Nielsen term loan C better bid; Morton's reveals timing, structure; ThermaSys sets launch

By Sara Rosenberg

New York, Jan. 9 - Nielsen Co.'s term loan C was bid higher during Monday's session as levels tightened with some trading activity, and the company launched an amendment to its credit facility along with its new term loan A.

In more loan happenings, Morton's Restaurant Group Inc. nailed down timing on the launch of its credit facility, which is coming to market with a slightly smaller size than the company previously outlined, and ThermaSys Corp. and CCS Corp. surfaced with new deal plans.

Nielsen C loan rises

Nielsen's term loan C traded around on Monday, resulting in levels moving to 99 bid, 99½ offered from 98½ bid, 99½ offered according to a trader.

Meanwhile, the company's term loan B and existing term loan A were unchanged on the day, with the B loan quoted at 99¼ bid, 99¾ offered and the A loan quoted at 99¾ bid, par offered, the trader remarked.

Nielsen had a busy day, first launching a new $1.25 billion five-year term loan A with a bank meeting in the morning and then holding a call in the afternoon to launch a credit facility amendment to existing lenders.

The Citigroup Global Markets Inc.-led amendment is to allow for the new loan, and in exchange for consents, which are due on Jan. 17, lenders are being offered a 5 basis point amendment fee.

Nielsen price talk

With the launch of its new term loan A, Nielsen came out with price talk on the tranche of Libor plus 225 bps, a market source told Prospect News.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC are the lead banks on the new loan, with JPMorgan the left lead.

Proceeds will be used to refinance a portion of the company's non-extended term loan A due in 2013, which had a carrying amount of $1.395 billion under the U.S. tranche and a carrying amount of $247 million under the euro tranche as of Sept. 30.

Commitments towards the new loan are due on Jan. 20.

Nielsen is a New York-based information and media company.

Morton's timing emerges

Continuing on the topic of new deals, Morton's Restaurant Group firmed up a bank meeting date for its proposed $205 million senior secured credit facility, with the event set to take place at 12:30 p.m. ET on Thursday, according to a market source. Previously, timing on the deal was labeled as mid-January business.

The facility will launch as a $15 million 41/2-year revolver and a $190 million five-year term loan, the source said, which is a bit smaller than the $200 million term loan size that the company described in filings with the Securities and Exchange Commission.

While official price talk on the deal is not expected to come out until the bank meeting, the company had said in its SEC filings that the tranches are expected at Libor plus 725 bps with a 1.5% Libor floor, and that the revolver would have a 75 bps unused fee.

Jefferies & Co. is the sole lead bank on the deal.

Morton's being acquired

Proceeds from Morton's credit facility and cash on hand will fund its buyout by Tilman J. Fertitta's wholly owned company Fertitta Morton's Restaurants Inc. for $6.90 per share in cash through a tender offer that expires on Jan. 31.

Leverage through the credit facility will be in the low 3.0 times contect.

Closing is expected in early February, subject to the tender of a majority of shares, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Morton's is a Chicago-based operator of company-owned upscale steakhouses.

ThermaSys coming soon

Also joining this week's calendar was ThermaSys, as the company scheduled a bank meeting for Tuesday to launch a proposed $142 million five-year credit facility, according to a market source.

The facility consists of a $30 million revolver and a $112 million term loan, the source said, adding that price talk is not yet available.

GE Capital Markets is leading the deal that will be used to help fund the purchase of the company by Wellspring Capital from Sun Capital Partners Inc.

ThermaSys is a Montgomery, Ala.-based supplier of highly engineered copper/brass and aluminum heat exchanger components and assemblies.

CCS readies loan

CCS is another new issue that surfaced on Monday, with the company getting ready to launch on Wednesday a $200 million add-on term loan due November 2014, according to a market source.

Deutsche Bank Securities Inc. and Goldman Sachs & Co. are the lead banks on the deal that will be used to refinance revolver borrowings.

Price talk is not yet available, the source remarked.

CCS is a Calgary, Alberta-based oil and gas environmental services company.

Corrections Corp. closes

In other news, Corrections Corp. of America completed its $785 million revolving credit facility due December 2016 that is priced at Libor plus 150 basis points, according to a news release.

The revolver was initially launched with a size of $750 million.

Wells Fargo Securities LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. led the deal.

Proceeds, along with cash on hand, were used to refinance existing bank debt, fund a tender offer for $335 million of 6¼% senior notes due 2013 and for general corporate purposes.

Corrections Corp. of America is a Nashville, Tenn.-based owner and operator of partnership correction and detention facilities.

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