FTS up with asset sale; Springer, Media General, Genex, Hemisphere, Arctic Glacier revised

By Sara Rosenberg

New York, July 24 - FTS International's term loan rose in trading on Wednesday with asset sale news, Gardner Denver Inc. was trading above its issue price and MultiPlan Inc.'s new loan headed higher.

Switching to the primary, Springer Science + Business Media modified discounts on its term loans for a second time, and Media General Inc. lowered the coupon on its delayed-draw term loan while increasing the ticking fee and extending the call protection.

Additionally, Genex Services Inc. finalized pricing on its term loans at the low end of guidance and revised discount prices, Hemisphere Media Group Inc. lifted the spread on its term loan, and Arctic Glacier LLC tightened the original issue discount on its add-on loan.

Furthermore, U.S. Renal Care Inc., Reynolds and Reynolds Co. and Quebecor Media Inc. released talk with launch, and DSI Renal and Wastequip LLC are getting ready to bring new deals to market.

FTS International rises

FTS International's term loan was better in the secondary market on Wednesday as the company announced that it will sell substantially all of the assets of its propane business and related logistics assets to Fairmount Minerals, according to a trader.

The term loan was quoted at 99¾ bid, par ¾ offered, up from 98 bid, 98½ offered, the trader said.

Proceeds from the asset sale will be used for debt reduction, the company disclosed in a news release.

Closing is expected by the end of the third quarter.

FTS International is a provider of well completion services for the oil and gas industry with corporate offices in Fort Worth and Cisco, Texas. Fairmount is a Chesterland, Ohio-based producer of industrial sand.

Gardner Denver trades

Gardner Denver's $1.9 billion seven-year U.S. term loan was seen trading at par 5/8 bid, par 7/8 offered on Wednesday, according to a trader. The debt broke late in the evening on Tuesday at par bid, par ¼ offered, and then moved up to par 5/8 bid, par 7/8, but most of the trading activity didn't really start until Wednesday morning, the trader said.

In addition, a second source said that prior to midday on Wednesday, the loan had already moved up to par 7/8 bid, 101 offered in the secondary market, while by late afternoon, another source was seeing it at par ½ bid, par ¾ offered.

Pricing on the U.S. term loan is Libor plus 325 basis points with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

The company's $2,825,000,000 senior secured credit facility (B1/B) also includes a $400 million five-year revolver and a its $525 million seven-year euro term loan priced at Euribor plus 375 bps with a 1% floor and sold at 991/2. The euro term loan has 101 soft call protection for one year as well.

Gardner being acquired

Proceeds from Gardner Denver's credit facility and $575 million of notes will fund its buyout by Kohlberg Kravis Roberts & Co. LP for $76 per share. The transaction is valued at about $3.9 billion, including the assumption of debt.

UBS Securities LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Corporate Bank Ltd., RBC Capital Markets, Macquarie Capital and HSBC Securities (USA) Inc. are the bookrunners on the deal, which is expected to close on July 30, and the joint lead arrangers with KKR Capital Markets and Sumitomo Mitsui Banking.

During syndication, the U.S. term loan was upsized from $1.8 billion as the bond deal was reduced from $675 million, pricing was cut from revised talk of Libor plus 350 bps and initial talk of Libor plus 400 bps to 425 bps, and the 101 soft call protection was moved to six months and then back to one year. Also, the euro term loan saw its spread flex from talk of Euribor plus 425 bps to 450 bps, and the discount on both term loans was tightened from 99.

Gardner Denver is a Wayne, Pa.-based manufacturer of industrial compressors, blowers, pumps, loading arms and fuel systems.

MutliPlan gains ground

MultiPlan's $100 million add-on term loan (B+) was quoted at par 7/8 bid, 101¼ offered, after freeing for trading in the prior afternoon at par 5/8 bid, 101 1/8 offered, according to a market source.

The loan is priced at Libor plus 300 bps with a 1% Libor floor and was issued at par. There is 101 soft call protection through February 2014.

Spread, floor and call protection on the add-on match the existing term loan.

Barclays, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the deal that is being used, along with $750 million of senior PIK toggle notes, to fund a distribution to shareholders.

MultiPlan is a New York-based provider of health care cost management services.

Springer revises discounts

Moving to the primary, Springer Science tightened the original issue discounts on its $1,591,000,000 seven-year first-lien covenant-light term loan and €615 million seven-year first-lien covenant-light term loan to 96½ from revised talk of 96, but the debt is still being sold wide of initial talk of 99, according to a market source.

Recommitments were due at 11 a.m. ET on Wednesday, the source remarked.

Pricing on the U.S. loan is Libor plus 400 bps, after firming during the previous session at the tight end of the Libor plus 400 bps to 425 bps talk, and pricing on the euro loan is Euribor plus 425 bps, after finalizing on Tuesday at the low end of the Euribor plus 425 bps to 450 bps talk.

Both loans have a 1% floor and 101 soft call protection for one year.

Upon the first round of changes earlier this week, the call protection was added, the U.S. term loan was upsized from $1,553,000,000 and the euro term loan was upsized from €565 million.

The company's credit facility (B2/B) also includes a €150 million revolver.

Springer lead banks

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays, Nomura and UBS Securities LLC are leading Springer's credit facility, which is expected to allocate on Thursday, the source added.

Proceeds from the credit facility and €640 million of subordinated debt privately placed with Goldman Sachs Mezzanine fund will fund the roughly €3.3 billion buyout of the company by BC Partners from EQT Partners and the Government of Singapore Investment Corp. The funds from the term loan upsizings will cover the larger than initially expected original issue discounts.

Springer is a Berlin-based STM publisher that provides scientific, professional and academic media content.

Media General reworked

Media General lifted its seven-year delayed-draw term loan B (B1/BB-) to $868 million from $865 million, cut pricing to Libor plus 325 bps from Libor plus 375 bps and extended the 101 soft call protection to one year from six months, according to a market source.

Furthermore, the ticking fee on the B loan was changed to 50 bps for days 31 to 60 and the full spread thereafter, from 50 bps from days 31 to 105, half the spread from days 106 to 165 and the full spread thereafter, and the 18-month MFN sunset provision was removed, the source remarked.

As before, the term loan B has a 1% Libor floor, an original issue discount of 99 and delayed-draw availability of 12 months.

The company's $960 million credit facility also includes a $32 million delayed-draw term loan A (B1/BB-) that was downsized from $35 million with the term loan B upsizing, and a $60 million five-year super-priority revolver (Ba1/BB).

As part of the changes, the first-out revolver incremental capacity was limited to $20 million, the source continued.

Media General repaying debt

Proceeds from the credit facility will be used to refinance around $765 million of debt at Media General and New Young Broadcasting Holding Co. Inc. in connection with their merger and pay a $50 million cash contribution to Media General's qualified pension plan.

The funding of the delayed-draw term debt will occur, first, upon receipt of regulatory and Media General shareholder approval, which is expected by early fourth quarter, at which time about $540 million will be drawn, and, second, upon expiration of the non-call period on the existing Media General 11¾% 2017 senior secured notes in February 2014 to repay the notes.

RBC Capital Markets, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal.

Media General is a Richmond, Va.-based provider of news, information and entertainment. Young is a Nashville, Tenn.-based media company.

Genex updates surface

Genex set pricing on its $190 million first-lien term loan (B1/B) at Libor plus 425 bps, the tight end of the Libor plus 425 bps to 450 bps talk, added a step-down to Libor plus 400 bps if total leverage is less than 3.75 times after the delivery of June 30, 2014 financials and changed the original issue discount to 99½ from 99, according to a market source. The 1% Libor floor and 101 soft call protection for one year were unchanged.

Also, pricing on the $55 million second-lien term loan (Caa1/CCC+) was set at Libor plus 825 bps, the low end of the Libor plus 825 bps to 850 bps talk, and the discount was moved to 99 from 981/2, the source said. This tranche has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Recommitments for the $270 million credit facility, which also includes a $25 million revolver (B1/B), were due by 5 p.m. ET on Wednesday.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt, fund a dividend and for general corporate purposes.

Genex is a Wayne, Pa.-based provider of cost containment and disability management solutions for the workers comp. industry.

Hemisphere ups spread

Hemisphere Media increased the coupon on its $175 million seven-year covenant-light term loan B (B2/B) to Libor plus 500 bps from Libor plus 450 bps, while keeping the 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year unchanged, according to a market source.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance term loans at the company's subsidiaries, Cine Latino Inc. and InterMedia Español Inc., and for general corporate purposes.

Pro forma total leverage will be 4.3 times and net leverage will be 0.3 times.

Hemisphere Media is a Miami-based Spanish-language media company.

Arctic Glacier tweaks OID

Arctic Glacier moved the original issue discount on its $20 million add-on first-lien covenant-light term loan due May 2019 to 99¾ from 99½ and asked for recommitments by noon ET on Wednesday, according to a market source.

The add-on is priced at Libor plus 475 basis points with a 1.25% Libor floor and has 101 repricing protection through November 2013, which is in line with the existing $260 million term loan that is fungible.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

Arctic Glacier is a Winnipeg-based manufacturer and distributor of packaged ice.

U.S. Renal sets talk

U.S. Renal launched with a bank meeting in the morning its $495 million of incremental term loans, and in connection with the launch, price talk was announced, according to a market source.

The $335 million first-lien term loan (B) due July 3, 2019 is talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, a discount of 98 and 101 soft call protection for one year, the source said.

As for the $160 million second-lien term loan (CCC+) due Jan. 3, 2020, it is talked at Libor plus 800 bps with a 1% Libor floor and a discount of 98, and is non-callable for one year, then at 102 in year two and 101 in year three, the source continued.

Lead banks, Barclays, RBC Capital Markets, Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc., are asking for commitments by Aug. 7.

Proceeds will fund the company's acquisition of Ambulatory Services of America Inc., which is expected to close in August.

U.S. Renal is a Plano, Texas-based operator of outpatient treatment centers for chronic kidney failure sufferers. Ambulatory Services is a Brentwood, Tenn.-based health care services company.

Reynolds reveals guidance

Reynolds and Reynolds held its meeting in the afternoon, launching its $550 million five-year first-lien term loan A (Ba3/B+) geared towards CLOs with talk of Libor plus 325 bps with a 1% Libor floor and an original issue discount of 991/2, a market source.

The $1.75 billion seven-year first-lien term loan B (Ba3/B+) was presented with talk of Libor plus 400 bps with a 1% floor, a discount of 99 and 101 soft call protection for one year.

And, the $1.1 billion 71/2-year second-lien term loan (Caa1/CCC+) was launched at Libor plus 775 bps with a 1% floor and a discount of 981/2, and is non-callable for two years, then at 102 in year three and 101 in year four, the source remarked.

Thecompany's $3,425,000,000 credit facility also includes a $25 million revolver.

Deutsche Bank Securities Inc. is leading the deal that will be used for a recapitalization.

Reynolds and Reynolds is a Kettering, Ohio-based provider of software, business forms and supplies, and professional services that support automotive retailing for car dealers and automakers.

Quebecor details emerge

Quebecor Media launched with its call in the morning a $300 million seven-year senior secured covenant-light term loan B that is talked at Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Citigroup Global Markets Inc., Scotia Capital (USA) Inc. and RBC Capital Markets are leading the deal for which commitments are due at noon ET on July 31, the source said.

Proceeds will be used by the Montreal-based media company for general corporate purposes.

Closing is expected in late August.

DSI Renal readies deal

In more primary happenings, DSI Renal will hold a bank meeting on Thursday morning to launch a $280 million credit facility that is being led by GE Capital Markets, Ares, Fifth Third Securities Inc. and KeyBanc Capital Markets LLC, according to a market source.

The facility consists of a $40 million five-year revolver, a $227 million seven-year term loan and a $13 million delayed-draw seven-year term loan.

Talk on the term loans is Libor plus 425 bps with a 1% Libor floor, an original issue discount that is still to be determined and 101 soft call protection for six months, the source said.

Proceeds will be used by the Nashville, Tenn.-based provider of dialysis services to refinance existing debt and fund a dividend.

Wastequip on deck

Wastequip scheduled a bank meeting for Thursday to launch a $210 million six-year term loan that will be used to refinance existing debt and fund a dividend, according to a market source.

Goldman Sachs Bank USA is leading the deal.

Wastequip is a Charlotte, N.C.-based manufacturer of waste handling equipment and recycling equipment.

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