Gray Television deal changes surface; MedAssets moves deadline; Keurig discloses price talk

By Sara Rosenberg

New York, Jan. 19 – In the primary market on Tuesday, Gray Television Inc. increased the size of its incremental term loan while also decreasing pricing as the deal has been met with strong investor demand.

Also, MedAssets Inc. accelerated the commitment deadline on its first- and second-lien term loans, and Keurig Green Mountain Inc. released price talk on its U.S. term loan B in connection with its New York bank meeting.

Gray Television revised

Gray Television upsized its incremental senior secured term loan due June 2021 to $425 million from $400 million and lowered the spread to Libor plus 350 basis points from Libor plus 400 bps, while leaving the 0.75% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, according to a market source.

Commitments continue to be due on Wednesday, the source said.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are leading the loan that will be used to help fund the $442.5 million acquisition of all of the television and radio stations of Schurz Communications Inc.

Closing is expected on Feb. 1.

Gray Television is an Atlanta-based television broadcast company.

MedAssets shutting early

MedAssets moved up the commitment deadline on its $1.13 billion 6.5-year first-lien covenant-light term loan (B2/B) and $500 million seven-year second-lien covenant-light term loan (Caa2/CCC+) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

The first-lien term loan is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99, with an additional 50-bps fee if the credit facility has not been repaid within six months of closing, and 101 soft call protection for six months.

And, the second-lien term loan is talked at Libor plus 950 bps with a 1% Libor floor, a discount of 97 and call protection of non-callable for one year, then at 103 in year two and 101 in year three or par for 12 months for any prepayments with proceeds of the SCM divestiture, the source continued.

The company’s $1.73 billion senior secured credit facility also includes a $100 million five-year revolver (B2/B).

First-lien leverage is 4.5 times, and total leverage is 6.5 times.

MedAssets lead banks

Barclays, Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc. and Golub Capital Markets LLC are leading MedAssets’ credit facility.

Proceeds will be used with about $1,238,000,000 in equity to fund the buyout of the company by Pamplona Capital Management for $31.35 per share, or about $2.7 billion.

Pamplona has entered into a separate agreement with VHA-UHC Alliance NewCo Inc., a member-owned health care company, to divest MedAssets’ Spend and Clinical Resource Management segment to VHA-UHC Alliance following the completion of Pamplona’s acquisition of MedAssets.

MedAssets’ Revenue Cycle Management segment will be combined with Precyse, a Pamplona-owned company that provides health information management services, technology and education.

Closing is expected this quarter, subject to regulatory approvals, expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, MedAssets’ stockholder approval and other customary conditions.

MedAssets is an Alpharetta, Ga.-based health care performance improvement company.

Keurig sets guidance

Also in the primary, Keurig Green Mountain held its bank meeting in New York on Tuesday, launching its $2,675,000,000 seven-year term loan B with talk of Libor plus 375 bps to 400 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Along with the U.S. term loan B, the company’s $6.4 billion senior secured credit facility (Ba3/BB) includes a $500 million five-year revolver and a $2.95 billion five-year term loan A, both talked with initial pricing of Libor plus 200 bps, and a $275 million euro-equivalent seven-year term loan B.

A bank meeting will take place in London on Thursday for European investors.

Commitments are due on Feb. 2, the source continued.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Rabobank are leading the deal.

Keurig being acquired

Proceeds from Keurig’s credit facility will be used with around $8.5 billion in equity to fund its purchase by a JAB Holding Co.-led investor group for $92.00 per share in cash, or a total equity value of about $13.9 billion, and to refinance existing debt.

JAB is buying Keurig in partnership with strategic minority investors who are already shareholders in Jacobs Douwe Egberts BV, a coffee company, including Mondelez International and entities affiliated with BDT Capital Partners.

Closing is expected on or about Feb. 29, subject to customary conditions, including receipt of regulatory approvals and shareholder approval. The transaction is not subject to financing.

Keurig is a Waterbury, Vt.-based personal beverage system company.

Delta holds steady

Over in the secondary market, Delta Air Lines Inc.’s term loans held firm with the release of fourth quarter numbers, according to a trader.

The term loan B was quoted at 99 7/8 bid, 100 3/8 offered, versus 99 7/8 bid, 100 5/8 offered on Friday, the term loan B-1 was quoted at 99 7/8 bid, 100Ľ offered, unchanged on the day, and the term loan B-2 was seen at 99 7/8 bid, 100 1/8 offered, also unchanged, the trader said.

For the fourth quarter, the company reported net income of $980 million, or $1.25 per diluted share, versus a net loss of $712 million, or $0.86 per diluted share, in the comparable period last year.

Total operating revenue for the quarter was $9.5 billion, compared to about $9.65 billion in the fourth quarter of 2014.

Delta is an Atlanta-based airline company.

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