National Mentor Holdings prices, trades higher; Kronos rolls out $1.98 billion; LCDX eases

By Paul A. Harris

Portland, Ore., Oct. 9 - In a busy primary market, National Mentor Holdings Inc. priced its $522.05 million Libor plus 525 basis points term loan B (B3/B) at par, whereupon it traded to par bid, par ½ offered.

Kronos Inc. unveiled $1.975 billion of new credit facilities, which will be presented to lenders at a Thursday morning bank meeting.

The LCDX 19 bank loan index eased by 1/8 points on Tuesday to close par 3/8 bid, par 7/8 offered.

The National Mentor deal traded to par bid, par ½ offered.

UBS is the lead bank on the deal.

As reported, the company earlier elected to refrain from repricing the loan, which it had been talking in the area of Libor plus 475 bps to 500 bps.

However, the Libor floor was reduced to 1.25% from 1.75%.

The term loan due Feb. 9, 2017 will have 101 soft call protection for one year.

The credit facility also has a $75 million Libor plus 525 bps revolver with a 1.25% Libor floor.

Kronos set Thursday meeting

Kronos' new facilities will be presented to lenders at a Thursday morning bank meeting.

Credit Suisse Securities is the lead. Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are also in the syndicate.

The deal features two institutional tranches.

There is a $1.16 billion seven-year covenant-lite first-lien term loan with a 1.25% Libor floor and 101 repricing protection.

In addition. there is a $750 million 7.5-year covenant-lite second-lien term loan with a 1.25% Libor floor, callable in year one at 103, 102 in year two and 101 in year three.

Pricing and original issue discounts remain to be determined.

Kronos also intends to put in place a $65 million five-year revolver.

The Chelmsford, Mass.-based provider of workforce management software plans to use the proceeds to refinance debt and fund a dividend.

Insight Global deals

Insight Global will present $490 million of new credit facilities to lenders at a bank meeting set for Wednesday afternoon in New York.

Credit Suisse is leading the deal.

The institutional tranches include a $300 million seven-year first-lien term loan, which comes with 101 repricing protection, and $130 million eight-year second-lien term loan, which is callable at 103 in year one, 102 in year two and 101 in year three.

There is also a $60 million five-year revolver.

Proceeds will be used to fund the LBO of the company by Ares Management.

The issuing entity will be IG Investments Holdings, LLC.

Sequa $275 million LBO deal

RBC Capital Markets and Barclays plan to host a bank meeting on Oct. 23 to present to investors Sequa Automotive Group's $275 million of credit facilities.

The deal includes a $60 million revolver and a $215 million term loan B.

Proceeds will be used to finance the buyout of the company by the Jordan Co.

SNL Financial meeting

SNL Financial LC plans to kick off its $260 million six-year covenant-lite first-lien term loan at a Wednesday morning bank meeting.

Credit Suisse Securities (USA) LLC is leading the deal for the financial information provider.

The term loan comes with 101 repricing protection.

Pricing and credit ratings remain to be determined.

The new debt also includes a $30 million five-year revolver.

Proceeds will be used to refinance existing debt and fund a dividend.

Quintiles via J.P. Morgan

Quintiles Transnational Corp. will discuss $250 million of credit facilities (B1/BB-) during a Wednesday afternoon lender call.

J.P. Morgan Securities LLC is leading the deal.

The institutional piece is a $175 million non-fungible term B-1 loan due June 2018, and the pro rata tranche is a $75 million incremental revolver due June 2017.

Pricing remains to be determined.

Proceeds will be used to pay a distribution to shareholders of Quintiles Transnational Holdings Inc.

Sportsman's on Wednesday

Sportsman's Warehouse, Inc. is in the market with a new $145 million six-year first-lien term loan.

The deal will be presented at a bank meeting on Wednesday morning.

Credit Suisse is the lead.

The loan features a 1.5% Libor floor and 101 repricing protection. The Libor spread remains to be determined, as do the credit ratings.

The loan also features maximum leverage, interest coverage and capital expenditures covenants.

The Midvale, Utah-based outdoor sporting goods retailer plans to use the proceeds to fund a dividend to its shareholders.

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