Asurion, AMR, Home Loan Servicing, Meritas, Travelport, Distribution International break

By Sara Rosenberg

New York, June 21 - Asurion LLC upsized its incremental term loan B-2, finalized the original issue discount at the wide end of guidance and freed up for trading on Friday, and AMR Corp. downsized its term loan and increased pricing before breaking.

Also, Home Loan Servicing Solutions Ltd. lifted the coupon on its term loan, widened the discount price and sweetened the call protection, and then it too emerged in the secondary market. Meanwhile Meritas Schools Holdings LLC, Travelport LLC and Distribution International broke as well.

And, in more loan happenings, Help/Systems LLC reworked its credit facility, downsizing first- and second-lien loan sizes while widening coupons and original issue discounts, and shortening the maturities of all tranches.

Asurion starts trading

Asurion's seven-year incremental term loan B-2 made its way into the secondary market on Friday after a few updates were announced, and levels on the debt were seen at 97 bid, 97½ offered, a source said.

The B-2 loan is sized at $450 million, upsized from $400 million, and was sold at a discount of 961/2, as it firmed at the high end of the 96½ to 97½ talk, another market source said.

Pricing on the loan was unchanged at Libor plus 275 basis points with a 0.75% Libor floor, as was the 101 soft call protection through Feb. 22, 2014.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will refinance an existing amortizing first-lien term loan due 2017 on or before July 26 and fund general corporate purposes, including, but not limited to, refinancing existing HoldCo debt, repurchasing shares and return of capital, and potential acquisitions.

Recently, the Nashville-based provider of technology protection services had been marketing an $850 million seven-year senior secured term loan B-2 (including a $350 million delayed-draw tranche) with talk of Libor plus 275 bps with a 0.75% Libor floor, a discount of 99 to 99½ and 101 soft call protection for six months, but that deal was pulled earlier this month due to market conditions.

AMR tops OID

AMR's credit facility freed up in the afternoon, with the $1.05 billion six-year debtor-in-possession term loan that converts into an exit term loan quoted at par bid, par ½ offered, according to a market source.

Earlier, the loan was reduced from $1.5 billion and pricing was lifted to Libor plus 375 bps from talk of Libor plus 325 bps to 350 bps. The debt has a 1% Libor floor and 101 soft call protection for six months, and was issued at a discount of 991/2.

The company's $2.05 billion credit facility also includes a $1 billion revolver.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to help fund the company's plan of reorganization.

As a result of the term loan downsizing, the company is putting less cash on the balance sheet.

AMR is a Fort Worth, Texas-based airline company.

Home Loan frees up

Home Loan Servicing Solutions' $350 million seven-year senior secured term loan B (Ba3) also underwent some revisions in the morning before breaking in the afternoon, with levels quoted at 98¾ bid, 99½ offered, a market source said.

Under the changes, pricing on the loan was flexed up to Libor plus 350 bps from talk of Libor plus 300 bps to 325 bps, the original issue discount was moved to 98½ from guidance of 99 to 991/2, and the call protection was modified to a 102 hard call for one year from a 101 soft call for one year, a second source said. Unchanged was the 1% Libor floor.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to acquire mortgage servicing assets and fund advance reserves.

Closing is targeted for Thursday.

Home Loan Servicing is a Cayman Islands-based acquirer of high-quality mortgage servicing assets.

Meritas hits secondary

Another deal to free up was Meritas Schools' credit facility, with the $215 million six-year first-lien term loan quoted by one source at 99¾ bid, par ½ offered and by a second source at par bid, par ½ offered.

Pricing on the term loan is Libor plus 575 bps, after firming at the wide end of the Libor plus 550 bps to 575 bps talk. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was issued at 99.

The company's $245 million credit facility (B3/B-) also includes a $30 million five-year revolver.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that is being used to refinance existing debt and for growth capital expenditures.

Meritas is a Northbrook, Ill.-based family of private college-preparatory schools.

Travelport levels emerge

Travelport's credit facility hit the secondary as well, with the roughly $1.55 billion six-year first-lien term loan seen at 99¼ bid, 99¾ offered, according to a market source.

Pricing on the term loan is Libor plus 500 bps with step-downs and a 1.25% Libor floor. The debt is non-callable for one year, then at 102 in year two and 101 in year three and was sold at a discount of 981/2.

During syndication, pricing on the loan was raised from Libor plus 450 bps with step-downs, the discount was revised from 99 and the call premium was sweetened from just 101 soft call for one year.

The company's $1.67 billion credit facility (B1/B) also includes a $120 million five-year revolver that was upsized from $100 million.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and UBS Securities LLC are leading the deal that is being used to refinance existing first-lien bank debt.

Travelport is an Atlanta-based provider of transaction processing services to the travel industry.

Distribution breaks

Distribution International's $200 million term loan (Caa1/B-) began trading too, with levels quoted at 99½ bid, par ¼ offered, according to a trader.

Pricing on the loan is Libor plus 650 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.

Proceeds will be used to refinance existing debt, fund a dividend and back an acquisition.

Distribution International is a Houston-based distributor of industrial, commercial and marine insulation and related specialty fabricated products.

Help/Systems restructures

Back over in the primary, Help/Systems cut its first-lien term loan B to $228 million from $240 million, increased the spread to Libor plus 450 bps from Libor plus 350 bps, widened the original issue discount to 99 from 991/2, added 101 soft call protection for one year and shortened the maturity to six years from seven years, according to a market source. There is still a 1% Libor floor.

In addition, the second-lien term loan was trimmed to $66 million from $80 million, pricing was lifted to Libor plus 850 bps from Libor plus 750 bps, the discount was changed to 98½ from 99 and the maturity was brought in to seven years from eight years, the source remarked. Unchanged was the 1% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

Meanwhile, the $40 million revolver also saw its tenor shorten by one year, to five years from six years, the source continued.

And, the MFN sunset was removed from the credit agreement.

Help/Systems dividend recap

Proceeds from Help/Systems' now $334 million credit facility will be used to refinance existing debt and fund a dividend that was reduced by half a turn of leverage as a result of the term loan downsizings.

With the changes, net leverage is 4.25 times through the first-lien and 5.5 times total, the source added.

Recommitments for the credit facility are due at the end of the day on Monday.

GE Capital Markets is leading the deal.

Help/Systems is an Eden Prairie, Minn.-based provider of automated operations and business intelligence software for IBM Power Systems servers.

Rite Aid closes

In other news, Rite Aid Corp. completed its $500 million eight-year second-lien term loan (B3/B-), a news release said.

Pricing on the loan is Libor plus 387.5 bps, after flexing down during syndication from Libor plus 425 bps. There is a 1% Libor floor and call protection of 102 in year one and 101 in year two, and the debt was issued at par.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC, GE Capital Markets and Goldman Sachs Bank (USA) led the deal that was used with available cash and/or borrowings under the company's revolver to buy back $500 million of 7½% senior secured notes due 2017.

Rite Aid is a Camp Hill, Pa.-based drugstore chain.

Chrysler completes repricing

Chrysler Group LLC closed on the repricing of its $2,947,000,000 term loan due May 24, 2017 and $1.3 billion revolver due May 24, 2016, according to a news release.

Pricing on the term loan and the revolver is Libor plus 325 bps, after finalizing recently at the wide end of the Libor plus 300 bps to 325 bps talk. The term loan has a 1% Libor floor and 101 soft call protection for six months and was issued at par.

This transaction took pricing on the existing revolver and term loan down from Libor plus 475 bps and the Libor floor on the term loan down from 1.25%.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and Goldman Sachs Bank USA led the $4,247,000,000 deal, with Citi the left lead on the term loan and Morgan Stanley the left lead on the revolver.

Chrysler is an Auburn Hills, Mich.-based automotive company.

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