Corporate Executive, Liberty break; Level 3 up on refi; RedPrairie, SuperValu tweak deals

By Sara Rosenberg

New York, July 30 - Corporate Executive Board Co.'s and Liberty Cablevision of Puerto Rico LLC saw their credit facilities hit the secondary market on Monday, and Level 3 Communications Inc.'s term loan A headed higher as the company launched new term loans to take out the existing debt.

Moving to the primary, RedPrairie Corp. made some changes to its credit facility, including increasing the size of the term loan, trimming the Libor floor and tightening the original issue discount.

Another company to come out with revisions was SuperValu Inc., as it widened the spread and discount on its term loan as well as shortened the maturity and added some more soft call protection.

Continuing on the topic of new deals, Genesis HealthCare LLC and Husky International Ltd. set talk, and Dunkin' Brands Inc. released original issue discount guidance with its launch, and One Call Medical Inc., DaVita Inc. and C.H.I. Overhead Doors announced new loan plans.

Corporate Executive frees up

Corporate Executive Board's credit facility broke for trading on Monday, with the $250 million seven-year term loan B quoted at 99¾ bid on the open, and then it moved to par bid, par ½ offered, according to a trader.

Pricing on the B loan is Libor plus 375 basis points 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.

The company's $625 million senior secured credit facility (Ba3/BB-) also includes a $275 million five-year term loan A and a $100 million five-year revolver, both priced at Libor plus 300 bps.

During syndication, the term loan B was downsized from $375 million, the term loan A was upsized from $200 million and the revolver was upsized from $50 million. Also, pricing on the term B firmed at the wide end of the Libor plus 350 bps to 375 bps.

Corporate buying SHL

Proceeds from Corporate Executive Board's credit facility will be used to help fund the purchase of SHL from funds managed by HgCapital and Veronis Suhler Stevenson for $660 million in cash, subject to customary pre- and post-closing adjustments.

Bank of America Merrill Lynch and Barclays Capital Inc. are the joint lead arrangers and bookrunners on the deal.

Corporate Executive Board is an Arlington, Va.-based member-based advisory company. SHL is a U.K.-based provider of cloud-based talent measurement and management services.

Liberty tops OID

Liberty Cablevision of Puerto Rico's credit facility also freed up, with the $175 million term loan quoted at 99¼ bid on the open and then it moved to 99¾ bid, according to a trader.

Pricing on the term loan is Libor plus 450 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 99, after firming last week at the tight end of the 98½ to 99 talk,.

The $185 million five-year credit facility (B1/B+) also includes a $10 million revolver.

Scotia Capital (USA) Inc. is leading the deal that will be used to help fund the company's merger with San Juan Cable LLC (OneLink Communications) to form the largest cable operator on the island.

Under the agreement, parent company, Liberty Global Inc., an Englewood, Colo.-based cable company, and Searchlight Capital Partners LP are buying San Juan Cable in a transaction valued at about $585 million before transaction costs.

Closing is expected in the fourth quarter, subject to regulatory approval.

Level 3 gains

In more trading news, Level 3 Communications' roughly $1.4 billion senior secured term loan A due in March 2014 rose to 99½ bid, par offered, from 98¾ bid, 99¼ offered, as news emerged that the debt will be repaid with proceeds from newly launched term loans, according to a trader.

On Monday morning, the company held a call to kick off syndication on its $1.4 billion in new debt that is comprised of a minimum $300 million 31/2-year term loan talked at Libor plus 325 bps and an up to $1.1 billion seven-year term loan talked at Libor plus 400 bps, sources said. Both tranches have a 1.5% Libor floor and are being offered at an original issue discount of 99.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the deal.

Level 3 is a Broomfield, Colo.-based provider of fiber-based communications services.

GNC softens

General Nutrition Centers Inc.'s term loan retreated to 99 7/8 bid, par 3/8 offered, from par bid, par ½ offered, which is where it freed up for trading on Friday afternoon, according to a trader,

The $200 million incremental term loan B due 2018 is priced at Libor plus 300 bps with a 1.25% Libor floor, and was sold at an original issue discount of 991/2.

J.P. Morgan Securities LLC led the deal that is being used with $100 million of cash to fund a share buyback.

General Nutrition is a Pittsburgh-based specialty retailer of health and wellness products.

RedPrairie revises deal

Over in the primary, RedPrairie revised its credit facility, upsizing the six-year first-lien term loan to $360 million from $340 million, moving the Libor floor to 1% from 1.25% and cutting the original issue discount to 99½ from 99, according to a market source.

The coupon on the term loan was left at Libor plus 500 bps and the 101 soft call protection for one year remained intact.

The company's now $400 million credit facility (B2/B+) also provides for a $40 million five-year revolver that is priced at Libor plus 500 bps and is being offered with a 100 bps upfront fee. The Libor floor on this tranche was also trimmed to 1% from 1.25%, the source remarked.

Recommitments were due on Monday.

RedPrairie recapitalizing

Proceeds from RedPrairie's credit facility will be used to refinance existing bank debt and fund a dividend, the size of which was increased by $9 million because of the term loan upsizing, the source added. The remaining $11 million from the loan size increase will be used to add cash to the balance sheet.

Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC are the lead banks on the deal.

RedPrairie is an Alpharetta, Ga.-based provider of supply chain software services.

SuperValu flexes

SuperValu made modifications as well, lifting the spread on its $850 million covenant-light term loan (B1/BB-) to Libor plus 675 bps from Libor plus 625 bps and moving the original issue discount to 96 from 98, a source said. The 1.25% Libor floor was left unchanged.

With the pricing change, the soft call protection was sweetened to 102 in year one and 101 in year two, from just 101 for one year, and the maturity was shortened to six year from seven years, the source continued.

Recommitments towards the term loan are due at noon ET on Tuesday.

The company's $2.5 billion credit facility also includes a $1.65 billion five-year ABL revolver that has pricing ranging from Libor plus 175 bps to 225 bps.

SuperValu lead banks

Credit Suisse Securities (USA) LLC and Barclays Capital Inc. are the bookrunners on SuperValu's term loan, and bkokrunners for the revolver are Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., Barclays and Credit Suisse.

Proceeds will be used to refinance existing debt.

SuperValu is an Eden Prairie, Minn.-based supermarket operator.

Genesis reveals talk

Also in the primary, Genesis HealthCare held a bank meeting on Monday afternoon to launch its credit facility, and talk on its $325 million six-year term loan came out at Libor plus 650 bps with a 1.5% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, according to a market source.

Commitments are due on Aug. 10, the source said.

The company's $750 million senior secured credit facility also provides for a $425 million five-year ABL revolver.

Barclays Capital Inc. and GE Capital Markets Inc. are leading the deal, with Barclays left lead on the term loan and GE left lead on the revolver.

Genesis acquiring Sun

Proceeds from Genesis HealthCare's credit facility will be used to help fund the purchase of Sun Healthcare Group Inc. for $8.50 per share of common stock. The transaction is valued at about $275 million net of cash and debt acquired.

Closing is expected in the fall, subject to customary conditions, including approval by Sun stockholders, expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and regulatory approvals.

Genesis is a Kennett Square, Pa.-based skilled nursing care provider. Sun is an Irvine, Calif.-based health care services company.

Husky launches

Husky International launched a repricing of its $866 million term loan B, under which it is looking to take the spread down to the area of Libor plus 425 bps to 450 bps from Libor plus 525 bps, while leaving the 1.25% Libor floor unchanged, according to a market source.

With the repricing, the 101 soft call protection on the term loan B will be extended for one year from the amendment close, the source remarked.

Lead banks, Goldman Sachs & Co. and Morgan Stanley Senior Funding Inc., are asking for amendment signature pages by Friday.

Earlier this year, the company had attempted to reprice the loan in the Libor plus 400 bps to 425 bps context, but that transaction was pulled as a result of unfavorable conditions.

Husky is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry.

Dunkin' OID emerges

Dunkin' Brands launched with a call on Monday its $400 million add-on senior secured term loan B-2 due Nov. 23, 2017, at which time original issue discount guidance was announced at 98½ to 99, according to a market source.

Price talk on the loan is Libor plus 300 bps with a 1% Libor floor, in line with existing term loan B pricing.

Barclays Capital Inc., J.P. Morgan Securities LLC and Morgan Stanley Funding Inc. leading the deal that will be used to return capital to shareholders and for general corporate purposes.

With the add-on, the company is seeking amendments to its existing credit facility.

Dunkin' Brands is a Canton, Mass.-based franchisor of quick service restaurants serving hot and cold coffee and baked goods, as well as hard-serve ice cream.

One Call readies deal

One Call Medical scheduled a bank meeting for 10 a.m. ET on Wednesday to launch a proposed $465 million credit facility that consists of a $50 million six-year revolver and a $415 million seven-year covenant-light term loan, according to a market source.

Jefferies & Co. and GE Capital Markets are leading the deal.

Proceeds, along with $210 million of unsecured debt that is being provided by GSO and equity, will be used to help fund the purchase of MSC Care Management.

One Call Medical is a Parsippany, N.J.-based provider of specialty services to insurance payers. MSC is a Jacksonville, Fla.-based provider of medical products and services to post-discharge and post-injury workers' compensation claimants.

DaVita B-2 timing

DaVita will be holding a bank meeting at 10 a.m. ET on Thursday to launch a proposed $1.65 billion term loan B-2 due 2019 that is being led by J.P. Morgan Securities LLC, a market source said.

The company's $3 billion of debt (BB-) also includes a $1.35 billion term loan A-3 due 2017 that is talked at Libor plus 250 bps.

Proceeds will be used to help fund the acquisition of HealthCare Partners for around $4.42 billion, consisting of $3.66 billion in cash and about 9.38 million shares of DaVita common stock.

Closing is expected early in the fourth quarter, subject to receipt of Hart-Scott-Rodino approval, obtaining the approval of HealthCare Partners' owners and other customary conditions, and the combined company will be named DaVita HealthCare Partners Inc.

DaVita is a Denver-based provider of kidney care services. HealthCare Partners is a Torrance, Calif.-based operator of medical groups and physician networks.

C.H.I. coming soon

C.H.I. Overhead Doors will also be launching a deal, although details on size and exact timing are not yet available, according to a market source.

The company will be holding a conference call this week for new add-on term loan debt that will be used to fund a dividend, the source said.

GE Capital Markets is leading the deal.

C.H.I. Overhead Doors is an Arthur, Ill.-based manufacturer of residential, commercial and rolling steel overhead garage doors.

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