Sedgwick frees to trade; MedSolutions, State Class Tankers, Home Loan Servicing float talk

By Sara Rosenberg

New York, June 10 - Sedgwick Claims Management Services Inc.'s credit facility made its way into the secondary market on Monday, with both the first- and second-lien term loans seen above their issue prices.

Moving to the primary market, MedSolutions and State Class Tankers revealed talk with launch, while Home Loan Servicing Solutions Ltd. and Water Pik Inc. emerged with new deal plans.

Sedgwick hits secondary

Sedgwick Claims Management Services' credit facility started trading on Monday morning, with the $850 million five-year first-lien term loan (B1) quoted at par ¼ bid, par ¾ offered and the $285 million 51/2-year second-lien term loan (Caa1) quoted at par ½ bid, 101½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 325 basis points with a 1% Libor floor, and it was sold at par. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 700 bps with a 1% Libor floor, and was sold at 991/2. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the Libor floor on both term loans firmed at the tight end of the 1% to 1.25% talk, the offer price on the first-lien debt was revised from 99¾ and the spread on the second-lien loan was reduced from Libor plus 725 bps.

Sedgwick getting revolver

Sedgwick's $1,195,000,000 credit facility, which will be used to refinance existing debt and fund a dividend, also includes a $60 million five-year revolver (B1).

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and MCS Capital are leading the deal.

Sedgwick is a Memphis, Tenn.-based provider of claims and productivity management services to corporate and institutional clients.

MedSolutions sets guidance

Over in the primary, MedSolutions held its bank meeting on Monday, and with the event, price talk on its $360 million six-year covenant-light term loan B was revealed, according to a market source.

The B loan is being shopped at Libor plus 400 bps with a 1.25% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, the source said.

Commitments for the new $435 million credit facility, which also includes a $75 million five-year revolver, are due on June 20.

SunTrust Robinson Humphrey Inc. and Fifth Third Securities Inc. are leading the deal.

Proceeds will be used by the Franklin, Tenn.-based provider of medical cost management services to refinance existing debt and fund a dividend.

State Class discloses talk

State Class Tankers launched its $365 million seven-year covenant-light term loan B, with talk coming out at Libor plus 575 bps to 600 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

Commitments for the loan, which is non-callable for two years, then at 102 in year three, are due on June 19, the source said.

Bank of America Merrill Lynch, UBS Securities LLC and Barclays are the lead banks on the deal.

Proceeds will be used to help fund the construction of four product tankers, fund an 18-month interest reserve and put cash on the balance sheet.

Home Loan readies deal

Home Loan Servicing Solutions surfaced with plans to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $350 million seven-year senior secured term loan B that is talked at Libor plus 300 bps to 325 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, according to a market source.

J.P. Morgan Securities LLC is leading the transaction.

Proceeds will be used to acquire mortgage servicing assets and fund advance reserves.

Expected loan ratings are Ba3/B+, the source remarked.

Home Loan Servicing is a Cayman Islands-based acquirer of high-quality mortgage servicing assets.

Water Pik plans meeting

Water Pik also joined the forward calendar, setting a bank meeting for 10 a.m. ET on Wednesday to launch a $335 million credit facility that will help fund its buyout by MidOcean Partners LP, according to a market source.

The facility consists of a $25 million revolver, a $215 million seven-year first-lien covenant-light term loan with 101 repricing protection for six months and a $95 million 71/2-year second-lien covenant-light term loan with call protection of 102 in year one and 101 in year two, the source said.

Credit Suisse Securities (USA) LLC, GE Anteres and Macquarie Capital are leading the deal.

Commitments are due on June 26, the source added.

Water Pik is a Fort Collins, Colo.-based provider of branded oral health and replacement showerhead products.

Carestream Health closes

In other news, Carestream Health Inc. closed on its credit facility that was used to refinance existing bank debt and fund a dividend, according to a news release. The $2.5 billion deal includes a $150 million revolver (B1/B+), a $1.85 billion six-year first-lien covenant-light term loan (B1/B+) and a $500 million 61/2-year second-lien covenant-light term loan (Caa1/B-).

Pricing on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 981/2. There is 101 repricing protection for one year.

The second-lien term loan is priced at Libor plus 850 bps with a 1% Libor floor, and was sold at 98. The debt is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, with an initial public offering carve-out.

During syndication, pricing on the first-lien loan was lifted from talk of Libor plus 325 bps to 350 bps, the discount was widened from 99 and amortization was changed to 5% per annum from 1%. Also, the second-lien loan was flexed up from Libor plus 750 bps, the discount was changed from 99 and the call protection was beefed up from 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Goldman Sachs & Co. led the deal for the Rochester, N.Y.-based provider of medical and dental imaging products.

SS&C Technologies wraps

SS&C Technologies Holdings Inc. completed the repricing of its $620.2 million term B-1 loans and $64.2 million term B-2, a news release said.

Pricing on the loans (Ba3/BB) due June 2019 is Libor plus 275 bps with a 0.75% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

The Libor floor was added to the deal during syndication, as was a step-down to Libor plus 250 bps at 2.75 times net senior secured leverage.

Deutsche Bank Securities Inc. led the deal that that repriced the existing term loan B-1 and term loan B-2 from Libor plus 400 bps with a 1% Libor floor.

SS&C is a Windsor, Conn.-based provider of financial services software and software-enabled services.

© 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.