Calpine up on paydown; Nielsen rises; UAL gains with numbers; Ntelos dips; Vision breaks

By Sara Rosenberg

New York, July 20 - In trading happenings on Tuesday, Calpine Corp.'s old term loan headed higher after the company announced plans for a repayment, Nielsen Co.'s loans were stronger as details on its extension proposal emerged, and UAL Corp.'s term loan rose with earnings.

Also, Ntelos Holdings Corp.'s term loan was softer following news that the company will be layering in additional debt to help fund an acquisition. And, it is expected that the incremental debt will come to market in the next few weeks.

Furthermore, Vision Solutions Inc.'s credit facility freed up for trading, with levels on the term loan quoted above the original issue discount price at which the debt was sold.

Over in the primary, Universal Health Services Inc. upsized its term loans while downsizing its notes, K2 Pure Solutions started circulating talk on its upcoming deal, Grifols is expected to launch its new deal shortly and allocations on Rave Holdings LLC's oversubscribed facility are anticipated to go out sometime this week.

Calpine lifted by repayment

Calpine's old term loan was better in the secondary market as the company announced plans for a term loan paydown with proceeds from a senior secured notes offering, according to traders.

The old term loan was quoted by one trader at 94 5/8 bid, 95 1/8 offered, up from 93¼ bid, 93¾ offered, and by a second trader at 95 bid, 95¼ offered, up from 93¼ bid, 93¾ offered.

Meanwhile, the new term loan was quoted by the first trader at par ½ bid, 101 offered, who explained that it was unchanged on the day since the market expects that it will be the old term loan that will see the repayment. The tranche was quoted by the second trader at par ½ bid, 101 ½ offered, compared to par ½ bid, 101 offered previously.

The 7 7/8% notes offering was sized at $1.1 billion after being increased from $750 million, and priced at 99.146 to yield 8%.

Calpine is a Houston-based power generation company.

Nielsen gains ground

Nielsen's term loans had some positive momentum on Tuesday following the company's call in which lenders were presented with the ability to extend $1 billion of tranche A and B term loans to May 2017, according to traders.

Responses are due from lenders on Monday.

The tranche A loan was quoted by one trader at 94½ bid, 95¼ offered, up on the bid side from previous levels of 94 3/8 bid, 95 3/8 offered, and by a second trader at 94½ bid, 95¼ offered, up a quarter of a point on the bid side.

And, the tranche B loan was quoted by the first trader at 96 3/8 bid, 97 1/8 offered, up from 96¼ bid, 96¾ offered, and by the second trader at 96 3/8 bid, 97 1/8 offered, up from 96 bid, 97 offered.

Nielsen extended pricing

Nielsen told lenders that the extended term loan debt would be priced at Libor plus 325 basis points, compared to current pricing on the tranche A debt of Libor plus 200 bps and the tranche B debt at Libor plus 375 bps.

One trader explained that the company's tranche B loan saw a larger jump in levels after the lender call because people are trying to move into the higher coupon debt.

As of March 31, the company had $2.983 billion and €321 million of tranche A term loans due in 2013 and $1.013 billion and €179 million of tranche B term loans due in 2016.

The tranche B loans were extended to 2016 from 2013 about a year ago.

Citigroup and JPMorgan are the lead banks on the deal.

Nielsen is a New York-based information and media company.

UAL up on earnings

UAL's term loan also edged higher in trading, but this move was result of second-quarter numbers that showed an improvement in net income and revenues on a year-over-year basis.

The Chicago-based airline company's term loan was quoted by one trader at 88½ bid, 90 offered, up from 88 bid, 89 offered and by a second trader at 88 3/8 bid, 89 1/8 offered, versus 87½ bid, 89½ offered.

For the second quarter, the company reported net income of $273 million, or $1.29 per diluted share, compared to net income of $28 million, or $0.19 per diluted share, in the previous year.

Revenues for the quarter were $5.161 billion, up 28.4% from $4.018 billion in the second quarter of 2009.

And, the company ended the quarter with a total cash balance of $5.2 billion, including an unrestricted cash balance of more than $4.9 billion and restricted cash balance of $250 million.

Ntelos slides on term loan news

Ntelos' term loan dropped to 99¾ bid, par ½ offered from par bid, par ¾ offered after the company revealed plans to get a new $125 million incremental term loan under its existing credit facility, according to a trader.

Proceeds from the loan, along with borrowings under the company's undrawn $35 million revolver and cash on hand, will be used to fund the $170 million acquisition of One Communications Corp.'s FiberNet business.

Syndication of the term loan is expected to launch in the next few weeks, company officials said in a conference call on Tuesday.

Closing on the term loan is anticipated to occur in the third quarter, while completion of the acquisition is anticipated to occur in the fourth quarter, subject to regulatory approvals.

Ntelos, a Waynesboro, Va.-based provider of wireless and wireline communications services, expects leverage at close to be in the 3 times zone.

Vision Solutions frees to trade

Vision Solutions' credit facility hit the secondary market on Tuesday, with the $240 million six-year term loan quoted at 96½ bid, 97½ offered, according to a trader.

Pricing on the term loan is Libor plus 600 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 96. There is 101 soft call protection for one year.

The company's $255 million senior secured credit facility (B1/B+) also includes a $15 million five-year revolver that carries the same pricing and floor, and it was sold at the same discount as the term loan.

During syndication, pricing on the two tranches was flexed up from Libor plus 500 bps, the discount was increased from 98½ and call protection was added to the term loan.

In addition, the excess cash flow sweep had been changed to 75% from 50%, and amortization on the term loan was revised to 5% per year from 1%.

Vision Solutions led by Jefferies

Jefferies is the lead bank on Vision Solutions' credit facility, which will be used to help fund the acquisition of Double-Take Software Inc. in a transaction with a net offer value of about $242 million and to refinance existing debt.

Double-Take stockholders will receive $10.55 in cash per share.

Closing is expected in the third quarter, subject to customary conditions, including the expiration of the Hart-Scott Rodino waiting period and the approval of Double-Take stockholders.

Vision Solutions is an Irvine, Calif.-based provider of high availability, disaster recovery and system management services for IBM Power Systems. Double-Take Software is a Southborough, Mass.-based provider of recovery services.

Universal Health tweaks deal

Moving to the primary, Universal Health upsized its term loan A to $1.05 billion from $1 billion and its term loan B to $1.6 billion from $1.55 billion, while leaving all other terms unchanged, according to a market source.

Pricing on the term loan A is Libor plus 325 bps, and pricing on the term loan B is Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 981/2.

The term loan B carries 101 soft call protection for one year and a ticking fee of 200 bps until September and 400 bps thereafter.

The company's now $3.45 billion senior secured credit facility (Ba2/BB+) also includes an $800 million revolver priced at Libor plus 325 bps.

JPMorgan and Deutsche Bank are the joint lead arrangers and bookrunners on the deal and are asking for recommitments by 5 p.m. ET on Thursday.

Universal Health cuts notes

In connection with the change in the term loan sizes, Universal Health reduced its senior unsecured notes to $250 million from $400 million, the source said.

Proceeds from the financings will be used to help fund the acquisition of Psychiatric Solutions Inc. for $33.75 per share in cash, refinance existing debt and pay transaction fess and expenses.

Closing is expected to take place in the fourth quarter, subject to regulatory approvals and approval by Psychiatric Solutions' shareholders.

Universal Health is a King of Prussia, Pa.-based owner and operator of acute care hospitals and behavioral health care facilities and schools. Psychiatric Solutions is a Franklin, Tenn.-based operator of owned or leased freestanding psychiatric inpatient facilities.

K2 Pure Solutions sets talk

Price talk on K2 Pure Solutions' proposed $115 million five-year term loan began making its way around the market ahead of the scheduled Wednesday conference call launch, according to a market source.

The term loan is talked at Libor plus 550 bps with a 2% Libor floor and an original issue discount of 95, the source said. It is non-callable for one year, then at 102 in year two and 101 in year three.

Credit Suisse and Canaccord Genuity are leading the deal, with Credit Suisse the left lead.

Proceeds will be used to help fund the construction of a bleach plant in Pittsburg, Ca. The new plant will serve municipal water treatment markets in Northern California.

K2 Pure Solutions is a manufacturer of water purification and disinfection products.

Grifols expected shortly

Grifols is anticipated to hold a bank meeting for the retail syndication of its $3.4 billion credit facility (Ba3/BB) later this month, according to a market source, who said that the deal is currently out to managing agents.

The facility consists of a $300 million revolver, a $750 million term loan A talked at Libor plus 375 bps and a $2.35 billion term loan B talked at Libor plus 400 bps.

Deutsche Bank, Nomura, BBVA, BNP Paribas, HSBC and Morgan Stanley are the lead banks on the deal.

The company is also planning $1.1 billion of notes that are backed by a bridge loan commitment.

Grifols buying Talecris

Proceeds from Grifols' credit facility and notes will be used to help fund the acquisition of Talecris Biotherapeutics Holdings Corp. for a combination of cash and newly issued Grifols non-voting shares having an aggregate value of $3.4 billion. The enterprise value of the transaction is $4 billion if Talecris' debt is included.

Grifols is paying $19.00 per share in cash and 0.641 in newly issued non-voting shares for each Talecris share. The cash portion of the consideration is $2.5 billion.

After the transaction, Grifols anticipates that its initial net debt to EBITDA ratio will reach roughly 5.0 times.

Closing is expected to take place in the second half of the year, subject to customary conditions, including antitrust and regulatory review, and the approval of each company's shareholders.

Grifols is a Spain-based health care company and producer of plasma protein therapies. Talecris is a Research Triangle Park, N.C.-based biotherapeutics products company.

Rave readies allocations

Rave Holdings expects to allocate its $95 million five-year senior secured credit facility this week now that syndication has wrapped and the deal ended up being oversubscribed at initial terms, according to a market source.

The facility consists of a $10 million revolver and an $85 million term loan, with both tranches priced at Libor plus 450 bps with a 1.5% Libor floor, the source said.

The term loan was sold at an original issue discount of 99 and the revolver was sold at 981/2.

Also, the revolver includes a 75 bps unused fee.

Rave funding recap

Proceeds from Rave Holdings' credit facility, which launched with a bank meeting on June 30 and saw books shut down this past Friday, will be used to help fund the recapitalization of the company.

Societe Generale, American Securities and SunTrust are the joint lead arrangers and bookrunners on the deal. Natixis is a co-syndication agent and ING is a documentation agent.

At close, senior leverage will be 3.0 times.

Rave is a Dallas-based motion picture exhibitor that was formed through the combination of theaters acquired from Rave Reviews Cinemas LLC and National Amusements Inc. in December 2009.

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