CIT Group, Blount break; Gentiva tweaks deal; AMN banks surface; MultiPlan nets orders

By Sara Rosenberg

New York, Aug. 6 - CIT Group Inc.'s term loan freed up for trading during market hours, with levels quoted above its original issue discount price, and Blount International Inc.'s credit facility broke for trading as well.

Over in the primary market, Gentiva Health Services Inc. came out with changes to its term loan B, including flexing pricing higher, widening the original issue discount and adding an extra year of call protection.

Also, lead banks emerged on AMN Healthcare Services Inc.'s proposed term loans, and MultiPlan Inc.'s credit facility has been coming along nicely with there still being a few days left before the books close.

Furthermore, TI Automotive's term loan filled out, and Bourland & Leverich Supply Co. LLC's credit facility was oversubscribed ahead of their Friday commitment deadlines.

CIT Group starts trading

CIT Group's $3 billion five-year non-amortizing term loan hit the secondary market, with levels quoted at 99¾ bid, par offered from the break on, according to traders.

Pricing on the term loan is Libor plus 450 basis points with a 1.75% Libor floor, and it was sold at an original issue discount of 98.

There is call protection of 102 in year one and 101 in year two.

During syndication, pricing on the term loan was reduced from initial talk at launch of Libor plus 475 bps to 500 bps due to strong demand.

Bank of America, Morgan Stanley and Deutsche Bank are the lead banks on the deal, with Bank of America the left lead.

CIT refinancing debt

Proceeds from CIT Group's term loan, along with $1 billion of cash on hand, will be used to repay the company's existing $4 billion in first-lien term debt.

The existing debt is split between a roughly $1.5 billion tranche 1 that is priced at Libor plus 1,000 bps with a 3% Libor floor and a roughly $2.5 billion tranche 2 that is priced at Libor plus 750 bps with a 2% Libor floor.

Lenders under the tranche 1 and tranche 2 were offered the option to roll into the new term loan, with tranche 1 lenders getting a 225 bps rollover fee and tranche 2 lenders getting a 200 bps fee.

Originally, the company's first-lien debt was sized at $7.5 billion, but $750 million was prepaid during the first quarter, $2.3 billion was prepaid during the second quarter and about $450 million was prepaid just after the second quarter ended.

CIT Group is a New York-based provider of financing to small businesses and middle-market companies.

Blount frees up

Also making its way into the secondary market was Blount International, with its $275 million term loan B due in August 2016 quoted at 99½ bid, 99¾ offered on the open and then moving up to 99¾ bid, par offered, according to a market source.

Pricing on the term loan B is Libor plus 400 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99.

The B loan carries 101 soft call protection for one year.

During syndication, pricing on the term loan B was flexed up from Libor plus 350 bps and the soft call was added.

Blount revolver, term A

In addition to the term loan B, Blount's $425 million amended and restated facility (Ba3/BB-) includes a $75 million term loan A due in August 2015 and a $75 million revolver due in August 2015, which are both priced at Libor plus 350 bps with no Libor floor. The revolver has a 50 bps unused fee.

The term loan A was added during syndication when a $75 million delayed-draw term loan due in August 2016 was eliminated from the capital structure. The delayed-draw loan was being talked at Libor plus 350 bps with a 1.5% Libor floor and a discount of 99.

GE Capital Markets is the lead bank on the deal that will be used to refinance existing bank debt and fund the redemption of the company's $175 million of senior subordinated notes due in August 2012.

Blount is a Portland, Ore.-based manufacturer of equipment, accessories and replacement parts for the forestry, garden and construction industries.

Gentiva reworks B loan

Switching to the primary, Gentiva Health Services made a number of revisions to its $600 million six-year term loan B in order to get investors on board, such as increasing pricing and the original issue discount and adding more call protection, according to sources.

The term loan B is now talked at Libor plus 500 bps, up from Libor plus 450 bps to 475 bps, with the 1.75% Libor floor left intact, sources said.

Also, the B loan is being offered at an original issue discount in the 96 to 97 context, as opposed to at 98, sources continued.

And, there is soft call protection of 102 in year one and 101 in year two, as opposed to just 101 in year one.

Other changes made to the term loan B include increased amortization and moving the excess cash flow sweep to 75% from 50%, sources added.

Gentiva pro rata unchanged

Gentiva's $925 million senior credit facility (Ba2/BB-) also includes a $125 million revolver and a $200 million term loan A, and terms on these tranches were left alone.

Price talk on the revolver and term loan A is Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 981/2.

The revolver and term loan A were launched to banks on June 16, while the term loan B didn't launch until July 7.

Bank of America, GE Capital, Barclays Bank and SunTrust are the joint lead arrangers and bookrunners on the deal, with Bank of America the administrative agent.

Covenants under the credit facility include a minimum interest coverage ratio and a maximum total leverage ratio.

Gentiva held up by investigation

Syndication of Gentiva's term loan B hit a snag when the company revealed that it is under investigation by the Securities and Exchange Commission for its participation in the Medicare Home Health Prospective Payment System.

The books on the term loan B were left open after the initial commitment deadline hit and the plan was to rejuvenate the syndication effort once the company's bond offering came to market.

A roadshow for the $305 million senior unsecured notes offering kicked off this past Thursday, and the deal is expected to price on Wednesday.

Commitments towards the revised term loan B are due on Wednesday as well.

Gentiva buying Odyssey

Proceeds from Gentiva's credit facility and notes will be used to help fund the acquisition of Odyssey HealthCare Inc. for $27 per share, for an aggregate purchase price of about $1 billion, and to refinance existing debt.

Following completion of the transaction, net leverage is expected to be around the 4.0 times area.

Closing on the credit facility and the acquisition is expected in the third quarter, subject to approval by Odyssey's stockholders.

Gentiva is an Atlanta-based home health care provider. Odyssey is a Dallas-based provider of hospice care.

AMN led by three

AMN Healthcare Services Inc.'s proposed $118 million of incremental loans is being led by Bank of America, GE Capital and SunTrust, with Bank of America the left lead, according to a market source.

A conference call to launch the transaction is expected to occur soon.

The debt is comprised of a $68 million term loan B add-on (Ba2) and a new $50 million second-lien term loan (B1).

The company also expects to amend and extend its existing $107 million term loan B and revolver.

AMN buying Nursefinders

AMN Healthcare's new debt is in connection with its acquisition of Nursefinders Inc. for roughly 6.3 million shares of AMN common stock and about 5.7 million shares of AMN series A conditional convertible preferred stock.

Specifically, the new debt financing will be used to repay Nursefinders' existing bank debt of $132 million.

The transaction is expected to close in the third quarter, subject to customary conditions, regulatory approvals and receipt of debt financing.

AMN is a San Diego-based health care staffing and workforce services company. Nursefinders is an Arlington, Texas-based provider of clinical workforce managed services programs.

MultiPlan attracts interest

Syndication of MultiPlan's credit facility has "been going very well" ahead of Wednesday's commitment deadline, helped along in part by the decent amount of rollover seen from existing lenders, according to a market source.

The $1.375 billion credit facility (Ba3/B) consists of a $75 million revolver and a $1.3 billion term loan.

Price talk on the term loan is Libor plus 450 bps to 475 bps with a 1.75% Libor floor and an original issue discount of 98 to 981/2.

Barclays Capital, Bank of America and Credit Suisse are the leads on the deal that will be used, along with $675 million of notes, to help fund the buyout of the company by BC Partners and Silver Lake from the Carlyle Group and Welsh, Carson, Anderson & Stowe.

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

TI Automotive wraps up

TI Automotive's $150 million term loan was fully subscribed by Friday's commitment deadline as investors were enticed by the sweetened terms that emerged at the end of July, according to a market source.

The term loan is priced at Libor plus 750 bps with a 2% Libor floor and an original issue discount of 98.

There is call protection of 102 in year one and 101 in year two.

Initially, the loan had been launched around mid-June with a size of $200 million, price talk of Libor plus 550 bps with a 2% floor and a discount of 98, and 101 soft call protection for one year. Then talk drifted up to Libor plus 675 bps. And, finally, the deal was relaunched on July 29 at the current terms.

When the deal was represented to lenders, the collateral package was buffed up as well.

TI Automotive getting ABL

TI Automotive's $200 million credit facility also provides for a $50 million four-year asset based revolver priced at Libor plus 350 bps.

The revolver was left unchanged throughout the syndication process.

Citigroup is the lead bank on the term loan, and Citi and UBS are leading the revolver.

Proceeds from the credit facility will be used to refinance existing debt.

TI Automotive is a provider of fluid storage and carrying and delivery technology to automotive manufacturers.

Bourland & Leverich oversubscribed

Bourland & Leverich's $200 million senior secured credit facility was oversubscribed by the time the books shut down at noon ET on Friday, and allocations are expected to go out either late in the week of Aug.9 or early the following week, according to a market source.

The facility consists of a $75 million four-year ABL revolver that will be partially funded at closing and a $125 million five-year term loan (B+).

Pricing on the term loan is Libor plus 900 bps with a 2% Libor floor, and it was sold at an original issue discount of 95.

The term loan is non-callable for two years, then at 105½ in year three, 102¾ in year four and par in year five.

During syndication, pricing on the term loan firmed at the wide end of the initial Libor plus 850 bps to 900 bps talk, the discount was increased from the 97 to 98 area and the call protection was sweetened from non-callable for one year, then at 102 in year two and 101 in year three.

Bourland & Leverich being acquired

Proceeds from Bourland & Leverich's credit facility will be used to help fund the acquisition of the company by Jefferies Capital Partners.

Jefferies Finance is the lead arranger on the deal.

Pro forma leverage is 2.9 times and equity will comprise 42% of capitalization.

Bourland & Leverich is a Pampa, Texas-based distributor of oil country tubular goods serving U.S. onshore oil and gas producing regions.

Midcontinent closes

Midcontinent Communications closed on its $675 million senior secured credit facility (B1/B+) on Friday, consisting of a $350 million 61/2-year term loan B, $125 million 51/2-year revolver and a $200 million 51/2-year term loan A, according to a market source.

Pricing on the term loan B is Libor plus 450 bps with a step-down to Libor plus 425 bps once leverage falls below 3.5 times, and pricing on the revolver and term loan A is Libor plus 400 bps, with the revolver having a 50 bps unused fee.

The term loan B has a 1.75% Libor floor and 101 soft call protection for one year, and was sold at an original issue discount of 981/2.

During syndication, pricing on the term loan B firmed at the tight end of the initial Libor plus 450 bps to 475 bps talk, and the step-down was added.

Midcontinent lead banks

SunTrust, Wells Fargo, US Bank and RBC acted as the joint bookrunners on the Midcontinent Communications' credit facility, with SunTrust the left lead. CoBank and Bank of America signed on as agents.

Proceeds are being used to fund a $320 million distribution to the partnership, refinance about $230 million of debt and for general corporate purposes.

Midcontinent Communications is a Minneapolis-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.

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