CareCentrix, PDC Brands break; Ravn Alaska, Kendra Scott changes emerge; Eldorado sets talk

By Sara Rosenberg

New York, July 8 – CareCentrix Inc. set the spread on its term loan at the high end of guidance, widened the issue price, sweetened the call protection and shortened the maturity ahead of freeing up for trading on Wednesday, and PDC Brands’ credit facility hit the secondary market as well.

In more happenings, Ravn Alaska reduced the spread on its term loan and tightened the original issue discount, and Kendra Scott Designs increased pricing on its term loan.

Also, details on Eldorado Resorts Inc.’s credit facility were disclosed with launch, and timing surfaced on Kenan Advantage Group Inc.’s proposed credit facility.

CareCentrix reworked, breaks

CareCentrix finalized pricing on its $175 million term loan at Libor plus 500 basis points, the wide end of the Libor plus 475 bps to 500 bps talk, moved the original issue discount to 97.5 from 99, extended the 101 soft call protection to one year from six months and modified the maturity to six years from seven years, according to a market source.

As before, the term loan has a 1% Libor floor.

The company’s $205 million credit facility (Ba3/B) also includes a $30 million five-year revolver.

With final terms in place, the deal emerged in the secondary market, and the term loan was seen quoted at 97¾ bid, 98¾ offered, a trader remarked.

RBC Capital Markets LLC and Citizens Bank are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Pro forma for the transaction, senior and total net leverage will be 3.1.

CareCentrix is a Hartford-based home health cost containment company.

PDC Brands frees up

PDC Brands’ credit facility began trading, with the $250 million seven-year first-lien term loan B quoted at 99 bid, par offered, a market source said.

Pricing on the term loan B is Libor plus 450 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The company’s $280 million credit facility (B2/B) also provides for a $30 million five-year revolver priced at Libor plus 400 bps with a 1% Libor floor and issued at a discount of 99.5.

During syndication, the term loan B was downsized from $260 million, pricing was lifted from Libor 400 bps, the discount was changed from 99, the call protection was extended from six months, and a leverage covenant was added to the initially covenant-light loan. Additionally, the revolver was upsized from $20 million.

GE Capital Markets and RBC Capital Markets are leading the deal that will be used by the Stamford, Conn.-based beauty, personal care and wellness company to fund an acquisition.

Ravn revises deal

Back in the primary market, Ravn Alaska trimmed pricing on its $95 million six-year term loan to Libor plus 450 bps from Libor plus 475 bps and changed the original issue discount to 99.5 from 99, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s $110 million credit facility also includes a $15 million five-year revolver.

BNP Paribas Securities Corp. and Keybanc Capital Markets are leading the deal that will be used to help fund the buyout of the company by J.F. Lehman & Co.

Ravn is an Anchorage=based airline company.

Kendra flexes higher

Kendra Scott Designs raised the spread on its $70 million six-year term loan to Libor plus 600 bps from talk of Libor plus 500 bps to 525 bps and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a source remarked.

The company’s $85 million credit facility also includes a $15 million five-year revolver.

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

Kendra Scott is an Austin, Texas-based jewelry and accessories company.

Eldorado reveals structure, talk

Eldorado Resorts held a bank meeting on Wednesday to launch its new credit facility (Ba3/BB-), and in connection with the event it was disclosed that the deal has a total size of $575 million, split between a $150 million revolver and a $425 million term loan, according to sources.

Also, talk on the term loan was announced as Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year, sources said.

Commitments are due on July 16.

J.P. Morgan Securities LLC and Macquarie Capital (USA) Inc. are leading the deal.

In addition to the credit facility, the company plans to get $375 million of senior notes due 2023 and issue roughly $60 million in stock.

Eldorado funding acquisition

Proceeds from Eldorado Resorts’ new debt, stock and cash on hand will be used to fund the purchase of MGM Resorts International’s 50% interest in the Silver Legacy Resort Casino Reno (Eldorado already owns the other 50%) and the assets of Circus Circus Reno for total consideration of $72.5 million cash, and repay amounts outstanding under the Silver Legacy credit facility, which totaled about $60 million at March 31.

Furthermore, proceeds from the financings will be used to redeem 8.625% senior secured notes due 2019 issued by Eldorado and 11.5% senior secured second-lien notes due 2019 issued by MTR Gaming Group Inc.

Closing on the acquisitions is expected by year-end, subject to regulatory approvals and other customary conditions.

Eldorado Resorts is a Reno, Nev.-based casino entertainment company.

Kenan timing emerges

Timing came out on Kenan Advantage Group’s proposed $1,025,000,000 senior secured credit facility, with the deal slated to launch with a bank meeting at 2 p.m. ET on Monday, according to a market source.

The facility is expected to include a $125 million revolver, a $750 million term loan and a $150 million delayed-draw term loan.

KeyBanc Capital Markets LLC and Goldman Sachs Bank USA are leading the transaction that will be used with $405 million of bonds to help fund the buyout of the company by Omers Private Equity from Goldman Sachs Capital Partners and Centerbridge Partners.

Closing is expected in the third quarter.

Kenan Advantage is a North Canton, Ohio-based provider of liquid bulk transportation services to the fuels, chemicals, liquid foods and merchant gas markets.

SS&C closes

In more news, SS&C Technologies Inc. completed its acquisition of Advent Software Inc. for about $2.63 billion, equating to $44.25 per share plus the assumption of debt, a news release said.

To help fund the transaction, SS&C got a new $2.63 billion senior secured credit facility (Ba3/BB) consisting of a $150 million five-year revolver, a $100 million five-year term loan A-1 at SS&C European Holdings Sarl, a $150 million five-year term loan A-2 at SS&C Technologies Holdings Europe Sarl, a $1.82 billion seven-year covenant-light term loan B-1 at SS&C Technologies and a $410 million seven-year covenant-light term loan B-2 at SS&C Technologies Holdings Europe Sarl.

Pricing on the term loan B’s, which were sold as a strip, is Libor plus 325 bps with a step-down to Libor plus 300 bps at 4 times net total leverage and a 0.75% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

SS&C term a pricing

SS&C’s term loan A’s, which were also sold as a strip, are priced at Libor plus 275 bps with no floor, and were issued at a discount of 99.75.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Barclays led the deal.

During syndication, the term loan B-2 was downsized from $460 million, the step-down was added to the term B debt, the term loan A-1 was upsized from $40 million, the term loan A-2 was downsized from $160 million, and the MFN sunset provision on all tranches was removed.

Along with the credit facility, the company got $600 million of senior notes, upsized from $500 million, and issued common stock to fund the Advent acquisition as well as to refinance existing debt at both companies and for general corporate purposes.

SS&C is a Windsor, Conn.-based provider of financial services software and software-enabled services. Advent is a San Francisco-based provider of software and services for the investment management industry.

Cirque buyout wraps

The acquisition of Cirque du Soleil by TPG and Fosun Capital has closed, according to a news release.

To help fund the buyout, Cirque du Soleil got a new $885 million credit facility, comprised of a $100 million revolver (B1/B+), a $635 million seven-year first-lien covenant-light term loan (B1/B+) and a $150 million eight-year second-lien covenant-light term loan (Caa1/CCC+).

Pricing on the first-lien term loan is Libor plus 400 bps with a step-down to Libor plus 375 bps at 4 times net total leverage and a 1% Libor floor. There is 101 soft call protection for one year, and the debt was issued at a discount of 99.75.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor and was issued at a discount of 98.5. This tranche has call protection of 102 in year one and 101 in year two.

Cirque lead banks

Deutsche Bank Securities, Bank of America Merrill Lynch, RBC Capital Markets, UBS AG, BMO Capital Markets Corp., National Bank of Canada, Scotiabank and TD Securities (USA) LLC led Cirque du Soleil’s credit facility, with Deutsche left lead on the first-lien and Bank of America left on the second-lien.

During syndication, the first-lien term loan was upsized from $615 million, pricing was reduced from Libor plus 425 bps, the step-down was added, the discount was tightened from revised talk of 99.5 and initial talk of 99, and the call protection was extended from six months. Also, the second-lien term loan was downsized from $170 million, pricing firmed at the low end of the Libor plus 825 bps to 850 bps talk, and the discount was set at the wide end of the 98.5 to 99 talk. Also, the MFN sunset on both term loans was removed.

Cirque du Soleil is a Montreal-based producer of live artistic entertainment.

Lindblad completed

The purchase of Lindblad Expeditions Inc., a New York-based expedition cruising and extraordinary adventure travel company, by Capitol Acquisition Corp. II has closed, according to a news release.

To help fund the transaction, Lindblad got a new $175 million six-year first-lien term loan (B2/BB+) priced at Libor plus 450 bps with a 1% Libor floor. The loan was sold at a discount of 99.5 and has 101 soft call protection for six months.

During syndication, the term loan was upsized from $150 million, pricing was lowered from Libor plus 500 bps, and the discount was revised from 99.

Of the total term loan, $155 million is at a U.S. borrower, and $20 million is at a Cayman borrower.

Credit Suisse Securities led the deal.

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