Medical Card breaks; GenOn, Tomkins, Visant tweak deals; RBS WorldPay readies U.S. launch

By Sara Rosenberg

New York, Sept. 16 - Medical Card Systems' term loan allocated and freed up for trading during Thursday's market hours, with the tranche seen bid above its original issue discount price, and NRG Energy Inc.'s term loans bounced around in the secondary.

Moving to the primary market, GenOn Energy Inc. came out with some changes to its term loan B, including lowering pricing and the original issue discount, as investor demand for the tranche has been very strong.

Also, Tomkins plc upsized its term loan B as it opted to go for fewer bonds and reduce the amount of funds that will be drawn under its revolving credit facility at close, and Visant Holding Corp. flexed pricing higher on its term loan.

Additionally, RBS WorldPay is getting ready to launch its proposed term loan B-2 to U.S. lenders, and Peak 10 Inc. launched its new deal but is waiting on going out with price talk until ratings emerge.

Medical Card frees up

Medical Card Systems' $175 million five-year term loan hit the secondary market on Thursday, with levels quoted at 97½ bid, no offered, according to a market source.

Pricing on the term loan is Libor plus 1,000 basis points with a 2% Libor floor, and it was sold at an original issue discount of 97.

There is call protection on the loan, but details on that feature are not available. What is know is that the call protection widened out from the initial talk of a soft call of 102 in year one and 101 in year two.

Also, during syndication, pricing on the loan firmed at the wide end of the Libor plus 900 bps to 1,000 bps talk and the discount increased from 98.

Medical Card funding recapitalization

Proceeds from Medical Card Systems' term loan will be used to refinance existing debt and fund a dividend payment.

Jefferies and Deutsche Bank are the lead banks on the deal, with Jefferies the left lead.

Following this transaction, senior leverage will be 1.6 times.

Medical Card Systems is a managed care provider in Puerto Rico.

NRG bounces around

NRG Energy's term loans moved around on Thursday as the company announced plans to acquire Green Mountain Energy Co., but the change in loan levels was mainly attributed to market technicals, according to a trader.

The non-extended term loan was quoted at 97 bid, 97½ offered, down from 97 3/8 bid, 97¾ offered, and the extended term loan was quoted at 99 3/8 bid, 99 7/8 offered, up from 99¼ bid, 99¾ offered, the trader said.

Under the agreement, NRG is buying Green Mountain Energy, a retail provider of clean energy products and services, for $350 million in cash, and funds for the transaction are expected to come from cash on hand.

The acquisition, which is targeted to close in mid-November, is expected to be immediately accretive to EBITDA and free cash flow.

NRG is a Princeton, N.J.-based owner and operator of diverse power generation portfolios.

GenOn revises pricing

Over in the primary, GenOn Energy made some revisions to the spread and discount that is being offered on its $500 million seven-year term loan B and asked lenders to get their commitments towards the modified deal in by 5 p.m. ET on Thursday, according to market sources.

The term loan B is now priced at Libor plus 425 bps, down from Libor plus 450 bps, and the discount is 99 instead of 981/2, sources said.

And, 101 soft call protection for one year was added to the loan, while the 1.75% Libor floor was left unchanged.

"That's pretty tight for the rating," one source remarked about the new pricing. "[But] the bank loan is very well covered," he added.

The company's $1.5 billion credit facility (B2) also includes a $1 billion revolver.

GenOn lead banks

JPMorgan, Credit Suisse, Deutsche Bank, Morgan Stanley and Goldman Sachs are the lead banks on GenOn's credit facility.

Proceeds will be used to help fund the merger of Mirant Corp. with RRI Energy Inc.

Under the agreement, Mirant stockholders will receive a fixed ratio of 2.835 shares of RRI Energy common stock for each share of Mirant common stock they own. Mirant stockholders will own about 54% of the equity of the combined company, and RRI Energy stockholders will own roughly 46%.

Closing is expected before the end of the year, subject to stockholder approval, U.S. antitrust approval and approval by the Federal Energy Regulatory Commission. The closing is also subject to the refinancing.

GenOn will be a Houston-based power producer with about 24,700 megawatts of electric generating capacity and a pro forma market capitalization of $3.1 billion.

Tomkins increases B loan

Tomkins lifted the size of its six-year term loan B to $1.7 billion from $1 billion, and as result, terminated plans for a $600 million secured bond offering and will borrow $100 million less under its revolver at close, according to market sources.

The size of the revolver, however, was left unchanged at $300 million, as was the $300 million term loan A, sources said.

Price talk on the term loan B continues to be Libor plus 475 bps with a 1.75% Libor floor and an original issue discount of 98 to 99.

Citigroup and Bank of America are the lead arrangers and joint bookrunners on the now $2.3 billion credit facility (Ba2), up from $1.6 billion, with Barclays Capital, RBC Capital Markets and UBS bookrunners as well.

Tomkins being acquired

Proceeds from Tomkins' credit facility will be used to help fund its buyout by Pinafore Acquisitions Ltd., a company jointly owned by Onex Corp. and Canada Pension Plan Investment Board, for 325p per share in cash.

The acquisition values Tomkins' existing issued and to-be-issued share capital at £2.89 billion.

Other funding for the transaction will come from $1 billion of second-lien bonds and about $2.2 billion of equity.

Closing is expected to take place on Sept. 24.

Tomkins is a London-based engineering and manufacturing group, providing products for the industrial, automotive and building products markets.

Visant lifts spread

Visant raised pricing on its $1.25 billion term loan to Libor plus 525 bps from initial talk of Libor 475 bps to 500 bps, while leaving the 1.75% Libor floor, 101 soft call protection for one year and original issue discount of 98 unchanged, according to a market source.

The deal is oversubscribed at the higher pricing, the source said.

Credit Suisse, Goldman Sachs, Barclays, Deutsche Bank, Bank of America and KKR Capital Markets are the lead banks on the $1.425 billion credit facility (Ba3/BB-), which also includes a $175 million revolver.

Proceeds from the facility, along with $750 million of notes, will be used to fund a recapitalization that includes tender offers for the company's 10¼% senior discount notes due 2013, its 8¾% senior notes due 2013 and its 7 5/8% senior subordinated notes due 2012.

Visant is an Armonk, N.Y.-based marketing and publishing services enterprise.

RBS WorldPay term loan

RBS WorldPay is set to hold a bank meeting in New York on Friday to launch a proposed £235 million seven-year dollar equivalent term loan B-2 to U.S. investors, according to a market source.

The remainder of the company's £970 million secured credit facility (Ba2/BB) is being marketed in Europe and was launched with a bank meeting on Thursday.

The European tranches include a £75 million six-year revolver, a £75 million six-year capital expenditures facility, a £160 million six-year term loan A, a £325 million seven-year term loan B-1 and a £100 million seven-year euro equivalent term loan B-3.

Goldman Sachs, Barclays, Morgan Stanley, RBS and UBS are the lead banks on the deal.

RBS WorldPay price talk

Price talk on RBS WorldPay's U.S. term loan B-2 is Libor plus 500 bps with a 1.75% Libor floor, the source remarked. The original issue discount is not yet available, but is expected to surface on Friday in connection with the bank meeting.

Proceeds from the credit facility will be used to help fund the acquisition of an 80.01% interest in the company by Advent International and Bain Capital from RBS Group for an enterprise value of up to £2.025 billion.

Closing on the transaction is expected by the end of the year, subject to regulatory approvals.

RBS WorldPay is a provider of global payment processing services.

Peak 10 hits the primary

Peak 10 held a bank meeting on Thursday morning to kick off syndication on its proposed $155 million credit facility, but price talk won't be released out until ratings are announced, which is expected to occur on Friday, according to a market source.

The facility consists of a $15 million revolver and a $140 million term loan B.

RBC is the lead bank on the deal that will be used to help fund the buyout of the company by Welsh, Carson, Anderson & Stowe from Seaport Capital and McCarthy Capital.

The transaction is expected to close in early October.

Peak 10 is a data center operator and managed services provider.

Aspen Dental nets interest

Talk is that Aspen Dental's $230 million credit facility is "coming along well" since launching with a bank meeting on Monday, according to a market source.

The facility consists of a $35 million five-year revolver (B1), a $150 million six-year first-out term loan (B1) and a $45 million six-year last-out term loan (Caa1).

Price talk on the first-out term loan is Libor plus 500 bps to 525 bps, while price talk on the last-out loan is Libor plus 725 bps to 775 bps. Both tranche have a 1.75% Libor floor and are being offered at an original issue discount of 98.

UBS and Jefferies are the lead banks on the deal that will be used to help fund the buyout of the company by Leonard Green & Partners LP.

Aspen Dental is a provider of denture and dental care services.

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