Grifols, IMS, KAR, Realogy, Bellisio break; Merrill tweaks deal; Interline moves deadline

By Sara Rosenberg

New York, March 7 - Grifols SA set spreads on its institutional term loans at the low end of guidance, widened original issue discounts and then freed up for trading on Friday, and IMS Health, KAR Auction Services Inc., Realogy Holdings Corp. and Bellisio Foods Inc. emerged in the secondary as well.

In more loan happenings, Merrill Communications LLC lowered the spread on its term loan, and Interline Brands Inc. accelerated the commitment deadline on its term loan.

Additionally, American Tire Distributors Inc. released price talk on its term loan with launch, and Gypsum Management and Supply Inc. (GYP Holdings III Corp.) and Nord Anglia Education Inc. joined the calendar.

Grifols updates, trades

Grifols firmed pricing on its $3.25 billion seven-year term loan B and $550 million euro equivalent seven-year term loan B at Libor/Euribor plus 300 basis points, the low end of the Libor/Euribor plus 300 bps to 325 bps talk, and moved the original issue discount on the loans to 99 from 991/2, according to a market source.

As before, the term loans have no floor and 101 soft call protection for one year.

With the final terms in place, the company's U.S. term loan B started trading on Friday, with levels quoted at 99½ bid, 99¾ offered, a trader remarked.

The Barcelona-based pharmaceutical company's $4.8 billion senior credit facility (Ba1/BB) also includes a $300 million five-year revolver and $700 million six-year term loan A, both talked at Libor plus 250 bps to 275 bps with upfront fees that are dependent on commitment size.

Commitments for the revolver and term loan A are due on March 14.

Nomura, Morgan Stanley Senior Funding Inc. (left on U.S. term loan B), BBVA, Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt.

IMS levels surface

Another deal to begin trading was IMS Health, with its $1,747,000,000 seven-year covenant-light term loan B quoted at par bid, par ½ offered, a trader said.

Pricing on the loan is still Libor plus 275 bps with a 25 bps step-down in spread when net opco leverage is less than 5 times and a 1% Libor floor and the debt was issued at 991/2, after firming recently at the high end of the 99½ to 99¾ talk. There is 101 soft call protection for six months.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal (Ba3/BB-) that will be used to refinance existing debt.

IMS is a Danbury, Conn.-based provider of information, services and technology for the health care industry.

KAR frees up

KAR Auction's loans also hit the secondary market, with the $650 million three-year term loan B-1 quoted at par ½ bid, 101 offered and the $1.12 billion seven-year term loan B-2 quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the B-1 loan is Libor plus 250 bps with no Libor floor and it was issued at par. There is 101 soft call protection for six months.

The term loan B-2 is priced at Libor plus 275 bps with a 0.75% Libor floor and was sold at an original issue discount of 993/4. This debt has 101 soft call protection for one year.

J.P. Morgan Securities LLC is leading the deal.

KAR repaying debt

Proceeds from KAR Auction's $1.77 billion in new term loans will be used to refinance existing bank debt.

During syndication, the term loan B-1 size firmed at the high end of the revised $600 million to $650 million talk and up from an initial amount of $500 million. Also, the term loan B-2 finalized at the low end of revised talk of $1.12 billion to $1.17 billion and down from initial talk of $1.27 billion, the spread was lifted from Libor plus 250 bps, the offer price came at the wide end of the 99¾ to par talk and the call protection was extended from six months.

KAR is a Carmel, Ind.-based provider of vehicle auction services and a provider of floorplan financing to independent and franchise used vehicle dealers.

Realogy starts trading

Realogy's roughly $1.9 billion senior secured term loan broke during the session, with levels seen by one trader at par ½ bid, 101 offered.

Pricing on the loan is Libor plus 300 bps with a 0.75% Libor floor and it was issued at par. There is 101 soft call protection for one year.

Recently, the Libor floor on the loan was cut from 1% and the call protection was pushed out from six months.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 350 bps with a 1% Libor floor.

Realogy is a Madison, N.J.-based provider of real estate brokerage, relocation and settlement services.

Bellisio breaks

Bellisio Foods' freed up as well, with the $278 million term loan due August 2019 quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan, as well as on a $20 million Canadian equivalent term loan due August 2019 and a $30 million revolver due August 2018, is Libor plus 350 bps with a 1% Libor floor and the debt was issued at par. The term loans have 101 soft call protection for one year.

During syndication, pricing on the $328 million credit facility finalized at the high end of the Libor plus 325 bps to 350 bps talk and the call protection on the term loans was extended from six months.

GE Capital Markets is leading the deal that will be used to reprice the company's existing bank debt from Libor plus 425 bps with a 1% Libor floor.

Bellisio Foods is a Duluth, Minn.-based food company.

Merrill flexes down

Back in the primary market, Merrill Communications cut pricing on its $394 million first-lien term loan due March 2018 to Libor plus 475 bps from Libor plus 500 bps, and kept the 1% Libor floor, par offer price and 101 soft call protection for six months intact, according to a market source.

Recommitments were due at 5 p.m. ET on Friday, the source remarked.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 625 bps with a 1% Libor floor.

Merrill is a St. Paul-based provider of technology-enabled services for the financial, legal, health care, real estate and other corporate markets.

Interline shutting early

Interline Brands moved up the commitment deadline on its $350 million first-lien term loan B (B2/B) to noon ET on Tuesday from Wednesday, according to a market source.

The term loan is talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Keybanc Capital Markets are the lead banks on the deal.

Proceeds will be used to fund a tender offer that expires on March 25 for the company's 7½% notes due 2018, to repay some revolver borrowings and for working capital and general corporate purposes.

Interline is a Jacksonville, Fla.-based distributor and direct marketer of broad-line maintenance, repair and operations products to the facilities maintenance end-market.

American Tire reveals talk

American Tire Distributors held its lender meeting on Friday, launching its $300 million senior secured covenant-light term loan due June 2018 with talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and hard call protection of 101 for one year, a market source said.

Bank of America Merrill Lynch is leading the deal that will be used to help fund the acquisition of Terry's Tire Town Holdings Inc., an Alliance, Ohio-based tire distributor.

Closing is expected in late March or early April.

American Tire is a Huntersville, N.C.-based replacement tire distributor.

Gypsum readies deal

In more primary happenings, Gypsum Management and Supply set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $750 million credit facility, according to a market source.

The facility consists of a $200 million ABL revolver, a $390 million seven-year first-lien covenant-light term loan with 101 soft call protection for six months, and a $160 million eight-year second-lien covenant-light term loan with call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at noon ET on March 24.

Credit Suisse Securities (USA) LLC, RBC Capital Markets and UBS Securities LLC are leading the term loans, and RBC is leading the revolver.

Proceeds will be used to help fund the buyout of the company by AEA Investors.

Gypsum Management and Supply is a Tucker, Ga.-based distributor of drywall, acoustical and other specialty building materials.

Nord Anglia on deck

Nord Anglia Education will hold a bank meeting at 3 p.m. ET on Monday to launch a $590 million credit facility, according to a market source.

The facility consists of a $75 million revolver and a $515 million seven-year covenant-light term loan, the source said.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used with funds from an initial public offering of our ordinary shares to refinance 10¼% senior secured notes due 2017 and 8½%/9½% senior PIK toggle notes due 2018, and, if there are any remaining proceeds, to partially redeem preference shares held by Premier Education Holdings and members of management or for general corporate purposes.

Nord Anglia Education is a Hong Kong-based operator of premium schools.

EMI allocates

EMI Music Publishing allocated its roughly $1.08 billion term loan B on Friday, according to a market source.

Pricing on the term loan is Libor plus 275 bps with a 1% Libor floor and it was issued at par. There is 101 soft call protection for one year that was extended the other day from six months.

UBS Securities LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor.

EMI Music is a New York-based music publisher.

Alliance Laundry closes

Alliance Laundry Holdings LLC completed its acquisition of Primus Laundry Equipment Group, a Gullegem, Belgium-based marketer of commercial washer-extractors, tumbler dryers, ironers and feeding and folding equipment, a news release said.

To help fund the transaction, Alliance Laundry got a new $230 million incremental first-lien term loan priced at Libor plus 325 bps with a 1.25% Libor floor and issued at par after widening during syndication from revised talk of par ½ but tightening from initial talk of 993/4.

BMO Capital Markets and Bank of America Merrill Lynch led the deal.

Alliance Laundry is a Ripon, Wis.-based designer, manufacturer and marketer of commercial laundry equipment.

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