Spansion, MedAssets, Sidera break; SunGard, MGM shutting early; Riverbed revises deal

By Sara Rosenberg

New York, Dec. 11 - Spansion Inc., MedAssets Inc. and Sidera Networks Inc. saw their credit facilities make their way into the secondary market on Tuesday, and Tribune Co.'s bank debt headed higher as rumors surfaced that the company may be looking into selling newspaper assets after its Chapter 11 reorganization is completed.

Over in the primary, SunGard Data Systems Inc. and MGM Resorts International moved up the commitment deadlines on their term loan Bs, and Riverbed Technology Inc. upsized its B loan while also trimming the coupon.

In addition, Quintiles Transnational Corp., LIN Television Corp. and PRV Aerospace LLC set the offer prices on their deals, Sorenson Communications Inc. began syndicating a new term loan B that is expected to price in the next few days, and Biomet Inc. is getting ready to bring an add-on loan to market.

Spansion frees up

Spansion's credit facility broke for trading on Tuesday, with the $219 million six-year term loan quoted at 99¾ bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 400 basis points, after firming recently at the wide end of the Libor plus 375 bps to 400 bps talk. The loan has a 1.25% Libor floor and 101 soft call protection for one year, and was sold at an original issue discount of 991/2.

The company's $269 million senior secured covenant-light credit facility also includes a $50 million five-year revolver.

Barclays and Morgan Stanley Senior Funding Inc. are the lead banks on the deal that will be used to refinance an existing credit facility.

Senior secured leverage is 1.5 times, and total leverage is 2.8 times.

Spansion is a Sunnyvale, Calif.-based semiconductor device company principally dedicated to designing, manufacturing, marketing, licensing and selling NOR Flash memory technology.

MedAssets starts trading

MedAssets' credit facility also freed up, with the $300 million seven-year term loan B quoted at par bid, par ½ offered, according to a trader.

Pricing on the B loan is Libor plus 275 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the term loan B was downsized from $350 million, pricing came down from talk of Libor plus 300 bps to 325 bps and an MFN sunset provision was removed.

The company's $700 million credit facility (Ba3/BB-) also provides for a $150 million five-year revolver and a $250 million five-year term loan A.

J.P. Morgan Securities LLC and Barclays are leading the deal that will take out existing bank debt.

MedAssets is an Alpharetta, Ga.-based provider of technology-enabled products and services designed to improve operating margins and cash flow for hospitals and health systems.

Sidera tops OID

Another deal to begin trading was Sidera Networks, with its $325 million six-year term loan B quoted at par bid, par ¼ offered, according to a market source.

Pricing on the loan is Libor plus 450 bps with a 1.5% Libor floor, after flexing up from talk of Libor plus 400 bps to 425 bps with a 1.25% Libor floor, the source said. The debt was sold at an original issue discount of 99½ and has 101 soft call protection for one year.

The company's $375 million credit facility (B2/B) also includes a $50 million five-year revolver.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance an existing credit facility.

Sidera is a New York-based provider of dark fiber, colocation and advanced network services.

Tribune gains ground

Also in the secondary, Tribune's loans were stronger with chatter that following emergence from bankruptcy, the company may look to sell its newspaper assets, according to a trader.

The term loan B, incremental loan and term loan X were all quoted at 83½ bid, 84½ offered, up from 82½ bid, 83½ offered, and the revolver was quoted at 86 bid, 88 offered, up from 85 bid, 86 offered, the trader said.

Tribune, a Chicago-based media company, filed for bankruptcy on Dec. 8, 2008. The anticipation is that the reorganization process may be completed by year-end.

BWIC emerges

A $284 million loan Bid-Wanted-In-Competition was announced in the morning, and market participants are being asked to place their bids by 11 a.m. ET on Wednesday, according to a trader.

Some of the larger pieces of debt being offered include Biomet's extended U.S. term loan, Catalina Marketing's initial term loan, Community Health's extended term loan, Dollar General's term loan B-1, First Data's 2017 extended term loan B and 2018 extended dollar term loan, Gatehouse Media's initial term loan, Levi Strauss' loan, Nuveen Investments' extended term loan and extended term loan B, ServiceMaster's closing date loan, Univision's extended first-lien term loan and Veyance Technologies' initial term loan.

The portfolio is made up of about 60 issuers, the trader added.

SunGard ups deadline

Moving to the primary, SunGard Data Systems accelerated the commitment deadline on its $720 million seven-year incremental term loan B (Ba3/BB) to noon ET on Wednesday from Thursday, according to a market source.

The term loan B is talked at Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 991/2, and includes 101 soft call protection for one year.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Barclays Capital Inc., Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to fund a dividend to shareholders.

With this transaction, the company is seeking an amendment to its existing credit facility to permit the dividend, and lender consents are due at noon ET on Wednesday as well, also moved from Thursday.

SunGard is a Wayne, Pa.-based software and technology services company.

MGM revises timing

MGM Resorts is shutting the books on its $1.5 billion seven-year term loan B early, resetting the commitment deadline to Thursday from Monday, according to a market source.

Price talk on the B loan is Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year.

The company's $4 billion senior secured credit facility (Ba2/BB) also includes a $1.25 billion five-year revolver and a $1.25 billion five-year term loan A, with both of these tranches talked at Libor plus 300 bps with no Libor floor.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are the joint physical books on the deal and joint lead arrangers with Barclays Capital Inc. and J.P. Morgan Securities LLC.

MGM repaying debt

Proceeds from MGM Resorts' credit facility will be used to fund a tender offer for its existing notes and repay existing credit facility borrowings.

Other funds for the refinancing will come from $1.25 billion of new senior notes that were upsized from $1 billion and cash on hand.

As a result of the notes upsizing, the amount to be borrowed under the new revolver was reduced.

MGM Resorts is a Las Vegas-based hospitality company, operating a portfolio of destination resort brands.

Riverbed reworks loan

Riverbed Technology, a San Francisco-based IT performance company, made changes to the size and pricing on its seven-year senior secured term loan B (Ba3/BBB-) and accelerated the commitment deadline to noon ET on Wednesday from Thursday, a market source said.

The loan now totals $575 million, up from $500 million, pricing is Libor plus 300 bps, down from talk of Libor plus 325 bps to 350 bps, and 101 soft call protection for one year was added, the source remarked. There is still a 1% Libor floor and an original issue discount of 991/2.

Morgan Stanley Senior Funding Inc. and Goldman Sachs & Co. are leading the deal that will help fund the acquisition of Opnet Technologies Inc., a Bethesda, Md.-based provider of solutions for application and network performance management, for $36.55 in cash and 0.2774 of a share of Riverbed common stock per Opnet share. The transaction has an equity value of $1 billion.

The funds raised through the term loan upsizing will be used to add cash to the balance sheet and for general corporate purposes, the source added.

Closing is expected by year-end, subject to a majority of Opnet shares being tendered, financing and Hart-Scott-Rodino.

Quintiles reveals offer price

Also on the primary front, Quintiles held a call in the morning to launch its $1,975,000,000 term loan B-2 (BB-) due June 2018, and an offer price on the debt was announced at 99¾ to par, according to sources.

Prior to the call, price talk on the loan came out at Libor plus 325 bps with a 1.25% Libor floor, and there is 101 soft call protection for one year.

J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal.

Proceeds will be used to refinance an existing term loan B.

Quintiles is a Durham, N.C.-based biopharmaceutical services company.

LIN launches

LIN Television is shopping its roughly $258 million term loan B (Ba2/BB-) due December 2018 with an offer price of 99¾ to par, according to a market source.

Price talk on the loan, which launched with a call on Tuesday, was announced previously at Libor plus 325 bps with a 1% Libor floor, and there is 101 soft call protection for one year.

Proceeds will be used to reprice the company's existing term loan B.

J.P. Morgan Securities LLC is leading the deal for the Providence, R.I.-based broadcaster.

PRV discloses OID

PRV Aerospace launched in the morning its $27 million add-on to its term loan B with an original issue discount of 991/2, according to a market source.

Pricing on the add-on is Libor plus 525 bps with a 1.25% Libor floor, in line with existing term loan B pricing, the source said.

GE Capital Markets is leading the deal that will be used to support an acquisition.

PRV Aerospace is an Everett, Wash.-based aerospace and defense group.

Sorenson term B

Sorenson Communications revealed that it is seeking a $200 million seven-year term loan B (B3/B) and $400 million of first-lien senior secured notes, and all of the debt is expected to price either on Friday or on Monday, according to market sources.

J.P. Morgan Securities LLC, Goldman Sachs & Co. and Deutsche Bank Securities Inc. are leading the financing.

Proceeds will be used to repay an existing term loan and fund the cash portion of a notes exchange offer. The company is looking to exchange up to $635 million of 12% 11/2-lien notes due 2020 for its $735 million 10½% second-lien notes due 2015, and will make a $100 million cash payment on a pro-rata portion of the notes exchanged at par.

With the news, the existing term loan was quoted in trading at 99¾ bid, par ¼ offered, up from 99 bid, par offered on Monday, another source added.

Sorenson is a Salt Lake City-based provider of Video Relay telecommunication and interpreting, and CaptionCall telephone service for deaf and the hard-of-hearing.

Biomet plans add-on

Biomet will be holding a conference call on Wednesday to launch a $250 million add-on term loan that is priced at Libor plus 375 bps, according to a market source. The spread matches existing extended term loan pricing.

Bank of America Merrill Lynch is the left lead on the deal that will be used to repay non-extended term loan borrowings.

Biomet is a Warsaw, Ind.-based designer, manufacturer and marketer of products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy.

Cunningham Lindsay closes

In other news, the buyout of Cunningham Lindsey Group Ltd. by an investment group led by CVC Capital Partners from Stone Point Capital has been completed, according to a news release.

For the transaction, Cunningham Lindsay got a new $660 million credit facility, consisting of a $140 million five-year revolver (Ba3/B), a $410 million seven-year covenant-light term loan B (Ba3/B) and a $110 million 71/2-year covenant-light second-lien term loan (B3/B-).

Pricing on the first-lien loan is Libor plus 375 bps and the second-lien term loan is priced at Libor plus 800 bps. Both tranches have a 1.25% Libor floor and were sold at a discount of 99.

During syndication, the first-lien term loan was upsized from $395 million and pricing was reduced from talk of Libor plus 400 bps to 425 bps. Also, the second-lien term loan was downsized from $125 million, pricing came at the tight end of the Libor plus 800 bps to 825 bps talk and the discount tightened from guidance of 98 to 981/2.

Cunningham call premiums

Cunningham Lindsay's first-lien term loan has 101 soft call protection for one year and the second-lien term loan has hard call protection of 103 in year one, 102 in year two and 101 in year three.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., RBC Capital Markets and UBS Securities LLC led the deal.

Cunningham Lindsey is a Tampa, Fla.-based provider of independent loss adjusting and claims management services.

NXP loan wraps

NXP Semiconductors NV closed on its $500 million incremental senior secured term loan C (B2/B+) due January 2020 that is being used to fund a tender for up to $500 million of the company's 9¾% senior secured notes due 2018, according to a news release.

Pricing on the loan is Libor plus 350 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99½ after tightening during syndication from 99. The debt is non-callable for one year, then have 101 hard call protection in year two.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs & Co acted as the lead arrangers and bookrunners on the deal. Barclays is the administrative agent.

NXP is an Eindhoven, Netherlands-based maker of semiconductors.

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