MCS AMS breaks; First Data up with holdco refi; Utility Services and Paradigm revise deals

By Sara Rosenberg

New York, Oct. 15 - MCS AMS finalized the spread on its term loan at the high end of revised talk and then freed up on Tuesday above its original issue discount price, First Data Corp.'s term loans were stronger following news that the company is refinancing its PIK holdco debt, and WorldPay's new term loan was better on its second day of trading.

In more loan happenings, Utility Services Associates Inc. and Paradigm Precision Group raised pricing on their term debt and extended the soft call protection, and WP CPP Holdings LLC and Colfax Corp. emerged with deal plans.

MCS hits secondary

MCS AMS' $340 million six-year term loan B began trading on Tuesday, with levels quoted at 97¼ bid, 98¼ offered, according to traders.

The loan broke after pricing firmed at Libor plus 600 basis points, the wide end of revised talk of Libor plus 550 bps to 600 bps and up from initial guidance of Libor plus 450 bps, a source said. There is a 1% Libor floor and 101 soft call protection for one year, and the debt was sold at a discount of 97.

Earlier in syndication, the original issue discount widened from 99.

The company's $360 million credit facility (B2) also includes a $20 million five-year revolver.

Bank of America Merrill Lynch, HSBC Securities (USA) Inc., RBS Citizens and ING Financial Markets LLC are leading the deal that will be used to help fund Concentric Equity Partners' and TDR Capital's formation of a new holding company consisting of Mortgage Contracting Services LLC, Asset Management Specialists Inc. and Vacant Property Specialists LLC.

MCS AMS is a provider of property inspections, preservation, maintenance, rental management, software products and mobile applications.

First Data rises

Also in trading, First Data's term loans were better as the company said that its parent, First Data Holdings Inc., reached an agreement with existing debt holders to repay a portion of the roughly $2 billion 11½% senior PIK notes due 2016 with $300 million of new convertible preferred equity and exchange the remainder for $1.4 billion of new 14½% senior PIK notes due 2019, according to traders.

The extended 2017 term loan was quoted by one trader at 99½ bid, 99 7/8 offered and by a second trader at 99 5/8 bid, par offered, versus 99 3/8 bid, 99¾ offered previously. The extended March 2018 loan was seen by one trader at 99 3/8 bid, 99¾ offered and by a second trader at 99½ bid, 99 7/8 offered, up from 99 bid, 99½ offered on Friday. And, the extended September 2018 loan was quoted by one trader at 99 3/8 bid, 99 7/8 offered and by a second trader at 99 3/8 bid, 99¾ offered, compared to 99 bid, 99½ offered last week.

"First Data has been opportunistic since August 2010 when it began working with its investors to amend and extend the maturities on its debt," Frank Bisignano, chief executive officer, said in a news release.

"While the company has successfully extended the maturities for some $21 billion of debt through the second quarter of this year, this agreement allows us to address the junior-most of the debt structure and an element that has been of interest to investors."

First Data is a Greenwood Village, Colo., provider of electronic commerce and payment services.

WorldPay trades higher

WorldPay's new dollar-equivalent £150 million six-year incremental term loan (Ba3/B+) was quoted at par ½ bid, 101 offered on Tuesday, up from the par bid, par ½ offered level that was seen when the debt broke for trading on Friday, a trader remarked.

Pricing on the loan is Libor plus 350 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.

Recently, the spread on the loan firmed at the tight end of the Libor plus 350 bps to 375 bps talk.

Goldman Sachs Bank USA and UBS Securities LLC are leading the deal that will be used to fund the acquisition of Century Payments and add cash to the balance sheet for future acquisitions.

WorldPay is an Atlanta-based provider of global payment processing services.

Utility Services tweaks deal

Over in the primary, Utility Services Associates lifted pricing on its $185 million first-lien term loan to Libor plus 575 bps from talk of Libor plus 475 bps to 500 bps, pushed out the 101 soft call protection to one year from six months, added a net total leverage covenant and modified the excess cash flow sweep, according to market sources.

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

Recommitments for the company's $215 million credit facility (B+), which also includes a $30 million revolver, were due at 5 p.m. ET on Tuesday. Once the changes were announced, however, oversubscription was achieved on the transaction ahead of that deadline, one source remarked.

Allocations are expected to go out on Wednesday.

RBC Capital Markets, BNP Paribas Securities Corp. and Macquarie are leading the deal that will be used to help fund the buyout of the company by First Reserve.

Closing is expected by year-end.

Utility Services Associates is a provider of critical outsourced services for power transmission, distribution and substation infrastructure.

Paradigm reworks loan

Paradigm Precision Group increased price talk on its $260 million seven-year covenant-light term loan B to Libor plus 425 bps to 450 bps from the Libor plus 400 bps area and extended the 101 soft call protection to one year from six months, according to a market source.

Also, the 18 month MFN sunset provision was eliminated, and the incremental allowance was changed to $60 million from $100 million with there still being an option for additional amounts up to 4.75 times net first-lien leverage.

The term loan B still has a 1% Libor floor and an original issue discount of 99.

The company's $330 million credit facility (B2/B), for which commitments were due on Tuesday, also includes a $70 million revolver.

Paradigm lead banks

RBC Capital Markets LLC, Deutsche Bank Securities Inc., SMBC and SunTrust Robinson Humphrey Inc. are the bookrunners on Paradigm Precision's credit facility.

Proceeds will be used to help fund the acquisition of eight aerospace component fabrication and machining facilities from Unison Engine Components, a subsidiary of GE Aviation.

Closing is expected by year end.

Paradigm Precision is a Stuart, Fla.-based manufacturer of complex components. It specializes in the combustion section of turbine engines used in commercial and military aviation as well as industrial gas turbine applications.

WP CPP on deck

WP CPP set a bank meeting for 2:30 p.m. ET in New York on Thursday to launch a $25 million add-on revolver due 2017, a $125 million add-on first-lien term loan due 2019 and a new $240 million 71/2-year second-lien term loan, according to a market source.

With the add-ons, the existing revolver will be upsized to $125 million and the existing first-lien term loan will be upsized to $537 million, the source said, adding that there will also be an amendment to these tranches.

The first-lien term loan has a 1% Libor floor and 101 soft call protection for six months, and the second-lien term loan has a 1% Libor floor and call protection of 102 in year one and 101 in year two, the source continued. Spread talk and offer prices are not yet available.

UBS Securities LLC is leading the deal that will be used to refinance an existing $185 million second-lien term loan in full at a prepayment price of 103 and fund a dividend.

WP CPP is a Pomona, Calif.-based manufacturer of highly-engineered components and sub-assemblies for the commercial aerospace and defense markets.

Colfax readies call

Colfax scheduled a call for 2 p.m. ET on Wednesday to launch an amendment and extension of its revolver and a U.S. and euro term loan A's that would push out maturities to 2018 from 2017 and lower pricing, according to a market source.

The company's existing facility includes a $500 million revolver, a $408.7 million term loan A-1, a $380 million term loan A-2, a €157.6 million term loan A-3 and a €105.3 million term loan A-4 to 2018.

Current pricing on the term loan A-1 and term loan A-2 can range from Libor plus 175 bps to 250 bps based on leverage, and pricing on the term loan A-3 and term loan A-4 can range from Euribor plus 250 bps to 325 bps based on leverage.

Deutsche Bank Securities Inc. is the left lead on the deal.

Colfax is a Fulton, Md.-based designer, manufacturer and marketer of fluid-handling products to commercial marine, oil and gas, power generation, defense and general industrial sectors.

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