Nielsen up on refi; Butler Schein, MetroPCS gain; Phoenix tweaks deal; Cardone postponed

By Sara Rosenberg

New York, Jan. 5 - Nielsen Co. saw some improvement in its term loan A levels during Thursday's trading session after the company surfaced with plans to replace the debt with a new loan tranche.

Butler Schein Animal Health's term loan was better bid as the company announced a change in ownership, and MetroPCS Communications Inc.'s loans headed higher despite the release of disappointing subscriber numbers.

Moving to the primary, Phoenix Services LLC made a number of revisions to its credit facility, including upsizing the U.S. term loan while downsizing the euro term loan and flexing pricing up on all tranches.

Additionally, Cardone Industries postponed the launch of its credit facility, with the new target being to bring the deal to market sometime within the next week or two, while Sterling Infosystems Inc. launched its credit facility as planned and in line with earlier talk.

Furthermore, on the new issue front, Alexion Pharmaceuticals Inc. came out with price talk on facility in connection with its bank meeting, and Genesys nailed down timing on the launch of its buyout deal and released details on size and tranching.

Nielsen strengthens

Nielsen's non-extended term loan A due in 2013 traded up on Thursday following word that the company will be launching a new A loan tranche to replace the existing debt, according to traders.

The term loan A was quoted by one trader at 99 5/8 bid, 99 7/8 offered, up from 98 7/8 bid, 99 3/8 offered, and by a second trader at 99 5/8 bid, 99 7/8 offered, up from 99 1/8 bid, 99 5/8 offered.

As of Sept. 30, the non-extended term loan A had a carrying amount of $1.395 billion under the U.S. tranche and $247 million under the euro tranche.

The new term loan A tranche, which is being launched with a bank meeting on Monday, is sized at $1.25 billion. Price talk is not yet available.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the lead banks on the new deal.

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

Butler Schein rises

Butler Schein Animal Health's term loan was bid higher as news came out that Henry Schein Inc. has bought out all of Oak Hill Capital Partners' remaining interest in the company, according to a trader.

The term loan was quoted at 99¾ bid, up from Wednesday's levels of 99½ bid, par ½ offered, the trader said.

Henry Schein acquired Oak Hill's interest in Butler Schein for $155 million in cash and now owns 71.5% of the company.

Butler Schein Animal Health is a Dublin, Ohio-based companion animal health distribution company. Henry Schein is a Melville, N.Y.-based provider of health care products and services to office-based practitioners.

MetroPCS trades up

MetroPCS' term loans gained ground in trading following the release of fourth-quarter subscriber results, even though the numbers fell short of analyst expectations, according to a trader.

The term loan B-3 was quoted at 97¾ bid, 98¾ offered, up from 97½ bid, 98½ offered, and the term loan B-2 was quoted at 98¼ bid, 98¾ offered, up on the bid side from 98 bid, 99 offered.

For the fourth quarter of 2011, the company reported gross additions of about 1.22 million subscribers, which is a 7% increase over the fourth quarter of 2010, while net additions for the quarter were 197,410, down from 297,726 in the prior year.

For the full year, the company added on a net basis roughly 1.19 million subscribers, compared to about 1.52 million subscribers in 2010.

MetroPCS is a Dallas-based provider of unlimited wireless communications service for a flat rate with no annual contract.

Phoenix reworks deal

Switching to the primary, Phoenix Services made changes to its $245 million credit facility (Ba3/BB-), including moving some funds between tranches and sweetening pricing, according to a market source.

Specifically, the six-year funded U.S. term loan was increased to $155 million from $140 million and the five-year euro term loan was decreased to $45 million equivalent from $60 million, the source said.

Pricing on the term loans, as well as on a $15 million six-year delayed-draw term loan that is available for three months and a $30 million five-year revolver, is Libor/Euribor plus 750 basis points, up from Libor plus 600 bps on all the U.S. pieces and Euribor plus 550 bps on the euro term loan.

All tranches have a 1.5% floor and an original issue discount of 98, which is in line with earlier talk, except for the euro term loan, which had no floor previously.

Phoenix adds call premiums

In addition to the size and coupon revisions, Phoenix Services added 101 soft call protection for one year to its term loan tranches, the source continued.

Commitments are due on Jan. 12.

BNP Paribas Securities Corp. is the lead bank on the deal that will be used to help fund the acquisition of Gagneraud Industries and to refinance existing debt.

Senior leverage is 2.75 times.

Phoenix Services is a Kennett Square, Pa.-based provider of steel mill services. Gagneraud Industries is a Paris-based provider of metal pre and post production services to mills.

Cardone delays meeting

Cardone Industries pushed off the launch of its $300 million credit facility to either the week of Jan. 9 or the week of Jan. 16 from Thursday, according to a market source.

As was already reported, the facility is comprised of a $50 million revolver and a $250 million term loan. Price talk on the deal has not yet surfaced.

RBC Capital Markets LLC, BMO Capital Markets Corp. and Mizuho Securities USA Inc. are leading the transaction that will be used to help fund the buyout of the company's North American operations by TPG Capital LP.

Cardone is a Philadelphia-based automotive remanufacturing company.

Sterling Infosystems launches

Another deal slated for a bank meeting launch Thursday, Sterling Infosystems, went off as planned, with the $180 million credit facility (B2/B) presented at previously outlined talk of Libor plus 575 bps with a 1.5% Libor floor and an original issue discount of 98, according to a market source.

The facility, led by GE Capital Markets and RBS Citizens, consists of a $20 million revolver and the $160 million term loan.

Commitments from lenders are due in two weeks, the source added.

Proceeds will be used to refinance existing debt and fund an acquisition. Originally, the facility was going to launch on Nov. 30, but that meeting was postponed since the company was still negotiating the purchase agreement.

Sterling Infosystems is a New York-based background screening company.

Alexion sets talk

Alexion Pharmaceuticals also held a bank meeting, launching its $400 million five-year credit facility, comprised of a $200 million term loan and a $200 million revolver, at talk of Libor plus 137.5 bps, according to a market source.

Bank of America Merrill Lynch is the lead bank on the deal that will be used, along with cash on hand, to fund the acquisition of Enobia Pharma Corp. for $610 million in cash, plus up to $470 million in cash to be paid upon achievement of various regulatory and sales milestones.

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

Alexion is a Chesire, Conn.-based biopharmaceutical company focused on patients with severe and ultra-rare disorders. Enobia is a Montreal-based biopharmaceutical company focused on the development of therapies to treat patients with ultra-rare and life-threatening genetic metabolic disorders.

Genesys details emerge

In more primary news, Genesys came out with timing and structure on its proposed credit facility, setting a bank meeting for Tuesday at 10 a.m. ET and disclosing that the deal will consist of a $50 million five-year revolver and a $550 million seven-year term loan B, according to market sources.

Goldman Sachs & Co., Citigroup Global Markets Inc., RBC Capital Markets LLC and Macquarie Capital are leading the $600 million facility

Proceeds, along with about $225 million of mezzanine debt and over 50% in equity, will be used to fund the roughly $1.5 billion acquisition of the company by Permira from Alcatel-Lucent.

Closing is expected early this year, subject to review by the Committee of Foreign Investment in the United States and other customary regulatory approvals and consultations in various countries.

Genesys, a Daly City, Calif.-based supplier of contact center technology software, will have senior leverage in the mid 3.0 times area and total leverage in the low 5.0 times context.

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