Emdeon, Press Ganey, Mount Airy Casino, Help/Systems, WIL Research break; Landry's upsizes

By Sara Rosenberg

New York, April 18 - Emdeon Inc.'s incremental term loan and repriced loan freed up for trading on Wednesday, with levels seen above par, and Press Ganey Associates Inc., Mount Airy Casino Resort, Help/Systems Inc. and WIL Research Co. Inc. began trading as well.

Over in the primary, Landry's Inc. once again tweaked the size of its term loan B, and Sophos Ltd., Wabash National Corp. and Emerald Performance Materials LLC released price talk on their term loans.

Also, Schiff Nutrition Group Inc. launched its already funded credit facility in a range that could result in pricing being lower than initially expected, and NGPL PipeCo LLC came out with timing on the launch of its proposed credit facility.

Emdeon trades above par

Emdeon's $80 million add-on term loan and repriced senior secured term loan made their way into the secondary market on Wednesday, with levels quoted at par ¼ bid, par 5/8 offered on the open and then it moved to par 3/8 bid, par 5/8 offered, a trader said.

Pricing on the debt is Libor plus 375 basis points with a 1.25% Libor floor, and the new money, which was upsized from $60 million, was sold at par. Both the add-on and the roughly $1.2 billion of existing term loan debt have 101 soft call protection for one year.

Prior to the repricing, the existing loan was priced at Libor plus 550 bps with a 1.25% Libor floor.

Existing term loan lenders are getting paid down at 101 due to the presence of call protection in the existing deal.

Emdeon lead banks

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Barclays Capital Inc. are the lead banks on Emdeon's bank deal.

Proceeds from the incremental term loan will be used for general corporate purposes, including potential acquisitions.

Closing is expected to occur this month.

Emdeon is a Nashville-based provider of health care revenue and payment cycle management and clinical information exchange services.

Press Ganey frees up

Press Ganey's credit facility also broke for trading, with both the $345 million first-lien term loan B (B1/B) and the $95 million second-lien term loan (Caa1/CCC+) quoted at 99½ bid, par ½ offered, according to a market source.

The term loan B is priced at Libor plus 400 bps and the second-lien term loan is priced at Libor plus 700 bps. Both have a 1.25% Libor floor and were sold at an original issue discount of 99. There is 101 soft call protection for one year on the term loan B, and the second-lien loan has hard call protection of 102 in year one and 101 in year two.

The company's $470 million credit facility also includes a $30 million revolver (B1/B) priced at Libor plus 400 bps with no floor and sold with a 100 bps upfront fee.

Press Ganey repaying debt

Proceeds from Press Ganey's credit facility will be used to refinance existing debt, and funds raised through a recent upsizing will be used to add cash to the balance sheet.

The upsizing was done by increasing the revolver from $20 million, the term loan B from $335 million and the second-lien term loan from $90 million.

Barclays Capital Inc., Goldman Sachs & Co. and GE Capital Markets are the lead banks on the deal.

Press Ganey is a South Bend, Ind.-based provider of health care performance improvement services.

Mount Airy starts trading

Mount Airy Casino Resort's $165 million first-lien term loan was yet another deal to free up on Wednesday, with levels quoted at 96 bid, 97 offered, according to a trader.

The loan is priced at 13% and was sold at an original issue discount of 95. It is non-callable for three years, then at 1061/2, 103¼ and par.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance existing debt.

Mount Airy is a casino resort located in the Pocono Mountains.

Help/Systems breaks

Help/Systems' started trading too, with the $175 million term loan quoted at par bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 550 bps, and step-downs were added to Libor plus 525 bps at 4.25 times leverage and Libor plus 500 bps at 3.5 times leverage due to strong demand. There is a 1.25% floor, and it was sold at an original issue discount of 99, which was tightened from 981/2, the source said.

The company's $200 million five-year credit facility also includes a $25 million revolver.

GE Capital Markets and NXT are the lead banks on the deal that will be used to help fund the acquisition of the company by Summit Partners.

Help/Systems is an Eden Prairie, Minn.-based provider of automated operations and business intelligence software for IBM Power Systems servers.

WIL Research tops OID

WIL Research's credit facility emerged in the secondary market as well, with the $120 million six-year term loan quoted at 99½ bid, par offered, a market source said.

Pricing on the term loan is Libor plus 525 bps, after firming at the tight end of the Libor plus 525 bps to 550 bps guidance. There is a 1.5% Libor floor, and it was sold at an original issue discount of 981/2.

The company's $140 million credit facility also provides for a $20 million five-year revolver that was sold at 99.

GE Capital Markets is the lead bank on the deal that will be used to refinance existing debt.

WIL Research is an Ashland, Ohio-based provider of product safety toxicological research, bioanalytical and formulation services to the pharmaceutical, biotechnology, chemical, agrochemical, and food products industries, as well as manufacturing support for clinical trials.

Landry's reworks size

Moving to the primary, Landry's changed the size of its six-year term loan B to $1.025 billion from $1 billion, and the tranche had already been increased one time before from $950 million, according to a market source.

Pricing on the term loan B is Libor plus 525 bps with a 1.25% Libor floor and an original issue discount of 981/2. There is 101 soft call protection for one year.

At the time of the first upsizing, the spread was raised from Libor plus 475 bps, amortization was beefed up to 1% in year one and 2½% thereafter, from just 1% per year, and the excess cash flow sweep was changed to 75%, stepping down to 50% when senior secured leverage is less than 3.0 times, from just 50%.

Landry's getting revolver

Landry's $1.225 billion credit facility (B1/B+) also includes a $200 million five-year revolver priced at Libor plus 400 bps, under which less will be drawn at close as a result of the term loan B upsizing.

The revolver was downsized earlier from $250 million, at which time the company also removed a $200 million five-year term loan A from the credit facility.

When the term loan A was eliminated, a carve-out for senior unsecured notes was increased to $400 million from $200 million.

Proceeds will be used to refinance a roughly $231 million term loan and $100 million revolver at Landry's, a roughly $193 million term loan and $15 million revolver at Morton's Restaurant Group Inc. and other debt, including Landry's $655 million of 11 5/8 % senior secured notes due 2015.

Jefferies & Co. is the lead bank on the deal.

Landry's is a Houston-based full-service restaurant, hospitality and entertainment company.

Sophos talk emerges

Also on the new-deal front, Sophos held a bank meeting on Wednesday morning to launch its credit facility, and with the event, investors were told that the $320 million seven-year term loan B is being talked at Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 98½ to 99, according to a market source.

The company's credit facility (B2) also provides for a $20 million five-year revolver and a €75 million five-year term loan A.

J.P Morgan Securities LLC and RBC Capital Markets LLC are the lead banks on the deal that is equivalent to about $438 million.

Proceeds will refinance existing debt and commitments are due on April 27, the source said.

Sophos is an IT security and data protection firm that has headquarters in Burlington, Mass., and Oxford, England.

Wabash reveals guidance

Wabash also released talk in connection with its bank meeting, with the $300 million seven-year senior secured term loan (B1/B+) launched at Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Lead banks, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC, are asking for commitments by May 2.

Proceeds, along with $150 million of convertible senior notes, will fund the $360 million acquisition of Walker Group Holdings LLC that is expected to close in the second quarter, subject to regulatory approval.

In connection with the transaction, the company plans on amending its asset-based revolver to allow for the acquisition and the financing and will pay down $60.6 million of revolver borrowings.

Wabash is a Lafayette, Ind.-based manufacturer of semi trailers. Walker is a New Lisbon, Wis.-based manufacturer of liquid-transportation systems and engineered products.

Emerald Performance pricing

Another deal to disclose guidance with launch was Emerald Performance Materials, with its $270 million six-year first-lien term loan B talked at Libor plus 550 bps with a 1.25% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year, a market source told Prospect News.

Commitments are due on May 2.

Jefferies & Co. is the lead bank on the deal that will be used to refinance existing first-lien debt.

Also, through other arrangers, the company will be getting a new $75 million ABL revolver to replace its existing ABL revolver, while its $188 million second-lien term loan will be left in place, but extended so that it matures after the new term loan B.

Emerald Performance is a Cuyahoga Falls, Ohio-based producer and marketer of technologically advanced specialty chemicals for food and industrial applications.

Schiff Nutrition launches

Meanwhile, Schiff Nutrition Group launched its $200 million credit facility (B1/B) with price talk of Libor plus 450 bps to 475 bps, according to a market source. When the deal actually closed on March 30, pricing was outlined as Libor plus 475 bps.

The facility consists of a $150 million seven-year term loan that has a 1.25% Libor floor and an original issue discount of 99, and a $50 million five-year revolver that has no floor, the source said.

RBC Capital Markets is the lead arranger on the deal and a joint bookrunner with BMO Capital Markets.

Proceeds were used to fund the $150 million acquisition of Airborne Inc.

Schiff, a Salt Lake City-based nutritional supplement company, is seeking commitments towards the credit facility by May 2.

NGPL sets launch

NGPL PipeCo nailed down timing on its proposed credit facility, scheduling a bank meeting for 10 a.m. ET on Friday, according to a market source.

Details on the credit facility, including size, are expected to come out with the launch, the source said.

Credit Suisse Securities (USA) LLC, Barclays Capital Inc. and RBC Capital Markets LLC are leading the deal that will be used to help fund the purchase of $1.25 billion 6.514% senior notes due 2012 through a tender offer that expires on May 11.

At closing, shareholders of the company's indirect parent company, Myria Acquisition LLC, intend to make capital contributions sufficient to repay in full Myria's credit facility and related interest-rate swap obligations.

NGPL is a Houston-based natural gas transportation and storage company.

First American shuts books

Commitments were due on Wednesday for First American Payment Systems LP's $40 million incremental term loan due November 2016 that is talked at Libor plus 500 bps with a 1.75% Libor floor and an original issue discount of 99, according to a market source.

The maturity, coupon and Libor floor on the incremental loan matches the existing term loan.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to pay a distribution to shareholders.

With the new debt, the company is seeking an amendment to its existing credit facility, and consents were due on Wednesday as well.

First American Payment is a Fort Worth-based provider of payment processing services for credit card, debit card and check transactions.

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