Harvey Gulf breaks; Gentiva, Insight Global, Huntsman revise deals; Omnitracs discloses talk

By Sara Rosenberg

New York, Oct. 10 - Harvey Gulf International Marine LLC moved some funds between its add-on term loans, firmed the discount price on its term B debt at the high end of guidance and then hit the secondary market on Thursday afternoon.

In more happenings, Gentiva Health Services Inc. revised its term loan sizes, coupons, Libor floors and call protection, and Insight Global (IG Investment Holdings LLC) lowered the spread and floor on its tack-on first-lien term loan and added a repricing of its existing first-lien term loan debt to the mix.

Also, Huntsman Corp. LLC upsized its B loan and set pricing at the low end of guidance, Omnitracs Inc. released talk with launch, and Greenway Medical Technologies and Akorn Inc. revealed timing on the launch of their credit facilities.

Harvey tweaks deal, breaks

Harvey Gulf upsized its add-on term loan B to $275 million from $250 million and set the original issue discount at 99, the wide end of the 99 to 99½ talk, according to a market source. Pricing is Libor plus 450 basis points with a 1% Libor floor.

Meanwhile, the add-on term loan A was downsized to $75 million from $100 million, the source said. Pricing remained at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 991/2.

With final terms in place, the deal broke for trading on Thursday afternoon, with levels on the add-on term loan B seen at 99¾ bid, par ¼ offered, a trader remarked.

Bank of America Merrill Lynch is leading the loans that will be used to fund the acquisition of 45 new generation offshore vessels from Abdon Callais Offshore LLC.

Harvey Gulf is a New Orleans-based marine transportation company.

El Pollo holds steady

El Pollo Loco's $190 million five-year first-lien term loan was quoted at par bid, 101 offered on Thursday and its $100 million 51/2-year second-lien term loan was quoted at par bid, 101½ offered, in line with where they broke for trading during the previous session, according to a source.

The fist-lien term loan is priced at Libor plus 425 bps with a 1% Libor floor and was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

Pricing on the second-lien loan is Libor plus 850 bps with a 1% Libor floor and it was sold at a discount of 99. This debt is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the first-lien term loan was upsized from $175 million, pricing was cut from Libor plus 450 bps and the discount was tightened from 99, and the second-lien term loan was downsized from $115 million, the spread was reduced from Libor plus 900 bps and the discount was revised from 98.

The company's $305 million credit facility also includes a $15 million five-year revolver.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt.

With this deal, El Pollo Loco, a Costa Mesa, Calif.-based restaurant operator, will have first-lien leverage of 3.6 times, up from 3.3 times under the original structure, and total leverage of 5.6 times.

Gentiva changes surface

Back in the primary, Gentiva raised its six-year term loan B to $670 million from $655 million, lifted pricing to Libor plus 525 bps from talk of Libor plus 450 bps to 475 bps, increased the Libor floor to 1.25% from 1% and extended the 101 soft call protection to one year from six months, according to a market source. The original issue discount of 99 was unchanged.

Meanwhile, the five-year term loan C was decreased to $155 million from $200 million, pricing was flexed to Libor plus 450 bps from talk in the Libor plus 400 bps area, the floor was revised to 1.25% from 1% and the 101 soft call protection was extended to one year from six months, the source said. The discount on this tranche continues to be 991/2.

The company's now $925 million senior secured credit facility (B2/B) also includes a $100 million revolver.

Gentiva lead banks

Barclays, Bank of America Merrill Lynch, GE Capital Markets, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading Gentiva's credit facility.

Proceeds will be used to help fund the roughly $408.8 million acquisition of Harden Healthcare Holdings Inc., consisting of $355 million in cash and around $53.8 million of Gentiva common stock, and to refinance existing debt.

The company is also using cash on hand to fund the transaction, and the amount of that cash was increased by $30 million as a result of the reduction in the total term loan borrowings, the source added.

Closing is expected in mid-October, subject to customary conditions.

Gentiva is an Atlanta-based provider of home health and hospice services. Harden is an Austin, Texas-based provider of home health, hospice and community care services.

Insight Global reworked

Insight Global is now looking to get its $130 million tack-on first-lien covenant-light term loan due October 2019 and reprice its existing $298 million first-lien covenant-light term loan due October 2019 at Libor plus 425 bps with a 1% Libor floor, versus prior pricing of Libor plus 475 bps with a 1.25% Libor floor, according to a market source.

Furthermore, the fungible tack-on term loan and repriced loan will now have 101 soft call protection for one year, instead of keeping the prior 101 soft call protection through October 2013, the source remarked.

The tack-on term loan continues to be offered at an original issue discount of 99, and the newly added repricing debt is being offered at par.

Lead banks, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, RBC Capital Markets LLC and Wells Fargo Securities LLC, are still seeking commitments by Friday.

Proceeds from the tack-on loan will be used to refinance an existing second-lien term loan.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

Huntsman upsizes

Huntsman lifted its seven-year term loan B to $1.2 billion from $1.15 billion, firmed pricing at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, and revised the ticking fee to half the spread after 30 days and the full spread after 75 days, from half the spread after 90 days and the full spread after 120 days, according to a market source.

As before, the B loan has a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

The company is also getting a $200 million incremental 31/2-year revolver.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the deal that will be used to help fund the acquisition of Rockwood Holdings Inc.'s performance additives and titanium dioxide businesses for about $1.1 billion in cash and assume unfunded pension liabilities estimated at $225 million as of June 30 for the Rockwood businesses.

Closing is expected in the first half of 2014, subject to regulatory approvals and customary conditions.

Huntsman is a Salt Lake City-based manufacturer and marketer of differentiated chemicals.

Omnitracs releases guidance

Omnitracs hosted its bank meeting in the afternoon, launching its $290 million seven-year first-lien term loan B with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, a source said.

In addition, the company's $100 million 71/2-year second-lien term loan was presented to lenders with talk of Libor plus 800 bps with a 1% Libor floor and a discount of 981/2, the source continued.

Commitments for the $420 million senior secured credit facility, which also includes a $30 million five-year revolver, are due on Oct. 24.

RBC Capital Markets, Credit Suisse Securities (USA) LLC and Guggenheim Corporate Funding are leading the deal that will help fund the $800 million buyout of the company by Vista Equity Partners from Qualcomm Inc.

Closing is expected during the first quarter of Qualcomm's fiscal 2014, subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Omnitracs is a San Diego-based provider of satellite and terrestrial-based connectivity and position location solutions to transportation and logistics companies.

Greenway timing emerges

Greenway Medical set a bank meeting for Oct. 17 to launch its $570 million senior secured credit facility that was previously labeled as October business, according to a market source.

The facility consists of a $30 million five-year revolver, a $360 million seven-year first-lien term loan and a $180 million eight-year second-lien term loan.

While official talk is not yet out, filings with the Securities and Exchange Commission have said that the revolver and the first-lien term loan are expected at Libor plus 450 bps, with the revolver having a 37.5 bps unused fee and the term loan having a 1% Libor floor and 101 soft call protection for six months, and the second-lien term loan is expected at Libor plus 825 bps with a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Jefferies Finance LLC and BMO Capital Markets are leading the deal.

Greenway being acquired

Proceeds from Greenway's credit facility will be used with up to $650 million in equity to fund its purchase by Vitera Healthcare Solutions LLC, a Vista Equity Partners portfolio company, for $20.35 per share, or about $644 million.

A tender offer, which expires on Nov. 1, for Greenway's shares has already commenced and completion is subject to conditions, including, among others, the satisfaction of a minimum tender condition and the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Greenway is a Carrollton, Ga.-based provider of information solutions that improve the financial performance of healthcare providers. Vitera is a Tampa, Fla.-based provider of end-to-end clinical and financial technology services to health care professionals.

The combined company going forward will be known as Greenway Medical Technologies.

Akorn sets meeting

Akorn scheduled a bank meeting for Wednesday to launch its previously announced $600 million seven-year covenant-light term loan, according to a market source.

Official talk in unavailable, but filings with the Securities and Exchange Commission had the term loan expected at Libor plus 325 bps with a 1% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal.

The company's $675 million senior secured credit facility also includes a $75 million five-year ABL revolver that the filings said would be priced at Libor plus 150 bps with a 25 bps unused fee.

Proceeds, along with assumed cash, will be used to fund the acquisition of Hi-Tech Pharmacal Co. Inc. for $43.50 per share, or around $640 million, and the revolver will be available for working capital and other corporate purposes.

Closing is targeted for the first quarter of 2014, subject to customary conditions, including termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Akorn is a Lake Forest, Ill.-based niche pharmaceutical company. Hi-Tech is an Amityville, N.Y.-based specialty pharmaceutical company.

rue21 closes

In other news, the buyout of rue21 inc. by Apax Partners for $42 per share, or about $1.1 billion, has been completed, according to a news release.

For the transaction, rue21 got a new $688.5 million credit facility consisting of a $150 million five-year asset-based revolver and a $538.5 million seven-year term loan B.

Pricing on the B loan is Libor plus 462.5 bps with a 1% Libor floor and it was sold at a discount of 811/2. The debt includes 101 soft call protection for one year.

During syndication, the term B size was reduced from a revised amount of $544 million but increased from an initial amount of $533 million, the spread firmed from initial talk of Libor plus 450 bps to 475 bps, the discount finalized from revised talk of 80 to 82 and initial talk of 99, and the call protection was extended from six months.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch were the co-lead arrangers and bookrunners with Goldman Sachs Bank USA.

rue21 is a Warrendale, Pa.-based retailer of girls and guys apparel and accessories.

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