Alcatel-Lucent rolls out dual-currency deal; Biomet doubles deal size; USI tightens talk

By Paul A. Harris

Portland, Ore., Dec. 14 - The bank loan market remains "new issue focused," a trader said on Friday.

"You're seeing heavy demand, with deals flexing tighter," the source said. "The whole new issue market is trading higher on the break."

SunGard Data Systems Inc.'s $720 million Libor plus 350 basis points seven-year incremental term loan (Ba3/BB), which priced Friday at par, traded as high as par ¾ bid, 101¼ offered.

Synthetics were heading out lower on the day, the trader said, citing the LCDX 19 bank loan index at par ¾ bid, down 3/8 of a point on the day.

Business in the primary market remains brisk as Alcatel-Lucent rolled out a €1.615 billion equivalent credit facility, featuring two dollar tranches.

Biomet Inc. doubled the size of its add-on term loan to $500 million and eliminated the OID.

And USI Insurance Services tightened both spread talk and discount talk on its $1.025 billion seven-year covenant-light term loan B.

Quintiles free to trade

The Quintiles Transnational Corp. $1.975 billion Libor plus 325 bps term loan B-2 due June 2018 priced at par and traded to par 1/8 bid, par ½ offered.

The deal came without the anticipated 25-cent discount.

The loan has a 1.25% Libor floor and 101 soft call protection for one year.

J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance an existing term loan B.

Quintiles is a Durham, N.C.-based biopharmaceutical services company.

Alcatel-Lucent deal eyed

Alcatel-Lucent (B3/B) met with lenders on Friday in London to discuss its proposed €1.615 billion equivalent credit facility.

Meetings with lenders in the United States are set to commence on Monday.

The deal, which is being arranged by Credit Suisse and Goldman Sachs, features two dollar-denominated tranches: a $1.275 billion six-year senior secured term loan and a $500 million 3.5-year asset sale facility.

The term loan is talked at a Libor spread of 700 bps, discounted to 98.

The asset sale facility is talked at Libor plus 600 bps with a 1.25% Libor floor and 101 call protection in the first year.

There is also a €250 million six-year senior secured term loan tranche talked at Euribor plus 700 bps at 98.

Both term loans are callable after one year at 102.

The Paris-based telecommunications services and equipment company plans to use the proceeds to refinance debt.

MGM Resorts prices $4 billion

MGM Resorts International priced its $4 billion amended and restated senior secured credit facilities (Ba2/BB).

The deal included a Libor plus 325 bps term loan B that was upsized to $1.75 billion from $1.5 billion. It floats atop a 1% Libor floor.

As reported, the deal came discounted to 99.50 and features 101 soft call protection.

The term loan B Libor spread came on top of spread talk that was revised downward from 375 bps during marketing.

The re-sizing of the deal saw $250 million of proceeds shifted to the institutional tranche from the two pro rata tranches.

The downsized $1.2 billion revolver and downsized $1.05 billion term loan A both came at spreads of 300 bps, but will be subject to credit rating adjustments after six months which would reduce those spreads to 275 bps based on current credit ratings.

Prior to downsizing, the revolver and term loan A were both sized at $1.25 billion.

Deutsche Bank and Bank of America Merrill Lynch were the joint physical books on the deal and joint lead arrangers with Barclays and JPMorgan.

Proceeds from MGM Resorts' credit facility will be used to fund a tender offer for its existing notes and repay existing credit facility borrowings.

Other funds for the refinancing will come from $1.25 billion of new senior notes that were upsized from $1 billion, and cash on hand.

As a result of the notes upsizing, the amount to be borrowed under the new revolver was reduced.

The closing of the refinancing transactions, including the amended and restated credit agreement, is scheduled to be completed on Dec. 20, subject to the execution of definitive documentation and the satisfaction of customary closing conditions.

MGM Resorts is a Las Vegas-based hospitality company, operating a portfolio of destination resort brands.

RedPrairie prices

RedPrairie (RP Crown Parent LLC) priced $2.2 billion of credit facilities on Friday, according to a market source.

The deal included a $650 million Libor plus 1,000 bps seven-year second-lien covenant-light term loan (Caa1/CCC+) which priced at 98.

The spread came on top of spread talk that widened from initial talk of 900 bps. The discount came on top of revised price talk; early talk had the deal coming cheaper, at 97.

The second-lien deal has a 1.25% Libor floor and is non-callable for two years, then at 103 in year three and 101 in year four, revised earlier from call protection of 103 in year one, 102 in year two and 101 in year three.

The credit facility also includes a $1.45 billion Libor plus 550 bps six-year first-lien covenant-light term loan (B1/B+), which also priced at 98.

The spread came on top of spread talk that had widened from earlier talk of 475 bps. The reoffer price also came on top of revised talk. Initially the deal was talked with just a single point of OID.

The first-lien term loan has 101 repricing protection for one year.

In addition the deal has a $100 million five-year revolver (B1/B+).

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Goldman Sachs & Co., RBC Capital Markets and Morgan Stanley Senior Funding Inc. are the lead arrangers on the deal.

Proceeds will be used to help fund the acquisition of JDA Software for $45 per share. The transaction has a total enterprise value of about $1.9 billion.

Other funds for the acquisition will come from up to $342 million of equity from New Mountain Capital.

Closing is expected by year-end, subject to at least 79% of JDA's shares being tendered and clearance from antitrust regulatory authorities.

RedPrairie is an Alpharetta, Ga.-based provider of supply chain software services. JDA is a Scottsdale, Ariz.-based provider of supply chain management, merchandising and pricing services.

USI tightens spread talk

USI Insurance tightened the spread talk on its $1.025 billion seven-year covenant-light term loan B to 400 bps.

Earlier talk was 400 bps to 425 bps.

Along with tightening the spread talk the company cut the original issue discount by 50 cents. New discount talk is 99.50, revised from previous talk of 99.

Recommitments were due on Friday.

The deal still features a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The term loan B has 101 soft call protection for one year and amortizes at a rate of 1% per annum.

The company's $1.175 billion credit facility (B1) also includes a $150 million five-year revolver.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Citigroup, Goldman Sachs & Co., RBC Capital Markets LLC and UBS Securities LLC are the lead banks on the deal.

Proceeds will be used to help fund Onex Corp.'s purchase of the company from GS Capital Partners VI Fund LP for about $2.3 billion.

Biomet doubles deal-size

Biomet doubled the size of its add-on term loan to $500 million from $250 million.

Meanwhile an anticipated discount of 25 cents to 50 cents was eliminated.

The Libor spread remains at 375 bps, in line with existing extended term loan pricing.

Bank of America Merrill Lynch, Citigroup, Barclays, Goldman Sachs, JPMorgan and Wells Fargo Securities LLC are leading the deal.

Proceeds will be used to take out non-extended term loan debt.

Biomet is a Warsaw, Ind.-based designer, manufacturer and marketer of products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy.

St. George's prices loan

St. George's University priced its $250 million Libor plus 700 bps five-year first-lien term loan at 98.

The Libor spread came at the wide end of the 650 bps to 700 bps spread talk.

The price came on top of price talk.

The loan has a 1.5% Libor floor and 101 soft call protection for one year.

Amortization is 10% per annum, and covenants include maximum leverage and minimum interest coverage ratios.

Credit Suisse Securities was the lead bank on the deal.

Proceeds will be used to fund a return of capital to the founders and for general corporate purposes.

St. George's is a Grenada, West Indies-based for-profit medical, veterinary and arts and sciences school.

Stallion downsizes

Stallion Oilfield Holdings Inc. further downsized its senior secured five-year first-lien term loan (B3/B) to $400 million from $450 million on Friday after having previously downsized from $500 million, according to a market source.

Meanwhile the discount was increased to 3 points from 2 points. The deal is now being talked at 97.

The Libor spread remains at 750 bps; it had previously been increased from 650 bps.

The 1.25% Libor floor was left unchanged, and the debt is still non-callable for one year, then at 102 in year two and 101 in year three.

Commitments are due on Monday.

Credit Suisse Securities is the lead bank on the deal.

Proceeds will be used to redeem the company's remaining $134 million of senior secured notes due 2015, to fund a dividend, to fund transaction costs and for other corporate purposes.

Stallion is a Houston-based provider of wellsite support, completion, production and logistics services to oil and gas exploration and production companies, drilling contractors and other service companies.

BATS Global deepens discount

BATS Global Markets Inc. priced its $300 million Libor plus 575 bps six-year first-lien term loan (B1/BB-) at 96 on Friday.

The deal had been talked at 98.

The loan has a 1.25% Libor floor and 101 soft call protection for one year and includes a maximum total leverage covenant.

Amortization is 15% per annum.

Credit Suisse Securities is the lead bank on the deal.

Proceeds will be used to fund a dividend to shareholders.

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