Greenway, Town Sports, Microsemi break; Blackboard B-2 dips; Garda, Vince, Genesys reworked

By Sara Rosenberg

New York, Nov. 1 - Greenway Medical Technologies Inc.'s first- and second-lien credit facility freed up for trading on Friday, and Town Sports International LLC and Microsemi Corp. hit the secondary market as well.

In other trading news, Blackboard Inc.'s term loan B-2 softened as details came out on the company's repricing transaction, and Amneal Pharmaceuticals LLC's term loan inched up from its recent breaking levels.

Moving to the primary, Garda World Security Corp. updated its term B size and coupon, Vince Intermediate Holding LLC raised pricing on its term loan and extended the call protection, and Genesys Telecommunications Laboratories Inc. increased the spread on its loan.

In addition, American Beacon Advisors Inc., Alvogen Pharma U.S. Inc. and North Atlantic Trading Co. Inc. revealed that they are getting ready to bring new deals to market.

Greenway starts trading

Greenway Medical's credit facility emerged in the secondary market on Friday, with the $360 million seven-year first-lien term loan quoted at 99½ bid, par ½ offered and the $180 million eight-year second-lien term loan quoted at 99½ bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 500 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor and was sold at a discount of 981/2. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was increased from Libor plus 450 bps and the call protection was extended from six months, the discount on the second-lien loan was tightened from 98, and 18 month MFN sunset was removed from the credit agreement.

The company's $570 million senior secured credit facility also provides for a $30 million five-year revolver.

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

Greenway funding buyout

Proceeds from Greenway's credit facility, along with up to $650 million in equity, will be used to fund its acquisition by Vitera Healthcare Solutions LLC, a portfolio company of Vista Equity Partners, for $20.35 per share, or about $644 million. The combined company going forward will be known as Greenway Medical Technologies.

Closing is subject to satisfaction of a minimum tender condition for Greenway's shares 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 services that improve the financial performance of health care providers. Vitera is a Tampa, Fla.-based provider of end-to-end clinical and financial technology services to health care professionals.

Town Sports frees up

Town Sports' credit facility was another deal to break, with the $325 million seven-year term loan seen at par bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor and it was sold at a discount of 991/2. The debt includes 101 soft call protection for six months.

A few days ago, pricing on the term loan firmed at the low end of the Libor plus 350 bps to 375 bps talk and the discount was changed from 99.

The company's $370 million senior secured credit facility (Ba3/B+) also provides for a $45 million five-year revolver.

Deutsche Bank Securities Inc. and KeyBanc Capital Markets Inc. are leading the deal that will be used to refinance an existing $50 million revolver due May 11, 2016 and a roughly $315.7 million term loan due May 11, 2018.

Closing is expected to take place in mid-November.

Town Sports is a New York-based owner and operator of fitness clubs.

Microsemi hits secondary

Microsemi's $150 million term loan B-2 due Feb. 19, 2020 freed up for trading too, with levels quoted at par ¼ bid, par ¾ offered, a market source said.

Pricing on the term loan is Libor plus 275 bps with a 0.75% Libor floor and it was issued at par. There is 101 soft call protection for six months.

Recently, the Libor floor was reduced from 1%, the offer price firmed at the tight end of the 99½ to par talk, the call protection was extended from a February 2014 expiration date, and the loan was separated so as not to be fungible with the company's existing term loan B that is priced at Libor plus 275 bps with a 1% Libor floor.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to partially fund the acquisition of the Symmetricom Inc. for $7.18 per share, or about $230 million.

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor services. Symmetricom is a San Jose, Calif.-based company that generates, distributes and applies precise time for the communications, aerospace/defense, IT infrastructure and metrology industries.

Blackboard retreats

Also in trading, Blackboard's term loan B-2 fell to par 3/8 bid, par 7/8 offered from par ½ bid, 101 offered as the company launched with its call on Friday morning a repricing of the debt through the obtainment of a new term loan B-3, according to a trader.

The $867.2 million term loan B-3 (B+) is talked at Libor plus 375 bps with a 1% to 1.25% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months, a source said.

By comparison, the term loan B-2 is priced at Libor plus 475 bps with a 1.5% Libor floor.

Lead banks, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc., are asking for commitments by noon ET on Thursday, the source added.

Blackboard is a Washington, D.C.-based provider of enterprise software applications and related services to the education industry.

Amneal rises

Amneal Pharmaceuticals' $415 million six-year term loan B (B2/B) was seen at par bid, par ½ offered on Friday, up from the 99¾ bid, par ¼ offered level that emerged when the loan broke for trading during the prior session, according to a market source.

Pricing on the term loan is Libor plus 475 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

During syndication, the B loan was downsized from $475 million, pricing was increased from talk of Libor plus 400 bps to 425 bps, and the incremental allowance was revised to $55 million plus unlimited up to 3.75 times net senior leverage from $90 million plus unlimited up to 4.5 times net senior leverage.

The company's $475 million senior secured credit facility also includes a $60 million five-year ABL revolver that was reduced from $90 million during syndication, and saw its incremental allowance lowered to the lessor of $30 million from the lessor of $60 million, or ABL up to 1 times EBITDA.

GE Capital Markets and RBS Securities Inc. are leading the deal that will be used by the Bridgewater, N.J.-based manufacturer of generic pharmaceuticals to refinance debt and fund a dividend.

Senior leverage is 3.8 times and total leverage is 4 times.

Garda restructures

Over in the primary, Garda World Security downsized its U.S. seven-year term loan B to $525 million from a recently revised amount of $600 million, bringing it back in line with original size talk, and reduced pricing to Libor plus 300 bps from modified talk of Libor plus 375 bps and initial talk of Libor plus 325 bps, according to a market source.

Furthermore, pricing on the company's C$150 million seven-year term loan B was changed to BA plus 375 bps, in line with talk at launch but down from recently modified talk of BA plus 425 bps, the source said.

Both term loans still have a 1% floor, an original issue discount of 99½ and 101 soft call protection for one year, which was extended from six months the other day.

The company's roughly $825 million senior secured credit facility (Ba3/B+) also includes a $150 million five-year revolver.

RBC Capital Markets LLC, Bank of America Merrill Lynch, TD Securities (USA) LLC and Mizuho Securities USA Inc. are leading the deal.

Garda trims notes

With the credit facility, Garda is getting $300 million of 7¼% notes that were downsized from a revised amount of $425 million of notes, but are in line with the originally planned amount, the source continued.

Proceeds will be used will be used to refinance existing credit facility debt and senior unsecured notes due 2017 and fund the C$110 million acquisition of G4S Cash Solutions.

Due to the company's decision to cancel its previously announced upsizings, plans for a dividend were terminated.

Closing on the acquisition is expected before the end of this year, subject to customary conditions including regulatory approvals.

Garda is a Montreal-based provider of business and security services. G4S Cash is a provider of risk management and secure transit of valuables such as currency, diamonds, jewelry and more.

Vince revises loan

Vince Intermediate lifted pricing on its $175 million six-year term loan B (B2/B) to Libor plus 500 bps from talk of Libor plus 425 bps to 450 bps and pushed out the 101 soft call protection to one year from six months, according to a market source.

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

Commitments were due at 4 p.m. ET on Friday, the source remarked.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Vince is a New York-based diversified apparel company.

Genesys flexes up

Genesys Telecommunications Laboratories raised the spread on its $300 million term loan (B2/B) to Libor plus 350 bps from the Libor plus 325 bps area, while keeping the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months intact, according to a market source.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Citigroup Global Markets Inc. and RBC Capital Markets are leading the deal.

Proceeds will be used to refinance existing debt and fund the acquisition of Echopass Corp., which is expected to close this quarter.

Genesys is a Daly City, Calif.-based provider of customer engagement and contact center services. Echopass is a Pleasanton, Calif.-based application service provider offering web-based telephone and internet customer support services.

American Beacon plans loan

American Beacon Advisors set a bank meeting for Monday afternoon to launch a $170 million six-year term loan that is being led by J.P. Morgan Securities LLC, according to sources.

Proceeds will be used to refinance existing debt.

American Beacon Advisors is a Fort Worth, Texas-based provider of investment advisory services to institutional and retail markets.

Alvogen sets call

Alvogen Pharma scheduled a conference call for 11 a.m. ET on Tuesday to launch a $60 million add-on term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal.

Alvogen is a Pine Brook, N.J.-based pharmaceuticals company.

North Atlantic coming soon

North Atlantic Trading plans to hold a bank meeting during the week of Nov. 4 to launch a $205 million six-year term loan B, according to a market source.

Wells Fargo Securities LLC is leading the deal that will be used to refinance second-lien notes.

North Atlantic Trading is a Louisville, Ky.-based manufacturer and marketer of tobacco products.

Penn National closes

In other news, Penn National Gaming Inc. completed its $1.25 billion senior secured credit facility (Ba1/BB+) that includes a $500 million five-year revolver, a $500 million five-year term loan A and a $250 million seven-year term loan B, a news release said.

Pricing on the revolver and term A is Libor plus 200 bps, and the term B is priced at Libor plus 250 bps with a 0.75% Libor floor and it was sold at a discount of 991/2. The B loan has 101 soft call protection for six months.

During syndication, the term B was flexed from talk of Libor plus 275 bps to 300 bps and the Libor floor was reduced from 1%.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC led the deal that is being used with $300 million in notes to fund future expansion, development and renovation projects and acquisitions.

The company got the facility in connection with its spin-off to its shareholders of substantially all its real property assets through the distribution of shares of common stock of its subsidiary, Gaming and Leisure Properties Inc.

Penn National is a Wyomissing, Pa.-based owner and operator of gaming and racing facilities.

Gaming and Leisure wraps

As the spin-off from Penn National was completed, Gaming and Leisure Properties closed on its $1 billion five-year senior unsecured credit facility (Ba1/BBB-) that consists of a $700 million revolver and a $300 million term loan A, according to a news release.

Initial pricing on the facility is Libor plus 175 bps with the revolver having a 30 bps unused fee. Pricing is expected to fall to Libor plus 150 bps and the unused fee is expected to drop to 25 bps three months after the closing date, assuming the credit facility ratings are maintained.

Proceeds from the credit facility and $2.05 billion in senior unsecured notes were used to refinance about $2.7 billion of Penn's existing debt, redeem about $417.5 million of conversion shares from Fortress Investment Group, pay a roughly $487 million earnings and profits dividend in cash and pay around $125 million in transaction expenses.

Gaming and Leisure Properties is a Wyomissing, Pa.-based owner, acquirer, developer, manager and leaser of gaming and related facilities.

Dole completes buyout

The purchase of Dole Food Co. Inc. by chairman and chief executive officer David H. Murdock for $13.50 in cash per share, or about $1.6 billion has closed, according to a news release.

For the transaction, Dole got a new $925 million senior secured credit facility consisting of a $175 million five-year ABL and a $750 million five-year covenant-light term loan B (B2/B-).

Pricing on the revolver is Libor plus 175 bps, and pricing on the term loan B is Libor plus 350 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. The B loan has 101 soft call protection for six months.

During syndication, the revolver was upsized from $150 million and the term loan B was upsized from a revised amount of $725 million and an initial amount of $675 million. Also, term B pricing was lowered from Libor plus 375 bps, the discount was changed from 99 and the maturity was shortened from seven years.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Scotia Capital led the deal.

Dole is a Westlake Village, Calif.-based fruit and vegetable company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.