RCS softens again; White Birch modifies loan; Total Merchant floats spread guidance

By Sara Rosenberg

New York, Nov. 4 – RCS Capital Corp.’s first-lien term loan continued its slide in the secondary market on Tuesday on the back of news of a terminated acquisition agreement.

Moving to the primary market, White Birch Paper sweetened pricing, the original issue discount and call protection on its term loan and made some other investor-friendly changes, such as shortening the maturity and adding a financial covenant.

Also, Total Merchant Services Inc. disclosed spread talk ahead of its bank meeting, timing on Tibco Software Inc.’s credit facility surfaced, and Mueller Water Products Inc. and Multi Packaging Solutions Inc./Chesapeake MPS Merger Ltd. emerged with new loan plans.

RCS Capital’s first-lien term loan fell in trading on Tuesday to 96 bid, 98 offered from 96½ bid, 98½ offered as investors continued to react to news that the company cancelled its plans to acquire Cole Capital Partners LLC and Cole Capital Advisors Inc. from American Realty Capital Properties Inc., according to a trader.

Prior to the news, the loan was quoted at 98¼ bid, 99½ offered.

RCS did not give a reason for the termination of the purchase agreement.

The acquisition of the Phoenix, Ariz.-based private capital business was valued at $700 million, consisting of $200 million of cash, $300 million of seller debt, and $200 million of class A common stock.

In response to RCS’ announcement, American Realty remarked in a press release that RCS had no basis for the termination and is therefore in breach of the agreement.

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