Fairway Market breaks; CRC Health rises on refi; MSCI sets talk; Airvana, UniTek ready deals

By Sara Rosenberg

New York, March 2 - Fairway Market LLC's credit facility hit the secondary market on Wednesday, with levels on the term loan quoted slightly above its original issue discount price, and CRC Health Corp.'s non-extended term loan was stronger with refinancing news.

Moving to the primary market, MSCI Inc. released price talk on its term loan as the transaction was launched to investors, Airvana Corp. came out with timing and structure on its upcoming facility, and UniTek Global Services Inc., Warner Chilcott plc and Telx Group Inc. surfaced with new deal plans.

Also, Delta Air Lines Inc. reverse flexed pricing on its term loan while adding call protection, and talk is that AVG Technologies' term loan is seeing the spread and original issue discount widen from initial guidance.

Additionally, Isle of Capri Casinos Inc.'s credit facility has some positive momentum heading into its Thursday bank meeting, syndication of Emergency Medical Services Corp.'s bridge loan is going well with a large portion of the deal already done, and Capital Automotive's loan is oversubscribed.

Fairway frees up

Fairway Market, a supermarket chain with locations in New York, New Jersey and Connecticut, saw its credit facility break for trading on Wednesday, with the $175 million six-year term loan quoted at 99¼ bid, 99¾ offered, according to traders.

Pricing on the term loan, as well as on a $25 million five-year revolver, is Libor plus 600 basis points with a 1.5% Libor floor, and the term loan was sold at an original issue discount of 99.

During syndication, the term loan was upsized from $150 million, pricing on the entire facility was trimmed from Libor plus 700 bps and the discount on the term loan tightened from 98.

Credit Suisse, Bank of America Merrill Lynch and Jefferies are the lead banks on the $200 million deal that will be used to refinance an existing credit facility and provide some cash for future store expansion. The additional proceeds from the term loan upsizing will be used to repay subordinated debt.

CRC trades up

CRC Health's non-extended term loan moved higher as the company launched a refinancing and amendment transaction with a call on Tuesday afternoon, according to a trader.

The non-extended loan was quoted at 99 bid, par offered, up from 98½ bid, 99¼ offered, the trader said.

Meanwhile, levels on the company's extended term loan widened out to 99 3/8 bid, par 1/8 offered, from 99¾ bid, par offered, the trader continued.

CRC approached existing lenders with a new $120 million term loan due Nov. 16, 2015 that will be used to repay non-extended term loan borrowings and revolver debt. The roughly $90 million non-extended term loan matures on Feb. 6, 2013 and is priced at Libor plus 225 bps.

Price talk on the new term loan is Libor plus 450 bps with a 1% Libor floor.

CRC amending facility

In connection with the refinancing, CRC is amending its roughly $309 million extended term loan that was obtained in January to add a 1% Libor floor. The spread on this loan, also due Nov. 16, 2015, is Libor plus 450 bps and the tranche includes 101 soft call protection for one year.

Additionally, the company is looking to eliminate certain financial covenants.

Citigroup is the lead bank on the deal.

Closing on the refinancing is expected to take place this quarter.

CRC Health is a Cupertino, Calif.-based provider of substance abuse treatment and adolescent youth services.

MSCI talk emerges

In more loan happenings, MSCI held a lender call at 11 a.m. ET on Wednesday to launch its proposed $1.125 billion senior secured term loan, and shortly before the call took place, price talk was announced, according to a market source.

The term loan is being talked at Libor plus 275 bps with a 1% Libor floor and a par offer price and includes 101 soft call protection for one year as well as a pricing grid.

Proceeds will be used to reprice the company's existing term loan that was obtained in June 2010 in connection with the acquisition of RiskMetrics Group Inc.

Pricing on the existing deal is Libor plus 325 bps with a step-down to Libor plus 300 bps at 2.75 times leverage and a 1.5% Libor floor. It was sold at an original issue discount of 991/2.

MSCI plans paydown

MSCI said in a recent news release that in connection with the repricing, it will prepay $90 million of the existing $1.2 billion loan maturing in 2016.

Also, the company expects to amend certain covenants in its senior secured credit facility.

Morgan Stanley is the sole lead arranger on the deal and a joint bookrunner with Bank of America Merrill Lynch. UBS Securities LLC is a co-manager.

Closing on the repricing is expected to take place within the next two weeks.

MSCI is a New York-based provider of investment decision support tools to investors, including asset managers, banks, hedge funds and pension funds.

Airvana details surface

Airvana has set a bank meeting for Friday morning in New York to launch a proposed $420 million four-year term loan, according to a market source. Earlier this week, there was talk that the company would bring a new deal to market, but specifics had been unavailable.

Talk on the loan is Libor plus 700 bps to 725 bps with a 1.5% Libor floor and an original issue discount of 99. There is 101 soft call protection for one year and 15% annual amortization, the source said.

Societe Generale and Macquarie are the joint bookrunners on the deal that will be used to refinance an existing term loan obtained in August 2010 at a size of $360 million and fund a dividend payment.

Pricing on the existing loan is Libor plus 900 bps with a 2% Libor floor. It was sold at an original issue discount of 98 and used for a dividend recapitalization

Airvana, Chelmsford, Mass.-based provider of mobile broadband network infrastructure products, will have total leverage of 1.8 times.

UniTek sets launch

UniTek Global Services has set a bank meeting for Thursday to launch a proposed $160 million credit facility that is being led by FBR Capital Markets, according to a market source.

The facility consists of a $75 million ABL revolver talked at Libor plus 300 bps with no Libor floor and an $85 million term loan talked at Libor plus 725 bps with a 1.5% Libor floor, the source said.

Proceeds will be used to refinance existing debt.

UniTek is a Blue Bell, Pa.-based provider of engineering, construction management, and installation fulfillment services to the telecommunications, broadband cable, and satellite industries.

Warner Chilcott readies refi

Warner Chilcott plc has set a conference call for Thursday to launch a refinancing of its existing credit facility, according to a market source.

J.P. Morgan, Bank of America Merrill Lynch, Morgan Stanley and Goldman Sachs are the lead banks on the deal.

Through the transaction, the Ireland-based specialty pharmaceutical company is looking to extend maturities, reduce pricing and/or Libor floors and possibly modify other provisions, a news release said.

Closing on the refinancing is expected to occur in mid-March.

Telx coming soon

Telx has scheduled a conference call for Friday to launch a $50 million incremental senior secured term loan due 2015 (B1) that will be used for general corporate purposes, including funding the company's data center expansion plans, according to a market source.

Goldman Sachs and SunTrust are the lead banks on the deal.

The company got its existing $150 million term loan B in June 2010 at pricing of Libor plus 600 bps with a 2% Libor floor. The loan was sold at an original issue discount of 98 and includes call protection of 102 in year one and 101 in year two.

Telx is a New York-based provider of network neutral, global interconnection and colocation services.

Delta cuts spread

Delta Air Lines trimmed the spread on its $250 million term loan (Ba2/BB-) to Libor plus 300 bps from Libor plus 325 bps and added 101 soft call protection for one year, according to a market source, who said that the 1.25% Libor floor and original issue discount of 99½ were left unchanged.

Citigroup and Deutsche Bank are the lead banks on the deal that will be used to refinance/reprice an existing $246.8 million term loan.

Pricing on the existing loan is Libor plus 675 bps with a 2% Libor floor, and it was sold at an original issue discount of 98 when it was obtained in 2009 to repay bank debt.

Delta Air Lines is an Atlanta-based airline company.

AVG raising pricing

Market chatter is that AVG Technologies' $235 million five-year term loan (B1/B+) is being guided in the Libor plus 600 bps area with a 1.5% Libor floor and an original issue discount of 98, according to a market source.

When the deal launched in early February, it was being talked at Libor plus 475 bps to 500 bps with a 1.5% floor and an original issue discount of 99.

J.P. Morgan is the lead bank on the deal that will be used to fund a dividend payment.

AVG is a Chelmsford, Mass.-based security software maker.

Isle of Capri sees interest

Isle of Capri Casinos' $825 million credit facility (Ba3/BB-) has already seen some demand from investors even though syndication isn't officially slated to kick off until a Thursday morning bank meeting takes place, according to a market source.

The source said that the revolver "is moving well early among relationship banks," and the term loan B is benefiting from the large existing institutional lender group. "Seeing a number of investors roll over into the new tranche," the source added regarding the B loan.

As was already reported, the company's proposed credit facility consists of a $325 million five-year revolver and a $500 million six-year term loan B, with both tranches talked at Libor plus 350 bps. Revolver pricing is subject to a grid.

The term loan has a 1.25% Libor floor and an offer price that is still to be determined. It is expected that the offer price will be announced at or after bank meeting, the source added.

Isle of Capri lead banks

Wells Fargo, Credit Suisse and Deutsche Bank are the lead banks on Isle of Capri's credit facility that will be used to help refinance existing bank debt.

Other funds for the refinancing will come from $300 million of senior notes that priced on Wednesday at 99.264 to yield 7 7/8%. Price talk on the offering had been for a yield in the 7¾% area.

The company expects to close on the new facility shortly after completing the notes offering and prior to the end of the fourth quarter of fiscal 2011.

Isle of Capri is a St Louis-based owner and operator of gaming, lodging and entertainment facilities.

EMSC bridge filling out

Emergency Medical Services' $950 million senior unsecured bridge loan is going very well in terms of syndication with about two-thirds of the deal spoken for by Wednesday morning, and lenders still have until Thursday to place their commitments, according to a market source.

There is currently "no real rate guidance on [the] bridge," the source added.

The bridge loan, which was launched to investors with a call on Feb. 24, backs a $950 million senior unsecured notes offering that is expected to come to market later this month.

Marketing the bridge loan now serves a variety of purposes, a source previously explained to Prospect News, including pre-marketing on the expected bond offering and providing insurance that if the market takes a turn for the worse and the bonds can't get done, the funds are still available to the company.

EMSC plans facility

In addition to the notes, Emergency Medical Services is expected to launch a $1.725 billion senior secured credit facility this month. Earlier rumors had been that the bank meeting could occur as early as next week. However, now chatter is that the event will take place later in the month, the source added.

The credit facility consists of a $350 million ABL revolver and a $1.375 billion term loan.

Barclays Capital, Deutsche Bank, Bank of America Merrill Lynch, Morgan Stanley, RBC and UBS are the lead banks on the financing, with Barclays the left lead on the bridge loan/notes and Deutsche the left lead on the credit facility.

EMSC being acquired

Proceeds from Emergency Medical Services' bridge loan/notes, credit facility and up to $900 million of equity will be used to fund its buyout by Clayton, Dubilier & Rice LLC for $64 in cash per share of common stock and exchangeable unit. The transaction is valued at $3.2 billion.

Closing on the acquisition is expected in the second quarter, subject to customary conditions, including regulatory approvals and approval by the company's stockholders. Onex Corp., the holders of the company's LP exchangeable units, have sufficient voting power to approve the buyout and have agreed to vote in favor of adoption of the agreement.

Emergency Medical Services is a Greenwood Village, Colo.-based provider of health care transportation services and outsourced physician services to health care facilities.

Capital Auto overfills

Capital Automotive's $1.7 billion senior secured credit facility (Ba3/B+) was oversubscribed by Tuesday's commitment deadline, a market source told Prospect News.

The facility consists of a $200 million five-year revolver and a $1.5 billion six-year term loan B, with both tranches talked at Libor plus 350 bps with a 1.5% Libor floor. The revolver is being offered with a 100 bps upfront fee, and the term loan has an original issue discount of 99.

Barclays is the lead bank on the deal that will be used to refinance existing debt.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

Denny's closes

In other news, Denny's Corp., a Spartanburg, S.C.-based restaurant franchise operator, completed its $290 million credit facility that consists of a $240 million term loan B and a $50 million revolver, with both tranches priced at Libor plus 375 bps, according to a news release.

The term loan B has a 1.5% Libor floor and 101 soft call protection for one year and was offered at par. The revolver has no floor.

Bank of America Merrill Lynch and Wells Fargo acted as the lead banks on the deal that was used to reprice/refinance the company's existing credit facility that was obtained in September 2010 to refinance existing debt.

The existing facility, at close, consisted of a $250 million term loan, which has since been paid down, and a $50 million revolver, with both tranches priced at Libor plus 475 bps with a 1.75% Libor floor. The term loan had been sold at an original issue discount of 98½ and had 101 soft call protection for one year.

Van Heusen wraps deal

Phillips-Van Heusen Corp. completed its amended and restated credit facility (Ba2), according to a news release, which was led by Barclays, Deutsche Bank, Bank of America, Credit Suisse and RBC.

The facility consists of a $400 million term loan B priced at Libor plus 275 bps with a 0.75% Libor floor, a €260 million term loan B priced at Euribor plus 300 bps with a 0.75% Libor floor, a $640 million U.S. term loan A priced at Libor plus 250 bps, an €87 million term loan A priced at Euribor plus 275 bps, a $275 million revolver priced at Libor plus 250 bps and a €132 million revolver priced at Euribor plus 275 bps.

The term loan Bs were sold at par, and the term loan A and revolver tranches have no Libor floor and were sold with upfront fees that were determined by commitment size.

During syndication, the U.S. term loan A was upsized from $600 million, the U.S. term loan B was downsized from $440 million, pricing on the U.S. B loan was cut from Libor plus 300 bps, pricing on the euro B loan was lowered from Euribor plus 325 bps and the Libor floor on both B loans was reduced from talk of 1% to 1.25%.

Van Heusen refinances

Proceeds from Phillips-Van Heusen's credit facility were used to an existing bank deal that was completed in May 2010 and consisted of a roughly $450 million five-year revolver, a $500 million five-year term loan A, a $1 billion six-year term loan B and a €300 million six-year term loan B.

Pricing on the previous revolver and term loan A was Libor plus 300 bps on the U.S. pieces and Euribor plus 325 bps on the foreign pieces, and pricing on the previous term loan B was Libor plus 300 bps on the U.S. piece and Euribor plus 325 bps on the euro piece. The term loan A and the term loan B had a 1.75% Libor floor. The original issue discount on the term loan B was 991/2.

Phillips-Van Heusen is a New York-based apparel company.

Global Cash completes refi

Global Cash Access Inc. closed on its $245 million credit facility (B1/BB-) that was used to refinance existing debt, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The facility consists of a $210 million term loan B and a $35 million revolver, with both priced at Libor plus 550 bps with a 1.5% Libor floor. The B loan was sold at an original issue discount of 99½ and has 101 soft call protection for one year.

During syndication, the term loan B was upsized from $205 million, the revolver was upsized from $30 million, pricing was reduced from talk of Libor plus 600 bps to 625 bps, the Libor floor was trimmed from 1.75%, the discount on the B loan was moved to 99 to 99½ from just 99 before firming at the tight end of that revised guidance, and the call protection was added to the term loan B.

Deutsche Bank and Wells Fargo led the deal for the Las Vegas-based provider of cash access services to the gaming industry.

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