Jazz Pharma, Allflex, InterGen, Pre-Paid Legal, ValleyCrest, Auxilium, TeleGuam free up

By Sara Rosenberg

New York, June 7 - The secondary market saw a couple deals break on Friday, including Jazz Pharmaceuticals, Allflex Holdings, InterGen NV, Pre-Paid Legal Services Inc., ValleyCrest Cos. LLC, Auxilium Pharmaceuticals Inc. and GTA TeleGuam.

Meanwhile, over in the primary, Genpact International Inc. downsized its term loan B and lifted pricing, and Sedgwick Claims Management Services Inc. reverse flexed pricing on its second-lien term loan, firmed Libor floors at the low end of guidance and tightened the offer price on the first-lien term loan.

Also, Asurion LLC and TCW Group (Clipper Acquisitions Corp.) opted to remove their term loans from market, Rite Aid Corp. announced and launched a new second-lien term loan, Service Corp. International revealed timing on its new loan.

Jazz Pharmaceuticals breaks

Jazz Pharmaceutical's credit facility freed up for trading on Friday, with the $557,187,500 term loan (including a $100 million add-on) due June 2018 quoted at par ¼ bid, 101 offered, according to a source.

Pricing on the term loan is Libor plus 275 basis points, after firming in the morning at the high end of the Libor plus 250 bps to 275 bps talk, a source said. There is a 0.75% Libor floor and 101 soft call protection for six months, and the debt was issued at par.

The company's $757,187,500 senior secured credit facility also includes a $200 million revolver (including a $100 million add-on) due June 2017 that is priced at Libor plus 225 bps with no Libor floor, and was offered with a 37.5 bps upfront fee on new money.

Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an existing credit facility and for general corporate purposes.

Total leverage is 1.5 times and net total leverage is 0 times, the source added.

Jazz Pharmaceuticals, a Dublin, Ireland-based specialty biopharmaceutical company, expects to close on the new credit facility on Thursday.

Allflex levels emerge

Allflex's credit facility broke too, with the $570 million seven-year first-lien term loan B quoted at par ¼ bid, par ¾ offered and the $240 million eight-year second-lien term loan quoted at 99½ bid, sources said.

Pricing on the first-lien term loan is Libor plus 325 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.

As for the second-lien term loan, pricing is Libor plus 700 bps with a 1% Libor floor, and it was sold at 99. There is hard call protection of 102 in year one and 101 in year two.

Recently, the first-lien term loan was upsized from $540 million pricing firmed at the low end of the Libor plus 325 bps to 350 bps talk and the call protection was added. Also, the second-lien term loan was downsized from $270 million and the spread finalized at the tight end of the Libor plus 700 bps to 725 bps talk.

Allflex being acquired

Proceeds from Allflex's $910 million credit facility, which also includes a $100 million revolver, will be used to help fund its buyout by BC Partners from Electra Partners for $1.3 billion.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA, RBC Capital Markets and Macquarie Capital are the lead banks on the deal, with Morgan Stanley the left lead on the first-lien loan and Bank of America the left lead on the second-lien loan.

Allflex is a Vitre, France-based producer of visual and electronic identification tags and other tracking products for livestock and other species.

InterGen starts trading

InterGen's $300 million term loan also emerged in the secondary market, with levels quoted at 97½ bid, 98½ offered, according to a market source.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor, and it was sold at an original issue discount of 97. There is hard call protection of 102 in year one and 101 in year two.

During syndication, the loan was downsized from $500 million, the spread was lifted from talk of Libor plus 375 bps to 400 bps, the discount was revised from 99 and the call protection was sweetened from just 101 soft call protection for one year.

The company's $800 million senior secured credit facility also includes $500 million in revolvers that are split between a U.S. tranche and a pound sterling tranche.

InterGen lead banks

Deutsche Bank Securities Inc., Barclays, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Mitsubishi UFJ, RBC Capital Markets and Citigroup Global Markets Inc. are leading InterGen's credit facility.

Proceeds from the term loan will be used to help fund the tender offer for the company's 9½% senior secured notes due 2017, 9% senior secured notes due 2017 and 8½% senior secured notes due 2017, to repay an existing corporate debt facility, and for general corporate purposes, and the revolvers are available to fund working capital and for other general corporate purposes.

The power generation firm's refinancing will also be funded with $900 million equivalent in senior secured notes, upsized from an initial amount of $800 million, and equity.

Pre-Paid Legal trades

Pre-Paid Legal Services' was another deal to begin trading during the session, with the $310 million six-year first-lien term loan B quoted at 99½ bid, par offered and the $175 million seven-year second-lien term loan quoted at 99 bid, par offered, according to a source.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1.25% Libor floor, and it was sold at 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 850 bps with a 1.25% floor, and was sold at 981/2. This debt is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the first-lien term loan was downsized from $375 million, pricing was raised from Libor plus 475 bps and amortization was changed to 5% per annum from 2½%. In addition, the second-lien term loan was upsized from $110 million and call protection was sweetened from 103 in year one, 102 in year two and 101 in year three.

Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the $485 million deal that will be used by the Ada, Okla.-based provider of legal services to refinance debt and preferred stock.

ValleyCrest tops OID

Another deal to break was ValleyCrest's $265 million six-year senior secured covenant-light term loan (B3/B-), with levels seen at 99½ bid, par ¼ offered, a market source remarked.

Pricing on the 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 repricing protection for one year.

Recently, the spread on the loan was trimmed from Libor plus 475 bps on strong demand.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that is being used to refinance an existing term loan.

ValleyCrest is a Calabasas, Calif.-based provider of landscape maintenance services.

Auxilium frees up

Auxilium Pharmaceuticals' $225 million senior secured term loan B (Ba2/B) due April 26, 2017 started trading in the afternoon, with levels seen at 99½ bid, par offered, according to a market source.

Pricing on the loan is Libor plus 500 bps, after flexing from Libor plus 400 bps, and there is a 1.25% Libor floor and hard call protection of 102 in year one and 101 in year two, revised from just 101 soft call protection for one year. The debt was sold at a discount of 99.

Amortization on the loan is 5% per annum, increased from 1%, another source remarked.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

Proceeds will be used to help fund the company's acquisition of Actient Holdings LLC.

Auxilium is a Malvern, Pa.-based specialty biopharmaceutical company.

TeleGuam breaks

GTA TeleGuam's credit facility made its way into the secondary market on Friday, with the $122 million first-lien six-year term loan B quoted on either side of par and the $42 million seven-year second-lien term loan quoted at par bid, 101 offered, a market source said.

Pricing on the first-lien term loan is Libor plus 400 bps, after firming at the wide end of the Libor plus 375 bps to 400 bps talk. There is a 1.25% Libor floor and 101 soft call protection for six months, and the debt was sold at a discount of 991/2.

The second-lien term loan is priced at Libor plus 750 bps, after finalizing at the tight end of the Libor plus 750 bps to 775 bps talk. There is a 1.25% Libor floor and call protection of 102 in year one and 101 in year two, and it was sold at 99.

The company's $174 million credit facility also includes a $10 million five-year revolver.

BNP Paribas Securities Corp. is leading the deal that is being used to refinance existing debt and fund a dividend.

GTA TeleGuam is a Tamuning, Guam-based provider of communications services.

Genpact tweaks deal

Moving to the primary, Genpact reduced the size of its covenant-light term loan B due Aug. 30, 2019 to $675 million from $875 million and lifted the spread to Libor plus 275 bps from Libor plus 250 bps, according to a market source.

The B loan still has a 0.75% Libor floor, an original issue discount of 99½ on new money only, 101 soft call protection for six months and amortization of 1% per annum.

The company's now $925 million senior secured credit facility also includes a $250 million revolver due Aug. 30, 2017 priced at Libor plus 250 bps with a par offer price.

Recommitments are due at 5 p.m. ET on Monday, the source added.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Agricole CIB, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt. The funds that were taken out of the term loan B were going to be used for general corporate purposes.

Genpact is a Hamilton, Bermuda-based provider of business process management services.

Sedgwick revises terms

Sedgwick Claims Management Services lowered pricing on its $285 million 51/2-year second-lien term loan (Caa1) to Libor plus 700 bps from Libor plus 725 bps and firmed the Libor plus at 1%, the low end of the 1% to 1.25% talk, while keeping the original issue discount of 99½ and call protection of 102 in year one and 101 in year two intact, according to a market source.

Additionally, the floor on the $850 million five-year first-lien term loan (B1), firmed at 1%, the tight end of the 1% to 1.25% talk, and the offer price was revised to par from 993/4, the source said. The spread on the first-lien term loan remained at Libor plus 325 bps and the debt still includes 101 soft call protection for six months.

The company's $1,195,000,000 facility also provides for a $60 million five-year revolver (B1).

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and MCS Capital are leading the deal that will refinance existing debt and fund a dividend.

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

Asurion withdraws deal

Asurion elected to pull its $850 million seven-year senior secured term loan B-2 (B+) due to market conditions, according to a market source.

The loan, which included a $350 million delayed-draw tranche, was talked at Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC were leading the deal that was going to be used to refinance an existing first-lien amortizing term loan due 2017 and for general corporate purposes.

Asurion is a Nashville-based provider of technology protection services.

TCW pulls repricing

TCW withdrew its $354 million term loan B due February 2020 from the primary as a result of current market conditions, according to a market source.

The loan was talked at Libor plus 200 bps to 225 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for six months.

Proceeds were going to be used to reprice an existing term loan B due February 2020.

J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch were leading the transaction.

TCW is a Los Angeles-based asset management firm that specializes in fixed income, world equity and alternative markets.

Rite Aid holds call

Also on the new deal front, Rite Aid disclosed in the morning plans for a new $500 million eight-year second-lien term loan (B3/B-), and launched the transaction with a call at 11 a.m. ET, according to sources.

The loan is talked at Libor plus 425 bps with a 1% Libor floor, a par offer price and call protection of 102 in year one and 101 in year two, sources said.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC, GE Capital Markets and Goldman Sachs Bank (USA) are leading the deal that will be used with available cash and/or borrowings under the company's revolving credit facility to fund a tender offer $500 million 7½% senior secured notes due 2017.

Commitments for the loan are due on Thursday and the notes tender offer expires on July 5.

Rite Aid is a Camp Hill, Pa.-based drugstore chain.

Service Corp. coming soon

Service Corp. set a bank meeting for Tuesday to launch its previously announced $600 million senior term loan that is being led by J.P. Morgan Securities LLC, according to a market source.

Proceeds, along with a $725 million senior unsecured bridge loan and cash on hand, will fund the purchase of Stewart Enterprises Inc. for $13.25 per share in cash. The transaction has an enterprise value of $1.4 billion.

In addition, the company has a commitment for a new $500 million revolver that would be provided if amendments to its existing revolver are not obtained.

Closing is expected late this year or early next year, subject to approval from Stewart's shareholders, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Act and customary conditions.

Service Corp. is a Houston-based provider of deathcare products and services. Stewart is a Jefferson, La.-based death care provider.

Heinz closes

In other news, the buyout of H.J. Heinz Co. by Berkshire Hathaway and 3G Capital for $72.50 per share has been completed, according to a news release, and for the transaction, Heinz got a new $11.5 billion senior secured deal (Ba2/BB/BB+) comprised of a $2 billion revolver and $9.5 billion in term loans.

The term debt is split between a six-year term B-1 priced at Libor plus 225 bps, with a step-down to Libor plus 200 bps at less than 2.1 times net first-lien leverage, a 1% Libor floor and 101 soft call for one year, and a seven-year term B-2 priced at Libor plus 250 bps, with a step-down to Libor plus 225 bps at less than 2.1x net first-lien leverage, a 1% Libor floor and 101 soft call protection for two years.

During syndication, the spread on the B-1 loan was cut from talk of Libor plus 275 bps to 300 bps, the B-2 loan was flexed from talk of Libor plus 275 bps to 300 bps, and the step-downs were added. Also, the total amount of term loans was reduced from $10.5 billion as the company upsized its senior secured second-lien notes offering to $3.1 billion from $2.1 billion, and the revolver was upsized from $1.5 billion.

J.P. Morgan Securities LLC, Well Fargo Securities LLC, Barclays and Citigroup Global Markets Inc. led the deal for the Pittsburgh-based food product company.

Virgin acquisition wraps

Liberty Global Inc. closed on its purchase of Virgin Media Investment Holdings Ltd., a news release said, for which Virgin Media got a new $2,755,000,000 senior secured seven-year term loan B (Ba3/BB-) and a £600 million senior secured seven-year term B (Ba3/BB-).

Pricing on the U.S. term loan B is Libor plus 275 bps and pricing on the £600 million B loan is Libor plus 375 bps, with both having a 0.75% Libor floor and 101 soft call protection for six months, and both sold at a discount of 991/2.

During syndication, pricing on the U.S. term loan was cut from Libor plus 300 bps.

Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., Bank of America Merrill Lynch, Barclays and Deutsche Bank Securities Inc. led the deal.

Virgin Media is a New York-based provider of broadband, television, mobile phone and home phone services in the United Kingdom. Liberty is an Englewood, Colo.-based cable company.

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