Wolverine Healthcare, Misys second-lien free up; Elo Touch Solutions reworks pricing

By Sara Rosenberg

New York, May 25 - Wolverine Healthcare Analytics' credit facility emerged in the secondary market on Friday, with the term loan B quoted above its discount price, and Misys plc's second-lien term loan broke as well.

Switching to the primary, Elo Touch Solutions revised its credit facility, increasing pricing and original issue discount on all tranches, and Ferrara Candy Co. Inc. nailed down timing on the launch of its new deal.

Also, Applied Systems Inc. got enough consents from lenders for its credit facility amendment to pass, and its first-lien add-on term loan has been extremely well received by the market with it being multiply oversubscribed by the time books closed.

Wolverine starts trading

Wolverine Healthcare's credit facility freed up on Friday, and the $527.6 million seven-year term loan B was quoted at 98½ bid, 99¼ offered on the open and then moved up to 98¾ bid, 99½ offered, according to a trader.

Pricing on the B loan is Libor plus 550 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, the loan was upsized from $525 million, pricing flexed up from Libor plus 425 bps and the discount widened from 981/2.

The company's $577.75 million credit facility (Ba3/B+) also includes a $50 million five-year revolver that is priced at Libor plus 550 bps.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and UBS Securities LLC are the lead banks on the deal.

Wolverine being acquired

Proceeds from Wolverine Healthcare's credit facility will be used to help fund Veritas Capital's buyout of the company for $1.25 billion in cash from Thomson Reuters.

Other funds for the transaction will come from $327.15 million of senior notes that priced on Thursday at 99.345 with a coupon of 10 5/8% to yield 10¾%. The notes, which were upsized from $325 million, were talked in the 10¾% context.

Closing is expected in the next few months, subject to regulatory approval and customary conditions, including the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act.

Wolverine Healthcare, formerly Thomson Reuters Healthcare, is a provider of data, analytics and performance benchmarking services to hospitals, health systems, employers, health plans, government agencies and health care professionals.

Misys second-lien breaks

Misys' $615 million seven-year second-lien term loan (Caa1) also made its way into the secondary market, with levels quoted at 96½ bid, 97½ offered, according to a trader.

Pricing on the loan is 12%, and it was issued with an original issue discount of 953/4, resulting in a yield of 13%. It is non-callable for three years, with the first call at par plus 75% of the coupon.

During syndication, pricing was revised to the 12% area yield from around 10% before firming at the final terms, the tranche was changed from being unsecured and the maturity was shortened from 7½ years.

In addition to the second-lien loan, the company is getting a $125 million five-year revolver (Ba3/B+), a $945 million 61/2-year first-lien U.S. term loan (Ba3/B+) and a €100 million 61/2-year first-lien term loan (Ba3/B+).

The U.S. first-lien term loan freed up for trading on Thursday at 97½ bid, 98 offered and was still being quoted there on Friday, a second trader remarked.

Misys first-lien pricing

Misys' U.S. term loan is priced at Libor plus 600 bps and its euro term loan is priced at Euribor plus 625 bps. Both tranches have a 1.25% floor as well as call protection of 102 in year one and 101 in year two on voluntary repayments, and, they were sold at an original issue discount of 97.

While syndicating, the U.S. loan was upsized from $730 million and pricing was increased from talk of Libor plus 500 bps to 525 bps, and the euro loan was downsized from €250 million and pricing was lifted from talk of Euribor plus 550 bps to 575 bps. Also, the discount on the debt widened from 99, the maturity was shortened from seven years and the call protection was changed from just 101 soft call for one year.

As for the revolver, its is priced at Libor plus 525 bps, after firming earlier at the high side of the Libor plus 500 bps to 525 bps talk. The revolver has a 50 bps unused fee and was sold with a 100 bps upfront fee.

Misys funding buyout

Proceeds from Misys' credit facility and equity will be used to help fund the acquisition of the company by Vista Equity Partners for 350p per share, or about £1.27 billion, and refinance some debt.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal, with Credit Suisse the left lead on the first-lien debt and Bank of America left lead on the second-lien loan.

Misys is a London-based provider of application software and services for the financial services industry.

Elo flexes higher

Over in the primary, Elo Touch Solutions came out with changes to coupon and original issue discount on its $285 million credit facility and is now asking lenders to get their commitments in by 5 p.m. ET on June 1, according to a market source. The original commitment deadline had been May 24.

Under the revisions, pricing on the $15 million five-year revolver (B1/B+) and $180 million six-year first-lien term loan (B1/B+) is Libor plus 650 bps with a 1.25% Libor floor and an original issue discount of 97, versus earlier talk of Libor plus 525 bps with a 1.25% Libor floor and a discount of 98. The first-lien term loan still has 101 repricing protection for one year.

Meanwhile, the $90 million 61/2-year second-lien term loan (Caa1/CCC+) is now talked at Libor plus 1,025 bps with a 1.25% Libor floor and a discount of 97, compared to prior guidance of Libor plus 950 bps with a 1.25% floor and a discount of 98, the source continued. This debt is still non-callable for one year, then at 103 in year two and 101 in year three.

Elo lead banks

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the lead banks on Elo Touch Solutions' credit facility.

Prior to launch, it was thought that the second-lien term loan would mature in seven years, but when the deal was first presented to lenders in early May, the maturity was revised to 6½ years.

Proceeds will be used to help fund the buyout of the company by the Gores Group from TE Connectivity for $380 million, and closing is expected this quarter, subject to customary regulatory approvals.

Elo is a Menlo Park, Calif.-based supplier of touch screens, touch monitors and all-in-one touch computers.

Ferrara timing emerges

Ferrara Candy firmed up timing on its $550 million credit facility as a bank meeting has been set for 1:30 p.m. ET on Wednesday to launch the transaction, according to a market source.

As reported earlier, the facility consists of a $125 million asset-based revolver and a $425 million term loan (B2/B).

Morgan Stanley Senior Funding Inc. and Goldman Sachs & Co. are the lead banks on the deal that will be used to fund the creation of the company through the merger of Round Lake, Minn.-based Farley's & Sathers Candy Co. Inc. and Forest Park, Ill.-based Ferrara Pan Candy Co. Inc.

Catterton Partners, the owner of Farley's & Sathers, will remain a majority investor in the combined general line candy manufacturing company.

Closing is subject to applicable regulatory approval and satisfaction of other customary conditions.

Applied Systems passes

Applied Systems received approval of its credit facility amendment that allows for a first-lien add-on term loan and the acquisition that the new debt will fund, according to a market source.

The $85 million add-on loan due March 2016 is talked at Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 98.

As was previously reported, commitments for the add-on were due on Thursday. The deadline had been accelerated earlier in the week from May 29.

By the time the deadline hit, the add-on was over three times oversubscribed, the source added.

Credit Suisse Securities (USA) LLC is the lead bank on the deal that is expected to close and fund on Wednesday.

Applied Systems is a University Park, Ill.-based provider of agency and brokerage management software.

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