Omnitracs frees up; Fortescue down on refi; Garda accelerates deadline; P2, Greenway revised

By Sara Rosenberg

New York, Oct. 29 - Omnitracs Inc.'s credit facility emerged in the secondary market on Tuesday, with both the first- and second-lien term loans seen above their original issue discount prices, and Fortescue Resources' term loan headed lower in trading following news of a refinancing transaction.

Over in the primary, Garda World Security Corp. moved up the commitment deadline on its term loans, P2 Energy Solutions Inc. increased sizes of its first- and second-lien term loans while decreasing spreads and updating original issue discounts, and Greenway Medical Technologies Inc. raised the coupon on its first-lien term loans and tightened the discount on its second-lien loan.

Also, Atlantic Aviation FBO Inc. revealed original issue discount guidance on its incremental term loan B with launch, Glencoe Principal Holdings began circulating price talk on its upcoming deal, and CSC ServiceWorks Inc. (Coinmach), BJ's Wholesale Club Inc., GreenField Specialty Alcohols Inc. and Camping World Inc. surfaced with loan plans.

Omnitracs hits secondary

Omnitracs' credit facility freed up for trading on Tuesday, with the $290 million seven-year first-lien term loan B (B1/B+) quoted at par ¼ bid, par ½ offered and the $100 million 71/2-year second-lien term loan (Caa1/CCC+) quoted at 99¾ bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 375 basis points with a step-down to Libor plus 350 bps when total net leverage is 4.5 times. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was sold at an original issue discount of 991/2.

The second-lien term loan is priced at Libor plus 775 bps with a step-down to Libor plus 750 bps when total net leverage is 4.5 times. This tranche has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two, and was issued at a discount of 99.

Recently, pricing on the first-lien term loan was lowered from Libor plus 400 bps, the spread on the second-lien loan was reduced from Libor plus 800 bps while the discount was revised from 981/2, and the leverage-based step-downs on both tranches were added.

The company's $420 million senior secured credit facility also includes a $30 million five-year revolver (B1/B+).

Omnitracs lead banks

RBC Capital Markets, Credit Suisse Securities (USA) LLC and Guggenheim Corporate Funding are leading Omnitracs' credit facility.

Proceeds will be used to help fund the $800 million buyout of the company by Vista Equity Partners from Qualcomm Inc.

Closing is expected during the first quarter of Qualcomm's fiscal 2014, subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Omnitracs is a San Diego-based provider of satellite and terrestrial-based connectivity and position location solutions to transportation and logistics companies.

Fortescue softens

In more trading news, Fortescue's term loan dropped after word emerged that the company would be taking out the debt with a new $4.95 billion senior secured covenant-light five-year term loan, according to a market source.

One trader had the term loan quoted at par ¼ bid, par ¾ offered immediately after the news hit and then at par 1/8 bid, par 5/8 offered in the afternoon, and a second trader had it quoted at par 1/8 bid, par 3/8 offered. On Monday, the loan was quoted at par 5/8 bid, par 7/8 offered.

The new term loan will officially launch with a call at 10 a.m. ET on Wednesday, but talk came out with the deal announcement on Tuesday at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99¾ and 101 soft call protection for one year, the source said.

By comparison, the term loan that is being replaced matures in October 2017 and is priced at Libor plus 425 bps with a 1% Libor floor.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the new loan for which commitments are due on Nov. 6.

Fortescue is an East Perth, Australia-based iron ore producer.

Garda shutting early

Switching to the primary, as a result of strong demand, Garda World Security accelerated the commitment deadline on its $525 million seven-year term loan B and C$150 million seven-year term loan B to 5 p.m. ET on Wednesday from Thursday, a market source said.

The U.S. term loan B is talked at Libor plus 325 bps and the Canadian term loan B is talked at BA plus 375 bps, with both having a 1% floor, an original issue discount of 991/2, and 101 soft call protection for six months.

The company's roughly $825 million senior secured credit facility (Ba3/B+) includes a $150 million five-year revolver as well.

RBC Capital Markets, Bank of America Merrill Lynch, TD Securities (USA) LLC and Mizuho Securities USA Inc. are leading the deal that will refinance existing credit facility debt and senior unsecured notes due 2017 and fund the C$110 million acquisition of G4S Cash Solutions.

Closing on the acquisition is expected before the end of this year, subject to customary conditions including regulatory approvals.

Garda is a Montreal-based provider of business solutions and security services. G4S Cash is a provider of risk management and secure transit of valuables such as currency, diamonds, jewelry and more.

P2 tweaks deal

P2 Energy upsized its seven-year first-lien term loan (B+) to $310 million from $295 million, cut pricing to Libor plus 400 bps from Libor plus 425 bps, added a step-down to Libor plus 375 bps when net first-lien leverage falls below 3.5 times and firmed the discount at 991/2, the tight end of the 99 to 99½ talk, according to a market source.

Also, the 71/2-year second-lien term loan (CCC+) was lifted to $160 million from $155 million, the spread was lowered to Libor plus 800 bps from Libor plus 825 bps and the original issue discount was changed to 99 from 981/2, the source remarked.

Both term loans still have a 1% Libor floor, the first-lien loan still has 101 soft call protection for six months, and the second-lien loan still has call protection of 102 in year one and 101 in year two.

The company's now $500 million credit facility also includes a $30 million revolver (B+).

Lead bank, Jefferies Finance LLC, was seeking recommitments by 5 p.m. ET on Tuesday, the source added.

P2 being acquired

Proceeds from P2 Energy's credit facility and equity will be used to fund its buyout by Advent International Corp. from Vista Equity Partners.

The amount of equity being used for the transaction was reduced as a result of the changes to the term loan sizes.

Closing is expected by year-end, subject to customary conditions.

P2 is a Denver-based provider of software, geospatial data and land management tools to the upstream oil and gas industry.

Greenway updates terms

Greenway Medical raised pricing on its $360 million seven-year first-lien term loan to Libor plus 500 bps from Libor plus 450 bps and extended the 101 soft call protection to one year from six months, according to a market source. The 1% Libor floor and original issue discount of 99 were unchanged.

Meanwhile, the $180 million eight-year second-lien term loan saw its original issue discount tighten to 98½ from 98, the source said. This tranche is still priced at Libor plus 825 bps with a 1% Libor floor, and has call protection of 102 in year one and 101 in year two.

In addition, the company removed the 18 month MFN sunset from the credit agreement.

The company's $570 million senior secured credit facility also provides for a $30 million five-year revolver.

Jefferies Finance LLC and BMO Capital Markets Corp. are leading the deal.

Greenway funding buyout

Proceeds from Greenway's credit facility, along with up to $650 million in equity, will be used to fund its acquisition by Vitera Healthcare Solutions LLC, a portfolio company of Vista Equity Partners, for $20.35 per share, or about $644 million. The combined company going forward will be known as Greenway Medical Technologies.

A tender offer for Greenway's shares that expires on Nov. 1 is already under way and completion is subject to conditions including, among others, the satisfaction of a minimum tender condition and the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Greenway is a Carrollton, Ga.-based provider of information solutions that improve the financial performance of healthcare providers. Vitera is a Tampa, Fla.-based provider of end-to-end clinical and financial technology solutions to healthcare professionals.

Atlantic Aviation discount

Also on the primary front, Atlantic Aviation held its call on Tuesday, launching its $50 million incremental term loan B (Ba3/BB-) due June 1, 2020 with original issue discount talk of 991/2, according to a market source.

The incremental loan is priced at Libor plus 250 bps with a 0.75% Libor floor, in line with the existing term loan B, and there is 101 soft call protection until May 31, 2014, all.

Commitments are due at 5 p.m. ET on Thursday, the source added.

Barclays and Macquarie Capital are the bookrunners on the deal that will be used to fund a distribution to the company's parent, Macquarie Infrastructure Co., to finance the acquisition of a Fixed Based Operator and for general corporate purposes.

Atlantic Aviation is a New York-based owner, operator and investor in a diversified group of infrastructure businesses.

Glencoe floats talk

Glencoe Principal Holdings scheduled a bank meeting for 10 a.m. ET on Wednesday to launch a $200 million credit facility, and released talk on the first- and second-lien term loan tranches contained in the transaction, according to a market source.

The $130 million six-year first-lien term loan is talked at Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and the $45 million seven-year second-lien term loan is talked at Libor plus 900 bps with a 1% Libor floor, a discount of 98½ and call protection of 102 in year one and 101 in year two, the source said.

Also included in the facility is a $25 million five-year revolver, the source added.

Macquarie Capital is leading the deal that will be used to refinance existing subsidiary debt, acquire certain outstanding equity interests held by third parties other than Glencoe Principal Holdings and management, and fund a distribution to sponsor Glencoe Capital.

Co-borrowers under the credit facility are subsidiaries Dixie Chemical, a Pasadena, Texas-based manufacturer of high-purity chemicals, complex compounds and chemical intermediates, Child Development Schools, a Columbus, Ga.-based for-profit preschool education and early care provider, and Polyair Corp., a Toronto-based manufacturer and marketer of protective packaging products.

CSC readies loan

CSC ServiceWorks set a bank meeting for 10 a.m. ET on Thursday to launch a $460 million incremental term loan B that will be used to help fund the acquisition of Mac-Gray Corp. for $21.25 per share, or about $524 million, according to a market source.

Pricing is anticipated at Libor plus 325 bps with a 1% Libor floor, in line with the company's existing term loan, the source said. Original issue discount talk is not yet available.

Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal.

Closing on the acquisition is expected in the first half of 2014, subject to the adoption of the acquisition agreement by Mac-Gray's stockholders, regulatory approval and other customary conditions.

CSC is a Plainview, N.Y.-based provider of multi-family housing and commercial laundry solutions and air vending services. Mac-Gray is a Waltham, Mass.-based provider of laundry facilities management services.

BJ's plans meeting

BJ's Wholesale Club came out with plans to hold a bank meeting at 11:30 a.m. ET in New York on Thursday to launch $2.1 billion in first- and second-lien term loans, according to sources.

The debt consists of a $1.45 billion first-lien term loan due Sept. 26, 2019 and a $650 million second-lien term loan due March 31, 2020, sources said.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Barclays, Jefferies Finance LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing term loans and fund a dividend.

BJ's is a Westborough, Mass.-based operator of warehouse clubs.

GreenField coming soon

GreenField Specialty Alcohols will hold a bank meeting at 1 p.m. ET on Wednesday to launch a $182 million five-year term loan B, according to a market source.

The company's roughly $202 million credit facility also includes a C$20 million revolver, the source said.

Goldman Sachs Bank USA and Scotia Capital (USA) Inc. are leading the deal that will be used to refinance existing debt.

GreenField is a Canadian-based producer of industrial and beverage alcohol, fuel ethanol and distillers' grains.

Camping World on deck

Camping World scheduled a bank meeting for Wednesday to launch a $525 million six-year term loan B that will be used to refinance existing debt, according to a market source.

Goldman Sachs Bank USA and Barclays are the lead banks on the deal.

Camping World is a supplier of RV parts, supplies and accessories.

Dell closes

In other happenings, the buyout of Dell Inc. by Michael Dell, founder, chairman and chief executive officer, and Silver Lake for $13.75 per share has been completed, a news release said.

For the transaction, Dell got a new $9.1 billion credit facility that consists of a $2 billion asset-based revolver, a $4.66 billion 61/2-year term loan B priced at Libor plus 350 bps with a 1% Libor floor and sold at an original issue discount of 99, a $1.5 billion five-year term loan C priced at Libor plus 275 bps with a 1% Libor floor and sold at 991/2, and a €700 million 61/2-year term loan priced at Euribor plus 375 bps with a 1% floor and it sold at a discount of 99.

The 61/2-year term loans have 101 soft call protection for one year, and the five-year loan has 101 soft call protection for six months.

All of the $7.1 billion of term loan debt (Ba2/BB+/BB+) is covenant-light.

Dell lead banks

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, RBC Capital Markets and UBS Securities LLC led Dell's credit facility.

During syndication, the U.S. 61/2-year term B firmed from revised talk of $4,625,000,000 to $4,675,000,000 and initial talk of $4 billion, pricing was decreased from Libor plus 375 bps and the call protection was extended from six months.

Also, the term loan C firmed from revised talk $1.5 billion to $1.55 billion and initial talk of $1.5 billion and pricing came at the tight end of the Libor plus 275 bps to 300 bps talk.

And, the euro term loan was added to the deal, finalized at the high end of the revised talk of €650 million to €700 million and up from initial talk of a minimum of €500 million, pricing was flexed from Euribor plus 400 bps and the call protection was extended from six months.

Other funds for the buyout came from $1.5 billion of first-lien notes, downsized from $2 billion when the term loan sizes were reworked, and, at which time a $1.25 billion tranche of second-lien notes was eliminated.

Dell is a Round Rock, Texas-based provider of technology and business products and services.

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