Nielsen up with lender call; High Sierra delays launch; Express Scripts, Genco ready deals

By Sara Rosenberg

New York, July 19 - Nielsen Co.'s term loan A was better during Monday's quiet trading session after news emerged that the company scheduled a lender call, and Interactive Data Corp.'s term loan was a little stronger as the company released earnings results, although the move may have been more a function of better buyers than the credit-specific happenings.

Over in the primary market, High Sierra Energy LP has pushed off the bank meeting for its proposed term loan for a few days as the company is still awaiting corporate and facility ratings from Standard & Poor's.

Also, Express Scripts Inc. and Genco Distributions Systems Inc. are gearing up to launch new bank deals, and chatter is that Vertafore Inc.'s credit facility is moving along nicely ahead of the upcoming late-week commitment deadline.

Nielsen rises on expected proposal

Nielsen's term loan A headed higher in trading following news that a lender call has been set for Tuesday to discuss an extension of some of the company's bank debt, according to traders.

The term loan A was quoted by one trader at 94 3/8 bid, 95 3/8 offered, up a quarter of a point on the day, and by a second trader at 94¼ bid, 95¼ offered, up from 94 bid, 95 offered.

The extension proposal will be launched by JPMorgan and Citigroup.

As of March 31, the company had a $2.983 billion term loan due in 2013, a $1.013 billion term loan due in 2016, a €321 million term loan due in 2013, a €179 million term loan due in 2016, a $500 million term loan due in 2017 and a $688 million undrawn revolver due in 2012.

Nielsen is a New York-based information and media company.

Interactive Data strengthens

Interactive Data's new $1.3 billion term loan gained some ground on Monday as numbers came out, although one trader theorized that the move was simply a function of there being a lot of buyers for the name.

The term loan was quoted by the trader at 99 3/8 bid, 99 7/8 offered, up from 99¼ bid, 99 5/8 offered, and by a second trader at 99 3/8 bid, 99¾ offered, up from 99 1/8 bid, 99 5/8 offered.

For the second quarter, the company reported net income of $25.2 million, or $0.26 per diluted share, compared with net income of $33.1 million, or $0.34 per diluted share, in the prior year.

Revenue for the quarter was $194 million, a 4.9% increase over $185 million in the second quarter of 2009.

Also, as of June 30, the company had no outstanding debt and had cash, cash equivalents and marketable securities of $347.1 million.

Interactive Data buyout closing soon

In addition, Interactive Data said that it expects its buyout by Silver Lake and Warburg Pincus in a transaction with a total value of $3.4 billion to be completed within the next several weeks.

As was previously reported, funds for the transaction are coming from the new term loan, which is priced at Libor plus 500 basis points with a 1.75% Libor floor and was sold at an original issue discount of 97, a $160 million revolver, $700 million of senior notes and equity.

Price talk on the notes emerged on Monday morning in the 10.375% area. Books on the notes close at 10:30 a.m. ET on Tuesday and pricing is expected in the mid-afternoon.

Interactive Data is a Bedford, Mass.-based provider of financial market data.

High Sierra launch postponed

Moving to the primary, High Sierra Energy is now expected to hold a bank meeting for its proposed $150 million senior secured term loan (B2) later this week or early next week, after pushing off the launch from Monday, according to a market source.

The postponement is because the company has not yet received ratings from S&P, the source explained.

A B2 term loan and corporate rating from Moody's Investors Service was already announced on July 13.

High Sierra lead bank

Credit Suisse is the lead bank on High Sierra's term loan that will be used to refinance existing debt.

Proceeds from the term loan will also be used to finance the purchase of the remaining equity interests in Anticline Disposal LLC not currently owned by High Sierra and for general corporate purposes.

High Sierra is a Denver-based holding company that identifies, acquires, manages and integrates businesses and revenue generating assets in the natural resources industry.

Express Scripts launching soon

Express Scripts has scheduled a bank meeting for Tuesday to launch a new credit facility, at which time details on structure and price talk are expected to surface, according to a market source.

Credit Suisse, Morgan Stanley, JPMorgan, Citigroup and Wells Fargo are the joint lead arrangers on the deal, with Credit Suisse the left lead.

Proceeds will be used to refinance the company's existing credit facility.

As of March 31, the company had $360 million of term loan A debt, $800 million of term-1 debt and a $600 million revolver that was undrawn.

Express Scripts is a St. Louis-based provider of pharmacy benefit management services.

Genco a few weeks away

Genco Distribution Systems is expected to hold a bank meeting in the early August timeframe to launch its proposed $450 million credit facility, according to a market source.

Structure on the credit facility is not yet finalized, but it will be revolver heavy, the source said.

PNC Bank and Wells Fargo are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of ATC Technology Corp. for $25 per share in cash. The transaction is valued at $512.6 million.

Genco selling shares

Other funding for the ATC acquisition will come from the sale of about $125 million of Genco shares to affiliates of Greenbriar Equity Group LLC.

Closing is expected during the fourth quarter, subject to stockholder approval, financing and regulatory approvals. The credit facility commitment is not subject to syndication.

Genco is a Pittsburgh-based third-party provider of logistics services. ATC is a Downers Grove, Ill.-based provider of comprehensive engineered solutions for logistics and refurbishment services.

Vertafore nets interest

Market talk is that syndication of Vertafore's $625 million senior credit facility (B1/B+) is "going very well" and lenders still have until Thursday to submit their orders, according to a source.

The facility consists of a $75 million revolver and a $550 million term loan, with both tranches talked at Libor plus 525 bps with a 1.75% Libor floor.

The term loan is being offered at an original issue discount in the 97 to 98 area.

Credit Suisse, Bank of America and Barclays are the lead banks on the deal, with Credit Suisse the left lead. RBC is a documentation agent.

Vertafore being acquired

Proceeds from Vertafore's credit facility will be used to help fund its buyout by TPG Capital from Hellman & Friedman and JMI Equity for a total consideration of $1.4 billion.

Other financing will come from $240 million of junior debt and equity.

The acquisition is expected to close in the third quarter, subject to customary regulatory approvals.

Leverage will be 4.5 times through the first-lien and 6.5 times total, and the equity contribution is 47%.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

Oxford Resource closes

In other news, Oxford Resource Partners LP's $175 million credit facility became effective on Monday, according to an 8-K filed with the Securities and Exchange Commission.

The facility consists of a $115 million three-year revolver and a $60 million four-year term loan A, with both tranches priced at Libor plus 425 bps with a 1% Libor floor. The term loan A was sold at an original issue discount of 983/4.

During syndication, the revolver was upsized from $100 million and the term loan was upsized from $50 million.

Citigroup and Barclays acted as the lead banks on the deal that is being used to refinance existing debt, for working capital and other general partnership purposes and for capital expenditures

Oxford Resource Partners is a Columbus, Ohio-based producer of coal.

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