Emdeon breaks; Visteon lower on add-on news; HCA, Idearc A loans gain ground; Ginn Clubs stronger

By Sara Rosenberg

New York, Nov. 16 - Emdeon Business Services' credit facility freed for trading during Thursday's market hours, with the first-lien term loan B quoted atop par and the second-lien term loan quoted atop 101.

In other secondary news, Visteon Corp.'s term loan came under some pressure with news of an add-on transaction, HCA Inc. and Idearc saw their term loan A's rise in trading on market technicals, and Ginn Clubs & Resorts has improved with gained investor confidence on specific company sales.

Emdeon Business Services' credit facility hit the secondary market on Thursday, with the $755 million seven-year first-lien term loan B (B1/B+) quoted at par 3/8 bid, par 7/8 offered, according to a trader.

In addition, the $170 million 71/2-year second-lien term loan C (Caa1/B-) was quoted at 101¼ bid, 101¾ offered, the trader said.

The first-lien term loan B is priced at Libor plus 250 basis points, the low end of original guidance at launch of Libor plus 250 to 275 bps.

The second-lien term loan is priced at Libor plus 500 bps with call premiums of 102 in year one and 101 in year two. During syndication, pricing on this tranche was reverse flexed from the Libor plus 550 bps area.

Emdeon's $975 million credit facility also includes a $50 million six-year revolver (B1/B+) priced at Libor plus 250 bps, in line with original talk at launch.

Citigroup, Deutsche Bank and Bear Stearns acted as the lead banks on the deal that was used to help fund General Atlantic LLC's acquisition of a 52% interest in Emdeon Corp.'s Business Services business.

The transaction, which was completed Thursday, values the unit at $1.5 billion, according to Emdeon Corp., which is retaining a 48% interest.

General Atlantic contributed about $319 million in equity.

The business services segment provides revenue cycle management and clinical communication services for health care.

Emdeon is a health care business, technology and information services company based in Elmwood Park, N.J. General Atlantic is a Greenwich, Conn., private equity firm.

Visteon term loan softens

Visteon's existing term loan debt headed lower on Thursday as news that the company is trying to expand the loan facility made its way through the market, according to a trader.

The term loan closed the day quoted at par bid, par 3/8 offered, down from previous levels of par 3/8 bid, par 5/8 offered, the trader said.

Late Wednesday, the company said it is looking to raise a $100 million to a $200 million secured term loan add-on.

The incremental term loan debt will be priced in line with the existing $800 million seven-year term loan at Libor plus 300 bps.

This transaction was not formally launched with a conference call or a bank meeting, but rather the information was simply put out in the public space for people to respond to.

JPMorgan and Citigroup are the lead arrangers on the deal, with JPMorgan the administrative agent.

Proceeds from the add-on will be used to further enhance the company's liquidity as it executes its three-year plan.

Under the current loan agreement there is a $100 million accordion feature. If Visteon raises more than $100 million with this transaction it will seek required lender approvals under the term loan and its $350 million U.S. asset-based revolving credit facility.

Visteon is a Van Buren Township, Mich., automotive parts supplier.

HCA, Idearc term A's trade up

HCA and Idearc both saw their term loan A tranches strengthen by about an eight of a point for no particular reason other than market technicals, according to a trader.

HCA's $2.75 billion six-year term loan A (Ba3/BB) and Idearc's $1.5 billion term loan A (Ba2/BB+) both traded up to 99¾ bid, par offered, from previous levels of 99 5/8 bid, 99 7/8 offered, the trader said.

On Wednesday, both HCA's $8.8 billion term loan B (Ba3/BB) and Idearc's $4.75 billion term loan B (Ba2/BB+) had traded up to par 5/8 bid, par 7/8 offered, up from previous levels of par ¼ bid, par ¾ offered. The term loan B levels were unchanged on Thursday.

HCA is a Nashville, Tenn., health care services company. Idearc is the print and internet yellow pages directories business that is being spun off from Verizon Communications Inc.

Ginn Clubs better on sales outlook

Ginn Clubs & Resorts' first-lien bank debt has been moving higher over the course of the week as investors are feeling better about sales in the company's North Carolina development based on some private-side information, according to a trader.

The first-lien debt closed the session quoted at 95½ bid, 96½ offered, up a couple of points since the start of the week, the trader said.

Ginn Clubs & Resorts is a Celebration, Fla., privately held resort development and management firm.

Sally Beauty closes

The spinoff of Sally Beauty Holdings from Alberto-Culver Co. and investment by Clayton, Dubilier & Rice was completed, according to a news release.

To help fund the transaction, Sally Beauty got a new $1.47 billion senior secured credit facility consisting of a $920 million seven-year term loan B (B2/B+) at Libor plus 250 bps with a step down to Libor plus 225 bps when net secured debt to EBITDA is equal to or lower than 3.0 times, a $150 million six-year term loan A (B2/B+) at Libor plus 250 bps and a $400 million five-year asset-based revolver (Ba2/BB-) at Libor plus 150 bps.

During syndication, the term loan B was upsized from $870 million and pricing was reduced from original talk of Libor plus 275 bps with the addition of the step, and the term loan A was downsized from $200 million.

Merrill Lynch, JPMorgan, Bank of America and Morgan Stanley acted as the joint lead arrangers and joint bookrunners on the deal, with Merrill the administrative agent.

Sally Beauty is a Melrose Park, Ill., beauty supplies distribution business.

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