Service King frees to trade following revisions; AssuredPartners, MedImpact modify deals

By Sara Rosenberg

New York, Oct. 16 – Service King Collision Repair Centers tightened the issue price on its add-on term loan B, added a delayed-draw tranche to its capital structure and then the debt broke for trading on Friday above the revised original issue discount.

In more happenings, AssuredPartners Inc. set the spread on its first-lien term loan and the original issue discount on its second-lien term loan at the wide end of guidance, MedImpact increased pricing on its term loan B and added a financial covenant, and American Commercial Lines Inc. joined the near-term new issue calendar.

Service King tweaked, breaks

Service King Collision Repair Centers changed the original issue discount on its fungible $125 million add-on term loan B to 99.25 from the 99 area and added a $25 million delayed-draw term loan that was sold as a strip with the add-on, according to a market source.

Pricing on the term debt is Libor plus 350 basis points with a 1% Libor floor.

By late day, the term debt had freed up for trading, with levels quoted at 99 5/8 bid, par 1/8 offered, a trader added.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to pay down revolver borrowings and for general corporate purposes.

Service King is a Dallas-based operator of a chain of automobile body repair centers.

AssuredPartners updates deal

AssuredPartners firmed pricing on its $762 million seven-year covenant-light first-lien term loan (B1/B) at Libor plus 475 basis points, the high end of the Libor plus 450 bps to 475 bps talk, and left the 1% Libor floor, original issue discount of 98.5 and 101 soft call protection for one year intact, according to a market source.

As for the $337 million eight-year covenant-light second-lien term loan (Caa2/CCC+), pricing was unchanged at Libor plus 900 bps with a 1% Libor floor, while the issue price finalized at 96, the wide end of the 96 to 97 talk, the source said, adding that the debt is still non-callable for one year, then at 102 in year two and 101 in year three.

Other updates made included reducing the incremental allowance to $140 million from $155 million and can’t be used to fund dividends, and eliminating a proposed leverage-based pricing step-down.

AssuredPartners lead banks

Bank of America Merrill Lynch, RBC Capital Markets LLC, Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc. and Barclays are leading AssuredPartners’ $1,226,500,000 credit facility, which also provides for a $127.5 million five-year revolver (B1/B).

Proceeds will be used to help fund the buyout of the company by Apax Partners from GTCR.

AssuredPartners is a Lake Mary, Fla.-based provider of property and casualty and employee benefits insurance brokerage services.

MedImpact revises loan

Also in the primary, MedImpact widened pricing on its $350 million seven-year first-lien term loan B (B1/B+) to Libor plus 475 bps from talk of Libor plus 425 bps to 450 bps and added a total leverage covenant of 3.5 times so that the loan is no longer covenant-light, according to a market source.

As before, the term loan has a 1% Libor floor and an original issue discount of 99.

Commitments are due at 5 p.m. ET on Monday, the source said. The original deadline had been Oct. 14.

UBS AG is leading the deal that will be used to fund a cash tender offer for the company’s 10˝% senior secured notes due 2018.

The tender offer will end at midnight ET on Oct. 28.

MedImpact is a San Diego-based full-service pharmacy benefit management company.

American Commercial on deck

American Commercial Lines emerged with plans to hold a bank meeting on Monday to launch a new credit facility, a market source remarked.

Bank of America Merrill Lynch is the left lead on the deal that will be used to help fund the acquisition of AEP River Operations from American Electric Power for about $550 million.

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

American Commercial, a portfolio company of Platinum Equity, is a Jeffersonville, Ind.-based marine transportation service company. AEP River Operations is a Chesterfield, Mo.-based commercial inland barge company.

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