MultiPlan rises; SoftLayer mulls changes; Savvis sets size, timing; Fairmount readies deal

By Sara Rosenberg

New York, July 9 - MultiPlan Inc.'s strip of term loans headed higher during Friday's trading session as investors are expecting the debt to be refinanced in connection with the acquisition of the company by BC Partners and Silver Lake.

Over in the primary market, SoftLayer Technologies Inc. is anticipated to make some revisions to its credit facility, especially to the spread, as rumor is that the deal is struggling to attract investors.

Also, Savvis Inc. revealed structure and timing on its proposed senior secured credit facility, and Fairmount Minerals Ltd. is gearing up to bring its new deal to market.

MultiPlan trades up

MultiPlan's strip of term loan B and term loan C was stronger in the secondary market following the announcement that the company will be bought out, according to traders.

The strip was quoted by one trader at 99¼ bid, par offered, up from 94½ bid, no offers, and by a second trader at 99¼ bid, par ¼ offered, up from 95¼ bid, 96¼ offered.

Early Friday morning, BC Partners and Silver Lake revealed that they are purchasing MultiPlan from the Carlyle Group and Welsh, Carson, Anderson & Stowe.

While no details about the purchase price were revealed in the press release, chatter around the market is that the transaction is valued at $3.1 billion.

To help fund the buyout, MultiPlan will be getting a new credit facility via co-lead arrangers Bank of America, Barclays Capital and Credit Suisse.

MultiPlan is a New York-based provider of health care cost management services.

SoftLayer may flex up

Talk is that pricing on SoftLayer Technologies' proposed credit facility may be moved higher in the near future being that the transaction is having some difficulty getting done, according to a market source.

Specifically, the source heard that the spread on the $20 million delayed-draw term loan and the $190 million term loan could head into the Libor plus 600 basis points territory before syndication is completed.

By comparison, at launch, the delayed-draw term loan and the funded term loan were presented with talk of Libor plus 525 bps to 550 bps.

The term loans were also launched with a 1.75% Libor floor and an original issue discount of 99.

As of Friday, no official changes had been made to the deal.

SoftLayer lead banks

Deutsche Bank and SunTrust are the lead banks on SoftLayer Technologies' senior secured credit facility, with Deutsche the left lead.

The $230 million deal (B2/B) also includes a $20 million revolver.

Proceeds will be used to help fund the acquisition of a majority stake in the company by GI Partners.

SoftLayer is a Plano, Texas-based provider of on-demand data center and hosting services.

Savvis details emerge

Savvis came out with the structure and a bank meeting date for its proposed senior secured credit facility that has been anticipated ever since the company launched a tender offer for its convertible senior notes, according to a market source.

The $625 million facility is scheduled to launch with a bank meeting on Thursday at the W Hotel in New York at 9:30 a.m. ET, the source said.

And, tranching on the deal is a $75 million revolver due in 2014 and a $550 million term loan due in 2016, with price talk not yet out.

Previously, the company had disclosed plans for a new credit facility and sources said the deal would launch this month, but specifics had been unavailable.

Savvis purchasing convertibles

Proceeds from Savvis' credit facility will be used to help repay existing debt, including the repurchase of roughly $345 million of the company's 3% convertible senior notes due May 2012 and outstanding bank borrowings and for general corporate purposes.

A tender offer for the convertibles began on July 1 and expires on July 29.

Bank of America, Morgan Stanley, Credit Suisse and SunTrust are the joint lead arrangers and bookrunners on the credit facility.

Savvis is a Town & Country, Mo.-based provider of cloud infrastructure and hosted IT services.

Fairmount sets launch

Fairmount Minerals has scheduled a bank meeting for Thursday to launch a proposed $775 million senior secured credit facility, according to a market source.

The facility consists of a $75 million revolver, a $150 million term loan A and a $550 million term loan B, with price talk still to be determined, the source said.

Barclays, KeyBank, Bank of America and PNC are the lead banks on the deal that will be used to help fund the acquisition of the company by American Securities from Kirtland Capital.

Fairmount Minerals is a Chardon, Ohio-based producer of industrial sand.

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