National Mentor loan breaks; Getty Images nosedives; Sabre Industries term loan changes surface

By Sara Rosenberg

New York, Feb. 24 – National Mentor Holdings Inc. (Civitas Solutions Inc.) saw its incremental term loan B free up for trading during Tuesday’s market hours with levels quoted above its original issue discount, and Getty Images Inc. experienced plummeting levels on its term loan with earnings news.

Switching to the primary market, Sabre Industries Inc. lowered pricing on its term loan, and Research Now Group Inc. came out with first- and second-lien loan price talk with launch.

National Mentor frees up

National Mentor’s fungible $55 million incremental term loan B due Jan. 31, 2021 allocated and began trading on Tuesday with levels seen at 99¼ bid, par ¼ offered, according to a market source.

The incremental loan is priced at Libor plus 325 basis points with a 1% Libor floor, which matches pricing on the company’s existing $595.5 million term loan B due Jan. 31, 2021, and all of the debt is getting 101 soft call protection for six months. The new debt was issued at a discount of 99 after tightening the other day from talk in the 98¾ area.

Barclays, Bank of America Merrill Lynch and UBS AG are leading the deal that will be used to redeem 12½% senior notes.

National Mentor is a Boston-based provider of home and community-based health and human services.

Getty Images drops

Also in the secondary market, Getty Images’ term loan saw a dramatic decline with the release to lenders of quarterly results, traders said.

One trader had the term loan quoted at 86 bid, 87½ offered, down from 91¼ bid, 92¼ offered, and a second trader had the term loan quoted at 85½ bid, 86½ offered, down from 91½ bid, 92½ offered.

Getty Images is a Seattle-based creator and distributor of still imagery, video and multimedia products.

Sabre cuts spread

Over in the primary, Sabre Industries reverse flexed pricing on its $255 million seven-year covenant-light term loan to Libor plus 475 bps from talk of Libor plus 500 bps to 525 bps and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source said.

The company’s $320 million credit facility (B+) also includes a $65 million revolver.

Recommitments were due end of day on Tuesday, the source added.

Allocations are expected later this week.

BNP Paribas Securities Corp., Citizens Financial Group and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and fund an acquisition.

Sabre is an Alvarado, Texas-based turnkey provider of engineered structures and related services for the electric transmission & distribution and wireless communications end markets.

Research Now launches

Research Now Group held its bank meeting on Tuesday, and with the event, price talk on its first- and second-lien term loan was announced, according to a market source.

The $255 million first-lien term loan B (Ba3/B) is talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $135 million second-lien term loan (Caa1/B-) is talked at Libor plus 900 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source remarked.

The company’s $425 million credit facility also includes a $35 million revolver (Ba3/B).

Commitments are due on March 10, the source added.

GE Capital Markets, Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Court Square Capital Partners from TA Associates, Polaris Partners, Sutter Hill Ventures and other shareholders.

Research Now is a Plano, Texas-based digital data collection provider.

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