AMN Healthcare breaks; Centerplate readies allocations; Clopay Ames pricing to change again

By Sara Rosenberg

New York, Aug. 26 - AMN Healthcare Services Inc.'s credit facility freed up for trading during Thursday's market hours, with the term loan B, including the extended debt and the add-on, quoted a little below par.

Over in the primary market, Centerplate Inc.'s credit facility filled out since pricing on the term loan B was flexed higher, and the expectation is that the transaction will allocate and start trading on Friday.

Also, talk is that Clopay Ames True Temper Holding Corp. (Griffon Corp.) is revising terms on its institutional loan for a second time, although specifics on where the deal is shaking out are not being disclosed at this time.

AMN frees up

AMN Healthcare Services' extended and add-on term loan debt broke for trading, with levels quoted at 99 bid, 99½ offered, according to a trader.

Pricing on the term loan B (Ba2/BB) due June 2015 is Libor plus 550 basis points with a 1.75% Libor floor. There is 101 soft call protection for one year. The $78 million add-on was sold at an original issue discount of 98.

During syndication, the add-on was upsized from $68 million, and pricing on the new debt and the extended debt firmed at the high end of the initial Libor plus 525 bps to 550 bps talk.

Prior to the extension, the existing term loan B was set to expire in December 2013 and carried pricing of Libor plus 400 bps with a 2.25% Libor floor.

In addition, the company is extending its revolving credit facility to August 2014 from December 2012.

AMN getting second-lien

AMN Healthcare Services' $118 million of incremental bank debt also includes a $40 million second-lien term loan (B1/B+) due June 2016.

Pricing on the second-lien loan is Libor plus 1,000 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 97. The loan is non-callable for 1½ years, then at 103, 102, 101.

During syndication, the second-lien was downsized from $50 million when the term loan add-on was upsized, pricing moved up from the Libor plus 900 bps area, the Libor floor tightened from 2%, the discount came at the wide end of the 97 to 98 talk, and call protection was changed from non-callable for one year, then at 102, 101.

Bank of America, GE Capital and SunTrust are the lead banks on the new debt and extension, with Bank of America the left lead.

AMN refinancing debt

Proceeds from AMN Healthcare Services' incremental loans will be used to refinance Nursefinders Inc.'s $132 million of bank debt in connection with the acquisition of the company.

Funds for the actual acquisition will come from the sale of roughly 6.3 million shares of AMN common stock and about 5.7 million shares of AMN series A conditional convertible preferred stock.

The transaction is expected to close in the third quarter, subject to customary conditions, regulatory approvals and receipt of debt financing.

AMN is a San Diego-based health care staffing and workforce services company. Nursefinders is an Arlington, Texas-based provider of clinical workforce managed services programs.

Centerplate break expected Friday

Centerplate's credit facility is anticipated to allocate and hit the secondary market on Friday now that the institutional tranche is subscribed at revised talk, according to a market source.

The $314 million credit facility (B3/B+) consists of a $70 million revolver, a $50 million term loan A and a $194 million term loan B.

Pricing on the term loan B is Libor plus 850 bps with a 2% Libor floor and an original issue discount of 97. There is call protection of 102 in year one and 101 in year two.

During syndication, the spread on the term loan was increased from talk of Libor plus 625 bps to 675 bps, the discount widened from 98 and the call protection was added.

Centerplate lead banks

Macquarie, UBS and BMO Capital Markets are the lead banks on Centerplate's credit facility, with Macquarie the left lead.

Proceeds will be used to refinance existing debt and fund a dividend payment.

Centerplate is a Stamford, Conn.-based provider of food and beverage concessions, high-end catering and merchandise services in sports facilities, convention centers and other entertainment facilities.

Clopay Ames reworking loan

Pricing on Clopay Ames True Temper's $500 million six-year term loan (B2/BB) is not finalizing at the revised levels that came out around mid-August, and the new terms on the deal are not yet available, according to a market source.

Most recent talk on the term loan had been Libor plus 600 bps with a 1.75% Libor floor and original issue discount of 98.

And, prior to that, the term loan was being talked at Libor plus 450 bps to 500 bps with the same Libor floor and discount.

Goldman Sachs is the lead arranger on the term loan.

Clopay Ames revolver

Clopay Ames True Temper's $600 million credit facility also includes a $100 million four-year ABL revolver (Ba2/BB+) led by JPMorgan, which had been downsized from $150 million when pricing on the term loan was first increased.

Proceeds from the credit facility will be used to help fund the acquisition of Ames True Temper Inc. by Griffon, the parent company of Clopay Ames True Temper.

Ames True Temper is being bought from Castle Harlan Inc. for a total consideration of $542 million.

The transaction is expected to close by Sept. 30.

Griffon is a New York-based manufacturing company. Ames True Temper is a Camp Hill, Pa.-based manufacturer and marketer of non-powered lawn and garden tools, wheelbarrows and other outdoor work products.

RCN closes

In other news, ABRY Partners completed its buyout of RCN Corp. on Thursday for $15 per share in cash, according to an 8-K filed with the Securities and Exchange Commission.

To help fund the transaction, RCN Cable got a new $600 million credit facility (B1/B) and RCN Metro Fiber got a new $265 million credit facility (B2/B).

SunTrust, GE Capital and Société Générale acted as the bookrunners on the RCN Cable deal, with SunTrust the left lead and the administrative agent.

And, SunTrust acted as the lead arranger and bookrunner on the RCN Metro Fiber facility.

RCN facilities details

The RCN Cable credit facility consists of a $560 million six-year term loan B priced at Libor plus 450 bps with a 2% Libor floor, and a $40 million five-year revolver. The term loan B has 101 soft call protection for one year and was sold at an original issue discount of 981/2,

During syndication, pricing on the RCN Cable term loan B was flexed up from Libor plus 375 bps, the floor was increased from 1.75%, the discount widened from 99 and the call protection was added.

Meanwhile, the Metro Fiber deal consists of a $240 million six-year term loan priced at Libor plus 450 bps with a 2% Libor floor, and a $25 million five-year revolver. The term loan was sold at an original issue discount of 981/2.

In connection with the buyout, RCN, a Herndon, Va.-based broadband services provider, repaid its existing credit facility in full.

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