Aptalis, NES, HealthPort break; El Pollo tweaks deal; Progressive Solutions discloses talk

By Sara Rosenberg

New York, Oct. 2 - Aptalis Pharma Inc.'s term loan hit the secondary market on Wednesday with levels seen above its original issue discount price, and NES Global Talent Finance US LLC and HealthPort (CT Technologies Intermediate Holdings Inc.) broke for trading, too.

Moving to the primary, El Pollo Loco upsized its first-lien term loan while downsizing its second-lien term loan and tightened spreads and discounts on both tranches, Progressive Solutions (P2 Lower Acquisition LLC) released talk with launch and Huntsman Corp. LLC revealed timing and details on its acquisition financing.

Aptalis tops OID

Aptalis' $1.25 billion seven-year term loan B freed up for trading on Wednesday, with levels quoted at 99¾ bid, par ¼ offered, according to a trader.

Pricing on the B loan is Libor plus 500 basis points 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, and a 50 bps step-down in the spread that is subject to an IPO plus leverage being reduced to 3.25-times.

During syndication, the loan was downsized from $1.4 billion, pricing was increased from talk of Libor plus 425 bps to 450 bps and the soft call protection was extended from six months.

Bank of America Merrill Lynch, Barclays, RBC Capital Markets LLC and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt and fund a dividend, the size of which was reduced when the term loan was downsized.

Aptalis, formerly known as Axcan Holdings Inc., is a Bridgewater, N.J.-based specialty pharmaceutical company.

NES starts trading

NES Global Talent's credit facility also broke, with the $185 million six-year first-lien term loan quoted at 98½ bid, 99½ offered, according to a market source.

Pricing on the term loan is Libor plus 550 basis points with a 1% Libor floor and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, the term loan was downsized from $200 million, pricing was increased from talk of Libor plus 475 bps to 500 bps, the discount was revised from 99, amortization was sweetened to 2.5% in years one and two and 5% thereafter from just 1% per annum, and the excess cash flow sweep was changed to 75% with step-downs from 50%.

The company's $245 million credit facility also includes a $60 million five-year revolver.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are the lead banks on the deal that will be used to refinance existing debt and fund a dividend.

NES is an Altrincham, England-based provider of staffing services for the oil and gas industry.

HealthPort frees up

Another deal to emerges in the secondary market was HealthPort, with its $255 million six-year first-lien term loan quoted at 99¾ bid, par ¼ offered and its $125 million seven-year second-lien term loan quoted at 99½ bid, par offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 bps with a 1.25% Libor floor and it was sold at a discount of 99. There is 101 soft call protection for one year.

The second-lien loan is priced at Libor plus 800 bps with a 1.25% Libor floor and was sold at 981/2. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

Last week, the first-lien term loan was upsized from $250 million and the spread was lowered from Libor plus 425 bps, and the second-lien term loan was increased from $115 million while the spread was cut from Libor plus 825 bps.

HealthPort getting revolver

In addition to the term loans, HealthPort's $405 million credit facility includes a $25 million five-year revolver.

Credit Suisse Securities (USA) LLC, Ares Capital and GE Capital Markets are leading the first-lien debt, and Credit Suisse is the sole lead on the second-lien loan.

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

HealthPort is an Alpharetta, Ga.-based provider of release of information services for the health care industry.

El Pollo reworks deal

Over in the primary, El Pollo Loco lifted its five-year first-lien term loan to $190 million from $175 million, cut pricing to Libor plus 425 bps from Libor plus 450 bps and moved the original issue discount to 99½ from 99, according to a market source. The 1% Libor floor and 101 soft call protection for six months were unchanged.

Meanwhile, the 51/2-year second-lien term loan was decreased to $100 million from $115 million, the spread was reduced to Libor plus 850 bps from Libor plus 900 bps and the discount was tightened to 99 from 98, the source remarked. This tranche still has a 1% Libor floor and is non-callable for one year, then at 102 in year two and 101 in year three.

Recommitments for the $305 million credit facility, which also includes a $15 million five-year revolver, were due at the end of the day on Wednesday.

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

With this deal, El Pollo Loco, a Costa Mesa, Calif.-based restaurant operator, will have first-lien leverage of 3.6 times, up from 3.3 times under the original structure, and total leverage of 5.6 times.

Progressive guidance

Progressive Solutions launched its credit facility with a bank meeting on Wednesday and, with the event, first- and second-lien term loan talk was announced, according to a market source.

The $490 million seven-year first-lien covenant-light term loan (B) is talked at Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99, the source said. This tranche has 101 soft call protection for six months.

As for the $160 million eight-year covenant-light second-lien term loan (CCC+), it is talked at Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 99, the source continued. Call protection is 102 in year one and 101 in year two.

The company's $700 million credit facility also provides for a $50 million five-year revolver (B).

Commitments are due at 5 p.m. ET on Oct. 15.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and MCS Capital Markets are leading the deal that will help fund the merger of Progressive Solutions and PMSI.

Progressive Solutions is a pharmacy benefit manager for workers compensation.

Huntsman readies launch

Huntsman set a call for 2 p.m. ET on Thursday to launch a $1.35 billion credit facility that includes a $200 million 31/2-year revolver and a $1.15 billion seven-year term loan B, according to a market source.

The term loan B is talked at Libor plus 300 bps to 325 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, the source said.

Proceeds will be used to help fund the acquisition of Rockwood Holdings Inc.'s performance additives and titanium dioxide businesses for about $1.1 billion in cash and assume unfunded pension liabilities estimated at $225 million as of June 30 for the Rockwood businesses.

When the acquisition was announced, the company said that it was planning on getting $1.1. billion of new money debt and increasing its revolver to $600 million from $400 million for the transaction.

Huntsman lead banks

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading Huntsman's credit facility.

The estimated total debt-to-adjusted EBITDA ratio at closing will be roughly 3.3 times. The company is targeting to bring that ratio down to the 2 times to 2.5 times area by 2015.

Closing is expected in the first half of 2014, subject to regulatory approvals and customary conditions, and Huntsman is hoping to do a public offering of the Huntsman and Rockwood combined pigments businesses within two years of closing.

Huntsman is a Salt Lake City-based manufacturer and marketer of differentiated chemicals.

Sears closes

In other news, Sears Holdings Corp. completed its $1 billion senior secured term loan due June 2018 that is priced at Libor plus 450 bps with a 1% Libor floor, according to an 8-K filed with the Securities and Exchange Commission. The debt was sold at a discount of 99 and has 101 soft call protection for one year.

During syndication, the spread on the loan firmed at the low end of the Libor plus 450 bps to 475 bps talk.

Bank of America Merrill Lynch led the deal that was used to pay down borrowings under the company's existing $3,275,000,000 asset-based revolving credit facility.

Sears is a Hoffman Estates, Ill.-based retailer.

HUB wraps

Hellman & Friedman LLC closed on its buyout of HUB International Ltd., a Chicago-based insurance brokerage, a news release said.

For the transaction, HUB got a new $2,145,000,000 credit facility (B1) that includes a $225 million five-year revolver, a C$50 million five-year revolver and a $1.87 billion seven-year term loan B.

Pricing on the B loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

During syndication, the term loan B was upsized from $1,785,000,000 as the company's bong offering was downsized to $950 million from $1,035,000,000, pricing firmed at the tight end of the Libor plus 375 bps to 400 bps talk and the discount was revised from 99.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and RBC Capital Markets acted as the joint lead arrangers on the deal and joint bookrunners with BMO Capital Markets, Macquarie Capital and UBS Securities LLC.

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