Generac frees up; Misys, SS&C, Beasley Broadcast revise deals; Town Sports pulled

By Sara Rosenberg

New York, May 22 - Generac Power Systems Inc.'s senior secured term loan began trading on Tuesday shortly after recommitments were due on the revised financing, and levels on the debt were seen above its original issue discount price.

Switching to the primary, Misys plc reworked its term loans, opting for more U.S. debt and less euro borrowings, raising the coupon, widening the original issue discount, adding more call protection and shortening the tenor.

Also, SS&C Technologies Holdings Inc. shifted funds between its tranches and increased B loan pricing, Beasley Broadcast Group Inc. trimmed the size of its term B while beefing up amortization, and Town Sports International Holdings Inc. cancelled its repricing deal.

In addition, Houghton Mifflin Harcourt released price talk on its debtor-in-possession financing facility as the deal was launched to investors during the session.

Generac breaks

Generac Power Systems' $900 million six-year senior secured term loan B (B2/B+) hit the secondary market on Tuesday afternoon, with levels quoted at 98 5/8 bid, 99 1/8 offered on the open, and then it moved to 99 bid, 99½ offered, according to a trader.

Pricing on the loan is Libor plus 500 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 98. There is call protection of 102 in year one and 101 in year two.

On Monday, the B loan was upsized from $800 million, pricing was increased from Libor plus 450 bps, the discount was revised from 981/2, and the call premium was changed from just 101 soft call protection for one year.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Goldman Sachs & Co. are the lead banks on the deal.

Generac cancels notes

As was previously reported, Generac was planning on selling $425 million of unsecured notes, but that financing was pulled as a result of recent market conditions, and it was with the termination of the bond deal that the term loan B was upsized.

Proceeds will be used to refinance about $574 million of existing term loan debt and to pay a special cash dividend of up to $6 per share on the company's outstanding common stock that is expected to be declared by or shortly after the end of this quarter.

The dividend was reduced from up to $10 per share due to the decrease in the total debt package.

Also, with the new term loan B, the company expects to refinance an existing $150 million undrawn revolver with a similarly sized asset-backed revolver.

Generac is a Waukesha, Wis.-based designer and manufacturer of generators and other engine powered products.

OWIC announced

Also on the secondary side, a $121 million Offers-Wanted-In-Competition (OWIC) surfaced, with the deadline for offers set for 2 p.m. ET on Wednesday, according to a trader.

There are 27 names in the portfolio, and about 21 of those have positions of $5 million for which offers are being sought after. The remaining positions are less than $5 million a piece.

Included in the OWIC are names like Alon USA Energy Inc., Consolidated Container, Dean Foods Co., First Data Corp., Huntsman International LLC, Kronos Inc., Michaels Stores Inc., Veyance Technologies Inc. and Windstream.

Misys changes emerge

Over in the primary, Misys came out with a slew of revisions to its term loans, which now mature in 6½ years as opposed to seven years, and asked lenders to get recommitments in by 5 p.m. ET on Tuesday, according to a market source.

Under the changes, the U.S. term loan is sized at $945 million, up from $730 million, and pricing is Libor plus 600 bps with a 1.25% Libor floor and an original issue discount of 97, compared to prior talk of Libor plus 500 bps to 525 bps with a 1.25% floor and a discount of 99, the source said.

As for the euro term loan, it is sized at €100 million, down from €250 million, and pricing is Euribor plus 625 bps with a 1.25% floor and a discount of 97, versus initial guidance of Euribor plus 550 bps to 575 bps with a 1.25% floor and a discount of 99, the source continued.

Furthermore, the term loans now have call protection of 102 in year one and 101 in year two on voluntary repayments, changed from just 101 repricing protection for one year.

Misys revolver pricing

Misys' roughly $1.2 billion credit facility (Ba3/B+) also provides for a $125 million five-year revolver that saw pricing firm at Libor plus 525 bps, the high side of the Libor plus 500 bps to 525 bps talk, the source remarked.

The revolver still has a 50 bps unused fee and a 100 bps upfront fee.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal, with Credit Suisse the left lead.

Proceeds, along with equity, will be used to help fund the acquisition of the company by Vista Equity Partners for 350p per share, or about £1.27 billion, and refinance certain debt.

Misys gets collateral

Additional funding for the Misys buyout will come from a $615 million seven-year second-lien term loan that is talked in the 12% area yield, including original issue discount, another source said. The loan is non-callable for three years, with the first call at par plus 75% of the coupon.

On Tuesday, this debt was revised from being unsecured with a 71/2-year tenor and talked in the context of 10%, the source continued.

Commitments toward the second-lien are due at 5 p.m. ET on Wednesday, with allocations and pricing expected for Thursday.

The bank group leading the first-lien facility is also leading the second-lien loan; however, Bank of America Merrill Lynch is the left lead.

Misys is a London-based application software and services provider for the financial services industry.

SS&C restructures

SS&C Technologies reduced its seven-year term loan B to $800 million from $825 million and revised pricing on the tranche to Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99 to 99½ from prior talk of Libor plus 350 bps with a 1% floor and a discount of 991/2, sources said. Chatter is that the discount will likely firm at the wide end of the new talk.

Also, the 101 soft call protection on the term loan B was changed to one year from six months.

The term loan B is split between a B-1 tranche that is sized at $725 million and a B-2 tranche that is sized at $75 million. It is the B-2 that was reduced by the $25 million.

Commitments toward the B loan were due at 5 p.m. ET on Tuesday.

As a result of the term B downsizing, the company lifted its 51/2-year term loan A to $325 million from $300 million, while firming pricing at initial talk of Libor plus 275 bps with a discount of 991/2.

The $1,225,000,000 deal (Ba3/BB-) also provides for a $100 million 51/2-year revolver.

SS&C lead banks

Deutsche Bank Securities Inc., Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading SS&C's senior secured credit facility that will be used to fund the acquisition of GlobeOp Financial Services SA for 485p per share and to refinance an existing credit facility.

Other funds for the transaction will come from a $142 million 364-day bridge loan that is priced at Libor plus 275 bps with no Libor floor.

Net total leverage is 4.1 times, sources added.

SS&C is a Windsor, Conn.-based provider of financial services software and software-enabled services. GlobeOp, with headquarters in London and New York, is a provider of business process outsourcing, financial technology services and analytics to hedge funds and other sectors of the financial industry.

Beasley downsizes

Beasley Broadcast Group trimmed its six-year term loan B to $120 million from $130 million and increased amortization from 1% per annum previously, a market source said.

Price talk on the B loan, as well as on a $20 million five-year revolver, is still Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99.

GE Capital Markets is the lead bank on the now $140 million deal, down from $150 million.

Proceeds will be used to refinance existing debt, and the funds lost through the downsizing of the term loan B will be compensated for with cash on the balance sheet, the source added.

Beasley is a Naples, Fla.-based radio broadcasting company.

Town Sports shelved

Town Sports withdrew its $300 million term loan B repricing, with a market source explaining that the decision was made by the company because of unfavorable market conditions.

The repricing was talked at Libor plus 425 bps with a 1.25% Libor floor, and there was 101 soft call protection for one year, compared to current pricing of Libor plus 550 bps with a 1.5% Libor floor.

When done in May 2011, the loan was sold at an original issue discount price of 99 and provided for hard call protection of 102 in year one and 101 in year two.

Deutsche Bank Securities Inc. and KeyBanc Capital Markets LLC were leading the repricing.

Town Sports is a New York-based owner and operator of fitness clubs.

Houghton sets talk

In more primary news, Houghton Mifflin Harcourt held a bank meeting in the morning to launch its $500 million 18-month DIP financing facility, at which time price talk was announced, according to a market source.

The $250 million ABL revolver is talked at Libor plus 325 bps and the $250 million term loan is talked at Libor plus 625 bps with a 1.5% Libor floor and an original issue discount of 98, the source said.

The DIP loan can be converted into exit financing, and once that happens, pricing on the revolver, which will have a five-year tenor, will range from Libor plus 225 bps to 275 bps based on availability, and the term loan, which will mature in six years, will get 101 soft call protection for one year.

Lead bank, Citigroup Global Markets Inc., is seeking commitments by May 30.

Houghton Mifflin, a Boston-based educational publisher in the K-12 market, expects to emerge from Chapter 11 by the end of June.

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