SunGard extended loan starts seeing quotes; HCA trades up with amendment; LCDX stronger

By Sara Rosenberg

New York, June 9 - SunGard Data Systems Inc.'s extended term loan B began being quoted in the secondary market on Tuesday following approval of the amendment that allows for the extension of the debt.

In other secondary happenings, HCA Inc.'s term loan A and term loan B were both higher on news of an amendment proposal that would provide for a refinancing or an extension of bank debt, and the LCDX 12 index was better.

Over in the primary market, BRSP LLC's proposed term loan has been well received by the market, so much so that the anticipation is that the deal will end up being oversubscribed.

SunGard levels emerge

Indicative quotes on SunGard's extended term loan B surfaced during the trading session as the company's amendment addressing the debt's maturity passed, according to market sources.

The extended term loan B was seen at 92½ bid, 93½ offered, sources said, adding that the loan will trade on a when-issued basis and that allocations could take place on Tuesday.

Meanwhile, the company's non-extended term loan B debt was quoted at 88 bid, 89 offered, one trader remarked.

The trader said that the extended term loan B levels were lower than he would have expected.

"If you go back to June 3, the old term loan B was 95-96. It was 89 to 89½ on May 27. Ran up to 95-96 and then once the amendment got approved, it fell back down. Ran up on the rumor and back down on the actual execution," the trader added.

SunGard loan details

Through the amendment, SunGard extended about $2.5 billion of its roughly $4.2 billion term loan B, plus some euro and sterling term loan B debt was extended as well, sources said.

The extended term loan B matures in 2016 and is priced at Libor plus 362.5 basis points, while the non-extended term loan B matures in 2014 and is priced at Libor plus 175 bps.

In addition, under the credit facility amendment, the company reduced its acquisition basket by half to $325 million.

JPMorgan is the administrative agent on the deal.

Lenders were paid a 25 bps consent fee.

SunGard is a Wayne, Pa.-based software and IT services company.

HCA rises on amendment

HCA's term loan debt was stronger by a few points in trading on the back of news that the company is looking to amend its credit facility, according to traders.

The term loan A was quoted by one trader at 93 bid, 94 offered, up from 91 1/8 bid, 91 5/8 offered, and by a second trader at 93¼ bid, 94¼ offered, up about two points on the day.

And, the company's term loan B was quoted by one trader at 93¼ bid, 94¼ offered, up from 91 3/8 bid, 91 7/8 offered, and by a second trader at 93 5/8 bid, 94 3/8 offered, up from 91 3/8 bid, 91 7/8 offered.

HCA seeking refi options

Under the amendment proposal, HCA is asking to be allowed to issue a new term loan, with proceeds from that debt only to be used towards the repayment of existing term loan A and term loan B borrowings on a pro rata basis, sources said.

The amendment would also give the company the option to extend the maturity of loans and issue bonds to repay any non-extended loans.

Bank of America is the agent on the deal.

HCA is a Nashville-based owner and operator of hospitals and surgery centers.

LCDX gains ground

Also in trading, the LCDX 12 index moved higher on Tuesday, while stocks were mixed, according to a trader.

The index was quoted at 87½ bid, 87 7/8 offered, up from Monday's levels of 87 1/8 bid, 87 5/8 offered, the trader said.

As for equities, Nasdaq was up 17.73 points, or 0.96%, Dow Jones Industrial Average was down 1.43 points, or 0.02%, S&P 500 was up 3.29 points, or 0.35%, and NYSE was up 33.01 points, or 0.54%.

BRSP expected to overfill

Moving to the primary market, BRSP's proposed $275 million five-year senior secured term loan is expected by some to be oversubscribed when syndication wraps up since investors have been reacting positively towards the transaction, according to a market source.

Commitments are due from lenders on Monday.

The source explained that investors have been attracted to both the pricing on the loan and the original issue discount. Price talk on the loan is Libor plus 450 bps with a 3% floor and an original issue discount in the 92 to 93 area.

Call protection on the loan is 104 in year one, 102 in year two and 101 in year three.

Covenants include a debt service coverage ratio.

Barclays Capital is the lead bank on the deal, which will be used to refinance an existing term loan that was put in place in 2006.

BRSP is a special purpose entity covering two gas-fired power plants - Broad River and South Point - that are operated by Calpine Corp.

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