Jacuzzi breaks; HealthSouth lower on repricing; GM trades down; Masterplan, Reliant set talk

By Sara Rosenberg

New York, Feb. 20 - In trading news Tuesday, Jacuzzi Brands Inc.'s credit facility freed for trading, HealthSouth Corp.'s term loan B softened slightly on the emergence of a repricing proposal and General Motors Corp.'s term loan weakened on Chrysler merger rumors.

Meanwhile, on the primary side of things, both Masterplan Inc. and Reliant Pharmaceuticals Inc. released price talk on their in-market deals now that ratings have been announced.

Jacuzzi Brands' credit facility allocated and broke for trading on Tuesday, with the strip of institutional first-lien bank debt quoted at par 5/8 bid, 101 1/8 offered and the second-lien term loan quoted at par 7/8 bid, 101 3/8 offered, according to a market source.

The strip of institutional first-lien bank debt is comprised of a $170 million seven-year term loan B (B1/B) and a $15 million synthetic letter-of-credit facility (B1/B), with both tranches priced at Libor plus 225 basis points. During syndication, the first-lien term loan B was upsized from $135 million and pricing on the two institutional tranches was lowered from original talk of Libor plus 275 bps.

The $150 million 71/2-year second-lien term loan (B3/CCC+) is priced at Libor plus 600 bps. During syndication, this tranche was downsized from $185 million and pricing was reverse flexed from original talk of Libor plus 650 bps.

Jacuzzi's $450 million credit facility also includes a $115 million six-year asset-based revolver priced at Libor plus 150 bps.

Credit Suisse, Bank of America and UBS acted as the lead banks on the deals.

Proceeds are being used to help fund Apollo Management LP's recently completed leveraged buyout of the company.

Jacuzzi Brands is a West Palm Beach, Fla., manufacturer and distributor of branded bath and plumbing products for the residential, commercial and institutional markets.

HealthSouth dips with repricing

HealthSouth's term loan B was a bit weaker during trading hours as the company announced plans to approach lenders with a repricing later on this week, according to a trader.

The term loan B closed the day at par ¾ bid, 101 offered, down from previous levels of par 7/8 bid, 101¼ offered, the trader said.

On Tuesday morning, HealthSouth revealed that it will be looking to amend its credit facility so as to reprice its $2.04 billion of outstanding term loan B debt.

According to market sources, the repricing will be launched with a conference call on Thursday, at which time lenders will be asked to lower the term loan B spread to Libor plus 275 bps from current pricing of Libor plus 325 bps.

As part of the repricing, lenders will get 101 soft call protection for one year.

JPMorgan is the lead bank on the deal.

HealthSouth is a Birmingham, Ala., provider of ambulatory surgery and rehabilitative health care services.

GM softens on Chrysler rumors

General Motors' term loan came in a touch on Tuesday as market players reacted to last week's speculation that it may be looking to purchase the Chrysler Group from DaimlerChrysler AG, according to a trader.

The term loan ended the session at 101½ bid, 101¾ offered, down from previous levels of 101 5/8 bid, 101 7/8 offered, the trader said.

General Motors is a Detroit-based automaker. DaimlerChrysler is a Germany-based automotive company.

Masterplan spread guidance

Switching to the primary market, Masterplan came out with price talk of Libor plus 250 bps on its $130 million first-lien term loan and $20 million revolver after ratings of B1/B were released on the two tranches, according to a market source.

The company's $192 million credit facility, which launched with a bank meeting last Thursday, also includes a $42 million second-lien term loan priced at Libor plus 625 bps that has already been placed with Ares, the source added.

Bear Stearns is the lead bank on the deal.

Proceeds will be used to help fund Berkshire Partners LLC's acquisition of Masterplan and ReMedPar, Inc. from Three Cities Research and Camden Partners Holdings.

Berkshire is contributing $152.5 million of equity toward the purchase, while rollover and management equity accounts for $17.5 million.

Masterplan is a Chatsworth, Calif., provider of service, maintenance and asset management for medical equipment to hospitals, integrated health systems and patient facilities. ReMedPar is a Goodlettsville, Tenn., provider of sourced and refurbished medical equipment parts.

Reliant Pharmaceuticals price talk

Also on the price talk front, Reliant Pharmaceuticals announced guidance of Libor plus 325 bps on its in-market term loans now that B2/B+ ratings have surfaced on the debt, according to a market source.

The $215 million in new term loan debt is comprised of a $170 million funded term loan and a $45 million delayed-draw term loan.

Prior to last Thursday's bank meeting it was heard that the term loans were expected to be talked in the Libor plus low-300 bps area, but nothing official had been announced on the deal until now.

Reliant Pharmaceuticals' $255 million senior secured credit facility also includes a $40 million ABL revolver.

Goldman Sachs is the lead bank on the term loans, while the ABL is being provided by Merrill Lynch Capital.

Proceeds will be used to refinance existing debt.

Reliant Pharmaceuticals is a Liberty Corner, N.J., pharmaceutical company focused on cardiovascular products.

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