Warner Chilcott, Wrigley break; Cooper-Standard trims spread; Targa cuts tranche sizes

By Sara Rosenberg

New York, Dec. 16 - In the secondary market on Wednesday, Warner Chilcott plc's add-on to its term loan B-1 freed up for trading, and Wm. Wrigley Jr. Co.'s term loan B-1 and term loan B-2 started trading as well.

Moving to the primary market, Cooper-Standard Automotive Inc. lowered pricing on its well-received debtor-in-possession term loan and Targa Resources Inc. downsized both its proposed revolver and its proposed term loan.

Also, details on One Call Medical Inc.'s proposed buyout financing credit facility surfaced, and MEG Energy Corp.'s new money facility and amend and extend have amassed a substantial amount of commitments with days still left before the books close.

Warner Chilcott frees to trade

Warner Chilcott's $350 million add-on to its term loan B-1 hit the secondary market during the session, with levels quoted above par, according to sources.

The add-on was quoted at par 1/8 bid, par 3/8 offered pretty steadily throughout the day, sources said.

And, the company's strip of term loan B-1 and term loan B-2 debt, which the add-on is a part of and which a delayed-draw term loan is being removed from, was also quoted at par 1/8 bid, par 3/8 offered, sources added.

The term loan B-1 add-on is priced at Libor plus 350 basis points with a 2.25% Libor floor, which is the same as the existing term loan B-1 pricing.

However, the add-on was sold to investors at an original issue discount of 99 5/8. By comparison, the existing term loan B-1 was sold at an original issue discount price of 99 when it was syndicated not too long ago.

Warner Chilcott buying bonds

Proceeds from the add-on will be used by Warner Chilcott to refinance 8.75% senior subordinated notes due 2015.

A tender offer for the notes was announced and Wednesday and is set to expire on Jan. 14.

In connection with this new B-1 add-on, the company is eliminating its unfunded delayed-draw term loan that was established to fund the put of certain bonds, since that put didn't occur.

Bank of America is the left lead bank on the deal.

Warner Chilcott is a Rockaway, N.J.-based specialty pharmaceutical company.

Wrigley breaks

Also freeing up for trading on Wednesday was Wrigley's new term loans, with the $850 million five-year term loan B-2 quoted at par 3/8 bid, par ¾ offered and the $1 billion three-year term loan B-1 quoted at 99 5/8 bid, par 1/8 offered, according to a trader.

The five-year term loan B-2 is priced at Libor plus 300 bps and the three-year term loan B-1 is priced at Libor plus 275 bps.

Both tranches were sold at an original issue discount of 99½ and carry 101 soft call protection for one year.

During syndication, the term loan B-2 was downsized from $1.1 billion and the original issue discount on the tranche was lowered from 991/4.

Wrigley lead banks

JPMorgan and Goldman Sachs are the lead arrangers on the $1.85 billion Wrigley deal that will be used, along with new unsecured debt and cash on hand, to refinance existing term loan B borrowings.

As a result of the term loan downsizing, the company will now get 1.15 billion of notes, up from $1 billion, and use an additional $100 million in cash on hand.

In connection with the new deal, Wrigley is amending its existing credit facility to allow for the unsecured notes and the new term loans, and allow for the refinancing of the existing revolver and term loan A, and the new term loans at a later date with pari passu bonds or unsecured bonds or loans.

JPMorgan is running the amendment for the company.

Wrigley is a Chicago-based confections company.

Cooper-Standard tweaks pricing

Switching to new deal happenings, Cooper-Standard Automotive reverse flexed pricing on its $175 million debtor-in-possession term loan and gave lenders until 5 p.m. ET on Wednesday to commit to the revised deal, according to sources.

The DIP term loan is now priced at Libor plus 600 basis points, down from initial talk of Libor plus 650 bps, sources said.

As before the loan has a 2% Libor floor and is being sold with no original issue discount.

Deutsche Bank is the lead bank on the deal.

Cooper-Standard repricing loan

Proceeds from Cooper-Standard's DIP term loan will be used to refinance an existing DIP loan that will be repaid at a price of 101.

Through this transaction, the company is basically just trying to reprice its existing DIP term loan, which carries an interest rate of Libor plus 950 bps and includes a 3% Libor floor.

Maturity on the new DIP loan is Aug. 3, 2010, the same as the maturity on the existing DIP loan.

Allocations on the new loan are expected to go out on Thursday.

Cooper-Standard, a Novi, Mich.-based manufacturer and marketer of systems and components for the automotive industry, obtained the existing DIP loan a few months ago when the primary market was not nearly as strong.

Targa tweaks size

Targa Resources reduced the size of its credit facility, cutting the 61/2-year term loan B to $500 million from $550 million and the 41/2-year revolver to the area of $125 million to $130 million from $150 million, according to sources.

Price talk on the two tranches is still Libor plus 400 bps to 425 bps, and the term loan B is still being talked with a 2% Libor floor and an original issue discount of 98½ to 99.

The revolver has a 75 bps unused fee.

Deutsche Bank, Credit Suisse and Citadel are the leads on the now up to $630 million, down from $700 million, deal (B1/BB-).

Targa refinancing debt

Proceeds from Targa's credit facility will be used to refinance $250 million of 8½% senior unsecured notes due 2013, an existing senior secured term loan due in 2012 and a portion of Targa Resources Investments Inc.'s holdco loan due 2015.

As a result of the term loan B downsizing, less of the holdco loan than was originally planned will be taken out, and the revolver downsizing was done given the lower needs at the opco company, sources explained.

Covenants under the proposed credit facility include maximum total leverage of 5.75 times in 2010 and 2011, stepping down to 5.50 times in 2012 and 5.25 times in 2013 and thereafter, and a minimum interest coverage ratio of 1.50 times.

Commitments toward the credit facility were due at 5:00 p.m. ET on Wednesday with closing targeted for late this month.

Targa is a Houston-based provider of midstream natural gas and natural gas liquid.

One Call structure, talk

Structure and price talk emerged on One Call Medical's proposed $88 million credit facility that is being syndicated in a club style with existing lenders and relationship lenders to the sponsor, according to a market source.

The facility consists of a $15 million revolver and a $73 million term loan, with both tranches talked at Libor plus 575 bps with a 2% Libor floor and an original issue discount of 98, the source said.

Bank of Ireland and GE Capital are the lead banks on the deal. There was no official launch for the transaction.

Proceeds will be used to help fund the buyout of One Call Medical by Odyssey Investment Partners LLC from TA Associates.

Completion of the acquisition, which is expected before the end of the year, is subject to customary closing conditions.

One Call Medical is a Parsippany, N.J.-based medical cost containment company.

MEG book coming together

MEG Energy has a substantial book built on its $450 million new money credit facility (B2/BB+) ahead of the Friday commitment deadline and there appears to be continued positive momentum, according to a market source.

The facility consists of a $150 million revolver due in January 2013 and a $300 million term loan due in April 2016, with both tranches talked at Libor plus 400 bps.

The new term loan is being offered with an original issue discount of 98½ and a 2% Libor floor.

And, the new revolver is being offered at a discount of 98 with no Libor floor.

Barclays and Credit Suisse are the joint bookrunners on the deal that will be used for future expenditures and continued development.

MEG amend and extend nets interest

In addition to the new credit facility, MEG Energy is looking to amend and extend term loan debt, and, so far, it looks as if a significant number of commitments will be extended, the source said.

The company wants to push out the maturities on about $750 million of existing term loan debt to April 2016. Currently, most of the term loan debt matures in 2013 and a small piece matures in 2014.

Price talk on the extended term loans is Libor plus 400 bps, compared to pricing on the non-extended loan of Libor plus 200 bps.

The extended term loans have a 2% Libor floor and are being offered with 75 bps of fees, comprised of a 60 bps extension fee and a 15 bps amendment fee.

Commitments and consents towards the amend and extend are also due on Friday.

MEG Energy is a Calgary, Alta.-based oil sands development company.

AMN shuts books

AMN Healthcare Services Inc. wrapped up syndication of its proposed $185 million credit facility on Wednesday, according to a market source.

The facility consists of a $75 million three-year revolver and a $110 million four-year term loan, with both tranches priced in line with talk at Libor plus 400 bps, the source said.

The term loan has a 2.25% Libor floor and was sold at an original issue discount of 96.

Bank of America and SunTrust are the lead banks on the deal that will be used to refinance the company's existing credit facility, with Bank of America the left lead.

AMN is a San Diego-based health care staffing company.

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