FTS International retreats with amendment; Endurance reworks sizes; Hologic sets talk

By Sara Rosenberg

New York, July 9 - FTS International Services LLC (Frac Tech International LLC) saw its senior secured term loan soften in trading on Monday as the company announced and launched an amendment that would allow for new notes and revise covenants.

Over in the primary, Endurance International Group (EIG Investors Corp.) revised its deal, upsizing both its first- and second-lien term loans on strong demand, and Hologic Inc. released price talk on its term loan B with launch.

Furthermore, National Vision Inc., Van Wagner Communications LLC and Inteva Products LLC announced plans to bring new deals to market.

FTS slides

FTS International's term loan was weaker in trading as the company held a call to talk to lenders about an amendment that would permit the sale of about $400 million of notes and relax financial covenants, according to traders.

Proceeds from the notes offering would be used to fund a $375 million pay down to the $1.375 billion term loan, which is a condition of the amendment.

By late day, the term loan was quoted by one trader at 89½ bid, 90½ offered, down from 91¾ bid, 92¾ offered on Friday, and by a second trader at 89½ bid, 90½ offered, down from 92 bid, 93 offered earlier in the day, before the call took place.

FTS covenant changes

As part of the amendment, FTS International wants lenders to reduce the interest coverage ratio under the term loan for 27 months and eliminate the leverage ratio for 18 months, a news release said. After the 18 months, the leverage ratio would be increased from the currently outlined level.

Additionally, the company is requesting an increase in its ability to enter into joint ventures, make acquisitions and other investments, incur debt, grant liens, engage in affiliate transactions and sell assets.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are the lead banks on the amendment.

FTS International is a provider of well completion services for the oil and gas industry with corporate offices in Fort Worth and Cisco, Texas.

Bolthouse steady

In more trading happenings, Bolthouse Farms' term loans were pretty flat on the day with the announcement that it will be acquired by Campbell Soup Co., according to traders.

One trader was seeing both the first- and second-lien term loans at 99½ bid, par ½ offered, unchanged on the day, and a second trader was quoting the first-lien term loan at 99¾ bid, par ¼ offered and the second-lien term loan at par bid, par ¼ offered.

Campbell is buying Bolthouse from Madison Dearborn Partners LLC for $1.55 billion in cash.

The transaction will be funded with short- and long-term borrowings, and closing is expected in the late summer, subject to regulatory approvals and customary conditions.

Bolthouse is a Bakersfield, Calif.-based food and beverage company. Campbell is a Camden, N.J.-based manufacturer and marketer of foods and simple meals.

Endurance ups loans

Moving to the new deal front, Endurance International increased its first- and second-lien term loans, while leaving pricing unchanged, according to a market source, who said that commitments are due at 5 p.m. ET on Tuesday.

The incremental first-lien term loan (B1/B) due April 2018 is now $135 million, up from $100 million, the source said. Pricing is Libor plus 625 basis points with a 1.5% Libor floor and an original issue discount of 98, and there is 101 soft call protection to April 2013.

Spread, floor and call protection on the first-lien term loan is in line with the existing $535 million first-lien term loan that was done in April, but the existing loan was sold at an original issue discount of 99.

Meanwhile, the second-lien term loan (Caa1/CCC+) due October 2018 was upsized to $140 million from $125 million, the source continued. Pricing is Libor plus 950 bps with a 1.5% floor and a discount of 98, and there is call protection of 103 in year one, 102 in year two and 101 in year three.

Endurance increasing revolver

In addition to the new $275 million term loan debt that Endurance is marketing, the company is upsizing its existing revolver by $20 million, the source added.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Goldman Sachs & Co. are the lead banks on the deal.

Proceeds from the new term loans will be used to fund the acquisition of HostGator, a Houston-based provider of web hosting service.

Endurance is a Burlington, Mass.-based provider of web hosting and online services to small- and medium-sized businesses.

Hologic talk emerges

Also in the primary, Hologic held a bank meeting on Monday to launch its $1.75 billion seven-year term loan B, and with the event, talk was announced at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, sources said.

By comparison, in earlier regulatory filings, the company said that the term loan B was expected at Libor plus 350 bps with a 1% Libor floor and 101 soft call protection for one year.

The company's $3.05 billion senior secured credit facility (Ba2/BBB-) provides for a $300 million undrawn five-year revolver and $1 billion five-year term loan A as well, both talked at Libor plus 300 bps. The pro rata debt was launched with a bank meeting in May.

Goldman Sachs & Co., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the deal that will help fund the purchase of Gen-Probe Inc. for $82.75 per share in cash. The total enterprise value for the transaction is about $3.7 billion.

Hologic plans notes

Hologic intends to sell $750 million of senior notes for the acquisition too, and will use $826 million of cash and marketable securities on hand to make up the balance of the purchase price.

The notes were initially anticipated at $500 million and the term loan B was expected at $2 billion, but $250 million was shifted between the debt prior to the B loan's launch.

Closing is expected in early August, subject to approval of Gen-Probe's shareholders and necessary foreign clearances.

Pro forma net leverage is 5.6 times, net leverage is 5.1 times and total secured leverage is 3.1 times.

Hologic is a Bedford, Mass.-based developer, manufacturer and supplier of diagnostics products, medical imaging systems and surgical products for the health care needs of women. Gen-Probe is a San Diego-based developer, manufacturer and marketer of molecular diagnostic products and services.

National Vision readies deal

National Vision surfaced with new loan plans, setting a bank meeting for 10 a.m. ET on Wednesday to launch a proposed $300 million six-year term B tranche, according to a market source.

Price talk is not yet available, the source said.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance existing and pay a distribution to shareholders.

National Vision is a Lawrenceville, Ga.-based optical retailer.

Van Wagner plans facility

Van Wagner Communications has also scheduled a bank meeting for Wednesday morning, according to a market source, who said that the company will present a $200 million credit facility to investors.

The facility consists of a $25 million five-year revolver and a $175 million seven-year term loan B, the source said, adding that price talk is still to be determined.

Barclays Capital Inc. and GE Capital Markets leading the deal that will refinance existing debt, fund an upfront cash payment for an acquisition and for general corporate purposes.

Van Wagner is an out-of-home advertising company.

Inteva joins calendar

Another deal to pop up was Inteva Products' $225 million term loan, which will launch with a bank meeting at 1 p.m. ET on Wednesday, according to a market source.

Citigroup Global Markets Inc. and Bank of America Merrill Lynch are leading the loan that will refinance existing debt and for general corporate purposes.

Inteva is a Troy, Mich.-based supplier offering value-based innovation and environmentally-friendly products to original equipment vehicle manufacturers.

Archway buyout closes

In other news, the roughly $300 million acquisition of Archway Marketing Services Inc. by Investcorp from Tailwind Capital, Black Canyon Capital and management has been completed, according to a news release.

For the transaction, Archway got a new $175 million credit facility consisting of a $30 million five-year revolver, a $110 million six-year term loan and a $35 million six-year delayed-draw for three years term loan.

Pricing on the facility is Libor plus 525 bps with a 1.25% Libor floor, and the tranches were sold at an original issue discount of 99.

Senior leverage is 3.7 times and total leverage is 5.2 times.

GE Capital Markets and ING Financial Markets LLC led the deal for the Rogers, Minn.-based marketing logistics and fulfillment services company.

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