Hologic, Ipreo, Intelligrated, Panda, Arctic Glacier break; Party City reworks term loan B

By Sara Rosenberg

New York, July 19 - Hologic Inc.'s term loan B emerged in the secondary market on Thursday, with the term loan B quoted above par, and Ipreo Holdings LLC's incremental term loan freed up after the original issue discount was tightened and soft call protection was eliminated.

Also, Intelligrated finalized pricing on its first- and second-lien term loans and then began trading, and Panda Temple Power LLC and Arctic Glacier USA Inc. broke too.

And, in more secondary news, LodgeNet Interactive Corp.'s term loan weakened as the company came out with second-quarter numbers that showed a year-over-year decline in earnings, revenue and adjusted operating cash flow.

Switching to the primary market, Party City Holdings Inc. made some changes to its term loan, including lifting the size and reducing the coupon, as the deal was met with strong demand.

In addition, Homeward Residential Inc., FLY Leasing Ltd. and Essential Power LLC price talk surfaced with launch, Patriot Coal Corp. nailed down timing on the launch of its debtor-in-possession credit facility, and American Capital Ltd. emerged with new deal plans.

Hologic starts trading

Hologic's credit facility broke for trading on Thursday, with the $1.5 billion seven-year term loan B quoted at par 1/8 bid, par 7/8 offered on the open and then it moved to par 3/8 bid, par 5/8 offered shortly thereafter, according to one trader. By late day, a second trader was seeing it at par ½ bid, 101 offered.

Pricing on the term loan B is Libor plus 350 basis points 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.

Recently, pricing on the loan was reduced from Libor plus 400 bps and the size was trimmed from $1.75 billion as the company's senior notes offering was lifted to $1 billion from $750 million. And earlier in the process, the B loan was reduced by $250 million from $2 billion, with those funds going to the originally sized $500 million bond deal.

The company's $2.8 billion senior secured deal (Ba2/BBB-) also provides for a $300 million undrawn five-year revolver and a $1 billion five-year term loan A, both priced at Libor plus 300 bps.

Hologic buying Gen-Probe

Proceeds from Hologic's credit facility, notes and $826 million of cash and marketable securities on hand will fund the acquisition of Gen-Probe Inc. for $82.75 per share in cash. The total enterprise value is about $3.7 billion.

Goldman Sachs & Co., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the lead banks on the credit facility.

Closing is expected in early August, subject to approval of Gen-Probe's shareholders, which will be sought at a meeting on July 31.

Hologic is a Bedford, Mass.-based developer, manufacturer and supplier of diagnostics products, medical imaging systems and surgical products for the health care needs of women. Gen-Probe is a San Diego-based developer, manufacturer and marketer of molecular diagnostic products and services.

Ipreo tops OID

Ipreo's $35 million covenant-light incremental term loan (B1/BB-) made its way into the secondary market, with levels quoted at 99½ bid, par offered, according to a trader. The new debt trades with the existing term loan.

Pricing on the add-on, as well as on the existing loan, is Libor plus 650 bps with a 1.5% Libor floor. The add-on was sold at an original issue discount of 99, after coming in from initial talk of 98.

Originally, the incremental loan was expected to have 101 soft call protection for six months, but that provision was removed during syndication.

RBC Capital Markets LLC is leading the deal that will refinance mezzanine debt.

Ipreo is a New York-based capital markets and corporate analytics firm.

Intelligrated hits secondary

Intelligrated's credit facility started trading as well, with the $215 million six-year covenant-light first-lien term loan (B1/B) quoted at 98¾ bid, 99¼ offered, a market source remarked.

Pricing on the first-lien loan is Libor plus 550 bps, after firming at the wide end of the Libor plus 525 bps to 550 bps talk. There is a 1.25% Libor floor and soft call protection of 102 in year one and 101 in year two, and the debt was sold at an original issue discount of 98.

During syndication, the maturity on the first-lien loan was shortened from seven years.

The company's $340 million credit facility also provides for a $35 million revolver (B1/B) $90 million 71/2-year covenant-light second-lien term loan (Caa1/CCC+).

Intelligrated spread

Intelligrated's second-lien term loan is priced at Libor plus 925 bps, after firming at the low end of the Libor plus 925 bps to 950 bps guidance, a source said. The loan has a 1.25% floor and was sold at a discount of 98. It includes call protection of 103 in year one, 102 in year two and 101 in year three.

RBC Capital Markets LLC and Morgan Stanley Senior Funding Inc. are the lead banks on the credit facility, with RBC the left lead on the first-lien and Morgan Stanley the left lead on the second-lien.

Proceeds will help fund the company's acquisition by Permira from Gryphon Investors in a transaction valued at more than $500 million and expected to close in the third quarter, subject to regulatory approvals and customary conditions.

Net first-lien leverage is 3.4 times, and net total leverage is 4.8 times.

Intelligrated is a Mason, Ohio-based provider of automated material handling services and products.

Panda Temple breaks

Panda Temple Power's $330 million of six-year construction term loans (B) freed up too, with the $75 million term loan A and the $255 million term loan B quoted at par bid, 101 offered, according to a trader.

Pricing on the A loan is Libor plus 700 bps and pricing on the B loan is Libor plus 1,000 bps, with both tranches having a 1.5% Libor floor and sold at an original issue discount of 98. All of the debt is non-callable for two years, then at 102 in year three and 101 in year four, the source added.

Morgan Stanley Senior Funding Inc. and Ares Capital led the deal that is being used to build a 758 megawatt natural gas-fired power plant in Temple, Texas.

Arctic frees up

Yet another deal to start trading was Arctic Glacier's credit facility, with the $200 million six-year first-lien term loan quoted at 98 bid, a trader said.

Pricing on the term loan, and on a $25 million five-year revolver, is Libor plus 700 bps with a 1.5% Libor floor, and the debt was sold at an original issue discount of 97. The term loan has 101 soft call protection for one year.

During syndication, pricing on the $225 million deal (B1/B) was lifted from Libor plus 675 bps.

Credit Suisse Securities (USA) LLC is the bookrunner on the deal that will be used with $85 million of mezzanine debt to fund the buyout of the company by HIG Capital.

Closing is expected by July 31, subject to approval of the U.S. Bankruptcy Court for the District of Delaware, pre-merger clearance in the U.S. and the satisfaction of certain customary conditions.

Arctic Glacier is a Winnipeg, Man.-based producer, marketer and distributor of packaged ice.

LTI levels surface

Meanwhile, LTI Boyd's $141 million credit facility allocated on Wednesday, and on Thursday, the $116 million six-year term loan was being quoted at 99 bid, par offered, a source said.

Pricing on the term loan, as well as on a $25 million five-year revolver, is Libor plus 525 bps with a 1.25% Libor floor, and the two tranches were sold at an original issue discount of 99.

GE Capital Markets and KeyBanc Capital Markets LLC led the deal that was used to help fund the buyout of the company by Snow Phipps Group LLC, the completion of which was announced on Thursday.

LTI Boyd is a Modesto, Calif.-based provider of lowest-cost, engineered mechanical component and assembly services.

LodgeNet slides

Also in trading, LodgeNet's term loan dropped to 73 bid, 75 offered, from 75 bid, 78 offered, after the release of second quarter results, according to a trader.

For the quarter, the company reported a net loss of $103.1 million, or $4.08 per share, versus a net loss of $4.4 million, or $0.17 per share in the prior year.

Revenue for the quarter was $92.8 million, compared to $106.6 million in the second quarter of 2011.

And, adjusted operating cash flow for the quarter was $19.2 million, compared to $26.4 million last year.

LodgeNet is a Sioux Falls, S.D.-based provider of interactive media and connectivity services to hospitality and health care businesses.

Party City tweaks loan

Moving to the primary, Party City announced revisions to its term loan (B1/B), including upsizing the tranche to $1.125 billion from $1.05 billion and cutting the spread to Libor plus 450 bps from talk of Libor plus 500 bps to 525 bps, according to sources.

As before, the term loan has a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

The company's $1.525 billion credit facility also includes a $400 million ABL revolver.

Commitments were due at 5 p.m. ET on Thursday, sources said.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Morgan Stanley Senior Funding Inc. and Barclays Capital Inc. are leading the deal.

Party City funding buyout

Proceeds from Party City's credit facility, $700 million of notes and equity will fund its purchase by Thomas H. Lee Partners LP from Advent International Corp., Berkshire Partners LLC and Weston Presidio in a deal valued at $2.69 billion.

As a result of the term loan upsizing, the equity portion of the transaction was reduced, sources remarked.

Party City is a Rockaway, N.J.-based designer, manufacturer and distributor of party goods, including paper and plastic tableware, metallic balloons, accessories, novelties, gifts and stationery.

Homeward reveals talk

Homeward Residential held a bank meeting on Thursday morning to launch its credit facility, and price talk on its $300 million term loan came out at Libor plus 700 bps with a 1.5% Libor floor and an original issue discount of 96, a market source said, adding that there is hard call protection of 102 in year one and 101 in year two.

Commitments toward the company's $375 million credit facility (B1), which also includes a $75 million revolver, are due on Aug. 2.

Barclays Capital Inc., Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the deal that will be used to redeem preferred shares held by WL Ross & Co.

Homeward Residential is a Coppell, Texas-based non-bank mortgage servicing and finance company.

FLY sets guidance

Another deal to launch and release talk was FLY Leasing, with its $395 million senior secured term loan (B1/BBB-) presented to lenders at Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 98 to 99 and 101 soft call protection for one year, according to a market source.

Commitments are due on July 26, the source said.

Citigroup Global Markets Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC and Jefferies & Co. are leading the loan that will refinance remaining 2012 debt maturities and outstanding debt under a facility that matures in 2013.

FLY is an aircraft lessor with corporate offices in Dublin, Ireland, and San Francisco.

Essential Power launches

Essential Power revealed guidance of Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 98 to 98½ on its $565 million seven-year term loan B with its afternoon bank meeting, a source said. The loan has 101 soft call protection for one year.

The company's $665 million senior secured credit facility (Ba2/BB), for which commitments are due on Aug. 2, also includes a $100 million five-year revolver.

Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Union Bank of California and RBC Capital Markets are the lead banks on the deal.

Proceeds will be used to refinance existing bank debt and fund a tender offer for the company's 10 7/8% senior secured second-lien notes due 2016 that expires on Aug. 15.

Essential Power is an Iselin, N.J.-based wholesale power generation and marketing company.

Patriot timing emerges

In more primary news, Patriot Coal firmed timing on the launch of its $802 million 450-day debtor-in-possession credit facility, setting a bank meeting for Tuesday afternoon, according to a market source.

The facility consists of a $125 million super-priority senior secured revolver, a $375 million super-priority senior secured term loan facility and a $302 million second-out roll-up of letters-of-credit loan.

Based on court documents, pricing on the revolver is expected at Libor plus 325 bps with a 1.5% Libor floor, and pricing on the term loan and roll-up loan are expected at Libor plus 800 bps with a 1.5% floor.

Although official talk is not yet available, investors are unofficially being told that the term loan will have a yield in the mid-10% area, sources previously told Prospect News.

Patriot lead banks

Citigroup Global Markets Inc., Barclays Capital Inc. and Bank of America Merrill Lynch are the joint lead arrangers on Patriot Coal's DIP.

Proceeds will be used to fund operations, working capital needs and general corporate purposes during the company's Chapter 11 reorganization.

The company has already received court approval for interim access to $677 million of the DIP facility.

Patriot Coal is a St. Louis-based miner, producer and seller of thermal coal primarily to electricity generators.

American Capital readies

American Capital has set a bank meeting for 1:30 p.m. ET on Tuesday to launch a proposed $750 million credit facility for which J.P. Morgan Securities LLC is left lead, according to a market source.

The facility consists of a $600 million four-year term loan B and a $150 million revolver.

Proceeds will be used to refinance basically all of the company's existing recourse debt and for working capital and general corporate purposes.

American Capital is a Bethesda, Md.-based private equity firm and global asset manager.

Paradigm well met

Paradigm Holdco Sarl's $460 million credit facility has seen good interest from lenders, resulting in oversubscription by Thursday's commitments deadline, according to a market source.

The facility consists of a $40 million five-year revolver (B1/B+), a $290 million seven-year covenant-light first-lien term loan (B1/B+) and a $130 million eight-year covenant-light second-lien term loan (Caa1/CCC+).

Talk on the first-lien term loan is Libor plus 525 bps with a 1.25% Libor floor and an original issue discount of 98, and on the second-lien term loan is Libor plus 925 bps with a 1.25% floor and a discount of 98.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Paradigm being acquired

Proceeds from Paradigm's credit facility will be used to help fund its buyout by Apax Partners and JMI Equity from Fox Paine & Co. for about $1 billion in cash.

UBS Securities LLC and RBC Capital Markets LLC are the lead banks on the deal.

Paradigm is a software vendor focused on the oil and gas exploration and production space with a significant presence across Europe, the Americas, the Middle East, Africa, China and Australasia.

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