Vantage Drilling, Consolidated Container free up; Hyland Software accelerates deadline

By Sara Rosenberg

New York, Oct. 17 - Vantage Drilling Co. revised the original issue discount on its term loan B and then the debt made its way into the secondary market on Wednesday with trades taking place above the new discount price, and Consolidated Container Co. broke too.

Over in the primary, Hyland Software Inc. moved up its commitment deadline, Wall Street Systems (WSS Delaware Inc.) upsized its credit facility and firmed spreads at the tight end of talk, and Quintiles Transnational Corp. set the coupon on its term loan B-1 at the low end of guidance and tightened the original issue discount.

Also, Peak 10 raised pricing on its term loan B and widened the original issue discount, AssuraMed Holding Inc. reworked its tranche sizes and nailed down spreads, and Cunningham Lindsey Group Ltd. moved some funds between its first- and second-lien term loans while revising pricing.

Additionally, Einstein Noah Restaurant Group Inc., Confie Seguros, Warner Music Group Corp. (WMG Acquisition Corp.) and Alon USA Energy Inc. released price talk and Mercury Payment Systems LLC disclosed discount guidance with launch, and Merrill Communications LLC announced talk on its upcoming deal.

Vantage tops OID

Vantage Drilling's $500 million five-year senior secured first-lien term loan B freed up too, with levels quoted at 98½ bid, 99 offered, according to a trader.

Pricing on the loan is Libor plus 500 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 98, after widening from earlier talk of 99. There is 101 soft call protection for one year.

Citigroup Global Markets Inc., RBC Capital Markets LLC, Jefferies & Co. and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds, along with $1.15 billion of senior secured first-lien notes, will fund the tender for a portion of the company's 11½% senior secured first-lien notes due 2015 and the final construction payment of the Tungsten Explorer, a new deepwater drillship currently under construction.

Vantage Drilling is a Houston-based energy drilling company.

Consolidated Container breaks

Consolidated Container's repriced $370 million term loan B hit the secondary too, with levels quoted around par 1/8 bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 375 bps with a 1.25% Libor floor, and there is 101 soft call protection for one year.

Through the repricing, the spread on the deal was taken down from Libor plus 500 bps.

Existing lenders are getting paid out at 101.

Bank of America Merrill Lynch is the lead bank on the deal.

Consolidated Container is an Atlanta-based developer and manufacturer of rigid plastic packaging.

Hyland shutting early

Moving to the primary, Hyland Software revised the commitment deadline on its $380 million credit facility to Thursday from 5 p.m. ET on Monday, according to a market source.

The debt includes a $20 million five-year revolver, and a $360 million seven-year first-lien term loan that is talked at Libor plus 450 bps with a 1.25% Libor floor, 101 soft call protection for one year and an original issue discount of 99 on new money. Rollover commitments for the term loan are offered the debt at par.

On Tuesday, the term loan was increased from $320 million and pricing was lowered from talk of Libor plus 475 bps to 500 bps. Additionally, the company eliminated plans for a $235 million 71/2-year second-lien term loan that was talked at Libor plus 875 bps to 900 bps with a 1.25% Libor floor, a discount of 981/2, and call protection of 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC and Jefferies & Co. are leading the deal that will fund a dividend and refinance existing debt.

Hyland is a content-management solutions provider for middle-market enterprises.

Wall Street restructures

Wall Street Systems increased sizes on all tranches under its credit facility and set pricing on the first-and second-lien term loans at the low side of guidance, according to a market source.

The seven-year first-lien term loan was lifted to $375 million from $335 million, and pricing is Libor plus 450 bps, compared to prior talk of Libor plus 450 bps to 475 bps, the source said. The 1.25% Libor floor, original issue discount of 98½ and 101 soft call protection for one year were left unchanged.

Also, the 71/2-year second-lien term loan was upsized to $165 million from $140 million, and pricing came at Libor plus 800 bps, versus previous talk of Libor plus 800 bps to 825 bps. As before, this tranche has a 1.25% floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two.

Lastly, the five-year revolver was raised to $40 million from $30 million, the source remarked.

Wall Street ratings

As a result of the change to Wall Street Systems' tranche sizes, ratings from Moody's Investors Services were dropped to B2 on the first-lien term loan and revolver from B1 under the original structure and to Caa2 on the second-lien term loan from Caa1 previously, the source continued.

Standard & Poor's is expected to maintain its B rating on the first-lien loan and revolver and its B- rating on the second-lien loan.

J.P. Morgan Securities LLC, the lead bank on the now $580 million credit facility, is seeking recommitments from lenders by noon ET on Thursday, the source added.

Proceeds will be used to refinance existing debt and to fund a distribution to shareholders.

Wall Street Systems is a New York-based treasury management, foreign-exchange software and software services provider.

Quintiles updates pricing

Quintiles firmed pricing on its $175 million non-fungible term loan B-1 loan due June 2018 at Libor plus 325 bps, the tight end of the Libor plus 325 bps to 350 bps talk, and revised the original issue discount to 99¾ from 991/2, according to a market source.

As before, the loan has a 1.25% Libor floor and 101 soft call protection for one year.

The company's $250 million of new bank debt (B1/BB-) also includes a $75 million incremental revolver due June 2017.

Commitments were due at 5 p.m. ET on Wednesday.

J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal that will be used to pay a distribution to shareholders of Quintiles Transnational Holdings Inc.

Quintiles Transnational is a Durham, N.C.-based contract research organization.

Peak 10 flexes

Peak 10 revised the spread on its $300 million term loan B to Libor plus 600 bps from talk of Libor plus 500 bps to 525 bps, widened original issue discount guidance to 97 to 98 from 99, shortened the maturity to six years from seven years and added step-downs to the maximum net leverage ratio covenant, according to a market source.

As before, the term loan B has a 1.25% Libor floor and 101 soft call protection for one year.

Commitments for the company's $330 million senior secured credit facility (B2/B), which also includes a $30 million six-year revolver, are due at 5 p.m. ET on Thursday.

Leading the deal that will be used to refinance existing debt and fund a dividend.

Peak 10 is a Charlotte, N.C.-based operator of data centers.

AssuraMed reworks deal

Another company to make changes was AssuraMed, as it upsized its seven-year first-lien term loan (B1/B) to $465 million from $440 million and downsized its 71/2-year second-lien term loan (Caa1/CCC+) to $195 million from $220 million, according to a market source.

Pricing on the first-lien loan is Libor plus 425 bps, versus initial talk of Libor plus 425 bps to 450 bps, the source said. The loan still has a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

As for the second-lien loan, pricing is Libor plus 800 bps, compared to prior talk of Libor plus 800 bps to 825 bps, the source continued. The 1.25% Libor floor, discount of 98 and call protection of 102 in year one and 101 in year two were left unchanged.

AssuraMed lead banks

Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc. are the joint lead arrangers on AssuraMed's $660 million deal and joint bookrunners with Fifth Third Securities Inc., Goldman Sachs & Co., Jefferies & Co., J.P. Morgan Securities LLC, GE Capital Markets and ING.

Recommitments were due by 4 p.m. ET on Wednesday and allocations are expected on Thursday, the source added.

Proceeds will be used by the Cleveland-based supplier of disposable medical products to refinance the balance sheet and to fund a dividend to shareholders.

Cunningham reveals revisions

Cunningham Lindsey upsized its seven-year covenant-light term loan B (Ba3/B) to $410 million from $395 million and downsized its 71/2-year covenant-light second-lien term loan (B3/B-) to $110 million from $125 million, according to a market source.

Pricing on the first-lien term loan is Libor plus 375 bps, reduced from talk of Libor plus 400 bps to 425 bps, with a 1.25% Libor floor, and it is being sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 800 bps, after firming at the tight end of the Libor plus 800 bps to 825 bps talk, with a 1.25% floor, and it is being sold at a discount of 99, revised from talk of 98 to 981/2. This debt has hard call protection of 103 in year one, 102 in year two and 101 in year three.

Cunningham revolver

In addition to the term loans, Cunningham Lindsey's $660 million credit facility provides for a $140 million five-year revolver (Ba3/B).

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., RBC Capital Markets and UBS Securities LLC are leading the transaction that will help fund the company's buyout by an investment group led by CVC Capital Partners from Stone Point Capital.

Cunningham Lindsey is a Tampa, Fla.-based provider of independent loss adjusting and claims management services.

Einstein talk emerges

In more primary news, Einstein Noah Restaurant Group held its bank meeting on Wednesday morning, launching its $240 million six-year first-lien term loan with talk of Libor plus 550 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.

The company's $265 million senior secured credit facility (B2/B) also provides for a $25 million five-year revolver.

Credit Suisse Securities (USA) LLC and KeyBanc Capital Markets Inc. are the lead banks on the deal, with Credit Suisse the agent on the term loan and KeyBanc the agent on the revolver.

Proceeds will be used to refinance existing debt and fund a dividend.

Pro forma leverage is around 4.5 times last-12-months July 3 adjusted EBITDA of $53 million.

Einstein Noah, a Lakewood, Colo.-based operator of bagel bakery cafes, is seeking credit facility commitments by Oct. 31, with the place being to close on Nov. 5.

Confie Seguros launches

Confie Seguros launched too, setting talk on its $252 million first-lien term loan at Libor plus 525 bps with a 1.25% Libor floor, an original issue discount of 98½ to 99 and 101 soft call protection for one year, a source said.

Meanwhile, talk on the $110 million second-lien term loan was announced at Libor plus 900 bps with a 1.25% Libor floor and an original issue discount of 98, and the debt has call protection of 103 in year one, 102 in year two and 101 in year three.

Also included in the company's $437 million credit facility is a $75 million revolver that is talked at Libor plus 500 bps with a 100 bps upfront fee, the source continued.

RBC Capital Markets and GE Capital Markets are leading the deal that will help fund the buyout of the company by ABRY Partners from Genstar Capital.

Confie Seguros is a New York-based provider of personal insurance.

Warner Music pricing

Warner Music Group released talk of Libor plus 475 bps to 500 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $630 million six-year first-lien covenant-light term loan that launched during the session, according to a market source.

Credit Suisse Securities (USA) LLC, UBS Securities LLC, Barclays, Macquarie and Nomura are the lead banks on the $780 million credit facility (Ba2) that also includes a $150 million revolver.

Commitments are due on Oct. 26, the source said.

Proceeds will be used to refinance existing debt.

Warner Music is a New York-based music content company.

Alon holds meeting

Alon USA hosted its bank meeting on Wednesday morning, launching its $450 million six-year first-lien covenant-light secured term loan (B2) at Libor plus 625 bps with a 1.25% Libor floor and an original issue discount of 981/2, according to a market source. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

Lead banks, Credit Suisse Securities (USA) LLC and Goldman Sachs Lending Partners LLC, are asking for commitments by Oct. 31, the source continued.

Proceeds will be used to repay a roughly $422 million term loan and for general corporate purposes.

Alon USA is a Dallas-based refiner and marketer of petroleum products.

Mercury releases OID

Mercury Payment Systems set original issue discount talk in the 99½ area on its $100 million add-on term loan due July 1, 2017, according to a market source.

Pricing on the add-on loan that launched with a call in the afternoon is Libor plus 400 bps with a 1.5% Libor floor, and there is 101 soft call protection for one year.

The spread and floor match the existing term loan, which will get 101 soft call protection for a year in connection with this transaction.

Commitments are due on Oct. 24, the source said.

Deutsche Bank Securities Inc., Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund a dividend.

Mercury Payment Systems is a Durango, Colo.-based payment processing company that partners with point-of-sale developers and resellers.

Merrill discloses guidance

Merrill Communications came out with talk of Libor plus 750 bps with a 1.5% Libor floor, an original issue discount of 98 and repricing protection of 103 in year one, 102 in year two and 101 on its $455 million first-lien term loan ahead of its Thursday bank meeting, according to a market source.

The five-year credit facility also includes a $30 million revolver.

In addition, Merrill is getting $150 million of non-callable for life 51/2-year second-lien notes that are talked at Libor plus 1,450 bps, including 2% PIK, with no floor and an original issue discount of 98, the source said. This debt is being offered with warrants for 10% of the company's common equity.

Credit Suisse Securities (USA) LLC is leading the deal that will refinance existing bank debt.

Commitments are due on Oct. 30, the source remarked.

Merrill is a St. Paul, Minn.-based provider of technology-enabled services for the financial, legal, health care, real estate and other corporate markets.

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