Asurion softens with new loan announcement; CHG tweaks deal; Alaska Communications sets talk

By Sara Rosenberg

New York, Oct. 4 - Asurion's first- and second-lien term loans saw levels retreat during Monday's trading session after news emerged that the company will be coming to market with an incremental term loan.

In more loan happenings, CHG Healthcare Services revised sizes on its first- and second-lien term loans, firmed pricing on all tranches, and released details on discount and call protection on the second-lien loan.

Also, Alaska Communications Systems Group Inc. released price talk on its new deal as the transaction was presented to lenders, and Angelica Corp.'s wide launch of its credit facility was heard to have gone well and some good interest has already been received during an early round syndication.

Furthermore, Brickman Group Ltd.'s facility has more than filled out ahead of its late-week commitment deadline, and First American Payment Systems LP revealed that it is getting ready to bring a new term loan to market.

Asurion heads lower

Asurion's term loans were weaker in trading on Monday as lenders were told that the company would be launching a new $900 million incremental first-lien term loan on Thursday, according to a trader.

The existing first-lien term loan was quoted at 95 bid, 95¾ offered, down from 95¾ bid, 96¼ offered, and the second-lien term loan was quoted at 94 3/8 bid, 95 1/8 offered, down from 94 5/8 bid, 95¼ offered, the trader said.

Proceeds from the incremental term loan will be used to fund a dividend payment.

Barclays, Credit Suisse, Morgan Stanley and Goldman Sachs are the lead banks on the new deal.

Early guidance on the term loan is rumored to be Libor plus 450 basis points with a 1.5% Libor floor and an original issue discount of 99.

Asurion is a Nashville, Tenn.-based provider of technology protection services.

CHG revises facility

Moving to the primary, CHG Healthcare Services upsized its first-lien term loan, downsized its second-lien term loan and finalized pricing on all tranches, with the plan being that allocations will go out and closing will occur this week, according to a market source.

Under the changes, the six-year first-lien term loan was increased to $230 million from $225 million, and pricing firmed at Libor plus 550 bps, the high end of the Libor plus 500 bps to 550 bps talk, with a 1.75% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, the source said. A pricing step-down was added to the tranche, under which the spread will drop to Libor plus 525 bps when leverage is less than 4.0 times.

Meanwhile, the 61/2-year second-lien term loan was decreased to $53 million from $60 million, and pricing firmed at Libor plus 950 bps, the wide end of the Libor plus 900 bps to 950 bps talk, with a 1.75% Libor floor, an original issue discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source continued. Previously, discount and call protection were labeled as to be determined.

CHG revolver pricing

As for CHG Healthcare Services' $70 million five-year revolver, whose size is unchanged, pricing finalized at Libor plus 550 bps, the high end of the Libor plus 500 bps to 550 bps talk, with a 1.75% Libor floor, the source remarked.

Barclays, Bank of America and Goldman Sachs are the lead banks on the deal that will be used to repay debt and fund a dividend.

As a result of the term loan changes, the overall facility was reduced to $353 million from $355 million. This downsizing was done because the company had more cash on its balance sheet than it initially expected, the source explained.

Leverage through the first-lien is unchanged at 3.5 times, while total net leverage is down slightly to 4.3 times from around 4.4 times.

CHG Healthcare Services is a Salt Lake City-based health care staffing provider.

Alaska Comm reveals talk

Alaska Communications held a conference call on Monday to kick off syndication on its proposed credit facility, and in connection with the launch, price talk was announced, according to a market source.

The $440 million six-year term loan B is being talked at Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 99, the source said.

JPMorgan is the lead bank on the $470 million senior secured credit facility (BB-) that also includes a $30 million revolver.

Proceeds will be used to refinance and extend the maturity of the company's existing $426 million term loans due Feb. 1, 2012and $45 million revolver due Feb. 1, 2011.

Alaska Communications is an Anchorage-based provider of broadband and other wireline and wireless services across businesses and consumers.

Angelica nets interest

Angelica already has some "early orders" and "good feedback" on its $185 million credit facility (B2/B+) as a result of some guys getting an early look at the transaction, and the formal bank meeting that took place on Monday was well attended, according to a market source.

The facility consists of a $35 million five-year revolver, a $50 million five-year term loan A and a $100 million six-year term loan B.

As was previously reported, the revolver and the term loan A are being talked at Libor plus 500 bps to 525 bps, and the term loan B is being talked at Libor plus 525 bps to 575 bps. The revolver has a 75 bps unused fee.

All tranches have a 1.75% Libor floor.

The term loan A and the term loan B are being offered at an original issue discount of 98.

Angelica lead banks

Macquarie and Jefferies are the joint lead arrangers on Angelica's proposed credit facility, with Macquarie the left lead.

Amortization on the term loan A is 10% in years one, two and three, and 15% in years four and five, while amortization on the term loan B is 1% per year, with the balance due at maturity, the source said.

Proceeds will be used to fund a $35 million dividend payment to the sponsor, Trilantic Capital Partners, and to completely refinance an existing credit facility and mezzanine debt.

Commitments are due from lenders on Oct. 19 and closing is targeted for Oct. 26.

Total debt to EBITDA, excluding capital leases, is 3.3 times and including capital leases is about 3.8 times.

Angelica is a St. Louis-based provider of outsourced linen management services to the health care industry.

Brickman sees high demand

Brickman's $550 million credit facility (B1/B+), which includes a covenant-light term loan, is oversubscribed and lenders still have until Thursday to get their orders in, according to a market source.

Specifically, the Gaithersburg, Md.-based commercial landscaping company's facility consists of a $500 million six-year covenant-light term loan and a $50 million five-year revolver.

Price talk on the term loan is Libor plus 575 bps with a 1.75% Libor floor and an original issue discount of 98. There is soft call protection of 102 in year one and 101 in year two.

Sources previously told Prospect News that the covenant-light structure was the big question as to whether the deal would succeed, but given the pricing and that it's a high performing credit, chances were that it would.

Barclays and Bank of America are the lead banks on the deal that will be used to fund a dividend payment and to refinance existing debt.

First American launch

First American Payment Systems is set to hold a bank meeting on Wednesday to launch a proposed $225 million term loan that is being led by JPMorgan, according to a market source.

Price talk on the loan is not yet available, the source said.

Proceeds will be used to fund a dividend payment and refinance existing debt.

First American Payment is a Fort Worth, Texas-based provider of payment processing services for credit card, debit card and check transactions.

DaVita pro rata talk

DaVita Inc. is talking its $250 million five-year revolver and $1 billion five-year term loan A at Libor plus 300 bps, according to a market source.

The tranches are part of a $3 billion secured credit facility (Ba2/BB) that also includes a $1.75 billion six-year term loan B talked at Libor plus 350 bps with a 1.5% Libor floor and an original issue discount of 99.

JPMorgan, Bank of America, Credit Suisse, Barclays, Goldman Sachs and Wells Fargo are the joint lead arrangers and bookrunners on the deal that was launched with a bank meeting on Friday.

Proceeds from the facility, along with $1.45 billion of notes, will be used to refinance existing bank debt and bonds, and for general corporate purposes and other opportunities, including potential acquisitions, share repurchases and other growth investments.

DaVita is a Denver-based provider of dialysis services.

Burger King upsizes

Burger King Holdings Inc. increased its term loan to $1.85 billion from $1.75 billion and reduced pricing on the U.S. piece to Libor plus 450 bps from Libor plus 475 bps, while pricing on the euro piece firmed in line with talk at Euribor plus 475 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 99 from 98½ and 101 soft call protection for one year was added, the source continued, adding that the 1.75% Libor floor was left unchanged.

The euro portion of the $1.85 billion term loan is sized at €250 million. Talk had been for a €200 million to €250 million tranche.

The company's now $2 billion, up from $1.9 billion, credit facility (Ba3/BB-) also includes a $150 million revolver.

Burger King being acquired

Proceeds from Burger King's credit facility will be used to help fund the buyout of the company by 3G Capital for $24 per share, or $4 billion, including the assumption of debt, and to refinance existing debt.

Other funding is coming from $800 million of bonds, which were downsized from $900 million as a result of the term loan upsizing.

JPMorgan and Barclays Capital are the lead banks on the credit facility.

Closing on the transaction is expected to take place in the fourth quarter, subject to satisfaction of the minimum tender condition of 79.1% of the company's common shares, the receipt of financing and other customary conditions.

Burger King is a Miami-based fast food hamburger chain.

Peak 10 firms discount

Peak 10 Inc. finalized the original issue discount on its $140 million term loan B at 981/2, the midpoint of the 98 to 99 talk, while leaving pricing unchanged at Libor plus 500 bps with a 1.75% Libor floor, according to a market source.

There is 101 soft call protection for one year.

RBC is the lead bank on the $155 million credit facility that also includes a $15 million revolver.

Proceeds will be used to help fund the buyout of the company by Welsh, Carson, Anderson & Stowe from Seaport Capital and McCarthy Capital, which is expected to be completed early this month.

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

TNS closes

In other news, TNS Inc. closed on its incremental $50 million term loan and incremental $25 million revolver that were done under the accordion feature of its senior secured credit facility, according to a news release.

SunTrust acted as the lead bank on the deal that was used to fund the about $50 million acquisition of Cequint Inc., a Seattle-based provider of carrier-grade caller ID products and enhanced services with mobile operators.

The revolver was unfunded at close.

In addition, the company amended its credit facility to allow for the acquisition and to revise certain covenants, including restrictions on fundamental changes, incurrence of debt, restricted payments and financial covenants.

TNS is a Reston, Va.-based provider of critical data communications services for the telecommunications, payments and financial services industries.

Emdeon wraps loan

Emdeon Inc. closed on its $100 million term loan add-on (Ba3/BB) that is priced at Libor plus 300 bps with a 1.5% Libor floor and was sold at an original issue discount of 991/2, according to a news release.

During syndication, pricing on the term loan was cut from Libor plus 325 bps, and the original issue discount was reduced from 99.

Citigroup acted as the lead bank on the deal that was used, along with cash on hand, to fund the acquisition of Chamberlin Edmonds & Associates Inc., an Atlanta-based provider of government program eligibility and enrollment services to acute care facilities, for $260 million in cash.

Emdeon is a Nashville, Tenn.-based provider of revenue and payment cycle management services to the health care system.

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