Alliance HealthCare breaks; Deltek, Angus Chemical modify deals; Anchor Glass shutting early

By Sara Rosenberg

New York, June 17 – Alliance HealthCare Services Inc.’s incremental first-lien term loan made its way into the secondary market during Wednesday’s session, with levels bid right around the original issue discount.

Meanwhile, in the primary, Deltek Inc. increased the size of its second-lien term loan and moved up the commitment deadline, and Angus Chemical Co. shifted some funds between its U.S. dollar and euro term loans and lowered pricing on the euro tranche.

Also, Anchor Glass Container Corp. accelerated the commitment deadline on its term loan, and Telular Corp. and Genex Holdings Inc. brought add-on term loans to market.

Alliance HealthCare frees up

Alliance HealthCare Services’ $30 million incremental first-lien term loan due June 3, 2019 began trading on Wednesday, with levels quoted at 99½ bid, par offered, according to a market source.

The incremental term loan is priced at Libor plus 325 basis points with a 1% Libor floor, in line with the company’s existing $477 million first-lien term loan, and was sold at an original issue discount of 99.5.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay revolver borrowings and add cash to the balance sheet.

Alliance HealthCare is a Newport Beach, Calif.-based provider of advanced outpatient diagnostic imaging and radiation therapy service.

Deltek tweaks size

Switching to the primary market, Deltek raised its second-lien term loan (Caa2/CCC+) to $390 million from $350 million, while keeping talk at Libor plus 850 bps with a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two, a market source remarked.

The company’s now $1.26 billion credit facility also includes a $30 million revolver (B1/B) and an $840 million first-lien term loan (B1/B).

The first-lien term loan is still talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments were due on Wednesday, revised from an original deadline of Thursday, the source said.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and to fund a dividend to Thoma Bravo. The dividend amount was increased due to the second-lien term loan upsizing, the source added.

Deltek is a Herndon, Va.-based provider of enterprise software and information for professional services firms and government contractors.

Angus reworks deal

Angus Chemical trimmed its U.S. term loan to $225 million from $260 million and lifted its euro term loan to the equivalent of $285 million from the equivalent of $250 million, according to a market source.

In addition, pricing on the euro term loan was lowered to Euribor plus 325 bps from Euribor plus 350 bps, while pricing on the U.S. term loan was unchanged at Libor plus 350 bps, the source said.

As before, both loans have a 1% floor, a par issue price and 101 soft call protection through February 2016.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance/reprice existing U.S. and euro term loan debt that carries a rate of Libor/Euribor plus 425 bps with a 1% floor.

When the debt was obtained early this year, it was split between a $335 million U.S. dollar term loan and $170 million euro-equivalent term loan.

Angus is a Buffalo Grove, Ill.-based manufacturer and distributor of nitroalkanes and their derivatives.

Anchor revises timing

Anchor Glass changed the commitment deadline on its $465 million seven-year first-lien covenant-light term loan (B3/BB-) to 5 p.m. ET on Friday from 5 p.m. ET on June 24, a market source said.

The term loan is talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC and Barclays are leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Anchor Glass is a Tampa, Fla.-based manufacturer of glass packaging products.

Telular comes to market

Also in the primary, Telular hosted a bank meeting in New York on Wednesday to launch a $55 million add-on first-lien term loan that is talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

SunTrust Robinson Humphrey Inc. is leading the deal.

Proceeds will be used to fund an acquisition and pay down a $37.5 million second-lien term loan, the source said.

Pro forma for the transaction, Telular, a Chicago-based provider of remote monitoring and asset tracking solutions for business and residential customers, will have total leverage of 4.5 times.

Genex seeks add-ons

Genex Holdings launched during the session $77.5 million of fungible first-and second-lien add-on term loans that will be used to fund two acquisitions, sources said.

The debt is split between a $55 million add-on first-lien term loan talked at Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99.25 to 99.5, and a $22.5 million add-on second-lien term loan talked at Libor plus 775 bps with a 1% Libor floor and a discount of 98.5 to 98.75, sources said.

Commitments are due on June 25.

RBC Capital Markets and Jefferies Finance LLC are leading the deal.

Genex is a Wayne, Pa.-based provider of integrated managed care services, focused on controlling health care costs and reducing disability expenses.

Liberty sets deadline

Liberty Tire Recycling came out with a commitment deadline of June 24 on its $170 million five-year term loan (Caa1/B-) that launched with a bank meeting on Tuesday, according to a market source.

As previously reported, the term loan is talked at Libor plus 725 bps with a 1% Libor floor, an original issue discount of 98 and call protection of 102 in year one and 101 in year two.

Along with the term loan, the company is getting a $35 million asset-based revolver.

Jefferies Finance LLC is leading the deal that will be used to refinance an existing credit facility and some second-lien PIK notes.

Liberty Tire is a Pittsburgh-based scrap tire collector and recycler.

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