Berry Plastics, HealthPort hit secondary; Cablevision loan gains on acquisition announcement

By Sara Rosenberg

New York, Sept. 17 – Berry Plastics Corp. LLC and HealthPort Inc. (CT Technologies Intermediate Holdings and Smart Holdings Corp.) saw their term loans free up for trading during Thursday’s session, and Cablevision Systems Corp.’s term loan B headed higher with news that Altice NV will be acquiring the company.

Meanwhile, in the primary market, Idera Inc., Apple Leisure Group, Integro Ltd. and Foundation Building Materials LLC all released price talk on their new loans deals with launch.

Berry Plastics tops OID

Berry Plastics’ $2.1 billion first-lien term loan (Ba3/BB-) due in 2022 began trading on Thursday, with levels quoted at 99 5/8 bid, 99 7/8 offered, according to one market source. Then, by late afternoon, a second source was quoting the loan at par bid, 100¼ offered.

Pricing on the term loan is Libor plus 300 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Recently, the term loan was upsized from $1.9 billion as the company’s second priority senior secured notes offering was downsized to $400 million from $600 million, pricing was trimmed from talk of Libor plus 325 bps to 350 bps, and the discount was tightened from 99.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal.

Berry buying Avintiv

Proceeds from Berry Plastics’ new debt will be used to fund the acquisition of Avintiv for about $2.45 billion from the Blackstone Group LP.

Closing is targeted for Oct. 1.

Berry Plastics is an Evansville, Ind.-based manufacturer and marketer of value-added plastic consumer packaging and engineered materials. Avintiv is a Charlotte, N.C.-based developer, producer and marketer of specialty materials used in infection prevention, personal care and high performance solutions.

HealthPort frees up

HealthPort’s $117 million incremental first-lien term loan due December 2021 broke as well, with levels seen at 99¾ bid, 100¼ offered, a trader said.

Pricing on the incremental term loan is Libor plus 425 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and the debt was sold at an original issue discount of 99.5. Like the existing loan, the incremental term loan has 101 soft call protection through Jan. 1, 2016.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and Jefferies Finance LLC are leading the deal that will be used to fund the acquisition of Enterprise Consulting Solutions.

HealthPort is an Alpharetta, Ga.-based provider of medical information access management and compliance services to health care organizations.

Cablevision term B rises

Also in trading, Cablevision’s term loan B strengthened after it was announced that the company is being bought by Altice, according to traders.

One trader had the B loan at 99¾ bid, 100¼ offered, up from 98 7/8 bid, 99 3/8 offered, and a second trader was quoting the loan at 99 5/8 bid, 100 1/8 offered, up from 98½ bid, 99¼ offered.

Altice’s term debt was basically unchanged on the news, with the 2019 loan quoted at 100½ bid, 101 offered and the 2022 loan quoted at 100¼ bid, 100¾ offered, the first trader continued.

Under the agreement, Cablevision is being bought for $34.90 in cash. The enterprise value of the transaction is $17.7 billion.

Closing is expected in the first half of 2016, subject to regulatory and other customary approvals. Cablevision shareholders have already approved the transaction by written consent.

Cablevision will be an unrestricted subsidiary of Altice with a separate capital structure.

Cablevision financing plans

To help fund the acquisition by Altice and repay $2.5 billion in existing term loans, Cablevision plans to launch with a bank meeting on Monday a $4.3 billion credit facility consisting of a $2 billion five-year revolver and a $2.3 billion seven-year term loan B, a market source said.

J.P. Morgan Securities LLC, BNP Paribas and Barclays are leading the new debt.

Altice officials said in a conference call on Thursday that Cablevision would raise in total $8.6 billion of new debt through term loans and high-yield notes for the transaction, and that other funding would come from $3.3 billion of equity and $900 million of cash. Additionally, $5.9 billion of Cablevision’s existing notes are expected to be rolled over.

Net total debt will be 4.9 times including synergies and 7.1 times excluding synergies.

Cablevision is a Bethpage, N.Y.-based media and telecommunications company. Altice is a Luxembourg-based cable, fiber, telecommunications, contents and media company.

Idera releases talk

In other news, Idera held its bank meeting on Thursday, and with the event, price talk on its first- and second-lien term loans was announced, according to a market source.

The $300 million first-lien term loan is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $100 million second-lien term loan is talked at Libor plus 875 bps to 900 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $425 million credit facility also includes a $25 million revolver.

Commitments are due on Sept. 30, the source added.

Idera leads

Jefferies Finance LLC is the lead arranger on Idera’s entire deal and a joint bookrunner with Fifth Street on the second-lien loan.

Proceeds will be used to help fund the acquisition of Embarcadero Technologies Inc. from Thoma Bravo.

Idera is a Houston-based provider of IT performance monitoring solutions. Embarcadero is a San Francisco-based provider of professional grade database management tools.

Apple Leisure terms emerge

Apple Leisure Group disclosed price talk on its first- and second-lien term loans with its afternoon bank meeting, according to a market source.

The $330 million seven-year first-lien covenant-light term loan (B+) is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $130 million eight-year second-lien covenant-light term loan (CCC+) is talked at Libor plus 875 bps to 900 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $510 million credit facility also provides for a $50 million revolver (B+).

Jefferies Finance LLC, Credit Suisse Securities (USA) LLC and Nomura are leading the deal that will be used to refinance existing debt and fund a dividend.

Apple Leisure is a Newton Square, Pa.-based travel and resort company.

Integro sets guidance

Integro launched with a bank meeting its $220 million first-lien term loan (B) and $90 million delayed-draw term loan (B) with price talk of Libor plus 475 bps to 500 bps with a 1% Libor floor and an original issue discount of 99, and its $80 million second-lien term loan (CCC+) with talk of Libor plus 875 bps to 900 bps with a 1% Libor floor and a discount of 98.5, a market source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $440 million credit facility also includes a $50 million revolver (B).

Commitments are due on Oct. 1, the source added.

Goldman Sachs Bank USA and Jefferies Finance LLC are leading the deal that that will help fund Odyssey Investment Partners LLC’s buyout of the New York-based insurance brokerage and risk management firm.

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

Foundation Building launches

Foundation Building Materials released price talk on its first- and second-lien term loan in connection with its bank meeting, according to a market source.

The $245 million seven-year first-lien term loan B (B3) is talked at Libor plus 550 bps to 575 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $80 million eight-year second-lien term loan (Caa2) is talked at Libor plus 975 bps to 1,000 bps with a 1% Libor floor, a discount of 97.5 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $375 million credit facility also includes a $50 million ABL revolver.

Commitments are due on Oct. 1, the source added.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will help fund the buyout of the company by Lone Star Funds.

Foundation Building is a Tustin, Calif.-based building material company.

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