Carestream slides post-auction; Bojangles seen around OID; Omnicare gets strong reception

By Sara Rosenberg

New York, Aug. 19 - Carestream Health Inc. completed the buyback of some its term loan B borrowings and after the auction took place, the company's remaining institutional debt headed lower in trading.

Also in the secondary market, Bojangles Restaurants' term loan held steady on Friday after freeing up for trading late in the previous session at levels that were pretty much wrapped around the original issue discount price.

Over in the primary market, Omnicare Inc.'s unsecured credit facility has reached strong oversubscription levels, putting the deal on track to close in the next few days at original terms.

Carestream retreats

Carestream Health's term loan B was softer on the day after the company bought back through an auction $35 million of the debt at a price of 85, according to traders.

One trader was quoting the term loan B at 82½ bid, 84½ offered, and a second trader was quoting it at 82 bid, 84 offered. On Thursday, the debt was seen at 84 bid, 86 offered.

The term loan B was obtained early this year at a size of $1.85 billion and at pricing of Libor plus 350 basis points with a 1.5% Libor floor. It had been sold at an original issue discount of 99½ and includes 101 soft call protection for one year.

Proceeds from the term loan B, along with a $150 million revolver, were used to refinance existing first- and second-lien term loans and to pay a dividend.

Carestream is a Rochester, N.Y.-based provider of medical and dental imaging products and services.

Bojangles holds firm

Bojangles Restaurants' $190 million term loan was quoted at 97¾ bid, 98¼ offered on Friday, in line with where it broke on Thursday night, according to a trader, who said that the loan hasn't been very active since it's well put away.

Pricing on the term loan is Libor plus 650 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 98.

During syndication, the spread was increased from Libor plus 625 bps, the floor was lifted from 1.25% and the discount widened from 99.

The company's $215 million credit facility (B1/B) also includes a $25 million revolver.

Jefferies & Co. and RBC Capital Markets LLC are the lead banks on the deal that will be used, along with equity, to fund the buyout of the company by Advent International.

Bojangles is a Charlotte, N.C.-based owner of quick-service restaurants.

Omnicare well-met

Moving to the primary, Omnicare's $750 million five-year unsecured credit facility (Baa3/BBB-) was met with strong demand from investors, resulting in close to $1.1 billion of orders being raised, according to a market source.

The facility consists of a $300 million revolver and a $450 million term loan, with both tranches priced in line with initial talk at Libor plus 250 bps.

SunTrust Robinson Humphrey Inc., J.P. Morgan Securities LLC, Barclays Capital Inc. and Goldman Sachs & Co. are the lead banks on the deal that will be used to refinance existing debt.

Net leverage is around 2.3 times.

Omnicare, a Covington, Ky.-based pharmaceutical services company, anticipates closing on the credit facility on Aug. 24. Allocations went out on Thursday night.

Immucor buyout wraps

In other news, TPG Capital completed its acquisition of Immucor Inc., a Norcross, Ga.-based provider of automated instrument-reagent systems to the blood transfusion industry, for $27.00 per share, according to a news release.

To help fund the transaction, Immucor got a new $715 million senior secured credit facility (Ba3/BB-), consisting of a $100 million five-year revolver and a $615 million seven-year term loan B priced at Libor plus 575 bps with a 1.5% Libor floor. The B loan was sold at an original issue discount of 96 and includes 101 soft call protection for one year.

During syndication, the term B was upsized from $600 million, pricing was raised from talk of Libor plus 450 bps to 475 bps, the discount widened from 99 and a senior secured net leverage covenant of 5.25 times was added. The upsizing was to account for the larger discount price.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the joint lead arrangers and bookrunners on the deal, and UBS Securities LLC was a bookrunner, too.

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