HealthPort, Great Wolf Resorts, White Birch break; Mueller Water, Abaco Energy revisions surface

By Sara Rosenberg

New York, Nov. 18 – HealthPort (CT Technologies Intermediate Holdings and Smart Holdings Corp.) saw its credit facility free up on Tuesday with the term loan quoted above its original issue discount, and Great Wolf Resorts Holdings Inc. and White Birch Paper began trading, too.

Switching to the primary, Mueller Water Products Inc. trimmed the spread on its term loan B, firmed the offer price at the low end of guidance and extended the call protection, and Abaco Energy Technologies LLC raised pricing on its term loan B, widened the original issue discount and shortened the maturity.

Also, RentPath Inc. and Cable & Wireless Communications plc released price talk with launch, and Compuware Corp., Varsity Brands and Creative Artists Agency joined this week’s calendar.

HealthPort hits secondary

HealthPort’s credit facility broke for trading on Tuesday, with the $325 million seven-year first-lien covenant-light term loan quoted at 99¾ bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 500 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. The debt includes 101 soft call protection for six months.

Last week, pricing on the term loan was lowered from Libor plus 550 bps and the discount was tightened from 98½.

The company’s $355 million credit facility (B2/B) also provides for a $30 million revolver.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the buyout of the company by New Mountain Capital.

HealthPort is an Alpharetta, Ga.-based provider of release-of-information services for the health care industry.

Great Wolf frees up

Great Wolf Resorts’ $214 million fungible add-on first-lien covenant-light term loan (B3) due Aug. 6, 2020 began trading as well, with levels seen at 99½ bid, par offered, according to a market source.

Pricing on the add-on loan is Libor plus 475 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

In connection with the add-on, pricing on the existing first-lien term loan is being changed to Libor plus 475 bps with a 1% Libor floor from Libor plus 325 bps with a 1% Libor floor. In addition, the existing loan is getting the 101 soft call protection for one year and lenders are receiving a 25 bps amendment fee.

Including the add-on, the first-lien term loan will have a total size of about $530 million.

Great Wolf refi/dividend

Proceeds from Great Wolf’s add-on term loan will be used to refinance existing debt and pay a dividend, which was reduced to $150 million from $200 million due to the elimination of a planned $120 million seven-year second-lien covenant-light term loan from the capital structure.

Talk on the second-lien term loan had been Libor plus 800 bps to 825 bps with a 1% Libor floor, a discount of 98½ to 99, and call protection of 102 in year one and 101 in year two with a one-year initial public offering claw for the entire tranche at 101.

When the second-lien loan was dropped, the add-on first-lien term loan was upsized from $150 million and pricing widened from talk of Libor plus 425 bps to 450 bps.

Deutsche Bank Securities Inc., Barclays, Goldman Sachs Bank USA and Apollo are leading the deal.

Great Wolf is a Madison, Wis.-based indoor water park resort operator.

White Birch breaks

Another deal to emerge in the secondary was White Birch Paper’s $185 million five-year first-lien term loan (B2/B+), with levels quoted at 93 bid, 94 offered, a market source remarked.

Pricing on the loan is Libor plus 800 bps with a 1% Libor floor and it was sold at an original issue discount of 93. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, pricing on the loan was lifted from revised talk of Libor plus 750 bps and initial talk of Libor plus 600 bps, the discount widened from revised talk of 95 and prior to that 98, and initial talk of 99, and the call protection was modified from revised talk of 103 in year one, 102 in year two and 101 in year three and initial plans of 102 in year one and 101 in year two.

Also during syndication, the maturity was shortened from six years, a maximum capital expenditures covenant was added to the originally covenant-light deal and the excess cash flow sweep was changed to 100% semiannual from 100% annual.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

White Birch is a Greenwich, Conn.-based manufacturer of newsprint, directory paper and paperboard.

Mueller Water tweaks deal

Moving to the primary, Mueller Water Products cut pricing on its $500 million seven-year covenant-light term loan B (B2/BB) to Libor plus 325 bps from Libor plus 375 bps, set the original issue discount at 99½, the tight end of the 99 to 99½ talk, and pushed out the 101 soft call protection to one year from six months, while keeping the 0.75% Libor floor intact, according to a market source.

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

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and MCS Capital are leading the deal that will be used to refinance existing debt.

Mueller Water is an Atlanta-based manufacturer and marketer of drinking water transmission, distribution and treatment facilities.

Abaco Energy reworked

Abaco Energy Technologies lifted pricing on its $175 million term loan B (B3/B) to Libor plus 700 bps from Libor plus 575 bps, moved the original issue discount to 94 from 99 and shortened the maturity to six years from seven years, a market source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for one year.

The company’s $200 million credit facility also includes a $25 million revolver.

Recommitments are due at noon ET on Wednesday, the source added.

Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. are leading the deal that will be used to help fund the acquisition of Basin Tools Inc.

Abaco Energy is a Houston-based oil field services company. Basin Tools is a Houston-based manufacturer, renter and seller of drilling motors and power sections for oil and gas drilling operations.

RentPath sets talk

Also in the primary, RentPath held its bank meeting in the morning, and with the event, price talk on its first- and second-lien term loans was announced, according to a market source.

The $475 million seven-year first-lien term loan (B1/B+) is talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $200 million eight-year second-lien term loan (Caa1/CCC+) is talked at Libor plus 850 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $725 million credit facility also includes a $50 million five-year revolver (B1/B+).

Commitments are due on Dec. 3, the source added.

RBC Capital Markets Inc., UBS AG, Nomura and Macquarie Capital (USA) Inc. are leading the deal that will help fund Providence Equity Partners’ purchase of a stake in the company from TPG and refinance debt.

At closing, which is expected around mid-December, Providence and TPG will own equal shares of RentPath, a Norcross, Ga.-based vertical search company for apartment and home renters, with management continuing to also have a stake in the company.

Cable & Wireless holds call

Cable & Wireless Communications held a call on Tuesday, launching a $460 million two-year senior secured term loan with talk of Libor plus 450 bps with a 1% Libor floor and an original issue discount of 98¾ to 99¼, and a $300 million two-year unsecured term loan with talk of Libor plus 550 bps with a 1% Libor floor and a discount of 98½ to 99, according to sources.

Commitments are due by noon ET on Friday, sources said.

J.P. Morgan Securities LLC is leading the $760 million in term loans that will be used with the placement of new shares to fund the acquisition of Columbus International Inc. for about $1.85 billion, plus the assumption of Columbus’ existing net debt which totaled around $1.17 billion at June 30.

Closing is expected in the first quarter of 2015.

Cable & Wireless is a London-based telecom services provider. Columbus is a Barbados-based telecommunications and technology services company.

Compuware timing surfaces

Compuware set a bank meeting for Thursday morning to launch its previously announced $2,005,000,000 senior secured credit facility, according to a market source.

The facility consists of a $100 million revolver, a $300 million first-lien term loan B-1, a $950 million first-lien term loan B-2, a $105 million asset sale facility and a $550 million second-lien term loan, the source said.

Jefferies Finance LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used with up to $675 million in equity and cash on hand to fund the buyout of the company by Thoma Bravo LLC for about $10.92 per share in a transaction valued at around $2.5 billion.

Closing is expected by early 2015, subject to shareholder approval, regulatory approvals, the completion of a disposition of Covisint and other customary conditions.

First-lien leverage is 4 times and net total leverage is 5.5 times, based on EBITDA of $308 million.

Compuware is a Detroit-based technology performance company.

Varsity Brands on deck

Varsity Brands scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch a $755 million term loan B, a market source said.

Goldman Sachs Bank USA, Barclays and Jefferies Finance LLC are leading the deal that will be used to help fund the buyout of the company by Charlesbank Capital Partners. Varsity Brands’ senior leadership will invest in the company alongside Charlesbank.

In an early-November news release announcing the deal, the company said that Ares Capital Corp. and Crescent Mezzanine would be providing some debt financing as well.

Closing is expected in December, subject to customary conditions.

Varsity Brands is a Memphis, Tenn.-based portfolio of brands that promote student participation while celebrating academic and athletic achievement.

Creative Artists coming soon

Creative Artists Agency emerged with plans to hold a bank meeting at 10 a.m. ET on Thursday to launch a $610 million credit facility, according to a market source.

The facility consists of a $100 million five-year revolver and a $510 million seven-year covenant-light term loan B, the source said.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, UBS AG and Nomura are leading the deal that will be used to refinance existing debt and fund a dividend.

Creative Artists is a Los Angeles-based entertainment and sports firm which recently announced that TPG is increasing its investment in it to a majority position.

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