AssuraMed, Landmark and AWAS break; Avaya dips; Hyland Software revises deal again

By Sara Rosenberg

New York, Oct. 19 - AssuraMed Holding Inc., Landmark Aviation and AWAS Aviation Capital Ltd. made their way into the secondary market on Friday, Avaya Inc. traded lower with amendment and extension news, and Energy Solutions LLC weakened following a downgrade.

Moving to the primary, Hyland Software Inc. came out with a new round of changes to its credit facility, this time upsizing the first-lien term loan and reducing both the coupon and the original issue discount, and Caesars Drai's (Corner Investment Propco LLC) lifted the spread on its upsized term loan.

In addition, Peak 10 set the original issue discount on its term loan B at the high end of guidance, Milk Specialties Global released price talk on its term loans as the debt was launched to investors during the session, and Stream Global Services Inc. announced new deal plans.

AssuraMed frees up

AssuraMed's credit facility began trading on Friday, with the $465 million seven-year first-lien term loan (B1/B) quoted at 99¾ bid, 100¼ offered, and the $195 million 71/2-year second-lien term loan (Caa1/CCC+) quoted at 99 bid, par offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 425 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien loan is priced at Libor plus 800 bps with a 1.25% Libor floor and was sold at a discount of 98. This debt has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien loan was upsized from $440 million and pricing firmed at the tight end of the Libor plus 425 bps to 450 bps talk, and the second-lien loan was downsized from $220 million and the spread came at the low side of the Libor plus 800 bps to 825 bps guidance.

AssuraMed recapitalizing

Proceeds from AssuraMed's $660 million loan deal will be used to refinance the balance sheet and to fund a dividend to shareholders.

Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc. are the joint lead arrangers on the transaction and joint bookrunners with Fifth Third Securities Inc., Goldman Sachs & Co., Jefferies & Co., J.P. Morgan Securities LLC, GE Capital Markets and ING.

AssuraMed, formerly known as Harrington Group Inc., is a Cleveland-based supplier of disposable medical products to chronic disease patients.

Landmark hits secondary

Another deal to break was Landmark Aviation, with its $260 million seven-year first-lien term loan B (B2/B-) quoted at 100¼ bid, 100¾ offered and its $130 million eight-year second-lien term loan (Caa2/CCC) quoted at 100½ bid, 101½ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 450 bps, after firming at the wide end of the Libor plus 425 bps to 450 bps talk. There is a 1.25% Libor floor and 101 soft call protection for one year, and it sold at a discount of 99.

The second-lien term loan, meanwhile, saw pricing firm at Libor plus 825 bps, the wide side of the Libor plus 800 bps to 825 bps guidance. There is 1.25% Libor floor as well as hard call protection of 102 in year one and 101 in year two, and it was sold at a discount of 981/2, which is the middle of the 98 to 99 talk.

Landmark lead banks

Morgan Stanley & Co. LLC, RBC Capital Markets and Barclays are the lead banks on the Landmark Aviation's $465 million deal that also provides for a $75 million five-year revolver (B2/B-).

Proceeds will be used to fund the acquisition of the company by Carlyle Group LP.

The co-borrowers under the credit agreement are LM U.S. Member LLC and LM U.S. Acquisition Inc.

Landmark Aviation is a Tempe, Ariz.-based provider of aftermarket services to the business aviation industry.

AWAS bid above par

AWAS Aviation's $360 million loan freed up too, with levels quoted at 100½ bid, 101½ offered, according to a source.

Pricing on the loan is Libor plus 350 bps, after finalizing at the low side of the Libor plus 350 bps to 375 bps talk. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was sold at par.

Proceeds are being used to reprice an existing term loan from Libor plus 450 bps with a 1.25% Libor floor.

Existing lenders are getting paid down at 101 as a result of call protection.

Goldman Sachs & Co. is leading the deal for the Dublin-based aircraft leasing company.

Avaya softens

In more secondary news, Avaya's term loans were weaker as the company launched an amendment and extension proposal with a call in the morning, according to a trader.

The term loan B-1 was quoted at 97½ bid, 98¼ offered, down from 98¼ bid, 98¾ offered, and the term loan B-3 was quoted at 89¾ bid, 90½ offered, down from 90½ bid, 91 offered, the trader said.

Under the amendment, the company is asking to extend all of its roughly $1.43 billion term loan B-1 by three years to Oct. 26, 2017 at pricing of Libor plus 525 bps with a 1.25% Libor, versus non-extended pricing of Libor plus 275 bps with no floor. The extended loan will have 101 soft call protection for one year.

The existing term loan B-3 has the same maturity as the proposed extended term loan B-1 debt, but is priced at Libor plus 450 bps with no Libor floor.

Avaya offers fees

With its amendment, Avaya, a Basking Ridge, N.J.-based provider of business collaboration and communications services, is proposing to pay lenders a 37.5 bps extension fee and a 12.5 bps consent fee.

In addition to the extension, the amendment would allow up to $750 million of additional junior-lien debt under the existing ratio basket.

Commitments and consents are due on Oct. 26.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and UBS Securities LLC are the lead banks on the deal.

Energy Solutions slides

Energy Solutions' term loan fell to 96 bid, 97 offered in trading, down from 96½ bid, 97½ offered, after Moody's Investors Services lowered the company's corporate family rating to Caa1 from B3 and credit facility rating to B2 from B1, according to a trader. The rating outlook is stable.

Moody's said that the downgrade reflects "a higher risk profile due to an elevated debt burden, upcoming expiration of ES' Magnox contract, a challenging outlook for the Zion Station nuclear decommissioning project and likelihood that U.S. federal spending on remediation projects will remain flat until fiscal pressures lessen."

Energy Solutions is Salt Lake City-based provider of services to the nuclear industry.

Academy Sports steady

Academy Sports + Outdoors' term loan held firm at 100¼ bid, 100 5/8 offered in trading on Friday as news emerged that the company will be holding a call for credit facility lenders on Monday, according to a market source.

There were no details available on the reason for the call prior to press time.

Academy Sports is a Katy, Texas-based sports, outdoor and lifestyle retailer.

Hyland reworks deal

Over in the primary, Hyland Software made some changes to its seven-year first-lien term loan, including lifting the size to $375 million from $360 million, lowering the coupon to Libor plus 425 bps from Libor plus 450 bps and trimming the original issue discount on new money to 99½ from 99, according to a market source.

As before, rollover commitments for the loan are being offered the debt at par, and there is a 1.25% Libor floor as well as 101 repricing protection for one year.

A few days ago, the deal had seen its first round of revisions that included increasing the first-lien term loan to $360 million from $320 million and cutting pricing from talk of Libor plus 475 bps to 500 bps.

Additionally, upon the original first-lien loan upsizing, the company eliminated plans for a $235 million 71/2-year second-lien term loan that was talked at Libor plus 875 bps to 900 bps with a 1.25% Libor floor and a discount of 981/2, and included call protection of 103 in year one, 102 in year two and 101 in year three.

Hyland getting revolver

Hyland Software's now $395 million credit facility (B), up from a most recent size of $380 million, also includes a $20 million five-year revolver.

Recommitments were due at 5 p.m. ET on Friday, the source said. The commitment deadline had been set for Oct. 22 at 5 p.m., but recently it had been accelerated to this past Thursday. Now, as a result of the newest changes, the deadline has been revised once more.

Credit Suisse Securities (USA) LLC and Jefferies & Co. are leading the deal that will fund a dividend and refinance existing debt.

Upon the first group of modifications to the transaction, plans were eliminated for a permitted change-of-control definition (pre-capitalization) that would have allowed the capital structure to stay in place if the company were to be sold and the buyer met certain leverage and equity criteria.

Hyland is a content-management solutions provider for middle-market enterprises.

Caesars Drai's flexes

Caesars Drai's upsized its seven-year term loan (B2/B) to $187 million from $180 million, and revised pricing to Libor plus 975 bps from Libor plus 850 bps, but left the 1.25% Libor floor and original issue discount of 98 intact, according to a market source.

Also, the loan is now non-callable for 1½ years, then at 103, 102, 101 and par, versus being non-callable for 1½ years, then at 102, 101 and par, the source said.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Valtus Capital are leading the deal that will fund the development of boutique hotel and Drai's nightclub.

Peak 10 finalizes OID

Peak 10 firmed the original issue discount on its $300 million term loan B at 97, the wide end of the recently revised talk of 97 to 98, according to a market source. At launch, the discount had been talked at 99.

Pricing on the loan is Libor plus 600 bps with a 1.25% Libor floor and there is 101 soft call protection for one year.

A few days ago, the spread on the term loan was increased from talk of Libor plus 500 bps to 525 bps, the maturity was shortened to six years from seven years, and the maximum net leverage ratio saw the addition of step-downs.

The company's $330 million senior secured credit facility (B2/B), which also includes a $30 million six-year revolver, is expected to allocate on Monday, the source added.

RBC Capital Markets, Barclays, GE Capital Markets and Morgan Stanley Senior Funding Inc. are leading the deal that will be used by the Charlotte, N.C.-based operator of data centers to refinance existing debt and fund a dividend.

Milk sets guidance

Also in the primary, Milk Specialties held a bank meeting on Friday to kick off syndication on its proposed credit facility, and price talk on the $250 million term loan B and $30 million delayed-draw term loan was announced, according to a market source.

Both term loans are guided at Libor plus 575 bps to 600 bps with a 1.25% Libor floor and an original issue discount of 99, and have 101 soft call protection for one year, the source said.

Commitments for the company's $315 million credit facility, which also includes a $35 million revolver, are due on Nov. 2.

RBC Capital Markets LLC is leading the transaction that will refinance existing debt, including a first-lien term loan that will be repaid at par.

Milk Specialties is an Eden Prairie, Minn.-based manufacturer of nutrition products.

KeyPoint launches

KeyPoint Government Solutions Inc. held a bank meeting on Friday too, and its $160 million credit facility launched in line with previously outlined talk, according to a market source.

The $10 million five-year revolver is being shopped at Libor plus 550 bps to 600 bps with no Libor floor and a 75 bps undrawn fee, and the $150 million six-year term loan B is being talked at Libor plus 550 bps to 600 bps with a 1.25% Libor floor and an original issue discount of 99.

Covenants include a maximum total leverage ratio and a minimum interest coverage ratio, the source said.

Amortization on the B loan is 1% per annum.

Lead bank, UBS Securities LLC, is asking for commitments by Nov. 2.

Proceeds will be used to refinance existing debt and fund a dividend.

KeyPoint is a Loveland, Colo.-based investigative and risk-mitigation services company.

Stream Global readies deal

In other news, Stream Global Services set a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch a new senior secured credit facility that consists of a revolver and term loan, according to a market source, who said tranche sizes are not yet available.

Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC and Bank of America Merrill Lynch are leading the deal.

Proceeds will be used to refinance an existing credit facility and 11.25% senior secured notes due 2014 and for general corporate purposes.

Stream is an Eagan, Minn.-based business process outsourcing company that provides sales, customer care, technical support and complex outsourcing services.

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