Revlon, MultiPlan break; GGP, Neiman rise; RedPrairie, Weather Channel set talk

By Sara Rosenberg

New York, March 9 - Revlon Consumer Products Inc.'s credit facility allocated and freed up for trading during Tuesday's market hours, with the term loan quoted a little higher than the original issue discount price at which it was sold, and MultiPlan Inc.'s term loan broke as well.

General Growth Properties Inc.'s (GGP) bank debt was stronger on the back of news that the company has received another equity proposal, and Neiman Marcus Inc.'s term loan B was better after the release of earnings.

In other news, RedPrairie Holding Inc. and the Weather Channel (TWCC Holding Corp.) came out with price talk on their term loans as both deals were launched to investors during the session.

Also in the primary market, Ardent Health Services LLC came out with some changes to its term loan, including reducing the size, raising pricing, increasing the original issue discount and adding an extra year of call protection.

Revlon frees to trade

Revlon's credit facility hit the secondary market, with the $800 million five-year term loan (Ba3/B+) seen at 98¾ bid, 99¼ offered on the break and then inching up to 99 bid, 99 3/8 offered as the day progressed, according to a trader.

Pricing on the term loan is Libor plus 400 basis points with a 2% Libor floor and it was sold at an original issue discount of 981/4.

The loan carries 101 hard call protection for one year.

During syndication, the tenor of the term loan was shortened from seven years, the original issue discount widened from 99 and the call protection was added.

The company's $940 million credit facility also includes a $140 million four-year asset-based revolver (Ba2) that is priced at Libor plus 300 bps with a 75 bps commitment fee.

Revlon refinancing debt

Proceeds from Revlon's credit facility will be used to refinance an existing credit facility, which, at Dec. 31, had $815 million outstanding under the term loan and zero drawn under the revolver.

The refinancing is a leverage neutral transaction. Total first-lien secured debt for fiscal year 2009 adjusted EBITDA is 3.1 times and total debt to fiscal year 2009 adjusted EBITDA is 4.8 times.

Citigroup, JPMorgan, Bank of America and Credit Suisse are the lead banks on the deal, with Citi the left lead.

Financial covenants under the term loan include a maximum senior first-lien secured leverage ratio of 4.0 to 1.0, while financial covenants under the revolver include a springing fixed-charge coverage ratio of 1.0 to 1.0 if excess availability is less than $20 million.

Revlon is a New York-based cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirants/deodorants and beauty care products company.

MultiPlan breaks

MultiPlan's $315 million incremental senior secured term loan (B+) was another deal to free up for trading on Tuesday, and levels on the paper were quoted at 99¾ bid, par ¼ offered, according to a market source.

The loan is priced at Libor plus 425 bps with a 1.5% Libor floor and it was sold at an original issue discount of 99.

Goldman Sachs, Bank of America and Credit Suisse are the joint lead arrangers on the deal that will be used to help fund the acquisition of Viant Inc.

MultiPlan is a New York-based provider of health care cost management services. Viant is a Naperville, Ill.-based provider of health care payment services.

General Growth gains

General Growth Properties' bank debt headed higher after the company revealed that it has received a proposal from Fairholme Capital Management LLC and Pershing Square Capital Management under which the firms would provide equity, according to a trader.

The revolver was quoted at 102 1/8 bid, 103 5/8 offered, up from 101 5/8 bid, 103 1/8 offered, and the term loan A was quoted at 102¼ bid, 103¾ offered, up from 101¾ bid, 103¼ offered, the trader said.

Under the proposal, Fairholme and Pershing are offering $3.925 billion of new equity capital at a value of $15.00 per share to facilitate General Growth's emergence from bankruptcy.

Together with the previously announced $2.625 billion proposal from Brookfield Asset Management Inc., this proposal, if accepted, would provide the company with more than $6.5 billion of committed equity capital.

The proposal remains subject to approval by the board of directors, approval by the bankruptcy court of proposed fees in the form of warrants and higher and better offers.

General Growth plan details

Under the terms of the Fairholme and Pershing proposal, $3.8 billion would be used to purchase shares of General Growth stock at $10.00 per share, and $125 million would be used to backstop the remaining portion of a $250 million rights offering by General Growth Opportunities, a new company that will own certain non-core assets, at a price of $5.00 per share.

Furthermore, the company would have the right to reduce the $3.8 billion by $1.9 billion to the extent it is able to raise equity capital on more attractive terms.

The company believes that this combined equity capital along with its anticipated new $1.5 billion debt issuance - or the reinstatement of a comparable amount of existing debt - would deliver substantially all of the cash required to fulfill its capital needs in connection with its emergence from bankruptcy and provide unsecured creditors with par plus accrued interest in cash.

General Growth Properties is a Chicago-based owner and manager of regional shopping malls, planned community developments and commercial office buildings.

Neiman stronger on numbers

Neiman Marcus' term loan B gained some ground on Tuesday as the company came out with second-quarter results that showed a year-over-year improvement in earnings, revenues and adjusted EBITDA, according to traders.

The term loan B was quoted by one trader at 92 7/8 bid, 93 7/8 offered, up from 91¼ bid, 92¼ offered, and by a second trader at 92 7/8 bid, 93 3/8 offered, up from 92 bid, 92½ offered..

For the second quarter of fiscal year 2010, Neiman reported net earnings of $4 million, compared to a net loss of $509.2 million in the prior year.

Total revenues for the quarter were $1.1 billion, compared to $1.08 billion in the 2009 fiscal year second quarter.

And, adjusted EBITDA for the quarter was $119.9 million, compared to adjusted EBITDA of $24.6 million in the previous year.

Neiman Marcus is a Dallas-based high-end specialty retailer.

MGM steady with paydown

MGM Mirage's non-extended term loan was pretty flat on the day on news of a partial repayment as investors were already expecting this event t take place, according to traders.

The non-extended term loan was quoted by one trader at 97¼ bid, 97¾ offered, versus Monday's levels of 97 1/8 bid, 97¾ offered, and by a second trader at 96¾ bid, 97¾ offered, unchanged on the day.

On Tuesday morning, the company said that it plans to repay a portion of the outstanding debt under its senior credit facility using proceeds from an $845 million senior secured notes offering.

This news came as no surprise to loan guys since, last month, the company received lender approval to amend and extend its credit facility, and under that amendment, permission was given to raise up to $850 million through the issuance of secured debt to fund all or a portion of loan prepayments that lenders were promised.

MGM Mirage is a Las Vegas-based gaming, hospitality and entertainment company.

RedPrairie talk emerges

Switching to new deal happenings, RedPrairie held a bank meeting on Tuesday to kick off syndication on its proposed credit facility, and in connection with the launch, price talk surfaced, according to market sources.

The $240 million term loan was presented to lenders with talk of Libor plus 400 bps with a 2% Libor floor and an original issue discount of 99, sources said.

The company's $270 million credit facility also includes a $30 million revolver.

Credit Suisse and RBC are the lead banks on the deal that will be used to help fund the buyout of the company by New Mountain Capital LLC from Francisco Partners.

RedPrairie is a Waukesha, Wis.-based productivity services provider.

Weather Channel price talk

Another deal to launch with a bank meeting on Tuesday was Weather Channel's $1.3 billion term loan B, and guidance on the loan emerged as Libor plus 350 bps to 375 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

The loan includes 101 soft call protection for one year.

Deutsche Bank is the lead arranger and is a joint bookrunner with Credit Suisse on the deal that will be used to refinance the company's existing term loan B - priced at Libor plus 400 bps with a 3.25% Libor floor - and retire a portion of subordinated notes.

The new term loan B will mature on Sept. 14, 2015, which is the same maturity as the existing term loan B, and will have the same covenants as the existing credit agreement.

Weather Channel is an Atlanta-based media company devoted to bringing weather news via television, internet and mobile devices.

Ardent ups loan size, pricing

Ardent Health made a number of revisions to its term loan, including changing size, pricing, original issue discount and call protection, according to a market source.

The term loan was downsized to $325 million from $400 million, and as a result, the dividend payment that the deal was helping to fund was reduced as well.

In addition, pricing on the term loan was raised to Libor plus 500 bps from talk at launch of Libor plus 450 bps, with the 1.5% Libor floor left unchanged, the source said.

Prior to the bank meeting, there was some unofficial guidance circulating around the market that had the term loan talked at Libor plus 400 bps.

Ardent raises OID

Ardent Health also increased the original issue discount on its term loan to 98 from 981/2, the source continued.

And, lastly, call protection on the loan was changed to 102 in year one and 101 in year two from just 101 in year one previously, the source added.

Bank of America, Barclays and GE Capital are the lead banks on the now $400 million, down from $475 million, deal, which still includes a $75 million revolver.

On top of funding a dividend payment, proceeds from the credit facility will be used to refinance existing debt.

Prior to the changes, the credit facility was rated at B1/B.

Ardent Health is a Nashville, Tenn.-based operator of acute care hospitals and specialty care facilities.

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