AutoTrader.com, Cincinnati Bell break for trading; LNR tweaks pricing; Silgan details emerge

By Sara Rosenberg

New York, June 9 - AutoTrader.com's credit facility allocated and freed up for trading during Wednesday's market hours, with the term loan quoted a few points above its recently revised original issue discount price.

Another deal to begin trading was Cincinnati Bell Inc.'s credit facility, and its term loan was quoted just a touch higher than the discount price at which it was sold during syndication.

Moving to the primary market, LNR Property Corp. revised the spread on its term loan, and Silgan Holdings Inc. came out with structure and price talk on its credit facility as the deal was presented to lenders.

Also, Allscripts revealed expected pricing on its proposed credit facility that will be used to fund the purchase of its shares from Misys plc so that it can then merge with Eclipsys.

AutoTrader.com frees up

AutoTrader.com's credit facility hit the secondary market on Wednesday, with the $300 million term loan B quoted at 99 3/8 bid, 99 7/8 offered on the break and then moving up to par bid, par ¼ offered, according to traders.

Pricing on the term loan B is Libor plus 450 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

Just the other day, pricing on the term loan B was flexed up from Libor plus 350 bps, the original issue discount was increased from 99 and call protection was added.

The company's $525 million credit facility (Ba3/BB+) also includes a $100 million revolver and a $125 million term loan A, which are both priced at Libor plus 425 bps - after flexing up from Libor plus 350 bps during syndication.

Also during syndication, the term loan B was downsized from $325 million as the term loan A was upsized from $100 million.

AutoTrader.com lead banks

Goldman Sachs and Wells Fargo are the lead banks on AutoTrader.com's credit facility, with Goldman the left lead.

Proceeds will be used to help fund Providence Equity Partners' acquisition of a 25% interest in the company from Cox Enterprises Inc.

Following completion of the transaction, Cox will maintain majority ownership and operating control of AutoTrader.com.

Closing is expected to take place as soon as all necessary approvals have been obtained.

AutoTrader.com is an Atlanta-based internet automotive shopping and advertising site.

Cincinnati Bell breaks

Also freeing up for trading was Cincinnati Bell's credit facility, with its $760 million seven-year term loan quoted at 97 3/8 bid, 97 7/8 offered on the break in the late afternoon and remaining at the context thereafter, according to traders.

Pricing on the term loan is Libor plus 500 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from Libor plus 375 bps, the discount widened from talk in the 98 to 99 area, and call protection was added.

And, prior to the deal's launch, the company remarked in a conference call that it expected the term loan to be priced in the Libor plus 350 bps area, compared to pricing of Libor plus 150 bps on its existing term loan, which will be refinanced in connection with this transaction.

Cincinnati Bell getting revolver

Cincinnati Bell's $970 million senior secured credit facility (Ba3/BB) also includes a $210 million four-year revolver.

Bank of America, Morgan Stanley and Barclays are the lead banks on the deal, with Bank of America the left lead.

In addition to refinancing the existing roughly $200 million term loan, the new credit facility will be used to fund the $525 million acquisition of CyrusOne, a data center operator, and for general corporate purposes.

Closing on the transaction is targeted by the end of the second quarter, subject to customary conditions, including regulatory approvals.

Cincinnati Bell, a Cincinnati, Ohio-based provider of integrated communications services, expects pro forma LTM leverage to be 5.1 times.

LNR reworks pricing

Switching to the primary, LNR Property flexed pricing higher on $445 million five-year term loan (B) to Libor plus 750 bps from Libor plus 550 bps, while leaving the 2% Libor floor and 101 soft call protection for one year unchanged, according to a market source.

In addition, while there is still no official word on an original issue discount for the term loan, chatter is that it's being guided in the high-90s area, the source said.

Goldman Sachs and Bank of America are the lead banks on the deal that will be used to refinance existing debt.

LNR is a Miami-based real estate, investment, finance and management company.

Silgan sets structure, talk

Silgan Holdings held a bank meeting on Wednesday morning to kick off syndication on its proposed approximately $1.1 billion credit facility, and in connection with the launch, structure and price talk surfaced, according to a market source.

The $550 million revolver, $300 million term loan A, C$81 million term loan A and €125 million term loan A are all being talked at Libor plus 225 bps, the source said.

Upfront fees are 50 bps for commitments of $75 million, 37.5 bps for commitments of $50 million and 25 bps for commitments less than $50 million.

Deutsche Bank and Bank of America are the lead banks on the deal.

Silgan refinancing debt

Proceeds from Silgan's credit facility will be used to refinance its existing senior secured credit facility and could also be used to redeem its 6¾% senior subordinated notes due 2013.

The company said in a news release that the new credit facility would extend the maturities and amortization periods of its bank debt and provide greater flexibility with regard to its strategic initiatives, including acquisitions.

Closing on the transaction is expected to take place in the second or third quarter.

Silgan is a Stamford, Conn.-based manufacturer of consumer goods packaging products.

Allscripts expected pricing

Allscripts disclosed on Wednesday the anticipated pricing on its proposed $720 million credit facility, according to a 425 filed with the Securities and Exchange Commission.

The $150 million undrawn five-year revolver is expected to be priced at Libor plus 300 bps, and the $570 million six-year term loan is expected to be priced at Libor plus 350 bps, the filing said.

JPMorgan, Barclays Capital and UBS are the lead banks on the deal.

Timing on the launch of the credit facility is not yet available, a market source told Prospect News.

Pro forma leverage is 2.1 times LTM EBITDA, pro forma LTM EBITDA is $266 million and pro forma debt to capitalization is 29.9%.

Allscripts buying shares

Proceeds from Allscripts' credit facility will be used to fund the buyback 24.4 million of Allscripts' shares from Misys for an aggregate consideration of $577 million, a price of $23.62 per share.

In total, Misys is selling the majority of its 54.6% interest in its Allscripts subsidiary in a transaction that is expected to raise roughly $1.3 billion. The amount of shares being sold is about 68 million, and Misys will retain about 12 million shares.

About 36 million to 40 million of Allscripts shares held by Misys that Allscripts is not purchasing will be sold through a market placing.

And then, after Allscripts completes a merger with Eclipsys, an Atlanta-based provider of health care IT services, Misys will have an option to sell to Allscripts an additional 5.3 million of shares for $102 million - the purchase of which will be funded with cash on hand.

As part of the Eclipsys merger, Allscripts will give Eclipsys shareholders 1.2 shares of its stock per Eclipsys share.

Misys paying down debt

Following the sale of the Allscripts shares, Misys will use £75 million to pay down debt, with the rest being returned to shareholders. Misys capital structure will then include £210 million of committed credit facilities, and net debt to EBITDA will be 0.7 times, company officials said in a conference call on Wednesday.

The proposed sale is conditioned upon being able to achieve through the placing a minimum price of $16.50 per share as well as approval by Misys shareholders. It is not conditioned on the Allscripts-Eclipsys merger.

However, the Allscripts-Eclipsys merger is subject to the Misys transaction, as well as Allscripts and Eclipsys shareholder approval and other customary conditions.

The buyback of shares and the merger with Eclipsys are expected to be completed in September or October.

Allscripts is a Chicago-based provider of software, services, information and connectivity products to physicians and other health care providers. Misys is a London-based provider of services to the financial services and health care industries.

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