Chrysler, Websense free up; Four Seasons, Herff Jones, MedSolutions, Hargray see changes

By Sara Rosenberg

New York, June 20 - Chrysler Group LLC's credit facility made its way into the secondary on Thursday, with the term loan quoted above its issue price, and Websense Inc.'s credit facility broke as well.

Over in the primary, Four Seasons Hotels and Resorts tightened spreads and original issue discounts on its first- and second-lien term loans, and Herff Jones updated tranche sizes and lifted the coupon on its term loan B.

Also, MedSolutions reduced the size of its term loan B, increased pricing, set the discount at the high end of guidance and added a covenant, and Hargray Communications flexed pricing higher on its term loan while extending the call protection.

Furthermore, Federal-Mogul Corp. withdrew its credit facility from the market, and Vitera Healthcare Solutions and Clement Pappas and Co. Inc. set talk with launch.

Chrysler hits secondary

Chrysler's credit facility broke for trading on Thursday, with the $2,947,000,000 term loan due May 24, 2017 quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the term loan is 325 basis points, after finalizing at the wide end of the Libor plus 300 bps to 325 bps talk. The loan has a 1% Libor floor and 101 soft call protection for six months and was issued at par.

The company's $4,247,000,000 facility also includes a $1.3 billion revolver due May 24, 2016.

Proceeds will be used to reprice an existing revolver and the term loan from Libor plus 475 bps, and the Libor floor on the term loan is being reduced from 1.25%.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal, with Citi the left lead on the term loan and Morgan Stanley the left lead on the revolver.

Chrysler, an Auburn Hills, Mich.-based automotive company, is expected to close on the repricing on Friday.

Websense starts trading

Websense's credit facility also freed up for trading, with the $350 million seven-year covenant-light first-lien term loan (Ba3/B+) quoted by one trader at 99½ bid, par ¼ offered and by a second trader at 99 7/8 bid, par 3/8 offered, and the $225 million 71/2-year covenant-light second-lien term loan (Caa1/CCC+) seen by the second trader at 99¾ bid.

Pricing on the first-lien term loan is Libor plus 350 bps with a step-down to Libor plus 325 bps when first-lien net leverage is less than 3.25 times. There is a 1% Libor floor and 101 soft call protection to one year, and the debt was sold at an original issue discount of 993/4.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor and was sold at a discount of 991/2. The tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien loan firmed at the low end of the Libor plus 350 bps to 375 bps talk, the discount was changed from 99½ and the soft call was extended from six months. Also, the second-lien loan pricing was reverse flexed from Libor plus 750 bps and the discount was tightened from 99.

Websense getting revolver

Websense's $615 million senior secured credit facility also includes a $40 million five-year revolver (Ba3/B+).

J.P. Morgan Securities LLC, RBC Capital Markets and Guggenheim Partners are leading the financing that will be used with $500 million of equity to fund the company's buyout by Vista Equity Partners for $24.75 in cash per share.

Closing is expected before the end of the third quarter, subject to a minimum stock tender condition, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, financing and other customary conditions.

Websense is a San Diego-based provider of web security, e-mail security, mobile security and data loss prevention.

Four Seasons cuts pricing

Moving to the primary, Four Seasons Hotels and Resorts reduced pricing on its $750 million seven-year first-lien term loan (B1/BB-) to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps and revised the original issue discount to 99¾ from 99, according to a market source. The 1% Libor floor and 101 soft call protection for six months were unchanged.

Meanwhile, pricing on the $250 million 71/2-year second-lien term loan (Caa1/B-) was trimmed to Libor plus 525 bps from talk of Libor plus 600 bps to 625 bps and the discount was tightened to 99 from 98, the source said. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

In addition to the term loans, the company's $1.1 billion credit facility includes a $100 million revolver (B1/BB-).

Commitments were due at 5 p.m. ET on Thursday.

Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used by the Toronto-based luxury hotels company to refinance existing debt.

Herff Jones reworks deal

Herff Jones downsized its term loan B to $525 million from $550 million and raised pricing to Libor plus 450 bps from talk of Libor plus 350 bps to 400 bps, while keeping the 1% Libor floor and original issue discount of 99 intact, a market source said. There is 101 soft call protection for one year.

On the flip side, the company's revolver was upsized to $200 million from $150 million, the source said. This tranche is priced at Libor plus 325 bps.

Allocations are expected to go out on Monday, the source added.

Jefferies Finance LLC, PNC Capital Markets LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the now $725 million credit facility (B2/BB-) that will be used to fund the acquisition of BSN Sports and refinance existing debt.

Herff Jones is an Indianapolis-based manufacturer and publisher of educational products, recognition awards and graduation-related items. BSN Sports is a Dallas-based distributor of team sports apparel and equipment.

MedSolutions revisions emerge

MedSolutions trimmed its six-year term loan B to $300 million from $360 million, flexed up pricing to Libor plus 525 bps from Libor plus 400 bps, set the original issue discount at 99, the high end of the 99 to 99½ talk, and added a total net debt covenant to the initially covenant-light tranche, according to a market source.

As before, the B loan has a 1.25% Libor floor and 101 soft call protection for six months.

The company's now $375 million credit facility also includes a $75 million five-year revolver.

Recommitments are due on June 27, the source remarked.

SunTrust Robinson Humphrey Inc. and Fifth Third Securities Inc. are leading the deal that will be used to refinance existing debt and fund a dividend, which was reduced as a result of the term loan B downsizing.

MedSolutions is a Franklin, Tenn.-based provider of medical cost management services.

Hargray tweaks deal

Hargray Communications revised pricing on its $305 million term loan B to Libor plus 375 bps from Libor plus 350 bps and pushed out the 101 soft call protection to one year from six months, according to a market source.

As before, the loan has a 1% Libor floor and an original issue discount of 99.

The company's $330 million credit facility (B2/B+) also includes a $25 million revolver.

RBC Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal that is expected to allocate early next week.

Proceeds will be used to refinance existing debt and fund a modest dividend to shareholders.

Hargray is a provider of triple-play data, video and voice services for southeastern South Carolina and northeastern Georgia.

Federal-Mogul shelved

Federal-Mogul pulled its $2.3 billion senior secured credit facility from market because of unfavorable conditions, according to a market source.

The facility consisted of a $1.75 billion seven-year covenant-light term loan B (Ba3/B) talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, and a $550 million asset-based revolver (Ba2).

Citigroup Global Markets Inc. was leading the deal that was going to be used to refinance existing debt.

Federal-Mogul is a Southfield, Mich.-based supplier of powertrain and safety technologies.

Vitera discloses guidance

Also on the primary front, Vitera Healthcare Solutions set price talk on its term loans in connection with its Thursday bank meeting, according to a market source.

The $255 million seven-year first-lien term loan is talked at Libor plus 450 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

And, the $85 million eight-year second-lien term loan is talked at Libor plus 825 bps to 875 bps with a 1% Libor floor, a discount of 98½ and call protection of 102 in year one and 101 in year two, the source continued.

The company's $365 million credit facility also includes a $25 million five-year revolver.

Jefferies Finance LLC and BMO Capital Markets are leading the deal that will refinance existing bank debt and fund an acquisition.

Vitera is a Tampa, Fla.-based provider of ambulatory electronic health records and practice management software and services.

Clement Pappas launches

Clement Pappas held a call on Thursday to launch a repricing of its $200 million term loan B due 2017, according to a market source.

The repricing is talked at Libor plus 350 bps with a 1% Libor floor, compared to current pricing of Libor plus 525 bps with a 1.25% Libor floor.

GE Capital Markets and BMO Capital Markets are leading the deal.

Clement Pappas is a Carneys Point, N.J.-based producer of store brand ready-to-drink fruit juices, drinks and sauces.

Meritas readies allocations

Meritas Schools Holdings LLC's $245 million credit facility (B3/B-) is oversubscribed within talk and is expected to allocate on Friday, according to a market source.

The facility consists of a $30 million five-year revolver, and a $215 million six-year first-lien term loan talked at Libor plus 550 bps to 575 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are the lead banks on the deal that will be used to refinance existing debt and for growth capital expenditures.

Meritas is a Northbrook, Ill.-based family of private college-preparatory schools.

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