Skype, TNS break; PODS well met; TowerCo, Pilot Travel talk emerges; TASC closes in on timing

By Sara Rosenberg

New York, Nov. 12 - Skype Technologies (Springboard Finance LLC) reduced pricing on its term loan and then freed the deal up for trading where it was seen above par, and TNS Inc.'s credit facility also broke for trading with its term loan B quoted above the original issue discount price at which it was sold during syndication.

Over in the primary market, PODS Enterprises Inc.'s bank meeting for its refinancing credit facility went very well and two shops have joined the deal in bookrunner roles.

Also, price talk on TowerCo came out on Thursday as the deal was launched to investors, Pilot Travel Centers LLC also revealed pricing guidance as its term loan B was presented to lenders, and TASC Inc. seems to be getting close to finalizing timing on its upcoming buyout credit facility.

Skype tweaks deal, starts trading

Skype reworked the pricing on its term loan and then the debt hit the secondary market where it was quoted by one trader at par ¾ bid, 101¼ offered, and by a second trader at par ¼ bid, par ¾ offered.

The $700 million five-year term loan is priced at Libor plus 700 basis points with a 2% Libor floor and an original issue discount of 971/2. Early on Thursday, the discount was being talked at 97 to 97½ before finalizing at the tight end.

When the deal first launched, the term loan was talked at Libor plus 600 bps with an original issue discount of 97. Pricing and the discount were then increased to Libor plus 750 bps with a discount of 96 before firming at the current levels.

In addition, the term loan was recently upsized from $600 million after a litigation settlement agreement was reached with Joltid Ltd. and Joost NV, giving Skype ownership over all software previously licensed from Joltid and ending all litigation against the investor group and eBay at the closing of the acquisition.

Skype being bought

Skype is getting the extra $100 million of term loan funds from eBay Inc. and the investor group led by Silver Lake, and including Index Ventures, Andreessen Horowitz and the Canada Pension Plan Investment Board, that is buying a stake in Skype from eBay.

However, this $100 million of debt can't be sold for at least six months.

Upon completion of the sale, eBay will receive about $1.9 billion in cash and a note from the buyer in the principal amount of $125 million. The deal, which values Skype at $2.75 billion and is not subject to a financing condition, is expected to close in the fourth quarter.

As a result of the litigation settlement agreement, the investor group is now only getting a 56% piece of Skype instead of a 65% piece.

JPMorgan, Barclays and RBC Capital Markets are the lead banks on the $730 million credit facility, which also includes a $30 million four-year revolver.

Ratings on the credit facility are B1/B+. Following news of the settlement agreement, Standard & Poor's raised its rating on the facility from B, while Moody's affirmed its rating.

Skype is a Luxembourg-based software that enables individuals and businesses to make free video and voice calls, send instant messages and share files with other Skype users.

TNS frees up

TNS' credit facility hit the secondary market on Thursday, and the term loan B was seen consistently trading above its original discount price, according to a market source.

The $325 million six-year term loan B was quoted at 99¾ bid, par ¼ offered pretty much from the break on, the source said.

Pricing on the term loan B is Libor plus 400 bps with a step-down to Libor plus 350 bps if corporate ratings are upgraded to 4-B status and leverage is below 1.5 times. There is a 2% Libor floor and the tranche was sold at an original issue discount of 981/2.

The company's $400 million credit facility (Ba3/BB) also includes a $75 million five-year revolver that is priced at Libor plus 400 bps with a 2% Libor floor as well.

TNS refinancing debt

Proceeds from TNS' credit facility will be used to refinance an existing senior credit facility comprised of a $15 million undrawn revolver and $363.5 million in term loan debt.

Included in the existing term loan debt is a $230 million incremental term loan that the company obtained a few months ago at Libor plus 600 bps with a 3.5% Libor floor and 101 soft call protection for one year. Investors were offered the loan at an original issue discount of 90.

SunTrust is the lead bank on the deal that was done on a best-efforts basis.

TNS is a Reston, Va.-based provider of business-critical, cost-effective data communications services for transaction-oriented applications.

PODS well attended

Moving to new deal happenings, PODS Enterprises' Thursday morning bank meeting saw strong attendance with a full room of investors, and two new bookrunners have been added to the transaction, according to a market source.

GE Capital and Golub Capital have come in as joint bookrunners, joining left lead bank Barclays Capital on the $145 million credit facility, the source said.

The facility consists of a $25 million revolver and a $120 million term loan, with both tranches talked at Libor plus 550 bps with a 2% Libor floor.

Also, both tranches are being offered to lenders at an original issue discount of 98.

Proceeds from the credit facility will be used to refinance existing bank debt.

Secured leverage is 2.9 times and total leverage is 4.4 times.

PODS is a Clearwater, Fla.-based provider of moving and storage services.

TowerCo guidance

TowerCo held a bank meeting on Thursday afternoon to kick off syndication on its proposed senior secured credit facility, and in connection with the launch, price talk was announced, according to a market source.

The $200 million five-year term loan B is being talked at Libor plus 400 bps to 425 bps with a 2% Libor floor, the source said, adding that original issue discount is still to be determined.

The company's $240 million also includes a $40 million three-year revolver.

Morgan Stanley and Jefferies are the lead banks on the deal that will be used to pay a dividend to sponsors.

TowerCo is a Cary, N.C.-based developer, owner and leaser of communication towers.

Pilot Travel B loan price talk

Another deal to launch with a bank meeting and reveal guidance on Thursday was Pilot Travel Centers' $800 million term loan B, according to a market source.

The term loan B was presented with price talk of Libor plus 350 bps with a 2% Libor floor, the source said.

In addition, lenders are being offered the term loan B with an original issue discount that is talked in the 98½ to 99 context, the source continued.

Pilot Travel pro rata details

Pilot Travel Centers' $1.8 billion senior secured credit facility also includes a $500 million revolver and $500 million term loan A that were already launched to investors earlier in the week.

Price talk on the both of these tranches is Libor plus 325 bps with a 2% Libor floor, the source added.

The revolver and the term loan A are being sold pro rata and are being offered with upfront fees that are based on commitment size.

Bank of America and Wells Fargo are the lead banks on the credit facility that will be used to fund the acquisition of Flying J. Inc.'s travel plaza business.

Pilot Travel Centers is a Knoxville, Tenn.-based operator of travel centers.

TASC narrows down timing

TASC's proposed $680 million senior secured credit facility is now expected to launch with a bank meeting towards the end of next week, whereas previously timing was simply described as next week's business, according to a market source.

A firm date for the launch, however, has not yet been determined, the source added.

The facility is comprised of a $100 million revolver and $580 million of term loan A and term loan B debt. The breakdown of exact term loan tranche sizes is not yet available.

There will be a Libor floor on the tranches, but the specifics on that are still to be determined as well, as is price talk.

Barclays Capital, Deutsche Bank Securities and RBC Capital Markets are the lead banks on the deal, with Barclays the left lead. In addition, CPPIB Credit Investments Inc. has provided commitments towards the facility as an investor.

TASC being acquired

Proceeds from TASC's credit facility will be used to help fund the purchase of the company by an investor group led by General Atlantic LLC and Kohlberg Kravis Roberts & Co. from Northrop Grumman Corp. in a transaction valued at $1.65 billion.

Other funds for the buyout will come from around $310 million of senior subordinated notes (mezzanine debt) that has already been pre-placed. KKR Capital Markets arranged the mezzanine financing and Highbridge Mezzanine Partners is the lead investor.

Closing on the transaction is expected to take place in the fourth quarter, subject to customary approvals.

TASC is a Chantilly, Va.-based provider of advanced systems engineering and technical assistance to the defense, intelligence, federal, state and local markets.

Alliance HealthCare readies deal

In more primary news, Alliance HealthCare Services Inc. surfaced with a new $570 million senior secured credit facility that is scheduled to launch with a bank meeting on Monday, according to a market source.

The deal is expected to have a quick syndication process with allocations hoped to go out by the end of next week, the source said.

The facility consists of a $450 million 61/2-year term loan and a $120 million five-year revolver. Price talk on the tranches is not yet available.

Deutsche Bank, Barclays and Morgan Stanley are the lead banks on the deal that will be used to help fund the purchase of the company's $300 million of 7¼% senior subordinated notes due 2012 and to refinance its existing credit facility.

Other funds for the refinancing will come from a $200 million senior notes offering and cash on hand.

Alliance HealthCare is a Newport Beach, Calif.-based provider of outpatient diagnostic imaging and radiation oncology services.

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