company providing voice, data and video services.

Vantage Energy tops discount

Vantage Energy' $200 million five-year second-lien term loan freed to trade, with levels quoted at 99½ bid, par ½ offered, according to a trader.

The loan is priced at Libor plus 750 bps with a 1% Libor floor and was sold at a discount of 99. The debt is non-callable for one year, then at 101 in year two.

During syndication, pricing on the loan widened from Libor plus 675 bps.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

Vantage Energy is an Englewood, Colo.-based oil and gas exploration company in the Barnett and Marcellus shales.

FCI starts trading

FCI's $250 million six-year covenant-light term loan B (B1/BB-) hit the secondary as well, with levels quoted at par bid, a market source said.

The loan is priced at Libor plus 525 bps with a 1% Libor floor and was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Prior to allocating, the B loan was downsized from $300 million, the spread was lifted from talk of Libor plus 450 bps to 475 bps and the call protection was extended from six months.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to fund a dividend.

FCI is a manufacturer of connectors for use in electronic, micro-connector, electrical and automotive applications.

Advantage Sales frees up

Advantage Sales and Marketing's $325 million fungible tack-on first-lien covenant-light term loan (B1) due December 2017 began trading too, with levels quoted at par bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and it was issued at a discount of 991/2. There is 101 soft call protection through February 2014.

During syndication, the loan was upsized from $225 million and the discount was tightened from 99.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to purchase the remainder of Waypoint LLC that it does not currently own and for general corporate purposes.

Advantage Sales is an Irvine, Calif.-based sales and marketing agency. Waypoint is a sales and marketing company focused on the foodservice industry.

ARC above OID

ARC Document Solutions' $200 million five-year term loan B (B1/B+) surfaced in the secondary with a 99 bid, according to a market source.

Pricing on the loan is Libor plus 525 bps with a 1% Libor floor and it was sold at discount of 98. The debt has soft call protection of 102 in year one and 101 in year two.

Recently, the loan was downsized from $205 million, pricing was lifted from Libor plus 450 bps, the discount widened from 99, the call protection was revised from just 101 and amortization was increased to 5% per annum.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to repurchase 10½% senior notes due 2016.

ARC is a Walnut Creek, Calif.-based provider of technology and document-related services.

ATI tops par

ATI Physical Therapy's term loan also broke, with levels quoted at par ¼ bid, par ¾ offered, a trader remarked.

The loan is priced at Libor plus 400 bps with a 1% Libor floor and was issued at par. There is 101 soft call protection for six months.

Proceeds are being used to reprice an existing term loan from Libor plus 450 bps with a 1.25% Libor floor.

Jefferies Finance LLC is leading the deal.

ATI Physical Therapy is a Bolingbrook, Ill.-based operator of physical therapy clinics.

Answers reworked

Moving to the primary, Answers lifted pricing on its $175 million five-year first-lien term loan B to Libor plus 550 bps from revised talk of Libor plus 525 bps and initial talk of Libor plus 450 bps, and extended the 101 soft call protection to one year from six months, according to a market source.

The first-lien loan continues to have a 1% Libor floor and an original issue discount of 99.

Meanwhile, pricing on the $100 million 61/2-year second-lien term loan was raised to Libor plus 1,000 bps from revised talk of Libor plus 925 bps to 950 bps and initial talk of Libor plus 850 bps, and the discount was moved to 98 from 981/2, the source said.

As before, the second-lien loan has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

At the time of the first pricing change, the maturity on the first-lien term loan was shortened from seven years and amortization was beefed up to 5% per annum from 1%, and the maturity on the second-lien loan was shortened from 7½ years.

Answers getting revolver

In addition to the first- and second-lien term loans, Answers' $295 million credit facility includes a $20 million revolver.

SunTrust Robinson Humphrey Inc. and Silicon Valley Bank are leading the deal that will be used to refinance existing debt and fund an acquisition.

Senior leverage is 2.5 times and total leverage is 3.9 times on a last-quarter annualized basis.

Answers is a St. Louis-based wiki-based search engine company for consumers and provides subscription-based SAAS services to enterprise companies and retailers.

Hostway allocates

In other news, Hostway allocated and closed its credit facility that saw a shift in tranche sizes due to demand, according to a market source.

The six-year first-lien term loan ended up at $68 million, down from $77.5 million, with pricing remaining at Libor plus 475 bps with a 1.25% Libor floor and an original issue discount of 99.

And, the seven-year second-lien term loan firmed at $34.5 million, up from $25 million, with pricing unchanged at Libor plus 875 bps with a 1.25% Libor floor and a discount of 98.

The company's $117.5 million credit facility also includes a $15 million five-year revolver priced at Libor plus 475 bps.

Societe Generale led the deal that was used to back the buyout of the company by Littlejohn & Co.

Hostway is a Chicago-based provider of hosting services for over 570,000 RGUs.

Spansion closes

Spansion LLC said in a news release that it completed its $300 million six-year senior secured term loan B priced at Libor plus 300 bps with a 0.75% Libor floor. There is 101 soft call protection for six months.

Of the total term loan amount, $84 million is a fungible add-on that was used to refinance the company's existing 7 7/8% senior notes due 2017, and $216 million was a repricing of the existing term B debt from Libor plus 400 bps with a 1.25% Libor floor.

The add-on was issued at 99, after widening from talk 99½ to par, and the repricing was done at par.

Morgan Stanley Senior Funding Inc. and Barclays led the deal.

Spansion is a Sunnyvale, Calif.-based semiconductor device company principally dedicated to designing, manufacturing, marketing, licensing and selling NOR Flash memory technology.

Moxie Patriot wraps

Moxie Patriot LLC closed on the financing for the construction of the Patriot Generation Plant, an 829-megawatt natural gas fired power plant in Lycoming County, Pa., according to a news release.

The debt consists of a $380 million funded term loan B and a $205 million delayed-draw for one year term loan B, both priced at Libor plus 575 bps with a 1% Libor floor and sold at an original issue discount of 99. The loans are non-callable for 2½ years, then at 102 for a year and 101 for the following year.

During syndication, the funded term loan was downsized from $385 million, the delayed-draw loan was upsized from $200 million and pricing on both tranches was reduced from talk of Libor plus 600 bps to 625 bps.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Ares Capital and Union Bank of California led the $585 million of seven-year term loan debt (B+).

Omnitracs completed

Omnitracs Inc. closed on its acquisition of Roadnet Technologies Inc., a Baltimore-based provider of routing, scheduling, optimization and mobile resource management software, a news release said.

For the transaction, Omnitracs got a $165 million add-on first-lien term loan (B1/B+) priced at Libor plus 375 bps with a step-down to Libor plus 350 bps when total net leverage is 4.5 times and a 1% Libor floor, and a $50 million add-on second-lien term loan (Caa1/CCC+) priced at Libor plus 775 bps with a step-down to Libor plus 750 bps when total net leverage is 4.5 times and a 1% Libor floor.

Both add-ons were sold at a discount of 993/4, after firming during syndication at the tight end of the 99½ to 99¾ talk, and the first-lien add-on was upsized from $155 million.

RBC Capital Markets, Credit Suisse Securities (USA) LLC and Guggenheim Corporate Funding, LLC led the deal.

Omnitracs is a San Diego-based provider of satellite and terrestrial-based connectivity and position location services to transportation and logistics companies.

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