IMG breaks; Medpace flexes higher; Dole Food, Mondrian Investment, Sophos talk emerges

By Sara Rosenberg

New York, June 14 - IMG Worldwide Inc.'s credit facility made its way into the secondary market on Tuesday afternoon, with the term loan B bid on top of its original issue discount price.

Meanwhile, over in the primary, Medpace Inc. made some changes to its credit facility, including increasing the spread and widening the original issue discount, and Ducommun Inc. upsized its revolver, sparking a downgrade by Standard & Poor's.

Also, Dole Food Co. Inc. and Mondrian Investment Partners Ltd. released price talk on their term loans as the deals were presented to lenders during the session, and Sophos came out with guidance on its facility in preparation for its launch.

Furthermore, Alliance HealthCare Services Inc. and Pro Mach Inc. surfaced with plans to bring new deals to market later this week, and SRA International Inc. firmed up timing on the launch of its credit facility.

IMG starts trading

IMG Worldwide's credit facility freed up on Tuesday, with the $300 million five-year term loan B seen at 99½ bid, par ½ offered, according to a trader.

Pricing on the B loan firmed in line with initial talk at Libor plus 425 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

The company's $350 million credit facility (B+) also includes a $50 million 41/2-year revolver.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance existing debt.

IMG is a New York-based provider of sports and event marketing and management services.

Medpace ups pricing

Moving to the primary, Medpace raised pricing on its $335 million credit facility (B2/B+) to Libor plus 500 bps from Libor plus 400 bps and moved the original issue discount to 98½ from 99, while leaving the 1.5% Libor floor intact, according to a market source.

The facility is comprised of a $285 million term loan and a $50 million revolver.

With the pricing flex, the term loan saw the addition of 101 hard call protection for one year, the source remarked.

Senior leverage is 4.5 times.

Jefferies & Co., Barclays Capital Inc., Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the Cincinnati-based drug development company by CCMP Capital Advisors LLC from management.

Ducommun ups revolver

Ducommun increased its five-year revolving credit facility to $60 million from $40 million, and as a result, Standard & Poor's lowered its rating on the company's senior secured credit facility to BB- from BB, according to a market source.

Pricing on the revolver, as well as on a $190 million six-year term loan B, is Libor plus 425 bps with a 1.25% Libor floor. The spread on these tranches was flexed up earlier this week from Libor plus 400 bps.

The term loan B is offered at an original issue discount of 99 and has 101 soft call protection for one year.

UBS Securities LLC and Credit Suisse Securities (USA) LLC are the joint lead arrangers and bookrunners on the now $250 million senior secured credit facility, up from $230 million.

Ducommun buying LaBarge

Proceeds from Ducommun's credit facility will be used to help fund the acquisition of LaBarge Inc. for $19.25 per share in cash, or $310.3 million, and refinance debt at both companies.

Other funds for the transaction will come from $200 million of senior unsecured notes that are backed by a commitment for a $200 million senior unsecured bridge loan with pricing of Libor plus 675 bps if ratings are B3/B- and Libor plus 750 bps if ratings are lower, with a 1.25% Libor floor.

Closing is expected in the second quarter, subject to approval of LaBarge shareholders and certain other customary conditions, including expiration of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Ducommun is a Carson, Calif.-based provider of engineering and manufacturing services to the aerospace and defense industry. LaBarge is a St. Louis-based supplier of electronics manufacturing services.

Dole discloses guidance

In more primary news, Dole Food held a conference call at 3 p.m. ET on Tuesday to kick off syndication on its proposed credit facility, at which time price talk on the company's covenant-light term loans was announced, according to a market source.

The $315 million term loan B being done at Dole and the $585 million term loan C being done at Solvest Ltd., a wholly owned Bermuda subsidiary of Dole, are talked at Libor plus 350 bps to 375 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, the source said.

The company's $1.25 billion senior secured credit facility also includes a $350 million multi-currency asset-based revolver.

Dole lead banks

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Wells Fargo Securities LLC are the lead banks on Dole's credit facility.

Proceeds will be used to repay the existing asset-based revolver and Dole and Solvest term loan borrowings as well as for general corporate purposes.

In 2010, the company got a $1.2 billion credit facility, consisting of a $350 million four-year asset-based revolver priced at Libor plus 400 bps with no Libor floor and an $850 million seven-year term loan priced at Libor plus 325 bps with a 1.75% Libor floor, that was sold at an original issue discount of 99.

Dole is a Westlake Village, Calif.-based fruit and vegetables company.

Mondrian talk surfaces

Mondrian Investment Partners revealed price talk of Libor plus 400 bps to 425 bps with a 1.25% Libor floor and an original issue discount of 99 to 99½ on its $500 million senior secured covenant-light term loan as the deal was launched with a bank meeting in the morning, according to a market source.

The loan includes 101 soft call protection for one year.

Morgan Stanley & Co. Inc. and Deutsche Bank Securities Inc. are the lead banks on the deal that will be used to buy out a minority shareholder and pay a dividend. They are asking for commitments by June 28.

Expected corporate and facility ratings are Ba2/BB, the source remarked.

Mondrian is a money manager with offices in London and Philadelphia.

DEI Holdings launches

DEI Holdings Inc. held a bank meeting on Tuesday as well, launching its $205 million senior secured credit facility as planned with price talk of Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

The facility consists of a $30 million revolver and a $175 million term loan.

GE Capital Markets and Oppenheimer & Co. Inc. are leading the deal that will be used, along with equity, to fund the buyout of the company by Charlesbank Capital Partners in for $3.79 to $3.81 per share in cash. The total enterprise value of the transaction, including debt assumption, is roughly $285 million.

Closing is expected to occur in late June, subject to customary approvals and conditions.

DEI is a Vista, Calif.-based designer and marketer of home theater loudspeakers and vehicle security and remote start systems, and a supplier of mobile audio.

Sophos floats pricing

Sophos began circulating price talk on its roughly $460 million six-year senior secured credit facility (B+) as the deal is getting ready for its Wednesday bank meeting, according to a market source.

The company's revolver and term loan A debt is being talked at Libor/Euribor plus 400 bps with no Libor floor and a 100 bps upfront fee, and its term loan B debt is being talked at Libor/Euribor plus 450 bps with a 1.5% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

The revolver is sized at $20 million revolver, and the company is getting $280 million and €110 million of term loan borrowings that will be split between A loans and B loan, with the breakdown still to be determined.

RBC Capital Markets LLC is the lead bank on the deal.

Sophos refinancing, expanding

Proceeds from Sophos' credit facility will be used to replace existing bank debt and fund the acquisition of Astaro, a provider of network security solutions that has headquarters in Wilmington, Mass., and Karlsruhe, Germany.

The company's existing credit facility was obtained last summer as a $229.4 million six-year term loan B, including a $25 million euro-equivalent tranche, priced at Libor/Euribor plus 575 bps with a 2% Libor floor and sold at an original issue discount of 96, as well as a $75 million six-year euro equivalent term loan A and a $20 million six-year revolver, both priced at Libor plus 450 bps.

Net leverage for this new transaction is 3.6 times all senior.

Sophos is an IT security and data protection firm with headquarters in Boston and Oxford, United Kingdom.

Alliance readies deal

Alliance HealthCare Services will be holding a bank meeting on Wednesday with a noon ET registration time to launch a proposed $590 million senior secured credit facility, according to a market source.

The facility consists of a $120 million revolver and a $470 million term loan B, the source said. Price talk is not yet available.

Barclays Capital Inc., Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey Inc. are the bookrunners on the deal that will be used to refinance existing bank debt, including a roughly $454 million term loan B.

Alliance Healthcare is a Newport Beach, Calif.-based provider of outpatient diagnostic imaging and radiation therapy services.

Pro Mach coming soon

Pro Mach has set a bank meeting for 9:30 a.m. ET on Thursday to launch a proposed $255 million senior secured credit facility (B+) that is being led by Barclays Capital Inc., according to a market source.

The facility consists of a $35 million revolver and a $220 million term loan B, the source said, adding that price talk is still to be determined.

Proceeds will be used to fund the buyout of the company by The Resolute Fund II LP, an affiliate of the Jordan Co., from Odyssey Investment Partners LLC, and the transaction is expected to be completed in July, subject to customary conditions, including repayment of substantially all of Pro Mach's debt.

Senior secured and total leverage is 4.5 times.

Pro Mach is a Cincinnati-based provider of packaging machinery solutions and related aftermarket products and services to clients in the food, beverage, household goods and pharmaceutical industries.

SRA sets launch

SRA International nailed down timing on its $975 million senior secured credit facility, scheduling a bank meeting for 1:30 p.m. ET on Thursday, according to a market source. Previously, the deal was labeled as June business.

The facility consists of a $100 million five-year revolver and an $875 million seven-year term loan, with official price talk not yet available.

However, filings with the SEC outlined expected pricing on both tranches at Libor plus 325 bps, with the term loan having a 1.25% Libor floor. Revolver pricing is anticipated to be subject to a step-down to be agreed upon based on meeting a net senior secured leverage ratio.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the joint lead arrangers and bookrunners on the deal.

SRA being acquired

Proceeds from SRA's credit facility, $415 million of senior notes and equity will be used to fund the buyout of the company by Providence Equity Partners for $31.25 in cash per share of common stock for a total value of $1.88 billion.

Backing the notes is a commitment for a $415 million senior unsecured interim loan with pricing of Libor plus 725 bps with a 1.25% Libor floor, increasing to a specified cap.

Closing is expected during the first quarter of fiscal year 2012, which begins on July 1, subject to shareholder approval and regulatory approvals.

SRA is a Fairfax, Va.-based provider of technology and strategic consulting services to government organizations and commercial clients.

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