TI Group, ATP, WCA, First Data break; Infor Global jumps on merger; Avis, IPC tweak deals

By Sara Rosenberg

New York, March 9 - TI Group Automotive LLC's term loan hit the secondary market on Friday, with levels seen above the original issue discount price, and ATP Oil & Gas Corp.'s incremental first-lien, WCA Waste Corp.'s credit facility and First Data Corp.'s new extended loan freed up as well.

Also in trading, Infor Global Solutions Holdings Ltd.'s bank debt experienced a considerable rally with chatter that the company is being combined with Lawson Software Inc. as investors are expecting a refinancing to occur with the merger.

Moving to the primary, Avis Budget Car Rental LLC increased the size of its term loan B while leaving pricing unchanged, and IPC Systems Inc. flexed pricing higher on its proposed extended term loan.

Furthermore, Crestwood Holdings LLC released price talk on its term loan B as syndication on the debt kicked off with a bank meeting that took place during the session, and Expert Global Solutions Inc. and Education Management Corp. came out with new deal plans.

TI emerges in secondary

TI Group Automotive' $550 million six-year term loan B began trading on Friday, with levels quoted at 98 bid, 98¾ offered, according to a trader.

Pricing on the loan firmed in line with initial talk at Libor plus 550 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance an existing senior secured term loan due in 2016 and fund a special one-time dividend.

TI Group is an Auburn Hills, Mich.-based automotive supplier with a focus on fluid storage, transfer and delivery technology.

ATP frees up

ATP Oil & Gas' $155 million incremental first-lien senior secured term loan due Jan. 15, 2015 broke for trading as well, with the debt bid at 991/2, according to a market source.

Pricing on the loan is Libor plus 725 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99. Call protection is 104 through June 2012, 102 for the next year and par thereafter.

During syndication, the incremental loan was upsized from $140 million and pricing was reduced from Libor plus 750 bps.

In connection with the add-on, the company's existing $208.2 million 9% fixed-rate term loan due Jan. 15, 2015 was converted into a floating-rate loan at the same terms as the new debt.

Credit Suisse Securities (USA) LLC acted as the lead bank on the deal, and proceeds from the incremental debt will be used for general corporate purposes.

ATP Oil & Gas is a Houston-based offshore oil and gas development and production company.

WCA bid atop OID

Also freeing up was WCA Waste's credit facility, with the $275 million six-year term loan quoted at 99¾ bid, according to a trader.

Pricing on the term loan is Libor plus 425 bps with a 1.25% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The $375 million deal (B1/B+) also includes a $100 million five-year revolver priced at Libor plus 425 bps with a 1.25% floor as well. This tranche was sold at a discount of 981/2.

During syndication, pricing on the entire deal was reduced from Libor plus 500 bps, and the original issue discount on the term loan was tightened from 99.

Credit Suisse Securities and Macquarie Capital are leading the deal.

WCA being acquired

Proceeds from WCA's credit facility, along with shareholder capital, will be used to fund its buyout by Macquarie Infrastructure Partners II for $6.50 per share in cash, or about $526 million, provide liquidity going forward, refinance existing bank debt and redeem 7½% senior notes due 2019.

Originally, the new term loan amount was subject to the tender results, meaning it could be reduced if some notes were left outstanding, but at the time of the pricing flex, the size firmed at $275 million and will not change for the tender results. The tender expires on March 22.

Also, based on regulatory filings, it was initially thought that the revolver would be sized at $50 million, but upon announcing the bank meeting date in February, the larger revolver size emerged.

Closing is expected this quarter. Stockholder and regulatory approvals have been obtained.

WCA, a Houston-based non-hazardous solid-waste services company, will have total leverage of 4.25 times and 50% plus of equity.

First Data extended trades

First Data's new extended term loan due March 2017, led by Credit Suisse Securities and KKR Capital Markets, began being quoted in the secondary market as well, with one trader seeing it at 94¼ bid, 95¼ offered.

The company's existing extended loan due 2018 was quoted at 90 bid, 91 offered and its non-extended loan was quoted at 96 bid, 96¼ offered, with both of these tranches basically flat on the day, the trader added.

The new extended loan is sized at $3.2 billion. However, lenders were offered the option to get paid down from an $850 million senior secured notes offering, and following this chosen repayment, the extended loan will be reduced to $2.8 billion, a source remarked.

Pricing on the new extended loan is Libor plus 500 bps, versus Libor plus 275 bps on the non-extended loan due September 2014, and Libor plus 400 bps on the existing 2018 extended loan.

First Data is a Greenwood Village, Colo., provider of electronic commerce and payment services.

Infor levels skyrocket

In more trading happenings, Infor Global's loans saw a big improvement with talk that a newly announced merger with Lawson Software could lead to a complete refinancing, according to traders.

"Lawson has less leverage so if they combine it solves the relatively high leverage of Infor before the refi has to be done," one source remarked.

Following the news, Infor's old first-lien extended loan was quoted at 98¾ bid, 99½ offered, up from 97½ bid, 98½ offered, and the new extended B2 loan was quoted at 98¾ bid, 99¾ offered, up from 98¼ bid, 99¼ offered, traders said.

Also, the new second-lien loan was quoted at 96½ bid, 97½ offered, up from 91 bid, 92 offered, and the old second-lien loan was quoted at 97½ bid, 98½ offered, up from 93 bid, 94 offered, traders continued.

Lastly, the PIK term loan saw the most significant rise with levels jumping up to 91½ bid, 93 offered from 68 bid, 70 offered, traders added.

Infor merger details

Under the proposal, 100% of the outstanding capital stock of Infor Global Solutions Intermediate Holdings Ltd. and 100% of the outstanding capital stock of Lawson will be contributed to a new Cayman Islands exempted company that is being referred to as ComboCo.

Infor Global and Lawson are both currently owned by Golden Gate Capital. Lawson was acquired in July for $11.25 per share in cash.

With the proposed merger, Lawson launched a change-of-control notice and offer to purchase its outstanding 11½% senior notes due 2018 that expires on April 4. And, a consent solicitation was launched that expires on March 21 to amend the indenture to waive the requirement for a change-of-control offer.

The tender offer and consent solicitation are two separate offers. Holders can either tender their notes or deliver consents, but not both, a news release explained.

Infor Global is a New York-based provider of business software. Lawson is a St. Paul, Minn.-based provider of enterprise software.

Avis ups loan

Avis Budget Car Rental lifted its seven-year term loan B to $500 million from $375 million and left pricing at Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99, according to a market source. The 101 soft call protection for one year was unchanged as well.

Recommitments were due at 5 p.m. ET on Friday.

JPMorgan, Bank of America Merrill Lynch, Barclays Capital Inc. and Deutsche Bank Securities Inc. are the lead banks on the deal that will be used to refinance existing debt.

As a result of the upsizing, the company will repay about $150 million of existing term loans due 2018 at the 101 call protection, and the expected amount of unsecured corporate debt to be paid down has been revised to $75 million from $100 million, the source added.

Avis is a Parsippany, N.J.-based vehicle rental operator.

IPC talk widens

IPC Systems increased the coupon on its proposed extended term loan B (B1/B-) to Libor plus 525 bps from Libor plus 450 bps and asked lenders to place their orders by 5 p.m. ET on Friday, according to a market source.

The company is looking to push out the maturity on the term loan B debt to 2017 from 2014.

Non-extended term loan B pricing is Libor plus 225 bps.

Lenders are still being offered a 10 bps amendment fee and a 15 bps extension fee.

JPMorgan is the lead bank on the deal.

IPC is a Jersey City, N.J.-based provider of specialized voice and data communications and trading collaboration services for the financial markets.

Crestwood reveals talk

Crestwood Holdings held a bank meeting on Friday to launch a $400 million term loan B (Caa1), and announced price talk on the tranche at Libor plus 850 bps with a 1.5% Libor floor and an original issue discount of 981/2, according to a market source.

As was previously reported, the loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Commitments are due on March 20, the source added.

Bank of America Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc., RBC Capital Markets LLC, RBS Securities Inc. and UBS Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt and fund the $375 million acquisition of Antero Resources Appalachian Corp.'s Marcellus Shale gathering system assets located in Harrison and Doddridge Counties, W.Va.

Crestwood forms joint venture

The Antero assets are being acquired by a new joint venture formed by Crestwood Holdings and Crestwood Midstream Partners LP, for which Crestwood Holdings will contribute about $244 million in exchange for a 65% ownership interest and Crestwood Midstream will contribute around $131 million for its 35% ownership interest.

Crestwood Midstream is funding its joint venture contribution with available capacity under its existing $500 million credit facility, and the new joint venture will be getting a $200 million revolver to finance future capital requirements related to growth in the Area of Dedication.

The transaction is expected to close this month, subject to regulatory approvals.

Crestwood Holdings is a Houston-based energy company. Crestwood Midstream is a Houston-based midstream master limited partnership that owns and operates gathering, processing, treating and compression assets servicing natural gas producers.

Expert Global sets launch

Meanwhile, joining the calendar was Expert Global Solutions, as it will be holding a conference call at 11:30 a.m. ET on Tuesday to launch a proposed $795 million credit facility, according to a market source.

The facility consists of a $120 million revolver and a $675 million first-lien term loan B, the source said, adding that price talk is not yet available.

Proceeds will be used to help fund the merger of two One Equity Partners companies - APAC Customer Services Inc. and NCO Group - to create Expert Global Solutions.

Last year, the company had come to market with an $870 million credit facility and $300 million of bonds for the merger, but the financing was pulled in December due to unfavorable rates.

The credit facility consisted of a $120 million revolver talked at Libor plus 625 bps and a $750 million term loan talked at Libor plus 625 bps with a 1.25% Libor floor, an original issue discount of 96 to 97 and 101 soft call protection for one year.

Expert Global lead banks

Barclays Capital, Deutsche Bank Securities, JPMorgan and RBS Securities are the lead banks on Expert Global's new credit facility.

In addition to the first-lien debt, the company is getting a new $200 million second-lien term loan that has already been sold, the source remarked.

Also, One Equity will be providing a $159 million PIK loan and $300 million of equity for the merger.

Expert Global Solutions is a provider of business process outsourcing and customer care services.

Education readies deal

Education Management will be holding a conference call at 2 p.m. ET on Tuesday to launch a proposed $350 million term loan B that is being talked at Libor plus 525 bps to 550 bps with a 1.25% Libor floor and 101 soft call protection, according to a market source.

The original issue discount on the loan is still to be determined, the source added.

Bank of America Merrill Lynch, Barclays Capital and Goldman Sachs are the lead banks on the deal that will be used to refinance existing debt.

Education Management is a Pittsburgh-based provider of private post-secondary education.

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