SourceHOV, HCA, Harden Healthcare, ThermaSys, Virtu, National CineMedia break into secondary

By Sara Rosenberg

New York, April 30 - It was a busy day for new deals to emerge in the secondary market as SourceHOV LLC, HCA Inc., Harden Healthcare, ThermaSys Corp. (API Heat Transfer Inc.), Virtu Financial (VFH Parent LLC) and National CineMedia LLC all freed up for trading on Tuesday.

Meanwhile, over in the primary, TPF Generation Holdings LLC trimmed the coupon on its term loan B and tightened the Libor floor, Ability Network Inc. firmed the coupon on its credit facility at the wide end of guidance, Grede Holdings LLC tightened the offer price on its loan, and GIM Channelview Cogeneration LLC moved up the commitment deadline on its deal.

Also, Coinmach Corp., Performance Food Group Inc., Grocery Outlet Inc., Digital Cinema Implementation Partners LLC and Alvogen Pharma U.S., Inc. USA released talk with launch.

In addition, Atlantic Aviation FBO Inc. set timing on its credit facility, and KIK Custom Products Inc., RentPath Inc., Teine Energy and Waddington North America surfaced with new deal plans.

SourceHOV hits secondary

SourceHOV's credit facility broke for trading on Tuesday, with the $400 million five-year first-lien term loan B (B1/B+) quoted at 101 1/8 bid, 101 5/8 offered, and the $110 million six-year second-lien term loan (Caa1/CCC+) quoted at 101¾ bid, 102¾ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 basis points with a 1.25% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

The second-lien term loan, meanwhile, is priced at Libor plus 750 bps with a 1.25% floor and was sold at a discount of 99. This debt is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the spread on the first-lien loan was cut from Libor plus 450 bps and the discount was tightened from 99, and pricing on the second-lien tranche was reduced from Libor plus 850 bps and the discount was revised from 981/2.

SourceHOV getting revolver

In addition to the term loans, SourceHOV's $570 million credit facility includes a $60 million five-year revolver (B1/B+).

Proceeds were used to help fund the company's buyout by CVCI Private Equity from Apollo Global Management LLC and certain minority holders, the completion of which was announced on Tuesday.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the credit facility.

SourceHOV is a Dallas-based provider of business process outsourcing and knowledge process outsourcing services.

HCA above par

HCA's $2 billion term loan B-5 also broke, with levels quoted by one source at par 3/8 bid, par 5/8 offered and by a second source at par ¼ bid, par ½ offered.

Pricing on the loan is Libor plus 275 bps with no Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds are being used to refinance a term loan B-2 that is priced at Libor plus 325 bps with no Libor floor.

HCA is a Nashville-based health care company.

Harden tops OID

Harden Healthcare's credit facility emerged in the secondary as well, with the $150 million term loan B quoted at 98½ bid, a market source said.

Pricing on the B loan is Libor plus 550 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 98, after finalizing last week at the wide end of the 98 to 99 talk. There is 101 soft call protection for one year.

The company's $190 million senior secured credit facility also includes a $40 million revolver.

Barclays, Bank of America Merrill Lynch, CIT and Wells Fargo Securities LLC are leading the transaction that will be used to refinance an existing credit facility and for general corporate purposes.

Harden Healthcare is an Austin, Texas-based provider of post-acute health care services.

ThermaSys levels emerge

ThermaSys' credit facility was yet another deal to break, with the $265 million six-year first-lien term loan B quoted at 99½ bid, par ½ offered, a source remarked.

Pricing on the B loan is Libor plus 400 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Recently, pricing on the term loan was lifted from Libor plus 375 bps, call protection was extended from six months and amortization was increased to 2.5% per annum from 1%.

The company's $300 million credit facility (B1/B) also includes a $35 million five-year revolver.

UBS Investment Bank, RBC Capital Markets and GE Capital Markets leading the deal that will be used to refinance existing debt and pay a dividend to shareholders.

ThermaSys is a Buffalo, N.Y.-based designer and manufacturer of specialty heat exchangers and heat-transfer products.

Virtu Financial breaks

Virtu Financial's $150 million add-on first-lien term loan due July 2016 freed up, with levels quoted at par ¼ bid, according to a market source.

Pricing on the add-on, which had been upsized from $100 million during syndication, is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 993/4. The debt includes 101 soft call protection through February 2014.

Credit Suisse Securities (USA) LLC and Barclays are leading the deal that is being used to fund a dividend to shareholders.

Virtu is a New York-based electronic market maker and financial technology developer.

National CineMedia frees up

National CineMedia's credit facility began trading too, with the $270 million term loan quoted at par bid, par ½ offered, a market source said.

Pricing on the term loan is Libor plus 275 bps, after firming at the wide end of the Libor plus 250 bps to 275 bps talk. There is no Libor floor and 101 soft call protection for one year, and the debt was issued at par.

The company's $380 million credit facility also includes a $110 million revolver that is priced at Libor plus 200 bps with no Libor floor.

Barclays is leading the deal that is being used to reprice/refinance an existing $110 million revolver priced at Libor plus 225 bps and a $265 million term loan priced at Libor plus 325 bps with no Libor floor, and for general corporate purposes.

National CineMedia is a Centennial, Colo.-based media company that provides advertising and events across theater circuits.

Peninsula Gaming steady

In more trading news, Peninsula Gaming LLC's roughly $823 million term loan B was seen at 101¼ bid, 102 offered on Tuesday, relatively unchanged from Monday's late day breaking levels of 101¼ bid, 101¾ offered, according to a trader.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at par. The debt has 101 soft call protection for six months.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the deal that is being used to reprice an existing term loan B from Libor plus 450 bps with a 1.25% Libor floor.

Peninsula is an owner and operator of casinos and off-track betting parlors.

Horseshoe holds firm

Horseshoe Baltimore's $225 million seven-year term loan B was seen at par bid, 101 offered in trading, in line with where it freed up late in the previous session, according to a market source.

Pricing on the term loan B is Libor plus 700 bps with a 1.25% Libor floor, and it was sold at a discount of 99.

During syndication, the B loan was upsized from $215 million, pricing was lowered from talk of Libor plus 725 bps to 750 bps and the discount was revised from the 98½ area.

The company's $340 million credit facility also includes a $10 million revolver (B3/B-), a $30 million furniture, fixtures and equipment (FF&E) term loan, a $37.5 million seven-year final maturity, delayed-draw for 12 months term loan (B3/B-), and a $37.5 million seven-year final maturity, delayed-draw for 18 months term loan (B3/B-).

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are leading the deal that will be used to fund the development of the Horseshoe Baltimore casino, which is a joint venture between Caesars Entertainment, Rock Gaming LLC, CVPR Gaming Holdings LLC, Stron-MD LP and PRT TWO LLC.

TPF revises deal

Moving to the primary, TPF Generation cut pricing on its $425 million 41/2-year term loan B (B2/B+) to Libor plus 425 bps from Libor plus 450 bps and reduced the Libor floor to 1% from 1.25%, according to a market source.

As before, the loan has an original issue discount of 99 and is non-callable for one year, then at 102 in year two for repricings and refinancings only.

The company's $455 million credit facility also includes a $30 million four-year revolver (B1/B+) priced at Libor plus 275 bps with a par offer price.

Commitments are due at 5 p.m. ET on Wednesday, the source continued.

UBS Securities LLC and Goldman Sachs & Co. are leading the deal that will be used to refinance existing debt.

TPF is an operator of power generation facilities.

Ability Network spread

Ability Network firmed pricing on its $130 million credit facility at Libor plus 475 bps, the high end of the Libor plus 450 bps to 475 bps talk, while keeping the 1.25% Libor floor and original issue discount of 99 intact, according to a market source.

The facility consists of a $15 million five-year revolver and a $115 million six-year term loan.

Proceeds, along with $43 million of mezzanine debt from Morgan Stanley Credit Partners, are being used to fund a merger with Ivans, Inc., a Stamford, Conn.-based provider of secure communication services to the health care and property-casualty insurance industries.

Senior leverage is 3.9 times and total leverage is 5.4 times.

Ability Network is a Minneapolis-based healthcare technology company.

Grede revises offer price

Grede Holdings modified the offer price on its $316 million five-year term loan to par from 991/2, while keeping pricing at Libor plus 350 bps with a 1% Libor floor and leaving the 101 soft call protection for six months unchanged, according to a market source.

GE Capital Markets is leading the deal that will be used to refinance an existing term loan that is priced at Libor plus 550 bps with a 1.5% Libor floor and repay ABL revolver borrowings.

Grede is a Southfield, Mich.-based iron casting supplier.

Channelview shutting early

GIM Channelview Cogeneration accelerated the commitment deadline on its $420 million senior secured credit facility (Ba3/BB-) to end of day Wednesday from Thursday, according to sources.

The facility consists of a $45 million five-year revolver and a $375 million seven-year term loan.

Talk on the term loan is Libor plus 375 bps to 400 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Goldman Sachs & Co., Deutsche Bank Securities Inc. and Union Bank are leading the deal that will be used to refinance existing debt and fund a dividend.

Channelview is a nominal 830 megawatt natural gas-fired cogeneration facility in Houston.

Coinmach launches

Also on the primary front, Coinmach held its bank meeting on Tuesday to launch its first-lien debt to investors, and with the event, term loan talk was announced, according to a market source.

The $770 million 61/2-year covenant-light first-lien term loan (B2/B+) is being shopped at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, the source said.

Also included in the company's $1.17 billion credit facility is a $75 million five-year revolver (B2/B+) and a $325 million seven-year covenant-light second-lien term loan that has already been placed with the sponsor and friends and family of the sponsor.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., KeyBanc Capital Markets LLC, Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the first-lien debt and are asking for commitments by May 10. The second-lien debt is being led solely by Deutsche Bank.

Proceeds will be used to help fund the buyout of the company by Pamplona Capital Management.

Coinmach, a laundry equipment service provider, will have first-lien leverage of 3.3 times and total leverage of 4.8 times.

Performance Food sets talk

Performance Food Group came out with talk of Libor plus 550 bps to 575 bps with a 1% Libor floor and an original issue discount of 99 on its $530 million 61/2-year covenant-light term loan shortly ahead of the morning call that was held to launch the transaction, according to a market source.

As previously reported, the loan has call protection of 102 in year one and 101 in year two on all voluntary prepayments.

Commitments are due on May 8, the source said.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, BMO Capital Markets, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays and Blackstone Capital Markets are leading the deal that will be used to refinance existing mezzanine notes.

Performance Food is a Richmond, Va.-based foodservice distributor.

Grocery Outlet guidance

Grocery Outlet launched with a call its $314,525,000 first-lien term loan due Dec. 17, 2018 with talk of Libor plus 425 bps to 450 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

The company's $344,525,000 first-lien senior secured deal also includes a $30 million revolver.

Lead bank, Barclays, is seeking commitments/consents by noon ET on May 7, the source remarked.

Proceeds will be used to reprice an existing revolver, and a first-lien term loan that is priced at Libor plus 575 bps with a 1.25% Libor floor and has 101 soft call protection that expires on Dec. 17, 2013.

Leverage is 3.8 times on a senior secured basis, 5.1 times total and 6.1 times rent adjusted.

Grocery Outlet is a Berkeley, Calif.-based extreme-value grocery retailer.

Digital Cinema pricing

Digital Cinema Implementation Partners disclosed talk of Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year on its $680 million term loan that launched with a bank meeting in the morning, according to a market source.

Commitments for the company's $755 million credit facility, which also includes a $75 million revolver, are due on May 10, the source said.

Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing bank debt.

Digital Cinema is a Mahwah, N.J.-based digital cinema integrator.

Alvogen comes to market

Alvogen Pharma launched its $225 million five-year term loan B (B3/B-) with talk of Libor plus 575 bps with a 1.25% Libor floor and an original issue discount of 98 to 99, according to a market source, who said the debt is non-callable for one year, then at 101 in year two.

Commitments are due at noon ET on May 13, the source added.

Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt.

Alvogen is a Pine Brook, N.J.-based pharmaceuticals company.

Atlantic Aviation timing

Atlantic Aviation revealed timing on the launch of its $535 million senior secured credit facility (Ba3/BB-), with the bank meeting set to take place at 10 a.m. ET on Friday, according to a market source.

Barclays, Macquarie Capital and Wells Fargo Securities LLC are leading the deal that consists of a $70 million five-year revolver and a $465 million seven-year first-lien term loan.

Proceeds will be used to help repay all amounts outstanding under an existing credit facility dated Sept. 27, 2007.

Other funds for the refinancing will come from cash on hand and a proposed public offering of the company's LLC interests.

Atlantic Aviation is a New York-based owner, operator and investor in a diversified group of infrastructure businesses.

KIK readies refi

KIK Custom Products set a bank meeting for 10:30 a.m. ET in New York on Thursday to launch a $715 million credit facility that will be used to replace existing bank debt, according to a market source.

The facility consists of a $75 million ABL revolver, a $420 million six-year first-lien covenant-light term loan talked at Libor plus 425 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 repricing protection for one year, and a $220 million 61/2-year second-lien covenant-light term loan talked at Libor plus 825 bps with a 1.25% floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source remarked.

Lead banks, Credit Suisse Securities (USA) LLC, UBS Investment Bank, RBC Capital Markets and Scotia Capital (USA) Inc., are asking for commitments by May 15.

KIK is a Concord, Ont.-based manufacturer of retail-branded bleach.

RentPath coming soon

RentPath will host a bank meeting at 10 a.m. ET in New York on Thursday to launch a $470 million credit facility that is being led by J.P. Morgan Securities LLC, according to a market source.

The facility consists of a $45 million five-year revolver and a $425 million seven-year term loan B, the source said, adding that talk is not yet available.

Proceeds will be used to refinance existing debt and fund a distribution to shareholders.

RentPath is a Norcross, Ga.-based digital marketplace for apartment rentals.

Teine Energy on deck

Teine Energy scheduled a bank meeting for 1 p.m. ET on Thursday to launch a $200 million second-lien term loan that will be used to refinance existing debt and for general corporate purposes, according to a market source.

Barclays is leading the deal.

In addition to the term loan, the company is getting a C$175 million five-year revolver.

Teine Energy is a Calgary, Alta.-based company focused on acquiring and developing low-cost, repeatable, long reserve life index, high netback oil and gas assets.

Waddington joins calendar

Waddington North America plans to hold bank meeting at 10 a.m. ET on Thursday to launch a $650 million senior secured credit facility, according to a market source.

The facility consists of a $50 million five-year revolver, a $350 million seven-year first-lien term loan, a $100 million Canadian equivalent seven-year first-lien term loan and a $150 million 71/2-year second-lien term loan, the source said.

Barclays, RBC Capital Markets, GE Capital Markets and Goldman Sachs & Co. are leading the deal that will be used to fund the acquisition of Par-Pak, a designer and manufacturer of rigid plastic packaging, and to refinance existing debt at both companies.

Leverage is 3.9 times through the first-lien debt and 5.3 times total, the source added.

Waddington is a Covington, Ky.-based manufacturer of disposable drinkware, dinnerware, servingware, cutlery and custom packaging.

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