Sophos frees up for trading; Savvis' left lead bank revealed; Willbros, IESI wrap deals

By Sara Rosenberg

New York, July 2 - Sophos plc's credit facility allocated on Friday morning and then the deal broke for trading, with levels on the U.S. term loan B quoted right around its original issue discount price in light pre-holiday weekend trading.

Over in the primary market, information on the left lead bank on Savvis Inc.'s proposed refinancing credit facility surfaced, and Willbros Group Inc. successfully completed its credit facility after a somewhat tumultuous syndication process, and IESI-BFC Ltd. closed as well.

Sophos breaks

Sophos' credit facility hit the secondary market, with the $204.4 million U.S. term loan B quoted at 96 bid, 97 offered, according to a market source.

Pricing on the $229.4 million six-year term loan B, which also includes a $25 million euro-equivalent tranche that was not seen quoted in the secondary, is Libor/Euribor plus 575 basis points with a 2% Libor floor, and it was sold at an original issue discount of 96. There is 101 soft call protection for one year.

During syndication, pricing on the term loan B was flexed up from the Libor plus 475 bps area, the discount was widened to 97 from the 99 context and then increased to its final level, the call protection was added and the euro piece was carved out of the tranche.

In addition, the term loan B was upsized from $225 million to account for the larger original issue discount, the tenor was shorted from seven years and amortization was increased to 3% per year from 1%.

Sophos getting revolver, term A, too

Sophos' $324.4 million senior secured credit facility (B2/B+) also includes a $75 million six-year euro equivalent term loan A and a $20 million six-year revolver, which are both priced at Libor plus 450 bps after flexing during syndication from Libor plus 400 bps.

Also during syndication, the excess cash flow sweep was increased to 75% from 50%, and the accordion feature was revised to $75 million with 25 bps of MFN from $100 million with no MFN.

RBC and HSBC are the lead banks on the deal, with RBC the left lead. These banks opted to hold onto the revolver and term loan A and only really syndicate the term loan B.

When the deal was first announced, initial indications were that the term debt would be comprised of a $90 million term loan A and a $210 million term loan B; however, those sizes were labeled as preliminary and likely to change.

Sophos being acquired

Proceeds from Sophos' credit facility will be used to help fund the buyout of the company by Apax Partners in a transaction valued at $830 million.

When the buyout is completed, the founders of the company will retain a significant minority shareholding. TA Associates, a minority shareholder in Sophos since 2002, will sell its full interest to Apax in this transaction.

Leverage is around 3.8 times.

Sophos is a Boston-based IT security and data protection firm.

Savvis discloses lead bank

Switching to the primary, word emerged that Savvis' newly announced senior secured credit facility is being done via left lead Bank of America, according to a market source.

Whether there are other lead banks on the deal was not available prior to press time.

Late Thursday, the company said that it is getting the new facility to refinance existing debt and fund the purchase of the company's $345 million of 3% convertible senior notes.

The tender offer for the convertibles expires on July 29.

Savvis is a Town & Country, Mo.-based provider of cloud infrastructure and hosted IT services.

Willbros completes facility

Willbros Group closed on its $475 million senior credit facility (B2/BB-), consisting of a $300 million four-year term loan B and a $175 million three-year revolver, according to a news release.

Pricing on the term loan B is Libor plus 750 bps with a 2% Libor floor, and it was sold at an original issue discount of 94. There is hard call protection of 102 in year one and 101 in year two.

The revolver is priced at Libor plus 425 bps, with a step-down to Libor plus 375 bps after an interim period. Upfront fees were offered anywhere from 112.5 bps to 137.5 bps based on commitment size.

During syndication, pricing on the term loan B was lifted from initial talk of Libor plus 450 bps to 500 bps with a 2% Libor floor and an original issue discount of 98 to 981/2, and then from revised discount talk of 97 to 98.

Willbros lead banks

Crédit Agricole Corporate and Investment Bank and UBS Securities acted as the joint bookrunners on Willbros' term loan B. Crédit Agricole acted as the bookrunner on the revolver.

Proceeds were used to help fund the acquisition of InfrastruX Group Inc., a Seattle, Wash.-based provider of electric power and natural gas transmission and distribution infrastructure services.

Under the agreement, Willbros paid about $360 million in cash, a portion of which was used to retire InfrastruX debt and pay InfrastruX transaction expenses, and issued 7.9 million new Willbros shares.

Willbros is a Houston-based independent contractor for the oil, gas, power, refining and petrochemical industries.

IESI closes

IESI-BFC completed its $950 million amended and restated four-year revolving credit facility (Ba2/BBB-) that is priced at Libor plus 300 bps, according to a news release.

During syndication, the revolver was upsized from $600 million when a $350 million term loan was eliminated from the capital structure. The term loan was talked at Libor plus 325 bps with a 1.5% Libor floor and an original issue discount of 99. There was also 101 soft call protection for one year.

Bank of America acted as the lead bank on the deal.

Proceeds were used to refinance existing debt in connection with the company's acquisition of Waste Services Inc.

In addition, the company got a C$525 million amended and restated credit facility priced at Bas plus 287.5 bps.

IESI is a full-service waste management company. Waste Services is a solid waste services company. The combined company is based in Toronto.

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