Iasis up on sale buzz; Weight Watchers sets tranching, pricing; Telesat, Grede reveal talk

By Sara Rosenberg

New York, March 12 - Iasis Healthcare LLC's term loan B was stronger in trading on Monday with chatter of a possible sale, and Cengage Learning Acquisitions Inc. was steady to higher on amendment and extension news.

Moving to the primary, Weight Watchers International Inc. finalized tranche sizes for its incremental term loans, set pricing on the term loan F at the wide end of talk and added a leverage-based step-down as well as call protection.

Additionally, Telesat Canada came out with price talk on its credit facility in connection with its morning bank meeting, and Grede Holdings LLC started circulating guidance on its upcoming term loan B.

Furthermore, PetroLogistics, SeaWorld Parks & Entertainment Inc., SafeNet Inc. and Armstrong World Industries Inc. surfaced with new deal plans, and TowerCo Finance LLC disclosed that it will be approaching lenders with a repricing proposal.

Iasis gains ground

Iasis Healthcare's term loan B was a bit higher on Monday as talk that TPG Capital is exploring a sale of the company made its way around, according to traders.

The term loan B was quoted by one trader at 99½ bid, 99 7/8 offered, up from 99 3/8 bid, 99¾ offered, and by a second trader at 99½ bid, par offered, up from 99 1/8 bid, 99 5/8 offered.

The second trader remarked that the debt was up because investors believe that if the company is sold, it will lead to a refinancing of the loan.

Iasis is a Franklin, Tenn.-based owner and operator of medium-sized acute care hospitals.

Cengage flat to better

Cengage's term loan B was seen by some as stronger on the day and by others as unchanged as details on the company's proposed amendment and extension emerged, according to a trader.

One trader had the loan quoted at 92½ bid, 93 offered, up from 91½ bid, 92½ offered, while a second trader had it at 92 bid, 93 offered, basically flat on the day.

The trader who marked the loan as unchanged explained that in late February, the company said that it was planning an amend and extend transaction to market within about two weeks because of improved loan market conditions. Even though specifics have now surfaced, the debt itself didn't see much of a reaction in the secondary market.

However, the trader who marked the loan higher saw the amend and extend news as the impetus behind the movement.

Cengage extension details

Under the proposal, Cengage will be seeking an extension of its term loan borrowings to July 2017 from 2014 at pricing of Libor plus 500 basis points, sources said.

Existing term loan borrowings total about $3.897 billion, consisting of a roughly $3.294 billion piece due in 2014 that is priced at Libor plus 225 bps and a roughly $603 million incremental piece due in 2014 that is priced at Libor plus 375 bps.

The company is also asking to amend and extend its $300 million revolver.

The amendment and extension will be launched with a call at 2 p.m. ET on Wednesday, and lenders will be offered a 15 bps extension fee as well as a 10 bps consent fee, sources said.

J.P. Morgan Securities LLC is the lead bank on the deal.

Cengage is a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets.

Weight Watchers tweaks deal

Over in the primary, Weight Watchers updated its deal structure, setting the incremental five-year term loan E at $850 million and the incremental seven-year term loan F at $600 million, according to a market source.

At launch, the term loan E was described as $900 million to $1 billion and the term loan F was being shopped in the $500 million to $600 million range, with the total amount of new debt expected at $1.5 billion.

Pricing on the term loan E is Libor plus 225 bps and pricing on the term loan F firmed at Libor plus 300 bps with a step down to Libor plus 275 bps at 3.75 times total net leverage. The term F has a 1% Libor floor and 101 soft call protection for one year, and is being sold at an original issue discount of 99.

By comparison, at launch, price talk was Libor plus 275 bps to 300 bps and there was no call protection.

Recommitments are due at noon ET on Tuesday.

Weight Watchers extending

With the $1.45 billion incremental loans (Ba1/BB+), Weight Watchers is looking to amend and extend its existing revolver, term loan A-1 due January 2013, term loan B due January 2014, term loan C due June 2015 and term loan D due June 2016.

The extended term loan B and term loan D loans will be combined into the new term loan F, and that extended term loan A-1 and term loan C loans will have terms matching those of the new term loan E.

Term loan A-1 and term loan B lenders were offered a 20 bps extension fee, term loan C and term loan D lenders were offered a 7.5 bps extension fee, and all lenders were offered a 5 bps amendment fee.

The various term loans were priced at different rates, ranging from Libor plus 87.5 bps to 225 bps, and the revolver was priced at Libor plus 225 bps at Dec. 31.

Weight Watchers buying stock

Proceeds from Weight Watchers' new term loans will be used to find the buyback of common stock through a modified Dutch auction tender offer, for which a credit facility amendment is needed in order to complete.

The company is tendering for up to $720 million of its common stock at a price of $72 to $83 per share and will purchase shares from Artal, which owns about 52% of the company's outstanding shares, at the same price as the one determined in the tender offer.

The tender expires on March 22, and if it is fully subscribed, the company will repurchase a total of about $1.5 billion of its common stock through the offer and the Artal purchase agreement.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Scotia Capital (USA) Inc. are the lead banks on the deal.

Weight Watchers is a New York-based provider of weight management services.

Telesat guidance emerges

Telesat Canada held a bank meeting on Monday morning to kick off syndication on its proposed $2.55 billion senior credit facility, and with the launch, price talk was announced, according to market sources.

The $150 million five-year revolver that will be denominated in U.S. and Canadian dollars is talked at Libor plus 300 bps and the $500 million five-year Canadian dollar-equivalent term loan A is talked at BA plus 300 bps, sources said.

Meanwhile, the $1.9 billion seven-year term loan B of which a portion may be Canadian dollars is talked at Libor plus 350 bps with a 1.25% Libor floor and an original issue discount of 99, sources continued.

Commitments are due on March 19.

Telesat lead banks

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and UBS Securities LLC are the joint lead arrangers and bookrunners on Telesat's term loan B.

And, CIBC and JPMorgan are the joint lead arrangers and bookrunners on the term loan A and revolver.

Proceeds will be used to refinance an existing credit facility, to fund a roughly C$705 million distribution to shareholders and for general corporate purposes.

Closing is expected to occur this month.

Telesat is an Ottawa-based fixed satellite services operator.

Grede floats talk

Grede Holdings scheduled a bank meeting for 10 a.m. ET on Tuesday to launch a proposed $250 million term loan B, and price talk on the debt began making its way around the market at Libor plus 500 bps to 550 bps with a 1.5% Libor floor and an original issue discount of 98 to 981/2, according to a market source.

GE Capital Markets and Jefferies & Co. are the lead banks on the deal that will be used to refinance existing debt and fund a $216 million dividend.

Expected ratings are B1/B+.

Grede is a Southfield, Mich.-based iron casting supplier.

PetroLogistics launching soon

Also set to launch with a bank meeting on Tuesday morning is PetroLogistics' proposed $470 million senior secured credit facility that is being led by Morgan Stanley Senior Funding Inc., according to a market source.

The facility consists of a $120 million 41/2-year revolver and a $350 million five-year term loan B, the source said.

PetroLogistics, a Houston-based producer of propylene, will use the new credit facility to refinance project debt and fund a payment to investors to return construction capital.

SeaWorld plans add-on

Meanwhile, SeaWorld Parks & Entertainment will be holding a conference call at 2 p.m. ET on Tuesday to launch a proposed $500 million add-on term loan that will fund a dividend, according to a market source.

Pricing on the add-on matches existing term loan pricing at Libor plus 300 bps with a 1% Libor floor, the source said. Original issue discount is not yet available.

Bank of America Merrill Lynch, Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Macquarie Capital are leading the deal.

SeaWorld is an Orlando, Fla.-based theme park operator.

SafeNet joins calendar

SafeNet is set to hold a call at 2 p.m. ET on Wednesday to launch a $150 million incremental first-lien term loan B and an amendment and extension of its $25 million revolver, $236 million first-lien term loan B and $131 million second-lien term loan, according to a market source.

Proceeds from the incremental debt will be used to fund a distribution to shareholders.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are the lead banks on the deal.

SafeNet is a Belcamp, Md.-based provider of information security software and encryption technology.

Armstrong sets call

Armstrong World Industries will be holding a conference call at 4 p.m. ET on Tuesday to launch a proposed $250 million add-on term loan B that is priced in line with existing B loan debt at Libor plus 300 bps with a 1% Libor floor, according to a market source. Original issue discount is still to be determined.

Bank of America Merrill Lynch, J.P. Morgan Securities Inc. and Barclays Capital Inc. are the lead banks on the deal that will be used to help fund a dividend a special cash dividend of about $500 million, or about $8.55 per share.

Armstrong is a Lancaster, Pa.-based designer and manufacturer of floors, ceilings and cabinets.

TowerCo readies repricing

TowerCo announced in the morning that it will be holding a conference call at 2 p.m. ET on Tuesday to launch a repricing of its $397 million term loan B, according to a market source.

The existing term loan was done in January 2011 at a size of $400 million and at pricing of Libor plus 375 bps with a 1.5% Libor floor. It was sold at an original issue discount of 991/2.

Details on the new pricing are not out as of yet, the source remarked.

Morgan Stanley Senior Funding Inc. is the sole lead arranger on the repricing deal and a joint bookrunner with TD Securities (USA) LLC and Fifth Third Securities Inc.

Following the news, the company's term loan B held steady in trading, with levels quoted at par bid, par ½ offered, the source added.

TowerCo is a Cary, N.C.-based owner and leaser of communication towers.

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