Sedgwick dips with refi; Booz breaks; Del Monte, National Mentor, Attachmate tweak deals

By Sara Rosenberg

New York, Jan. 31 - Sedgwick Claims Management Services Inc.'s first-lien term loan B headed lower in trading on Monday after word emerged that the debt will be refinanced with a new term loan, and price talk on the new deal was announced ahead of its upcoming bank meeting.

Also, Booz Allen Hamilton Holding Corp. freed up for trading, Interactive Data Corp. and Burger King Holdings Inc. saw their term loans retreat as repricings/refinancings were launched by both companies, TransUnion rose with its refinancing launch and First Data Corp. was weaker.

In other happenings, Del Monte Foods Co. and National Mentor Holdings Inc. both upsized their term loans after downsizing bond offerings, and Del Monte also lowered its loan spread, Libor floor and discount, and Attachmate Corp. came out with issuer-friendly revisions, too.

Additionally, Phillips-Van Heusen Corp. revealed structure and price talk on its credit facility as the deal was presented to lenders during the session, and Reynolds Group Holdings Ltd. launched its refinancing transaction as well, while Playboy Enterprises Inc. firmed timing on its loan.

Sedgwick softens

Sedgwick Claims Management Services' existing $400 million first-lien term loan B traded lower on Monday following news that the debt will be refinanced through a larger amended and restated tranche, according to a market source.

The existing term loan B was quoted at par bid, par ½ offered, down from 101 1/8 bid, 101 5/8 offered, the source said.

Pricing on this existing loan is Libor plus 400 basis points - after firming during syndication from initial talk of Libor plus 375 bps to 400 bps - with a 1.5% Libor floor, and it was sold at an original issue discount of 99 when it was obtained last year to help fund the buyout of the company by Stone Point Capital LLC and Hellman & Friedman LLC.

There is no call protection on the existing loan, which is why it moved down to par on the refinancing news, the source continued.

Sedwick floats talk

To take out the existing first-lien term loan B and to fund an acquisition, Sedgwick is getting a new $600 million amended and restated term loan B due Dec. 31, 2016, and price talk on this debt was released as the company is gearing up for a Tuesday bank meeting at 10 a.m. ET at the Le Parker Meridien in New York.

Price talk on the new term loan B is Libor plus 375 bps, 25 bps lower than existing pricing, with a 1.5% Libor floor, and it is being offered at par, the source remarked. Unlike the existing deal, there is call protection being offered on the new loan - a 101 soft call for six months.

Bank of America and Barclays are the lead banks on the term loan B, with Bank of America the left lead.

Sedwick buying SRS

The transaction that is being funded with Sedgwick's $200 million of new money from its upcoming term loan B is the acquisition of Specialty Risk Services LLC (SRS), a third-party claims administrator.

As was announced late last year, Specialty Risk Services is being bought from the Hartford Financial Services Group Inc. for $278 million in cash.

The acquisition is expected to close during the first quarter, subject to regulatory approval and other required consents.

Sedgwick is a Memphis, Tenn.-based provider of claims and productivity management services to corporate and institutional clients.

Booz Allen starts trading

Focusing back on the secondary market, Booz Allen's credit facility broke for trading in the afternoon, with the $500 million term loan B quoted above its par sale price, according to traders.

Traders were initially seeing the loan at par 7/8 bid, 101 ¼ offered before it quickly moved up to 101¼ bid, 101 5/8 offered.

Pricing on the term loan B is Libor plus 300 bps with a step-down to Libor plus 275 bps when total net leverage is 1.75 times or less. The debt has a 1% Libor floor and includes 101 soft call protection for one year.

During syndication, the term loan B was downsized from $700 million, pricing firmed at the low end of the Libor plus 300 bps to 325 bps talk, the step-down was added, and the original issue discount of 99½ was eliminated.

Booz A loan tops par

Booz Allen's $500 million term loan A was also seen quoted in the secondary, with levels of par 3/8 bid, no offers, one trader remarked.

Pricing on the term loan A, which had been upsized from $350 million, and a $275 million amended revolver, which had been upsized from $250 million, is Libor plus 250 bps with no Libor floor.

Bank of America, Credit Suisse, Barclays, Morgan Stanley, Goldman Sachs and Sumitomo are the lead banks on the credit facility (Ba2/BBB-) that will be used to refinance $1.021 billion of bank debt and $222 million of mezzanine debt. To compensate for the reduction in funded term loan debt to $1 billion from $1.05 billion, the company is using more of its cash on hand for the refinancing.

Booz Allen Hamilton is a McLean, Va.-based provider of management and technology consulting services to the U.S. government in the defense, intelligence and civil markets.

Interactive Data slides

Interactive Data's roughly $1.3 billion term loan came in to 101 bid, 101½ offered from 101¾ bid, 102¼ offered, as the company approached the market with a repricing/refinancing transaction, according to traders. The existing tranche includes 101 soft call protection for one year.

The Bedford, Mass.-based provider of financial market data told lenders in a call on Monday afternoon that it is looking to reprice the loan at Libor plus 350 bps with a 1.5% Libor floor from Libor plus 500 bps with a 1.75% Libor floor.

Additionally, the loan is being offered at a price of par, whereas, when it was first obtained in July 2010, it was sold at a discount of 97.

At close, the term loan was sized at $1.33 billion. By Sept. 30, it had been paid down to $1.313 billion.

Bank of America, Barclays, Credit Suisse and UBS are the lead banks on the deal.

Burger King dips

Burger King's U.S. term loan also moved towards its 101 soft call protection level on refinancing/repricing news, with one trader quoting it at 101 bid, 101½ offered, down from 101¾ bid, 102¼ offered, and a second trader quoting it at par 5/8 bid, 101 1/8 offered, down from 101 7/8 offered, with no bids, on Friday.

In the morning, the company held a call to launch the repricing, asking lenders to reduce its $1.51 billion U.S. term loan and €250 million term loan to Libor/Euribor plus 325 bps with a 1.5% Libor floor. Existing pricing is plus 450 bps/Euribor plus 475 bps with a 1.75% Libor floor.

The refinancing loans are being offered at par, compared to the 99 original issue discount that was seen when the facility was first obtained in October.

JPMorgan and Barclays are the lead banks on the Miami-based fast food hamburger chain's deal.

TransUnion up on refit

TransUnion's term loan moved to 101 bid, 101½ offered from par ¾ bid, 101¾ offered, as it launched a refinancing deal, and investors are anticipating that the existing loan will be taken out at its 101 soft call protection level, according to traders.

The new $950 million seven-year covenant-light senior secured term loan (Ba3) that launched with a call on Monday is being talked at Libor plus 375 bps to 400 bps with a 1.5% Libor floor and an original issue discount of 99. There is 101 soft call protection for one year.

Meanwhile, the existing term loan that was obtained in June 2010 at a size of $950 million is priced at Libor plus 500 bps with a 1.75% Libor floor and was sold at an original issue discount of 981/2. This tranche includes a step-down to Libor plus 475 bps when net senior secured leverage is 2.75 times.

Deutsche Bank, Bank of America and JPMorgan are the lead banks on the new deal for the Chicago-based provider of credit and information management.

First Data under pressure

First Data's term loans saw some softening during the session, although there was no specific news seen sparking the movement, according to traders.

One trader theorized that since the loans have run up by more than two points when compared to December levels, investors are just taking a little bit of a breather now.

The term loans were quoted by this trader at 94¼ bid, 94¾ offered, down from 94¾ bid, 95¼ offered. A second trader was seeing the loans at 94¼ bid, 94¾ offered, down from 95 bid, 95½ offered, on Friday.

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

Del Monte reworks loan

Moving to in-market deals, Del Monte Foods came out with changes to the size and pricing of its covenant-light seven-year term loan (Ba3/B+/BB) that were a function of the tranche's large oversubscription, according to a market source.

Under the revisions, the term loan is sized at $2.7 billion, up from $2.5 billion, and pricing was set at Libor plus 300 bps with a 1.5% Libor floor and a discount of 993/4, compared to initial talk of Libor plus 400 bps with a 1.5% floor and a discount of 99.

Also, the loan now includes 101 soft call protection for one year, the source said.

The company's now $3.45 billion credit facility, up from $3.25 billion, still provides for a $750 million five-year ABL revolver (NA/NA/BB).

Recommitments are due from lenders on Tuesday.

Del Monte being acquired

Proceeds from Del Monte's credit facility, $1.3 billion of notes downsized from $1.5 billion and talked in the 7.75% area and $1.6 billion of equity will be used to fund the acquisition of the company by Kohlberg Kravis Roberts & Co. LP, Vestar Capital Partners and Centerview Partners.

The investor group is buying the company for $19.00 per share in cash. The transaction is valued at $5.3 billion, including the assumption of $1.3 billion of net debt.

Completion of the transaction is anticipated by the end of March, subject to customary closing conditions, including receipt of shareholder and regulatory approvals.

JPMorgan, Barclays, Morgan Stanley, Bank of America and KKR Capital Markets are the lead banks on the credit facility.

Del Monte is a San Francisco-based branded pet and consumer products company.

National Mentor upsizes

National Mentor announced to lenders Monday that it decided to increase its six-year term loan B to $530 million from $505 million due to oversubscription, according to a market source.

The news came out on the back of the company pricing a bond offering that was downsized to $250 million from $275 million. The 12.5% bond offering priced late Friday night at 97.737 to yield 13%.

As before, the term loan B is being talked at Libor plus 550 bps with a 1.75% Libor floor and an original issue discount of 981/2.

The company's $605 million senior secured credit facility (B1/B+), up from $580 million, still includes a $75 million five-year revolver talked at Libor plus 550 bps with a 1.75% Libor floor.

Commitments are due on Feb. 3.

National Mentor lead banks

UBS Investment Bank, Barclays Capital and Jefferies are the lead banks on National Mentor's credit facility, with UBS the left lead.

Proceeds from the credit facility, along with the bonds, will be used to refinance existing debt.

Specifically, the company is looking to replace its existing senior secured credit facility borrowings, repay its mortgage facility and fund tender offers for $180 million of 11¼% senior subordinated notes due 2014 and about $224 million of senior floating-rate toggle notes due 2014.

Pro forma net senior secured debt will be 4.1 times and net total debt will be 6.2 times.

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

Attachmate restructures

Attachmate also announced a number of changes to its credit facility, including increasing sizes of its first- and second-lien term loans, while reducing pricing, the Libor floor and original issue discounts, according to a market source.

The six-year first-lien term loan (B1/BB-) is now sized at $875 million, up from $825 million, and pricing is Libor plus 500 bps with a 1.5% Libor floor and a discount of 99, compared to initial talk of Libor plus 575 bps with a 1.75% floor, and a discount of 981/2, the source said.

And, the 61/2-year second-lien term loan is now sized at $275 million, up from $225 million, with pricing of Libor plus 800 bps with a 1.5% Libor floor and a discount of 99 versus initial talk of Libor plus 950 bps with a 1.75% floor and a discount of 98. Call protection on the tranche was revised to 103 in year one, 102 in year two and 101 in year three from non-callable in the first year, then at 103 in year two, 102 in year three and 101 in year four.

Attachmate getting revolver

Attachmate's $1.19 billion senior secured credit facility, up from $1.09 billion, still includes a $40 million five-year revolver (B1/BB-).

Credit Suisse, RBC, Goldman Sachs and Citadel are the lead banks on the deal that will be used, along with equity, to fund the acquisition of Novell Inc. for $6.10 per share in cash in a transaction valued at $2.2 billion. The equity was downsized as a result of the term loan upsizings.

Closing on the acquisition is expected to occur in the first quarter, subject to regulatory approvals and clearance under the Hart-Scott-Rodino Act, the completion of the sale of assets to CPTN Holdings LLC and approval by Novell's stockholders.

Attachmate is a Seattle-based provider of access and integration software for legacy systems. Novell is a Waltham, Mass.-based developer, seller and installer of enterprise software.

Van Heusen details emerge

Phillips-Van Heusen held a meeting on Monday to launch its proposed U.S. and euro credit facility, and in connection with the event, structure and price talk were announced, according to a market source.

The facility includes a $440 million term loan B, a €260 million term loan B, a $600 million term loan A, an €87 million term loan A, a $275 million revolver and a €132 million revolver.

Price talk on the U.S. term loan B is Libor plus 300 bps and talk on the euro B loan is Euribor plus 325 bps, with both tranches having a 1% to 1.25% Libor floor and a par offer price.

Meanwhile, talk on the term loan A and revolver U.S. tranches is Libor plus 250 bps and on the euro tranches is Euribor plus 275 bps, with pricing based on a leverage grid. There is no Libor floor and upfront fees are determined by commitment size.

Commitments are due on Feb. 14.

Van Heusen refinancing debt

Proceeds from Phillips-Van Heusen's credit facility will be used to replace an existing credit facility that was completed in May 2010 and consisted of a roughly $450 million five-year revolver, a $500 million five-year term loan A, a $1 billion six-year term loan B and a €300 million six-year term loan B.

As of Oct. 31, there was about $480 million outstanding under the term loan A and about $1.34 billion outstanding under the term loan B, and then in December, the company made a voluntary repayment of about $150 million. It will prepay another $150 million in February.

Pricing on the existing revolver and term loan A is Libor plus 300 bps/Euribor plus 325 bps, and pricing on the existing term loan B is Libor plus 300 bps/Euribor plus 325 bps. The term loans have a 1.75% Libor floor, and the original issue discount on the term loan B was 991/2.

Barclays, Deutsche Bank, Bank of America, Credit Suisse and RBC are leading the New York-based apparel company's deal.

Reynolds launches

Reynolds Group also held a call on Monday for prospective lenders as it launched a $2.325 billion seven-year term loan E and a €250 million seven-year term loan B.

As was previously reported, price talk on the term loan E is Libor plus 350 bps and price talk on the term loan B is Euribor plus 375 bps, with both tranches having a 1.5% Libor floor.

Additionally, both term loans are being offered to investors at a price of par, a market source remarked.

Credit Suisse is the left lead bank on the deal that will be used to refinance existing senior secured credit facility borrowings and is asking that investors get their commitments in by Feb. 4.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

Playboy timing surfaces

Playboy nailed down timing on its $180 million credit facility with the scheduling of a bank meeting for Friday morning, according to a market source.

The facility consists of a $20 million five-year revolver and a $160 million six-year term loan, with official price talk not yet available, the source said.

Filings with the Securities and Exchange Commission have outlined expected pricing on the revolver at Libor plus 600 bps to 650 bps based on a leverage grid, and on the term loan at Libor plus 650 bps, with both having a 1.75% Libor floor. The filings also said that the revolver is expected to have a 75 bps unused fee, and the term loan is expected to have 101 soft call protection for one year.

Playboy funding buyout

Proceeds from Playboy's credit facility, which is being led by Jefferies, will be used to help fund its purchase by Icon Acquisition Holdings LP, a limited partnership controlled by Hugh M. Hefner, for $6.15 per share.

Other funds for the transaction will come from equity committed by Rizvi Traverse Management LLC.

Closing is expected to take place before or shortly after the end of the first quarter, subject to more than 50% of the shares being tendered.

Playboy is a Chicago-based media and lifestyle company.

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