PODS, Garda break; Pharmaceutical Products, Emdeon revise deals; Graton accelerates deadline

By Sara Rosenberg

New York, Aug. 4 – PODS LLC’s term loan B made its way into the secondary market on Tuesday, with the debt seen trading above its issue price, and Garda World Security Corp.’s add-on term loan began trading as well.

Moving to the primary market, Pharmaceutical Product Development LLC (Jaguar Holding Co. II) trimmed pricing on its term loan and added a leverage-based step-down, Emdeon Inc. tightened the issue price on its incremental term B, and Graton Economic Development Authority moved up the commitment deadline on its term loan.

In addition, Hudson’s Bay Co., KIK Custom Products Inc., AMAG Pharmaceuticals Inc., Patterson Medical, Smart Start Inc. and C Spire released talk with launch, and SRS Distribution Inc. and Duff & Phelps Corp. emerged with new deal plans.

PODS starts trading

PODS’ $459 million senior secured term loan B due Feb. 2, 2022 freed up for trading on Tuesday, with levels quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the term loan is Libor plus 350 basis points with a 1% Libor floor, and there is 101 soft call protection for six months.

Of the total term loan amount, $50 million is an add-on that will be used to repay revolver debt and add cash to the balance sheet, and the remainder is repricing the existing term loan B from Libor plus 425 bps with a 1% Libor floor.

The add-on was issued at discount of 99.75, after tightening during syndication from the 99.5 area, and the repricing was done at par.

With the repricing, existing term loan B lenders are getting paid down at 101 as the debt currently has 101 soft call protection.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Garda tweaked, breaks

Garda World Security reduced its add-on term loan to $75 million from $100 million and modified the original issue discount to 98.8 from 99, a market source said.

Pricing remained at Libor plus 300 bps with a 1% Libor floor, in line with the company’s existing term loan, and all of the term debt is still getting 101 soft call protection for six months.

With final terms in place, the add-on term loan emerged in the secondary market, with levels seen at 98 7/8 bid, 99 3/8 offered, a trader said.

Jefferies Finance LLC is leading the deal that will be used to fund the acquisition of Aegis Group, a London-based provider of highly specialized protective services. The company will use existing liquidity to compensate for the term loan downsizing.

Closing on the acquisition is subject to customary conditions, including regulatory approvals.

Garda is a Montreal-based provider of business solutions and security services.

Pharmaceutical Product flexes

In more happenings, Pharmaceutical Product Development reduced pricing on its $2,575,000,000 seven-year first-lien covenant-light term loan to Libor plus 325 bps from Libor plus 350 bps and added a 25 bps step-down at 3.5 times net first-lien leverage, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $2,875,000,000 credit facility (B1/B) also includes a $300 million five-year revolver.

Commitments were due at 5 p.m. ET on Tuesday, the source continued.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Goldman Sachs Bank USA, UBS AG, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding and Barclays are leading the deal that will be used to refinance existing debt and fund a shareholder dividend.

PPD is a Wilmington, N.C.-based contract research organization focused on clinical development and laboratory services.

Emdeon revises discount

Emdeon adjusted the original issue discount on its fungible $395 million incremental term loan B (Ba3/B+) due November 2018 to 99.75 from 99.5, a market source said. Pricing is Libor plus 250 bps with a 1.25% Libor floor, in line with the existing term loan B.

Recommitments were due at 2:30 p.m. ET on Tuesday, the source added.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. Deutsche Bank Securities, Goldman Sachs Bank USA, Jefferies Finance, Mizuho and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with $60 million in revolver borrowings, $250 million in new senior unsecured notes, $65 million of cash on the balance sheet and $160 million in new sponsor equity to fund the $910 million acquisition of Altegra Health Inc. from Parthenon Capital Partners.

Closing is expected in the third quarter, subject to customary conditions and regulatory approval.

Emdeon is a Nashville-based provider of health-care revenue and payment cycle management and clinical information exchange solutions. Altegra Health is a Miami Lakes, Fla.-based provider of technology-enabled, next-generation payment solutions to health-care providers.

Graton changes deadline

Graton Economic Development Authority accelerated the commitment deadline on its $225 million seven-year term loan B to 5 p.m. ET on Wednesday from noon ET on Friday, according to a market source.

Talk on the term loan is Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, U.S. Bank NA, Capital One and Fifth Third Bank are leading the deal that will be used to fund a tender offer for 9 5/8% senior secured notes due Sept. 1, 2019.

The tender offer will expire on Aug. 31.

Graton is a Rohnert Park, Calif., authority formed to develop, construct and operate all gaming and related businesses of the Graton Rancheria Tribe, including the Graton Resort & Casino in Sonoma County.

Hudson’s Bay details emerge

Also on the primary front, Hudson’s Bay held its bank meeting on Tuesday, at which time investors were presented with a new $1,085,000,000 seven-year term loan B talked at Libor plus 350 bps to 375 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.

Commitments are due on Aug. 13, the source said.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding, RBC Capital Markets and Scotiabank are leading the loan that will be used to help fund the acquisition of Galeria Holding (Kaufhof) for €2.42 billion.

Closing is expected by the end of the third fiscal quarter, subject to customary conditions.

Hudson’s Bay is an Ontario-based operator of department stores. Kaufhof is an operator of department stores in Germany and Belgium.

KIK holds meeting

KIK Custom Products revealed talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $850 million seven-year senior secured covenant-light term loan that launched with an afternoon bank meeting, according to a market source.

The company’s $1,075,000,000 credit facility also includes a $225 million five-year asset-based revolver.

Commitments are due at noon ET on Aug. 14, the source said.

Barclays, BMO Capital Markets, Nomura Securities International Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Centerbridge Partners LP from CI Capital Partners.

Net first-lien leverage is 4.1 times, and net total leverage is 5.9 times.

Closing is subject to customary conditions and approvals.

KIK is a Toronto-based developer and marketer of pool and spa treatment products and a manufacturer of household and personal-care products.

AMAG reveals terms

AMAG Pharmaceuticals launched at its afternoon meeting its $350 million six-year senior secured covenant-light term loan (BB) with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a source remarked.

Commitments are due on Aug. 11, the source added.

Jefferies Finance and Barclays are leading the deal that will be used to help fund the $700 million acquisition of Cord Blood Registry, a stem cell collection and storage company serving pregnant women and their families, from GTCR, and to repay AMAG’s existing roughly $320 million senior secured term loan.

Closing is expected in the third quarter, subject to customary conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

AMAG is a Waltham, Mass.-based specialty pharmaceutical company.

Patterson discloses guidance

Patterson Medical released talk of Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99 to 99.5 on its $300 million seven-year covenant-light term loan B that launched with a morning meeting, a market source said.

As previously reported, the term loan has 101 soft call protection for six months.

Commitments are due on Aug. Aug. 12, the source added.

Deutsche Bank Securities, Bank of America Merrill Lynch, Barclays and Jefferies Finance are leading the deal that will be used with equity to fund the buyout of the company by Madison Dearborn Partners from Patterson Cos. Inc. for gross proceeds of around $715 million in cash.

Closing is expected in the fiscal second quarter, subject to regulatory requirements and other customary conditions.

Patterson Medical is a distributor of rehabilitation supplies and non-wheelchair assistive patient products to the physical and occupational therapy markets.

Smart Start launches

Smart Start held its bank meeting, launching its $145 million 6.5-year first-lien term loan with price talk of Libor plus 475 bps to 500 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The first-lien term loan has 101 soft call protection for six months.

The company’s $230 million credit facility also provides for a $30 million five-year revolver and a $55 million pre-placed seven-year second-lien term loan.

Commitments are due on Aug. 14, the source said.

BNP Paribas Securities Corp. is leading the deal that will be used to help fund the buyout of the company by ABRY Partners.

Smart Start is a Grapevine, Texas-based provider of ignition interlocks and portable devices for alcohol monitoring.

C Spire sets talk

C Spire came out with talk of Libor plus 300 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $250 million seven-year term loan B-1 that launched with a bank meeting during the session, a source remarked.

Commitments are due at noon ET on Aug. 14, the source added.

Bank of America Merrill Lynch and Moelis & Co. are leading the deal that will be used to refinance existing debt and for general corporate purposes.

C Spire is a Ridgeland, Miss.-based diversified telecommunications and technology services company.

SRS readies deal

SRS Distribution set a lender call for 9:30 a.m. ET on Thursday to launch a $325 million first-lien covenant-light term loan, according to a market source.

Barclays and UBS AG are leading the deal that will be used to refinance an existing $215 million first-lien term loan, refinance $100 million of mezzanine notes, pay breakage on the existing mezzanine notes and pay related fees and expenses, the source said.

First-lien and total leverage are 4.9 times, and net leverage is 4.6 times.

SRS Distribution is a McKinney, Texas-based roofing distributor.

Duff & Phelps on deck

Duff & Phelps scheduled a lender call for 10 a.m. ET on Wednesday to launch a $151 million in new term loan debt split between a $41 million incremental first-lien term loan due April 23, 2020 and a $110 million six-year second-lien term loan, a market source remarked.

The incremental first-lien term loan is talked at Libor plus 350 bps with a 1% Libor floor (in line with the existing first-lien term loan), an original issue discount of 99.75 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 775 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source continued.

Commitments are due at 5 p.m. on Aug. 12.

Credit Suisse Securities is leading the deal that will fund a dividend to shareholders.

With the transaction, lenders are being offered a 25 bps amendment fee, the source added.

Duff & Phelps is a New York-based financial advisory and investment banking firm.

MediaOcean allocates

In other news, MediaOcean LLC allocated its $335 million credit facility that includes a $20 million five-year revolver (B2/B), a $225 million seven-year first-lien covenant-light term loan (B2/B) and a $90 million eight-year second-lien term loan (Caa2/CCC+) that was pre-placed, a source said.

Pricing on the first-lien term loan is Libor plus 475 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

Macquarie Capital is leading the deal that will be used to help fund the buyout of the company by Vista Equity Partners.

Closing is expected in the third quarter.

MediaOcean is a New York-based software company for the advertising sector.

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