Aveta term loan, LifePoint add-on break in upper pars, low 101s; Delphi revolver heads higher

By Sara Rosenberg

New York, Aug. 23 - Aveta Holdings LLC's credit facility and LifePoint Hospitals Inc.'s term loan add-on freed up for trading on Tuesday, with levels on both companies' institutional debt ending the session wrapped around 101.

Also in secondary doings, Delphi Corp.'s revolving credit facility posted some gains during trading hours Tuesday, while its term loan remained relatively steady.

Aveta's $420 million six-year term loan broke for trading with levels quoted at par ¾ bid, 101¼ offered on the open until the close, according to a trader, who said that trades basically took place on either side of 101 throughout market hours.

The term loan is priced with an interest rate of Libor plus 350 basis points. Originally, the term loan was sized at $400 million and talked at Libor plus 375 to 400 basis points, but was upsized and reverse flexed during syndication on strong demand.

Aveta's $440 million credit facility (B2/B-) also contains a $20 million five-year revolver with an interest rate of Libor plus 350 basis points.

Bear Stearns is the lead bank on the Aveta deal that will be used to help fund MMM Healthcare's acquisition of NAMM (with Aveta being the holding company for the merged entity), refinance MMM debt and pay a dividend to MMM shareholders. Proceeds from the $20 million term loan upsizing will be used to increase the size of the dividend payment being made.

MMM is the largest Medicare advantage provider in Puerto Rico. NAMM is a provider of outsourced medical management in California and Illinois.

LifePoint add-on breaks

LifePoint Hospitals' $150 million term loan B add-on (Ba3/BB) freed up for trading Tuesday, with levels quoted at par ¾ bid, 101¼ offered by day's end - right on top of where the company's existing term loan debt was trading, according to a trader.

The add-on is priced with an interest rate of Libor plus 162.5 basis points, which is in line with pricing on the company's existing term loan B debt.

LifePoint first came to market with this add-on in June but quickly pulled it that same month. The deal then resurfaced a little less than two weeks ago with the same terms as were originally planned.

Citigroup acted as the lead bank on the deal that closed Tuesday and will be used for general corporate purposes including repayment of revolving loans that were incurred to finance the acquisition of Danville Regional Medical Center.

The company got the incremental bank debt under an accordion feature that was part of its existing credit agreement.

LifePoint Hospitals is a Brentwood, Tenn., hospital company focused on providing health care services in non-urban communities.

Delphi revolver trades up

Delphi's revolving credit facility was stronger during Tuesday's session with levels quoted at 96 bid, 96¼ offered, according to a trader who placed the paper up by about a quarter to a half a point for no particular reason other than market technicals.

On Monday, a different source had the revolver quoted at 95 bid, 96 offered, down by about half a point because some banks were said to have been selling the paper.

"I don't think the bid ever got that low. It was more like 95½ bid, 96½ offered yesterday," the trader argued.

As for Delphi's term loan, that remained basically unchanged during market hours with levels quoted around 103 1/8 bid, 103 5/8 offered, the trader added.

Earlier this month, both the revolver and the term loan suffered some losses after the company revealed that it drew $1.5 billion under its revolver in order to have cash readily available to finance operations if needed.

But, Delphi's bank levels have been steadily inching their way higher as investors have gotten more comfortable with the idea of a General Motors Corp. financial bailout and started considering a potential Chapter 11 filing as less and less likely.

Delphi is a Troy, Mich., supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology to vehicle manufacturers.

HIT cuts first-, second-lien spreads

HIT Entertainment plc reverse flexed pricing on its first- and second-lien term loans while at the same time adding 101 soft call protection for one year to the first-lien term loan tranche, according to a market source.

More specifically, the $376 million seven-year term B (B1/B) is now priced with an interest rate of Libor plus 225 basis points compared to original price talk of Libor plus 250 basis points, and the $172 million 71/2-year second-lien term loan (B2/CCC+) is now priced at Libor plus 550 basis points compared to original price talk of Libor plus 575 to 600 basis points, the source said.

The second-lien term loan is, and has been since launch, non-callable for one year, and then callable in year two at 102 and callable in year three at 101.

HIT added the second-lien tranche earlier this month after the decision was made to pull its previously planned $172 million eight-year senior subordinated note offering.

The company's $625 million credit facility also contains a $77 million six-year revolver (B1/B) with an interest rate of Libor plus 225 basis points. Pricing on this tranche was left unchanged throughout syndication.

Allocations on the deal are expected to go out on Wednesday, the source added.

Merrill Lynch and Deutsche Bank are the lead banks on the deal, with Merrill the left lead on the revolver and term loan B and Deutsche the left lead on the second-lien term loan.

Proceeds from the credit facility will be used to help fund Apax Partners' leveraged buyout of the company.

HIT Entertainment is a London-based producer of children's television programming, including "Barney and Friends" and "Bob the Builder."

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