Apria, GEO break to premiums; Dynegy talks $1.3 billion; Capital Automotive cuts discount

By Paul A. Harris

Portland, Ore., April 2 - The LCDX 19 index of bank loan credit default swaps ended the session at 102¾ bid, 103¼ offered, unchanged on the day, according to a hedge fund manager.

In the primary market Apria Healthcare Group Inc. and GEO Group Inc. priced and broke to premiums.

Pricing was set on the term loan portions of Dynegy, Inc. $1.8 billion credit facility.

And Capital Automotive LP cut 25 cents from the original issue discount offered on its $1.5 billion six-year term loan B.

Apria upsizes

Apria Healthcare priced an upsized $900 million Libor plus 500 basis points term loan (B2/BB) at 99.

The deal, which was upsized from $750 million, broke to 99¾ bid.

The Libor spread was increased from 450 bps.

Covenants were added to the deal, which launched as a covenant-lite loan.

There is a 1.25% Libor floor and 101 soft call protection for one year.

Bank of America Merrill Lynch, Goldman Sachs & Co., Barclays, Wells Fargo Securities LLC and Macquarie Capital are leading the deal.

Proceeds will be used to repay bonds.

Apria is a Lake Forest, Calif.-based home health-care services company.

GEO prices, trades up

GEO Group priced its $300 million Libor plus 250 basis points term loan B (Ba3/BB) at par.

The deal broke to par ¾ bid.

As reported, pricing was reduced to Libor plus 250 bps from 300 bps, and the Libor floor was trimmed to 0.75% from 1%.

The reoffer price was tightened to par from 991/2.

The loan has 101 soft call protection for six months.

In addition to the term loan B, the company's $1 billion credit facility (Ba3/BB) provides for a $700 million revolver.

BNP Paribas Securities Corp. was the lead bank.

Proceeds will be used to refinance existing debt.

GEO Group is a Boca Raton, Fla.-based provider of correctional, detention and community reentry services.

Dynegy sets price talk

Dynegy's $500 million two-year covenant-lite term loan B-1 is talked at a Libor spread of 350 basis points with a 1% Libor floor at 99.5. The tranche has no call protection.

An $800 million seven-year covenant-lite term loan B-2 is talked at a Libor spread of 375 bps with 1.25% Libor floor. The B-2 loan has 101 soft call protection.

Commitments are due on April 10.

The facility has a $500 million five-year revolver.

Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. are the active arrangers. Other managers are expected to be announced.

The Houston-based energy company plans to use the proceeds to refinance the credit facilities of subsidiaries GasCo and CoalCo.

Capital Automotive discount

Capital Automotive cut 25 cents from the original issue discount offered on its $1.5 billion six-year term loan B (Ba3/B+), taking the discount to 99.75 from 99.5.

The 325 basis points Libor spread and the 1% Libor floor remain unchanged, as does the 101 soft call protection for six months.

The loan has a step-down to Libor plus 300 bps following a $300 million term loan paydown with proceeds from second-lien debt, subordinated debt or equity and total leverage of less than 67.5%, the source said.

The company's $1.7 billion senior secured credit facility provides for a $200 million five-year revolver as well.

Covenants include maximum leverage and minimum fixed charge coverage ratios.

Barclays is the bookrunner on the deal.

Proceeds will be used to refinance an existing credit facility.

Re-commitments were due by 5 p.m. ET on Tuesday.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

Essential Power sets talk

Essential Power, LLC's $550.7 million senior secured term loan due Aug. 8, 2019 (existing ratings Ba2/BB) is talked with a Libor spread of 350 basis points at par.

The loan features a 1% Libor floor and 101 soft call protection for six months.

Commitments are due on April 9.

Barclays is the left lead arranger.

As with the company's existing loan, the proposed loan due in 2019 features a maximum leverage ratio covenant and a minimum interest coverage ratio covenant.

The Iselin, N.J.-based wholesale power generation and marketing company plans to use the proceeds to refinance its existing term loan.

Tower Automotive talk

Tower Automotive Holdings USA, LLC talked its $275 million seven-year senior secured term loan B with a Libor spread of 475 basis points to 500 bps.

The deal is talked with a one dollar original issue discount, features a 1.25% Libor floor and 101 soft call protection for 12 months.

Commitments are due on April 12. The deal closes and funds on April 17.

Citigroup Global Markets; Citigroup Global Markets, Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint lead arrangers.

Security includes a perfected first-priority pledge of all equity interest in subsidiaries directly owned by each borrower and guarantor, perfected first-priority interest in all other tangible and intangible assets of each borrower and guarantor and perfected second-priority interest in the revolving facility priority collateral.

There is a 1% per annum amortization.

Financial covenants include a maximum net leverage ratio of 3.75-times.

Proceeds will be used to prepay a portion of existing senior secured notes and existing foreign debt.

The company is a Livonia, Mich.-based supplier of automotive metal structural components and assemblies.

First Data repricing deal

First Data Corp. is seeking 100 basis points of spread reduction for $2.436 billion and €179.3 million amounts of its first-lien term loan due March 2017 (B1/B+).

The repricing would reduce the Libor spread to 400 bps from 500 bps.

The deal is talked at 99.25 to 99.5.

Credit Suisse Securities (USA) LLC is leading the transaction.

The loan has no Libor floor and no call protection.

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

Securus to launch Thursday

Securus Technologies Inc. will launch its $540 million credit facility in a lender call set for Thursday.

Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. are the lead banks on the deal.

The facility consists of a $50 million five-year revolver, a $335 million seven-year first-lien term loan and a $155 million eight-year second-lien term loan, sources said.

Proceeds will be used to help fund the company's buyout by ABRY Partners.

Securus is a Dallas-based provider of inmate communications services and investigative technologies.

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