First Data dips; ATI breaks; Aramark bid up; Weather, Solutia set pricing; HHI details emerge

By Sara Rosenberg

New York, March 11 - First Data Corp.'s term loan debt was weaker during Thursday's market hours after the company came out with quarterly earnings results and announced some changes to its management.

In more trading happenings, ATI Physical Therapy's credit facility allocated and freed up for trading, and Aramark Corp.'s strip of institutional bank debt was bid higher on news of an amend and extend.

Over on the new deal front, Weather Channel (TWCC Holding Corp.) and Solutia Inc. both firmed pricing on their well received term loans at the tight end of talk and reduced the original issue discounts.

Also in the primary, HHI Holdings LLC revealed structure and price talk on its proposed credit facility as the deal was launched to investors during the session, and Aquilex Holdings LLC and RadNet Inc. announced that they will be launching new facilities next week.

First Data softens

First Data's term loans lost some ground in trading following the release of what one trader described as "horrible" fourth-quarter numbers and news that the chief executive officer is leaving is leaving the company.

The trader had the term loan B-1 quoted at 88 5/8 bid, 89 offered, down from 89 bid, 89½ offered, the term loan B-2 quoted at 88½ bid, 88 7/8 offered, down from 88 7/8 bid, 89 3/8 offered and the term loan B-3 quoted at 88½ bid, 88 7/8 offered, down from 88¾ bid, 89¼ offered.

And, a second trader had the term loan B-1 quoted at 88 5/8 bid, 89 1/8 offered, the term loan B-2 quoted at 88½ bid, 89 offered and the term loan B-3 quoted at 88 3/8 bid, 88 7/8 offered, with all tranches down a point on the day.

First Data results

For the fourth quarter, First Data reported a net loss of $369 million, down 89% from a net loss of $3.218 billion in the previous year.

Consolidated revenue for the quarter was $2.586 billion, up 12% from $2.317 billion in the fourth quarter of 2008.

Additionally, adjusted EBITDA for the quarter was $530 million, down 18% when compared to $645 million in the prior year.

First Data management changes

Also on Thursday, First Data announced some revisions to management as its chairman and chief executive officer, Michael Capellas, has decided to leave the company.

Capellas, after three years with the company, is leaving to take on a new role as a senior advisor to Kohlberg Kravis Roberts & Co. focusing on technology.

Joe Forehand, a member of First Data's board, has been appointed as chairman and interim chief executive officer effective March 31.

First Data is a Greenwood Village, Colo.-based provider of electronic commerce and payment services.

ATI frees to trade

ATI Physical Therapy's credit facility hit the secondary market on Thursday, with the $145 million term loan quoted at 97¼ bid, 98¼ offered, according to a market source.

The term loan is priced at Libor plus 550 basis points with a 2% Libor floor and it was sold at an original issue discount of 97. There is call protection of 102 in year one and 101 in year two against refinancings and repricings.

The company's $170 million credit facility also includes a $25 million revolver that is priced at Libor plus 550 bps with a 2% Libor floor and was sold at a discount of 97 as well.

During syndication, pricing on the term loan and the revolver was increased from Libor plus 500 bps, the discount on both tranches widened from 98, and the call protection was added to the term loan.

ATI being acquired

Proceeds from ATI Physical Therapy's credit facility will be used to help fund the buyout of the company by GTCR Golder Rauner LLC.

Barclays and GE Capital are the lead banks on the deal, with Barclays the left lead.

Senior leverage is around 3.4 times and total leverage is around 4.6 times.

ATI Physical Therapy is a Bolingbrook, Ill.-based rehabilitation provider.

Aramark bid rises with amendment

Aramark's strip of term loan B and synthetic letter-of-credit facility was better bid on Thursday as the company launched an amendment to extend the maturity of the debt by two years to July 2016, according to a market source.

The strip was quoted at 97 bid, 97¼ offered versus 96¾ bid, 97¾ offered at the close on Wednesday, the source said, adding that earlier on Wednesday the strip was seen at 96½ bid, 97 offered.

Under the amendment proposal, pricing on the extended debt will be Libor plus 325 bps, up from current pricing of Libor plus 187.5 bps.

JPMorgan and Goldman Sachs are the lead banks on the deal.

Aramark is a Philadelphia-based professional services company that provides food, hospitality, facility management services as well as uniform and work apparel.

Weather Channel finalizes pricing

Switching to the primary market, Weather Channel set pricing on its $1.3 billion term loan B (Ba2) at Libor plus 350 bps, the tight end of the Libor plus 350 bps to 375 bps talk, according to a market source.

Also, the original issue discount on the term loan B was reduced to 99½ from initial talk of 99, the source remarked.

As before, the term loan B includes a 1.5% Libor floor and 101 soft call protection for one year.

In addition, due to the strong reception that the loan received, the commitment deadline was accelerated to 5 p.m. ET on Thursday.

Weather Channel lead banks

Deutsche Bank is the lead arranger and is a joint bookrunner with Credit Suisse on the Weather Channel deal.

Proceeds will be used to refinance the company's existing term loan B, which is priced at Libor plus 400 bps with a 3.25% Libor floor, and retire a portion of its subordinated notes.

The new term loan B will mature on Sept. 14, 2015, the same maturity as the existing term loan B, and will have the same covenants as the existing credit agreement.

Weather Channel is an Atlanta-based media company devoted to bringing weather news via television, internet and mobile devices.

Solutia pricing firms

Another deal to finalize pricing on Thursday was Solutia, with its $750 million term loan due in 2017 ending up at Libor plus 325 bps, the low end of initial talk of Libor plus 325 bps to 350 bps, according to a market source.

Also, a step-down in pricing was added under which the spread can drop to Libor plus 300 bps at 2.5 times leverage, the source said.

And, the original issue discount was lowered to 99½ from 99, the source added.

The 1.5% Libor floor was left unchanged.

Solutia also getting revolver

Solutia's $1.05 billion senior secured credit facility (Ba2) also includes a $300 million revolver due in 2015.

Deutsche Bank, Jefferies, Citigroup, HSBC Securities and JPMorgan are the joint lead arrangers and joint bookrunners on the deal that will be used to refinance the company's existing senior secured term loan facility due in February 2014 and the existing senior secured ABL facility due in February 2013.

The loan could also be used to help fund acquisition of Etimex Solar GmbH, a supplier of ethylene vinyl acetate encapsulants to the photovoltaic market, from Etimex Holding GmbH for €240 million.

The company recently sold $300 million of 7 7/8% senior notes due in 2020 at 99.5 to yield 7.948%, with proceeds earmarked for general corporate purposes, which may include funding acquisitions, such as the Etimex Solar transaction, and the repayment of debt.

Solutia is a St. Louis-based performance materials and specialty chemicals company.

HHI structure surfaces

HHI Holdings held a bank meeting on Thursday to kick off syndication on its proposed credit facility, and in connection with the launch, the structure of the deal was announced, according to a market source.

The facility consists of a $200 million term loan B (B3/B+) and a $140 million ABL revolver, the source said.

By comparison, when the deal was first talked about last month, it was expected that the term loan B would be sized at $240 million. However, investors were later told that the term loan would likely be smaller than that originally anticipated amount.

Meanwhile, the size of the revolver came in line with prior expectations.

HHI price talk

Also along with the launch, HHI Holdings released price talk on the downsized term loan B, the source continued.

The B loan was presented to lenders with talk of Libor plus 750 bps with a 2.5% to 3% Libor floor and an original issue discount of 97, the source said.

Bank of America and Credit Suisse are the lead banks on the deal that will be used to refinance existing debt and fund a dividend.

HHI is a Royal Oak, Mich.-based supplier of highly engineered metal forgings and machined components, wheel bearings, and powdered metal engine and transmission components for automotive and industrial customers.

Aquilex sets launch

Aquilex has scheduled a bank meeting for Tuesday to launch its proposed $235 million senior secured credit facility that consists of a $50 million revolver and a $185 million term loan, according to an informed source.

Morgan Stanley and RBC are the lead banks on the deal, with Morgan Stanley the left lead and RBC the administrative agent.

Proceeds will be used to refinance existing bank debt.

Closing is expected to take place in April.

Aquilex is an Atlanta-based provider of maintenance, repair and industrial cleaning services for the energy industry.

RadNet launching Tuesday

RadNet has set a bank meeting for Tuesday afternoon to launch a new credit facility, according to a market source.

Barclays Capital, GE Capital Markets, Deutsche Bank and RBC Capital Markets are the lead banks on the deal.

RadNet is a Los Angeles-based provider of diagnostic imaging services.

Revlon closes

In other news, Revlon Consumer Products Inc. closed on its $940 million credit facility, consisting of a $140 million four-year asset-based revolver (Ba2) and an $800 million five-year term loan (Ba3/B+), according to a news release.

Pricing on the revolver is Libor plus 300 bps with a 75 bps commitment fee and pricing on the term loan is Libor plus 400 bps with a 2% Libor floor, and it was sold at an original issue discount of 981/4.

The term loan carries 101 hard call protection for one year.

During syndication, the tenor of the term loan was shortened from seven years, the original issue discount widened from 99 and the call protection was added.

Revlon refinances debt

Proceeds from Revlon's credit facility were used to refinance an existing credit facility, which, at Dec. 31, had $815 million outstanding under the term loan and zero drawn under the revolver.

Citigroup and Wells Fargo acted as the joint lead arrangers and bookrunners on the revolver, with Bank of America, JPMorgan and Credit Suisse bookrunners as well.

On the term loan, Citigroup, JPMorgan, Bank of America and Credit Suisse acted as the joint lead arrangers and joint bookrunners, and, Natixis was also a bookrunner.

Revlon is a New York-based cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirants/deodorants and beauty care products company.

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