MDA Info, Aventine, ResCare break; iHealth Technologies expected to change size and spread

By Sara Rosenberg

New York, Dec. 20 - MDA Info Products and Aventine Renewable Energy Holdings Inc. freed up for trading on Monday, with levels quoted above their original issue discount prices, and ResCare Inc. broke as well, but only after increasing pricing, the Libor floor and discount on its loan.

In more loan happenings, iHealth Technologies Inc. is rumored to be working on some significant changes to its credit facility, with the likelihood being that there will be a downsizing, along with a pricing increase.

Meanwhile, there were some companies that came out with official revisions to their bank deals: Harbor Freight Tools reduced the size of its term loan, UTEX Industries Inc. raised the spread and Libor floor on its facility, and Bentley Systems Inc. and Southern Pacific Resource Corp. lowered pricing on their term loans.

MDA Info starts trading

MDA Info Products' credit facility hit the secondary market on Monday afternoon, with the $350 million term loan quoted at 98¾ bid, 99¼ offered, according to a trader.

Pricing on the term loan is Libor plus 550 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 981/2. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was flexed up from talk of Libor plus 450 bps to 475 bps, and the discount firmed at the wide end of the 98½ to 99 guidance.

The company's $400 million credit facility (Ba3/B+) also provides for a $50 million revolver.

MDA Info being acquired

Proceeds from MDA Info's credit facility will be used to help fund TPG Capital's acquisition of the company from MacDonald, Dettwiler and Associates Ltd. for about $850 million.

The transaction is expected to close early next year, subject to customary regulatory and other approvals.

Bank of America, RBC and BMO are the lead banks on the credit facility, with Bank of America the left lead.

MDA Info is a provider of property information to insurance companies, lenders and legal professionals.

Aventine frees up

Continuing on the topic of deals that broke for trading, Aventine's $200 million senior secured term loan (Caa1/B) was seen at 96¼ bid, 97¼ offered as it emerged in the secondary market as well, according to a trader.

Pricing on the Pekin, Ill.-based fuel-grade ethanol company's term loan is Libor plus 850 bps with a 2% Libor floor, and it was sold at a discount of 96. The loan is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four

During syndication, pricing was flexed up from Libor plus 750 bps, the discount widened from 98 and call protection was sweetened from non-callable for one year, then at 102 in year two and 101 in year three.

Citigroup is the lead bank on the deal that will be used to refinance the company's 13% senior secured notes due 2015 and for general corporate purposes.

ResCare breaks after flex

ResCare's $190 million term loan B (Ba2/B+) also started trading on Monday, but first, a number of changes were made to pricing, according to sources.

Pricing on the B loan is now set at Libor plus 550 bps with a 1.75% Libor floor and an original issue discount of 98, the source said. At launch, the deal was talked at Libor plus 450 bps to 475 bps with a 1.5% floor and a discount of 981/2. Prior to pricing firming up, there had been chatter that talk had moved into the Libor plus low 500 bps area.

The B loan now includes 101 soft call protection for one year.

After the changes were announced, the term loan B made its way into the secondary market, with levels quoted at 98 bid, no offers, a trader told Prospect News.

ResCare lead banks

JPMorgan and Bank of America are the lead banks on ResCare's term loan B, with JPMorgan the left lead.

Proceeds will be used to help refinance existing debt, repay a portion of the amounts used to purchase the company's common shares in the tender offer by Onex ResCare Acquisition LLC and fund the purchase of any remaining ResCare shares by Onex through a second-step share exchange.

Other funds for the transaction will come from $200 million of 10¾% notes.

ResCare is a Louisville, Ky.-based provider of home care to the elderly and persons with disabilities.

MGM holds steady

Metro-Goldwyn-Mayer Inc.'s $325 million six-year term loan held at 98½ bid, 99½ offered, after breaking at those levels late Friday, according to a market source.

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 981/2. There is 101 soft call protection for one year.

The company's $500 million exit financing credit facility (B1/B+), which was completed on Monday as the company emerged from Chapter 11, also includes a $175 million five-year revolver.

During syndication, the term loan was upsized from $250 million as the revolver was downsized from $250 million, pricing on the term loan was increased from Libor plus 400 bps and the discount widened from 99.

JPMorgan acted as the lead bank on the deal for the Los Angeles-based motion picture, television, home video and theatrical production and distribution company.

iHealth mulls changes

Moving back to the primary, iHealth Technologies' credit facility is expected to see an increase in spread and a decrease is size. Nothing official, however, has been announced just yet, according to a market source.

As launched, the $300 million credit facility (B2/BB-) consists of a $50 million five-year revolver and a $250 million six-year term loan talked at Libor plus 525 bps to 550 bps with a 1.75% Libor floor and an original issue discount of 981/2, and 101 soft call protection for one year.

Goldman Sachs and SunTrust are the lead banks on the deal that will be used to refinance existing debt and fund a dividend payment.

iHealth Technologies is an Atlanta-based provider of payment policy services to health care payers.

Harbor Freight revises size

Harbor Freight Tools downsized its term loan to $650 million from $750 million, while leaving pricing unchanged at Libor plus 500 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

The term loan still includes soft call protection of 102 in year one and 101 in year two.

The company's now $675 million credit facility continues to provide for a $25 million revolver that is also priced at Libor plus 500 bps with a 1.5% Libor floor.

There is no recommitment deadline and allocations are expected to go out on Wednesday, the source remarked.

Harbor Freight cuts dividend

Proceeds from the credit facility will be used to refinance an existing term loan and fund a distribution to shareholders, but, as a result of the change to the term loan size, the amount of the shareholder distribution was reduced, the source explained.

Barclays is the lead bank on the credit facility.

Ratings on the deal as originally structured were Ba3/B+.

Harbor Freight Tools is a Camarillo, Calif.-based tool and equipment catalog retailer.

UTEX sweetens pricing

UTEX Industries moved pricing on its $190 million credit facility to Libor plus 625 bps from Libor plus 550 bps and increased the Libor floor to 1.75% from 1.5%, but left the original issue discount unchanged at 981/2, according to a market source, who said that the deal is now fully subscribed.

In addition, the excess cash flow sweep was revised to 75% from 50%, the source remarked.

As before, the deal consists of a $20 million revolver, a $140 million term loan and a $30 million delayed-draw term loan, with the revolver having a 75 bps unused fee and the delayed-draw term loan having a 150 bps unused fee.

Societe Generale is the lead bank on the facility that will be used to help fund the buyout of the Houston-based designer and manufacturer of sealing products by Rhone Capital LLC from Audax Private Equity.

Bentley Systems trims spread

Bentley Systems cut pricing on its $210 million term loan to Libor plus 425 bps from Libor plus 450 bps, while leaving the 1.5% Libor floor and original issue discount of 99 unchanged, according to a market source.

The $310 million credit facility (Ba3/BB+) also includes a $100 million revolver.

Recommitments were due at noon ET on Monday, and allocations are expected to go out as early as Wednesday, the source said.

JPMorgan is the lead bank on the deal that will be used to fund a tender offer for shares.

Bentley is an Exton, Pa.-based provider of software to architects, engineers, constructors and owner-operators.

Southern Pacific pricing

Southern Pacific Resource lowered pricing on its $275 million second-lien term loan to Libor plus 850 bps from Libor plus 925 bps, while leaving the 2% Libor floor and original issue discount of 97 unchanged, according to a market source.

The loan continued to be non-callable for one year, then at 102 in year two and 101 in year three.

Credit Suisse and RBC Capital Markets are the joint lead arrangers and joint bookrunners on the deal, with BMO Capital Markets and TD Securities bookrunners as well.

Proceeds from the loan, C$125 million of 6% convertible unsecured subordinated debentures and cash on hand will be used to fund the development of the company's McKay phase 1 project.

Southern Pacific is a Calgary, Alberta-based explorer, developer and producer of in-situ thermal heavy oil and bitumen production in the Athabasca oil sands of Alberta and in Senlac, Saskatchewan.

Sirva still working

In other news, Sirva Inc. is expecting to continue its term loan syndication processes into next year as some guys are doing work now, but traction is expected to pick up after the holidays, according to a market source.

The facility is comprised of a $175 million six-year term loan that is being led by Barclays and a new $60 million ABL revolver that is being led by Wells Fargo.

The term loan was launched through one-on-ones earlier this month.

Price talk is not yet available.

Proceeds from the credit facility, along with $170 million of preferred shares, will be used to refinance existing first- and second-lien bank debt at Sirva, a Westmont, Ill.-based provider of relocation and moving services.

Paxton sliding into 2011

Also anticipating its syndication to slide into the coming year is Paxton Media Group LLC, as its $240 million credit facility (B2/B+) has been in market since early November but has yet to wrap up, according to a market source.

As launched, the facility consists of a $10 million five-year revolver and a $20 million three-year term loan A, both talked at Libor plus 450 bps with no Libor floor, and a $210 million six-year term loan B talked at Libor plus 550 bps with a 1.75% Libor floor and an original issue discount of 98.

Wells Fargo and U.S. Bank are the lead banks on the deal that will be used to refinance existing debt, with Wells Fargo the left lead.

Paxton is a Paducah, Ky.-based newspaper and television company.

Remy closes

Remy International Inc. completed its $395 million credit facility, consisting of a $95 million ABL revolver and a $300 million term loan B (B1/B+), the company announced on Monday.

Pricing on the term loan B is Libor plus 450 bps, after flexing from Libor plus 475 bps during syndication, with a 1.75% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

Bank of America, UBS, Wells Fargo and Barclays acted as the lead banks on the deal that was used to refinance existing debt.

Remy is a Pendleton, Ind.-based provider of alternators, starters and hybrid motors for the heavy-duty and light-duty original equipment markets and remanufactured alternators and starters to the aftermarket.

Darling completes acquisition

Darling International Inc. closed on its purchase of Griffin Industries Inc. for $740 million in cash and about $100 million of common stock, and on the $625 million senior secured credit facility that was used to help fund the transaction, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The facility consists of a $325 million five-year revolver (Ba2) priced at Libor plus 325 bps with a 50 bps commitment fee and a $300 million six-year term loan B (Ba2/BB+) priced at Libor plus 350 bps with a 1.5% Libor floor that was sold at an original issue discount of 991/2.

During syndication, pricing on the B loan was reduced from Libor plus 400 bps and the discount tightened from 99.

JPMorgan and BMO Capital acted as the lead arrangers and bookrunners on the deal for the Irving, Texas-based provider of rendering, recycling and recovery services to the food industry.

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