Aptalis dips with acquisition news; Axalta, US Airways, Deltek, Kinetic down on repricings

By Sara Rosenberg

New York, Jan. 8 - Aptalis' term loan retreated in trading on Wednesday as news surfaced that the company is being acquired, and Axalta Coating Systems (previously known as DuPont Performance Coatings), US Airways Inc., Deltek Inc. and Kinetic Concepts Inc. saw their term loans soften as investors were told rhere are attempts to reprice the debt.

In more loan happenings, Community Health Systems Inc., PharMEDium Healthcare Corp., National Mentor Holdings Inc., PSAV Presentation Services, Dixie Electric LLC (FR Dixie Acquisition Corp.), SeaStar Solutions and Connolly Holdings Inc. disclosed talk with launch, and Univision Communications Inc. disclosed offer price guidance on its loan.

Aptalis slides on buyout

Aptalis' term loan dropped in trading on Wednesday to par ½ bid, 101½ offered from 101 7/8 bid, 102 3/8 offered after it was announced that the company is being acquired by Forest Laboratories Inc. and that all of its debt will be repaid as part of the transaction, according to a trader.

The trader explained that the loan has a high coupon so it will likely trade above par until closer to the purchase completion date.

Forest Laboratories is buying Aptalis for $2.9 billion in cash from its shareholders, including TPG, and will use cash on hand as well as raise $1.6 billion to $1.9 billion of long-term debt to fund the acquisition. To back the transaction, a commitment for a $1.9 billion bridge loan has been obtained.

Closing is expected in the first half of this year, subject to regulatory review and other conditions.

Aptalis is a Bridgewater, N.J.-based specialty pharmaceutical company. Forest Laboratories is a New York-based specialty pharmaceutical company.

Axalta weakens

Axalta's U.S term loan dropped on Wednesday to par ¼ bid, par ¾ offered from par ½ bid, 101 offered as news emerged that the company would be coming to market with a repricing of the debt, according to a trader.

The $2,283,000,000 covenant-light term loan due Feb. 1, 2020 is currently priced at Libor plus 350 basis points with a 1.25% Libor floor.

In addition, on its 9 a.m. ET conference call on Thursday, the company will launch a repricing of its €397 million covenant-light term loan due Feb. 1, 2020 from Euribor plus 400 bps with a 1.25% floor, a source remarked.

Barclays, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., UBS Securities LLC, Jeffries Finance LLC and SMBC are leading the transaction.

Axalta, a Wilmington, Del.-based supplier of vehicle and industrial coating systems, had tried to reprice its U.S. term loan last year to Libor plus 300 bps with a 1% Libor floor, but that deal was pulled in February 2013.

US Airways trades down

US Airways' term loan B-1 slid to par ¼ bid, 101 offered from par ¾ bid, 101½ offered as the company launched with a call in the afternoon a repricing of the $1 billion tranche due May 23, 2019 to Libor plus 275 bps with a 0.75% Libor floor from Libor plus 300 bps with a 1% Libor floor, a trader remarked.

The company's $600 million term loan B-2 due Nov. 23, 2016 was unchanged at par 3/8 bid, par 7/8 offered as the repricing on this debt is talked at Libor plus 225 bps with a 0.75% Libor floor, versus current pricing of Libor plus 225 bps with a 1% Libor floor, the trader continued.

Both repriced term loans are being offered at par and have 101 soft call protection for six months.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are leading the Tempe, Ariz.-based airline company's $1.6 billion deal.

Cashless roll commitments are due at 2 p.m. ET on Monday and new lender commitments are due at 5 p.m. ET on Tuesday, a market source added.

Deltek dips

Deltek's $570.7 million first-lien term loan fell to par 1/8 bid, par 5/8 offered from par ½ bid, 101 offered after word surfaced in the morning that a repricing of the debt was going to be launched with a call at 2 p.m. ET, a trader remarked.

The repricing is talked at Libor plus 350 bps with a 1% Libor floor and 101 soft call protection for six months, a source said.

Jefferies Finance LLC is leading the deal that will take the first-lien term loan pricing down from Libor plus 375 bps with a 1.25% Libor floor.

Commitments are due on Monday, the source added.

Deltek is a Herndon, Va.-based provider of enterprise software and information for professional services firms and government contractors.

Kinetic Concepts softens

Kinetic Concepts' term loan also moved on repricing news, with levels dipping to par 1/8 bid, par 5/8 offered from par 3/8 bid, par 7/8 offered, according to a trader.

The company is set to hold a call on Thursday morning to launch the repricing of the term loan from Libor plus 350 bps with a 1% Libor floor.

Bank of America Merrill Lynch is leading the deal.

Kinetic Concepts is a San Antonio, Texas-based medical technology company.

Community Health floats terms

Over in the primary, Community Health Systems released talk of Libor plus 375 bps with a 1% Libor floor and 101 soft call protection for six months on its $2.26 billion seven-year term loan D and up to roughly $1.7 billion of extended term loan C debt that launched with a meeting on Wednesday, a source said.

The term loan D is offered with an original issue discount of 99, and the extended debt is offered at a discount of 991/2, the source continued.

The company is looking to extend up to 50% of its currently $3.53 billion term loan C to 2021 from 2017, and that extended amount will be fungible with the term loan D.

Commitments are due on Jan. 17.

The company's credit facility (Ba2/BB) also includes a $1 billion five-year revolver and a $1 billion five-year term loan A.

Community funding acquisition

Proceeds from Community Health's new loans will be used to help fund the acquisition of Health Management Associates Inc. for $13.78 per share, consisting of $10.50 per share in cash plus 0.06942 of a share of Community Health common stock for each Health Management share, and to refinance existing debt. The transaction is valued at about $7.6 billion, including the assumption of around $3.7 billion of debt.

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are the joint physical bookrunners on the deal, and Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, RBC Capital Markets, SunTrust Robinson Humphrey Inc., UBS Securities LLC and Wells Fargo Securities LLC are bookrunners too.

Closing is expected by the end of January, subject to customary conditions, the receipt of regulatory approvals and the absence of certain adverse developments. Health Management stockholder approval has already been received.

Community Health is a Nashville, Tenn.-based hospital company. Health Management is a Naples, Fla.-based owner and manager of hospitals and ambulatory surgery centers.

PharMEDium talk emerges

PharMEDium held its bank meeting in the morning, launching its $320 million seven-year first-lien covenant-light term loan with talk of Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 991/2, and its $200 million eight-year second-lien covenant-light term loan with talk of Libor plus 750 bps to 775 bps with a 1% Libor floor and a discount of 99, a source remarked.

As previously reported, the first-lien term loan has 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.

Commitments for the company's $595 million credit facility, which also includes a $75 million revolver, are due on Jan. 22.

Credit Suisse Securities (USA) LLC (left on the second-lien debt), J.P. Morgan Securities LLC (left on the first-lien debt) and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice.

PharMEDium is a Lake Forest, Ill.-based provider of hospital pharmacy-outsourced sterile compounding services.

National Mentor holds meeting

National Mentor launched in the afternoon its $560 million seven-year covenant-light term loan 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, talk on the company's $100 million five-year revolver emerged at Libor plus 400 bps with no Libor floor and a 50 bps upfront fee, the source said.

Commitments are due at 5 p.m. ET on Jan. 22.

Barclays, Goldman Sachs Bank USA, Jefferies Finance LLC and UBS Securities LLC are leading the $660 million senior secured credit facility that will refinance an existing senior secured credit facility.

National Mentor is a Boston-based provider of home and community-based health and human services.

PSAV comes to market

PSAV Presentation Services launched on Wednesday its $505 million term loan B (B1) with talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Goldman Sachs Bank USA, Barclays, Morgan Stanley Senior Funding Inc. and Macquarie Capital are leading the deal that will be used to help fund the buyout of the company by Goldman Sachs from Kelso & Co.

PSAV is a Long Beach, Calif.-based provider of audio visual equipment and event technology support to the hotel, conference and event industry.

Dixie reveals guidance

Dixie Electric came out with talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $280 million seven-year term loan B that launched with a bank meeting during the session, according to a market source.

The company's $320 million credit facility (B3/B+) also includes a $40 million five-year revolver.

Commitments are due on Jan. 21.

UBS Securities LLC, Credit Suisse Securities (USA) LLC, Macquarie Capital and Societe Generale are leading the deal that will be used to help fund the buyout of the company by First Reserve from One Rock Capital Partners LLC.

Dixie is an Odessa, Texas-based provider of electrical infrastructure materials and services to the upstream oil and gas sector.

SeaStar launches

SeaStar Solutions launched with a meeting its $200 million seven-year term loan B with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

The company's $225 million credit facility (B2/B) also includes a $25 million revolver.

Leads, RBC Capital Markets and GE Capital Markets, are asking for commitments by Jan. 22, the source continued.

Proceeds will be used to help fund the buyout of the company by American Securities.

SeaStar is a manufacturer and distributor of marine steering and control systems and engine and drive parts.

Connolly discloses pricing

Connolly set talk at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $320 million seven-year term loan B that launched on Wednesday, according to a source.

Commitments for the company's $350 million credit facility, which also includes a $30 million five-year revolver, are due on Jan. 22, the source said.

RBC Capital Markets LLC, Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. leading the deal that will be used to refinance existing bank debt.

Leverage is 3 times all senior.

Connolly is an Atlanta-based provider of technology-enabled recovery audit services.

Univision issue price

Univision came out with a par offer price on its $1.5 billion term loan C-4 that launched with a call, according to a market source.

Talk on the C-4 loan came out ahead of the launch at Libor plus 300 bps with a 1% Libor floor and 101 soft call protection for six months.

Commitments are due on Jan. 14, the source said.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Natixis and Mizuho are leading the deal that will be used to reprice a portion of the existing term loan C-1 and term loan C-2 debt from Libor plus 325 bps with a 1.25% Libor floor.

Univision is a Los Angeles-based Spanish-language media company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.