Catalent, TravelClick, Jonah break; Ortho-Clinical, Environmental, Schaeffler, Joerns tweaked

By Sara Rosenberg

New York, May 8 - Catalent Pharma Solutions Inc.'s credit facility surfaced in the secondary market on Thursday, with the U.S. term loan B seen trading above its original issue discount price, and TravelClick Inc. and Jonah Energy LLC freed up as well.

Over in the primary, Ortho-Clinical Diagnostics Inc. lifted the spread on its term loan and firmed the offer price at the high end of guidance, and Environmental Resources Management reduced the size of its U.S. first-lien term loan while setting the original issue discount at the wide end of revised talk and upsizing its euro first-lien term tranche.

Additionally, Schaeffler came out with a breakdown of its U.S. and euro term loan sizes and tightened the offer price on the euro tranche, and Joerns Healthcare/RecoverCare widened the spread and original issue discount on its term loan.

Furthermore, MSC Software Corp., Electronic Funds Source LLC (WP Mustang Holdings LLC), Authentic Brands Group and Connacher Oil & Gas Ltd. disclosed price talk with launch, and Genex Holdings Inc. emerged with new deal plans.

Catalent starts trading

Catalent Pharma Solutions' credit facility broke for trading on Thursday, with the $1.4 billion U.S. seven-year first-lien term loan B quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the U.S. term loan, as well as on a €250 million (about $346 million) seven-year first-lien term loan B, is Libor/Euribor plus 350 basis points with a 1% floor and they were sold at an original issue discount of 991/2. The debt includes 101 soft call protection for one year.

During syndication, the U.S. loan was downsized from $1.47 billion, the euro loan was upsized from $275 million euro equivalent and the call protection was extended from six months.

Catalent getting revolver

Catalent's roughly $1,945,000,000 senior secured credit facility (Ba3/BB-) also includes a $200 million five-year revolver.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Jefferies Finance LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance the company's existing secured credit facility and a portion of its existing unsecured credit facility.

Catalent is a Somerset, N.J.-based provider of advanced technologies and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer health care companies.

TravelClick hits secondary

TravelClick's credit facility freed up as well, with the $395 million seven-year covenant-light first-lien term loan (B1/B-) seen at par bid, par ½ offered and the $165 million 71/2-year covenant-light second-lien term loan (Caa2/CCC) seen at 98¾ bid, par ¼ offered, a trader said.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 775 bps with a 1% Libor floor and was sold at a discount of 981/2. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien term loan was upsized from $385 million, pricing was lifted from talk of Libor plus 375 bps to 400 bps, the discount was changed from 99½ and the soft call was extended from six months.

Also, the second-lien loan was downsized from $175 million, pricing was increased from talk of Libor plus 700 bps to 725 bps, the discount was modified from 99 and the call protection was revised from 102 in year one and 101 in year two.

TravelClick lead banks

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and BMO Capital Markets are leading TravelClick's $590 million credit facility, which also includes a $30 million revolver (B1/B-).

Proceeds will be used to help fund the $930 million buyout of the company by Thoma Bravo LLC from Genstar Capital.

TravelClick is a New York-based provider of revenue-generating cloud-based services for the hospitality industry.

Jonah frees up

Jonah Energy's $400 million senior secured covenant-light seven-year second-lien term loan (B3/B) also began trading, with levels quoted at par bid, 101 offered, a trader remarked.

Pricing on the loan is Libor plus 650 bps - after flexing recently from Libor plus 625 bps - with a 1% Libor floor and it was sold at a discount of 981/2. There is call protection of 102 in year one and 101 in year two.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC, Morgan Stanley Senior Funding Inc. and Nomura are leading the deal that will be used to help fund the acquisition of Encana Corp.'s interests in certain natural gas properties in the Jonah Field located in Sublette County, Wyo., by TPG Capital for about $1.8 billion.

Closing is expected on Monday.

Jonah Energy is a San Antonio-based acquirer and operator of producing oil and gas.

Ortho-Clinical flexes up

Moving to the primary, Ortho-Clinical Diagnostics widened pricing on its $2,175,000,000 seven-year covenant-light term loan B to Libor plus 375 bps from Libor plus 350 bps and set the original issue discount at 99, the high end of the 99 to 99½ talk, according to a market source.

As before, the term loan has a 1% Libor floor, 101 soft call protection for one year and a ticking fee of the full spread after 30 days.

Recently, the call protection on the term loan was pushed out from six months, the ticking fee was changed from half the spread from days 46 to 75 post allocations and the full spread from days 76 through Aug. 12, and the 50 bps MFN was set for life through the removal of the sunset provision.

The company's $2,525,000,000 senior secured credit facility (B1/B) also includes a $350 million five-year revolver.

Ortho-Clinical being acquired

Proceeds from Ortho-Clinical Diagnostics' credit facility, equity and $1.3 billion of bonds will be used to fund the $4.15 billion buyout of the company by the Carlyle Group from Johnson & Johnson.

The senior unsecured notes offering was upsized by $150 million with the equity contribution reduced by the equivalent amount, the source added.

Leads, Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS Securities LLC and Nomura, were seeking recommitments on the credit facility by 1 p.m. ET on Thursday.

Closing is expected in the middle of this year, subject to customary regulatory approvals.

Ortho-Clinical Diagnostics is a Raritan, N.J.-based provider of services for screening, diagnosing, monitoring and confirming diseases.

Environmental tranching

Environmental Resources Management trimmed its U.S. seven-year covenant-light first-lien term loan term loan (B1/B) to $550 million from $600 million and set the original issue discount at 99, the high end of revised talk of 99 to 991/2, and wide of initial talk of 991/2, a source said.

In addition, the euro seven-year covenant-light first-lien term loan term loan (B1/B) was lifted to €75 million (about $105 million equivalent) from €40 million, the source said, while offer price talk remained at 99½ to par, after being revised the other day from just 991/2.

Pricing on all of the first-lien term loan debt is Libor/Euribor plus 400 bps with a 1% floor, and all of the tranches have 101 soft call protection for one year. Recently, pricing on the loans was modified from Libor/Euribor plus 450 bps with no floor.

The U.S. term loan is for U.S., Canada and Australian borrowers, and the euro term loan is for UK and German borrowers.

Environmental second-lien

Along with the first-lien term loans, Environmental Resources is getting a $175 million eight-year covenant-light second-lien term loan (Caa1/CCC+) priced at Libor plus 700 bps with a 1% Libor floor and a discount of 99, and including hard call protection of 102 in year one and 101 in year two.

Earlier this week, the 18-month MFN sunset was eliminated from the transaction.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and HSBC Securities (USA) Inc. are leading the deal, with Deutsche left lead on the first-lien loan and BNP left lead on the second-lien loan.

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

Environmental Resources is a provider of environmental, health, safety, risk and social consulting services.

Schaeffler firms structure

Schaeffler set its U.S. six-year term loan (Ba2/BB-) size at $1.6 billion and its euro six-year term loan (Ba2/BB-) size at €375 million, and modified the offer price on the euro loan to par from 993/4, a source remarked.

Pricing on the loans is still Libor/Euribor plus 300 bps with a 0.75% floor, there is still 101 soft call protection for six months, and the U.S. loan is still being sold at an original issue discount of 993/4.

Earlier in syndication, the spread on the term loans finalized at the tight end of the Libor/Euribor plus 300 bps to 325 bps talk.

Allocations are expected on Friday, the source added.

Deutsche Bank Securities Inc., HSBC Securities, Barclays, BayernLB, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Commerzbank, J.P. Morgan Securities LLC, LBBW and UniCredit are leading the deal, with Deutsche Bank the left lead on the U.S. piece and HSBC the left lead on the euro piece.

Proceeds will be used by the Herzogenaurach, Germany-based manufacturer of bearings for autos & industrial OEMs to refinance an existing €1.53 billion equivalent term loan C.

Joerns revises deal

Joerns Healthcare/RecoverCare lifted pricing on its $265 million six-year term loan B to Libor plus 500 bps from the Libor plus 425 bps area and moved the original issue discount to 99 from 991/2, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company's $295 million senior credit facility also includes a $30 million five-year revolver.

GE Capital Markets, Keybanc Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the merger of Charlotte, N.C.-based Joerns Healthcare Inc., a company controlled by Quad-C Management, and Louisville, Ky.-based RecoverCare, LLC, a company controlled by Aurora Capital.

Closing is expected in the second quarter.

The combined company will be one of the leading health care equipment providers across the continuum of care.

MSC Software launches

Also in the primary, MSC Software held its bank meeting on Thursday, and in connection with the event, price talk on its first-and second-lien term loans was announced, according to a market source.

The $305 million first-lien term loan due 2020 is talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, and the $120 million second-lien term loan due 2021 is talked at Libor plus 750 bps with a 1% Libor floor, a discount of 99, and call protection of 102 in year one and 101 in year two, the source said.

The company's $435 million credit facility also includes a $10 million revolver.

Commitments are due on May 21, the source added.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

MSC is a Newport Beach, Calif.-based software company that focuses on multidiscipline simulation.

Electronic Funds meeting

Electronic Funds Source released price talk on its first-and second-lien term loans as a bank meeting was held in the afternoon to launch the debt to investors, according to a market source.

The $495 million seven-year first-lien covenant-light term loan (B) is talked at Libor plus 375 bps to 400 bps and the $250 million eight-year second-lien covenant-light term loan (CCC+) is talked at Libor plus 700 bps to 725 bps, with both having a 1% Libor floor and an original issue discount of 99, the source remarked.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company's $845 million credit facility also provides for a $100 million revolver (B).

Electronic Funds buyout

Proceeds from Electronic Funds' credit facility will be used to help fund its purchase by Warburg Pincus from an investor group including First Data Transportation Services Inc., CTP Holdings LLC and FJ Management Inc.

Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal, with Goldman left lead on the first-lien and Credit Suisse left lead on the second-lien.

Commitments are due on May 21.

Closing is expected in the second quarter, subject to customary conditions and regulatory approvals.

Electronic Funds Source is a provider of payments services.

Authentic Brands guidance

Authentic Brands held its bank meeting, launching its $335 million seven-year first-lien term loan (B1/B+) with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, according to a market source.

Also, the company's $130 million eight-year second-lien term loan (Caa1/CCC+) was launched at Libor plus 750 bps with a 1% Libor floor, a discount of 99, and call protection of 102 in year one and 101 in year two, the source said.

Bank of America Merrill Lynch, KeyBanc Capital Markets, Barclays and Canaccord are leading the $465 million deal that will be used to refinance existing debt, redeem preferred stock, fund a dividend and purchase a minority interest in the Marilyn Monroe brand.

Authentic Brands is a New York-based brand development and licensing company.

Connacher sets talk

Connacher came out with price talk of Libor plus 600 bps with a 1% Libor floor and an original issue discount of 99 on its C$140 million U.S. equivalent (about $128 million) four-year first-lien second-out term loan a few hours before its afternoon bank meeting kicked off, a market source said.

As previously reported, the term loan is non-callable for one year then at 101 in year two.

Commitments are due on May 22.

Credit Suisse Securities (USA) LLC is leading the deal that will be used for general corporate purposes and to refinance existing debt.

The company is also looking to amend its existing senior secured revolver and reduce the size to C$30 million from C$95 million.

Connacher is a Calgary-based in-situ oil sands developer, producer and marketer of bitumen.

Genex readies deal

Genex Holdings set a bank meeting for 2 p.m. ET on Monday to launch a $310 million senior secured credit facility, according to a market source.

The facility consists of a $30 million revolver, a $190 million first-lien term loan and a $90 million second-lien term loan, the source said.

RBC Capital Markets, SunTrust Robinson Humphrey Inc. and UBS Loan Finance LLC are leading the deal.

Genex is a Wayne, Pa.-based provider of integrated managed care services, focused on controlling health care costs and reducing disability expenses.

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