DynCorp, NRG extended debt break; Interactive Data moves deadline; Vertafore firms timing

By Sara Rosenberg

New York, June 30 - DynCorp International Inc.'s new credit facility freed up for trading during Wednesday's market hours, with the term loan quoted well above its original issue discount price.

Also, NRG Energy Inc.'s extended bank debt hit the secondary market, and the company's non-extended debt got a bit of a pop with the completion of the amend and extend transaction and the refinancing of its revolver.

Over in the primary market, Interactive Data Corp. is giving lenders more time to get their orders in towards its credit facility as the commitment deadline was delayed by a little more than a week, and Vertafore Inc. came out with a specific launch date for its credit facility.

In addition, Fidelity National Information Services Inc. launched its term loan B with original issue discount guidance that is slightly different from what was being circulated prior to launch, and price talk on Kenan Advantage Group's credit facility surfaced.

DynCorp frees up

DynCorp's credit facility broke for trading late in the day Wednesday, with the $565 million term loan quoted at 99 bid, 99½ offered on the break and then moving up to 99 5/8 bid, par offered, according to a trader.

Pricing on the term loan is Libor plus 450 basis points with a 1.75% Libor floor, and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was reduced from Libor plus 475 bps, the discount firmed at the tight end of the 97 to 98 talk and the call protection was added.

Bank of America, Citigroup, Barclays Bank and Deutsche Bank are the lead banks on the $715 million credit facility (Ba1/BB), which also includes a $150 million revolver.

DynCorp funding buyout

Proceeds from DynCorp's credit facility will be used to help fund its acquisition by Cerberus Capital Management LP for $17.55 in cash per share. The transaction is valued at about $1.5 billion, including the assumption of debt.

Other financing for the acquisition will come from $455 million of senior unsecured notes and $591.6 million in equity.

Closing is expected to take place on July 7.

DynCorp is a Falls Church, Va.-based government services provider in support of U.S. national security and foreign policy objectives.

NRG extended loans begin trading

Also breaking for trading on Wednesday was NRG Energy's extended $1 billion of term loan B and $800 million of synthetic letter-of-credit facility debt, and the company's non-extended debt strengthened with the news that the amendment/refinancing process was successfully completed, according to a trader.

The extended term loan B was quoted at 97 7/8 bid, 98 3/8 offered, and the extended synthetic letter-of-credit facility was quoted at 97 3/8 bid, 97 7/8 offered, the trader said.

As for the non-extended term loan B, that was quoted at 95½ bid, 96 offered, up from 95 bid, 95½ offered on Tuesday, and the non-extended synthetic letter-of-credit facility was quoted at 95 bid, 95½ offered, up from 94½ bid, 95 offered, the trader continued.

The extended bank debt matures on Aug. 31, 2015, is priced at Libor plus 325 bps and has 101 soft call protection for one year, while the non-extended debt matures on Feb. 1, 2013 and is priced at Libor plus 175 bps.

NRG refinances revolver

On top of its amend and extend transaction, NRG Energy also completed the refinancing of its $1 billion revolving credit facility due Feb. 2, 2011 with a new $875 million revolver due Aug. 31, 2015.

The new revolver is priced at Libor plus 325 bps with a 62.5 bps unused fee.

Citigroup acted as the lead bank on the deal.

The process did require some tweaking before successfully wrapping up, especially when it came to the extension of the institutional debt. For example, pricing on the extended debt was initially talked at Libor plus 275 bps before flexing up to Libor plus 325 bps and the soft call protection had to be added.

Also, the amendment fee had to be increased to 25 bps from the originally offered 12.5 bps. Unchanged was the 12.5 bps extension fee that was offered to term loan B and letter-of-credit facility lenders.

NRG is a Princeton, N.J.-based owner and operator of diverse power generation portfolios.

Interactive Data deadline decelerated

Moving to the primary, Interactive Data pushed back the commitment deadline on its $1.46 billion senior secured credit facility (Ba3) to July 8 from Wednesday, according to market sources. A bank meeting to launch the deal took place on July 23, and the initial hope was to get the books closed quickly.

"One week is too short to get banks to commit," one source said in explanation of why the deadline was moved.

The facility consists of a $160 million revolver and a $1.3 billion term loan, which is talked at Libor plus 475 bps with a 1.75% Libor floor and an original issue discount of 98, and includes 101 soft call protection for one year.

Originally, based on filings with the Securities and Exchange Commission, it was thought that the revolver would be sized at $150 million, but when official details on tranching surfaced, it was said that the revolver would be coming at the larger size of $160 million.

Interactive Data lead banks

Bank of America, Barclays Bank, Credit Suisse and UBS Investment Bank are the lead banks Interactive Data's credit facility.

Proceeds will be used to help fund the buyout of the company by Silver Lake and Warburg Pincus for $33.86 in cash per share. The transaction has a total value of $3.4 billion.

Other financing for the buyout will come from $700 million of senior unsecured notes, which are backed by a commitment for a senior unsecured bridge loan, and up to $1.31 billion of equity.

Completion of the transaction is expected in early August, following regulatory approvals and other customary conditions.

Interactive Data is a Bedford, Mass.-based provider of financial market data.

Vertafore launch date emerges

Vertafore nailed down timing on the launch of its proposed $625 million senior credit facility with the scheduling of a bank meeting for 10 a.m. ET on July 8, according to a market source.

Previously, the deal was simply being labeled as expected early-July business.

The facility consists of a $75 million revolver and a $550 million term loan. Price talk is not yet available, the source said.

Credit Suisse, Bank of America and Barclays are the lead banks on the deal, with Credit Suisse the left lead. RBC is a documentation agent.

Vertafore getting junior debt

In addition to the credit facility, Vertafore plans on obtaining $240 million of junior debt.

Proceeds from the financings, along with equity, will be used to help fund the buyout of the company by TPG Capital from Hellman & Friedman and JMI Equity for a total consideration of $1.4 billion.

The acquisition is expected to close in the third quarter, subject to customary regulatory approvals.

Leverage will be 4.5 times through the first-lien and 6.5 times total, and the equity contribution is 47%.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

Fidelity National OID

Fidelity National Information Services launched its $1.4 billion six-year term loan B (Ba1/NA/BB+) on Wednesday afternoon with an original issue discount of 98½ to 99, whereas prior to the conference call launch, the discount was being guided at just 981/2, according to a market source.

Price talk on the term loan B was announced at the previously expected level of Libor plus 400 bps with a 1.5% Libor floor.

JPMorgan and Bank of America are the lead banks on the deal that will be used to help fund a recapitalization plan, under which the company will repurchase up to $2.5 billion of its common stock in a modified Dutch auction tender offer, and to refinance an existing term loan B.

The company had previously said that it would get $2.5 billion of additional term loans and long-term bonds to fund the plan.

Fidelity National is a Jacksonville, Fla.-based provider of financial institution core processing and card-issuer and transaction-processing services.

Kenan Advantage releases talk

Kenan Advantage came out with price talk on its $450 million credit facility (Ba3) that was launched with a bank meeting this past Tuesday, according to a market source.

The $75 million revolver, $250 million term loan B and $125 million delayed-draw term loan are all being talked at Libor plus 400 bps with a 1.75% Libor floor, the source said.

The revolver is being offered at a discount of 983/4, the term loan B is being offered at 99 and the delayed-draw term loan is being offered at 98, the source said.

KeyBanc Capital Markets is the lead arranger, bookrunner and administrative agent on the deal that will be used to help fund the buyout of the company by Goldman Sachs from Littlejohn & Co. and to refinance existing debt.

Kenan Advantage is a North Canton, Ohio-based logistics and liquid bulk transportation services provider to the fuels, chemical and food end-markets.

Resaca merger hits snag

In other news, Resaca Exploitation Inc.'s merger with Cano Petroleum Inc. has reached a bump in the road as Resaca postponed its public offering of common stock, which would have been used to refinance the debt at both companies, due to market conditions, according to a news release.

The refinancing is a condition of the merger, so as a result of the postponement of the stock offering, the merger can no longer be completed on Wednesday as was previously hoped.

Cano said that it is continuing discussions with Resaca regarding alternative financing structures that would permit the completion of the merger. It is also evaluating other options.

Under the original plans, Resaca was going to get a new $200 million senior secured revolving credit facility due July 1, 2012 with pricing that could range from Libor plus 250 bps to 325 bps based on use.

Union Bank of North America and Natixis are the lead banks on the Houston-based oil and gas company's revolver.

Trident exits bankruptcy

Trident Resources Corp. emerged from bankruptcy, according to a news release, and to help fund its exit, the company got a $410 million four-year term loan.

Pricing on the term loan is Libor plus 950 bps with a 3% Libor floor, and it was sold at an original issue discount of 97. The loan is non-callable for one year, then at 105 in year two, 104 in year three and 103 in year four.

Credit Suisse acted as the lead bank on the deal.

Trident is a Calgary, Alta.-based natural gas production company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.