IDC, Fidelity break; Calumet rises; SonicWALL reworks deal; Bryant & Stratton floats talk

By Sara Rosenberg

New York, July 12 - Interactive Data Corp.'s credit facility freed up for trading during Monday's session, with the term loan seen above its original issue discount price, and Fidelity National Information Services Inc.'s term loan broke as well, with levels quoted atop par.

In more trading happenings, Calumet Specialty Products Partners LP' strip of institutional bank debt headed higher after the company announced plans for a paydown.

Moving to the primary, SonicWALL Inc. came out with a number of changes to its first- and second-lien term loans, including flexing pricing higher, increasing the Libor floor and widening the original issue discount.

Also, Bryant & Stratton College started circulating pricing guidance on its credit facility ahead of the scheduled mid-week launch, but has left the original issue discount as still to be determined.

Interactive Data frees up

Interactive Data's credit facility hit the secondary market on Monday, with the $1.3 billion term loan quoted at 98 bid, 98½ offered on the break and then moving up to 98½ bid, 99 offered, according to traders.

Pricing on the term loan is Libor plus 500 basis points with a 1.75% Libor floor, and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

During syndication, the term loan spread was increased from Libor plus 475 bps and the discount was lifted from 98.

The company's $1.46 billion senior secured credit facility (Ba3/B+) also includes a $160 million revolver.

Bank of America, Barclays Bank, Credit Suisse and UBS Investment Bank are the lead banks on the deal, with Bank of America the left lead.

Interactive Data selling notes

In addition to the credit facility, Interactive Data is planning $700 million of eight-year senior notes. The roadshow for the bonds is scheduled to kick off on Tuesday.

Proceeds from credit facility and the notes, along with up to $1.31 billion of equity, will be used to fund the buyout of the company by Silver Lake and Warburg Pincus for $33.86 in cash per share. The transaction has a total value of $3.4 billion.

Completion of the transaction is expected in early August, following regulatory approvals and other customary conditions.

Interactive Data is a Bedford, Mass.-based provider of financial market data.

Fidelity National breaks

Another deal to start trading on Monday was Fidelity National Information Services' $1.5 billion six-year term loan B (Ba1/BBB-/BB+), with levels quoted by one trader at par 3/8 bid, par 5/8 offered, by a second trader at par ¼ bid, par ¾ offered and by a third trader at par ½ bid, par 5/8.

Pricing on the term loan B is Libor plus 375 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99.

During syndication, the loan was upsized from $1.4 billion as the company's bonds were downsized to $1.1 billion from $1.2 billion, pricing was reduced from Libor plus 400 bps, and the original issue discount firmed at the low end of the initial 98½ to 99 guidance.

JPMorgan and Bank of America are the lead banks on the loan that will be used, along with the notes, to help fund the company's repurchase of up to $2.5 billion of its common stock, and refinance an existing term loan B.

Fidelity National is a Jacksonville, Fla.-based provider of financial institution core processing and card-issuer and transaction-processing services.

Calumet up with repayment news

Calumet Specialty Products Partners' strip of term loan and letter-of-credit facility debt was stronger in trading following news of an expected paydown, according to a trader.

The strip of debt was quoted at 97½ bid, 99¾ offered, up from 89½ bid, 91½ offered, the trader said.

On Monday morning, the company announced that it will repay its senior secured term loan in full and some existing revolving credit facility borrowings with proceeds from a $450 million senior unsecured notes offering.

Also, the company is in market with a new $375 million ABL revolver that is being talked at Libor plus 325 bps and will be used to replace the existing revolver.

Bank of America and JPMorgan are the lead banks on the new revolver for the Indianapolis-based producer and seller of specialty hydrocarbon products.

SonicWALL tweaks pricing

Switching to the primary, SonicWALL reworked its $275 million credit facility by sweetening pricing, the Libor floor and the original issue discount, according to a market source.

Under the changes, the $15 million revolver (Ba3/BB-) and $155 million 51/2-year first-lien term loan (Ba3/BB-) are now priced at Libor plus 625 bps, up from Libor plus 500 bps, the source said.

And, the $105 million 61/2-year second-lien term loan is now priced at Libor plus 1,000 bps, up from Libor plus 900 bps, the source said.

The Libor floor on all tranches was increased to 2% Libor floor from 1.75%, and the original issue discount all tranches was lifted to 97 from 98, the source continued.

SonicWALL revises call premiums

On top of the pricing changes, SonicWALL also modified call protection on its term loans and the first-lien loan's initial excess cash flow sweep, the source remarked.

The first-lien term loan now includes 101 soft call protection for one year, whereas before there was no call protection.

And, call protection on the second-lien term loan was revised to non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, from 103 in year one, 102 in year two and 101 in year three.

Lastly, the initial excess cash flow sweep under the first-lien loan was increased to 75% from 50%, the source remarked.

SonicWALL looking to wrap this week

Credit Suisse is the lead bank on SonicWALL's credit facility and is asking for commitments by 2 p.m. ET on Friday, the source added.

Proceeds will be used to help fund the acquisition of the company by Thoma Bravo LLC and Ontario Teachers' Pension Plan for $11.50 per share in cash. The transaction is valued at about $717 million.

Other funding will come from $280 million of equity and cash on hand.

Closing is expected to take place in the company's fiscal quarter ending Sept. 30 or early in the fiscal quarter ending Dec. 31, subject to regulatory approval and shareholder approval - which will be sought at a special meeting on July 23. The transaction is not subject to a financing condition.

SonicWALL is a San Jose, Calif.-based provider of IT security and data backup and recovery services.

Bryant & Stratton reveals talk

Bryant & Stratton College started telling lenders pricing guidance on its proposed $220 million five-year senior secured credit facility in preparation for the deal's bank meeting launch at 10 a.m. ET on Wednesday, according to a market source.

Both the $40 million revolver and the $180 million term loan B are being talked at Libor plus 500 bps to 525 bps with a 1.5% Libor floor, the source said.

The original issue discount on the deal, however, will not come out until the bank meeting, the source added.

GE Capital and Bank of America are the lead banks on the deal.

Bryant & Stratton refinancing debt

Proceeds from Bryant & Stratton College's credit facility will be used to refinance existing senior and mezzanine debt associated with the company's buyout in February 2008 by Parthenon Capital Partners.

In addition, proceeds will go towards the payment of a dividend payment to the sponsor/co-investors.

Pro-forma leverage for the transaction is 2.92 times senior and total.

Earlier this month, the issuer secured corporate ratings of B1/B+ with a stable outlook.

Bryant & Stratton College is a for-profit provider of post-secondary education with a network of 16 campuses in New York, Ohio, Virginia and Wisconsin, as well as online.

CKE closes

In other news, Apollo Global Management completed its buyout of CKE Restaurants Inc. for $12.55 in cash per share, according to a news release.

To help fund the transaction, CKE got a new $100 million senior secured revolving credit facility (BB-).

Morgan Stanley, Citigroup and RBC acted as the lead banks on the deal.

CKE is a Carpinteria, Calif., owner of Carl's Jr. and Hardee's quick-service restaurant chains.

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