Fresenius, International Lease break; Lyondell, RE/MAX set price talk; RadNet details emerge

By Sara Rosenberg

New York, March 15 - Fresenius SE and International Lease Finance Corp.'s new term loans allocated and freed up for trading during Monday's market hours, and all of the tranches were trading above their issue price.

Over in the primary market, Lyondell Chemical Co. and RE/MAX International Inc. released price talk on their credit facilities as the deals were presented to lenders, and Ashland Inc. launched its pro rata deal.

Also on the new deal front, RadNet Inc. came out with details on the size and structure of its credit facility that is gearing up to launch with a bank meeting on Tuesday afternoon, price talk on Wyle Services Corp.'s credit facility surfaced, and Phillips-Van Heusen Corp. and Ozburn-Hessey Holding Co. LLC announced plans for new deals.

And, Provo Craft reworked its credit facility structure, shifting some funds between the tranches, increasing pricing on the term loan, firming the original issue discount at the high end of talk and adding call protection.

Fresenius frees to trade

Fresenius' term loan C (BBB-), comprised of an approximately $996 million tranche and a roughly €165 million tranche, hit the secondary market and was quoted atop the par price at which the debt was issued during syndication, according to a market source.

The term loan C opened at par ¼ bid, par ¾ offered and then headed up to par ½ bid, 101 offered, the source said.

Pricing on the term loan C is Libor plus 300 basis points with a step-down to Libor plus 275 bps after March 31, 2011 if leverage is 3.5 times or less.

There is a 1.5% Libor floor and 101 soft call protection for one year.

During syndication, the step-down in pricing was added and the Libor floor was reduced from 1.75%.

Fresenius led by Deutsche

Deutsche Bank is the lead bank on Fresenius' new term loan C that will be used to refinance the existing term loan B that is priced at Libor plus 350 bps with a 3.25% Libor floor.

The term loan C will mature in September 2014, the same maturity as the existing term loan B.

All existing term loan lenders are getting 100 bps, which is the existing call protection, and consenting lenders to the amendment that was launched in conjunction with the term loan C are getting 25 bps.

Fresenius is a Bad Homburg, Germany-based provider of products and services for individuals undergoing dialysis.

International Lease breaks

International Lease's $1.3 billion in term loans also freed up for trading on Monday above their issue prices, according to traders.

One trader said that the $750 million senior secured term loan (Ba2/BBB/BBB-) was quoted at 101 bid, 101¼ offered on the break and then it rose to 101½ bid, 101¾ offered. A second trader had the loan quoted at 101½ bid, 102 offered.

Meanwhile, the $550 million six-year term loan (Ba3/BBB-/NA) was quoted by the first trader at par ½ bid, par ¾ offered on the break and then at par ½ bid, par 5/8 offered, and by the second trader at par ¼ bid, par ¾ offered.

International Lease pricing

Pricing on International Lease's $750 million loan is Libor plus 475 bps and pricing on the $550 million loan is Libor plus 500 bps. Both terms loans include a 2% Libor floor and were sold at an original issue discount of 98.

During syndication, pricing on the $750 million term loan firmed at the tight end of initial talk of Libor plus 475 bps to 500 bps and the $550 million term loan was added to the deal.

Bank of America and Goldman Sachs are the lead banks on the loans that will be used to refinance existing debt.

Each term loan has its own package of airplanes as security and each is being raised for a separate entity.

International Lease is a Los Angeles-based leaser and remarketer of advanced technology commercial jet aircraft to airlines.

Lyondell guidance

Switching to the primary, Lyondell Chemical held a bank meeting on Monday with a 10:30 a.m. ET start time to kick off syndication on a proposed $2.75 billion credit facility, and in connection with the launch, price talk was announced, according to sources.

The $1 billion six-year senior secured term loan B is being talked in the Libor plus 425 bps area with a 2% Libor floor, one source remarked, adding that the original issue discount is still to be determined.

And, the $1.75 billion ABL revolver is being talked at Libor plus 375 bps, a second source said.

Covenants under the term loan B include a maximum first-lien leverage ratio and a minimum interest coverage ratio.

UBS, Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, JPMorgan, Morgan Stanley and Wells Fargo are the joint bookrunners on the term loan B, and they are asking for commitments by late in the week of March 22. Citigroup is the left lead on the ABL revolver.

Lyondell funding exit

Proceeds from Lyondell's credit facility, $2.25 billion of 71/2-year senior secured notes, a new European securitization facility and a $2.8 billion rights offering will be used to repay and replace existing debt, including the company's debtor-in-possession facilities and an existing European securitization facility and to make related payments, when the company exits bankruptcy.

The company has entered into an equity commitment agreement with Apollo Management VII LP, Access Industries and Ares Corporate Opportunities Fund III LP to backstop the equity rights offering by purchasing any shares of common stock left over by senior creditors.

The hearing to confirm the company's plan of reorganization will begin on April 23.

Lyondell is a U.S. subsidiary of LyondellBasell Industries AF SCA, a Netherlands-based polymer, petrochemicals and fuels company.

RE/MAX price talk

Also coming out with price talk was RE/MAX, as it, too, held a bank meeting, according to a market source.

The company's $215 million term loan B is being talked at Libor plus 400 bps with a 1.75% Libor floor and an original issue discount of 99, the source said.

JPMorgan is the lead bank on the $225 million deal that also includes $10 million revolver.

Proceeds will be used to refinance existing debt and fund a dividend payment.

RE/MAX is a Denver-based real estate company.

Ashland launches

Another deal to launch on Monday was Ashland's $800 million pro rata credit facility, according to a market source.

The facility consists of a $500 million revolver and a $300 million term loan A.

Bank of America and Scotia are the lead banks on the deal that will be used to refinance existing debt.

Ashland is a Covington, Ky.-based provider of specialty chemical products and services.

RadNet sets size, tranching

RadNet revealed on Monday that the proposed credit facility (Ba3/B+) that will be launching with a bank meeting in New York on Tuesday at 1 p.m. ET will carry a total size of $375 million.

The company said in a news release that the facility is comprised of a $275 million six-year term loan and a $100 million five-year revolver that is expected to be undrawn at close.

Barclays Capital, GE Capital Markets, Deutsche Bank, RBC Capital Markets and Jefferies are the lead banks on the deal.

Security is a first-priority interest in all of the company's tangible and intangible assets, including, but not limited to, a stock pledge of all of the its current and future wholly owned domestic subsidiaries.

RadNet refinancing debt

RadNet will use proceeds from its proposed credit facility to help refinance its existing revolver due 2011, term loan B due 2012 and second-lien loan due 2013.

Other funding for the refinancing will come from a $210 million senior unsecured notes offering. Completion of the credit facility is contingent on completion of the notes.

The refinancing transaction, upon completion, would extend the maturity of the company's debt, increase the size of its revolver by about $45 million and further enhance its liquidity by adding approximately $25 million of cash to its balance sheet.

Closing on the refinancing is expected in early April.

RadNet earnings announced

Also on Monday, RadNet came out with fourth-quarter numbers, including net income of $637 million, or $0.02 per share, compared to a net loss of $5.35 million, or $0.15 per share, in the prior year.

Net revenue for the quarter was $132 million, up from $127 million in the 2008 fourth quarter.

Adjusted EBITDA for the quarter was $27 million, up around $4.5 million from $22.5 million in the previous year.

During 2009, the company generated $25.4 million of free cash flow, which contributed to the reduction of net debt by $25.1 million during the year. The ratio of net debt to adjusted EBITDA decreased to 4.17 times at Dec. 31, 2009 from 4.74 times at Dec. 31, 2008.

RadNet is a Los Angeles-based provider of diagnostic imaging services.

Wyle sets talk

Price talk on Wyle Services' $115 million credit facility (BB), which launched on Thursday afternoon, emerged at Libor plus 425 bps with a 2% Libor floor, according to a market source. The spread is on a grid that can range from Libor plus 425 bps to 525 bps based on leverage.

The deal consists of a $25 million revolver and a $90 million term loan.

The term loan is being offered with an original issue discount in the 98½ area, the source added.

Barclays and JPMorgan are the lead banks on the deal that will be used to refinance existing debt.

Wyle is an engineering firm specializing in high-tech testing, life sciences and technical-support services to federal government agencies, including the Department of Defense and NASA.

Phillips Van-Heusen readies loan

Phillips-Van Heusen said that it plans on getting a new $2.45 billion senior secured credit facility to help fund its acquisition of Tommy Hilfiger BV, an apparel company, from Apax Partners LP and refinance $300 million of its existing senior unsecured notes due in 2011 and 2013.

A senior managing agent for the pro rata tranches under the credit facility is expected to take place in March and the retail bank meeting for the entire deal is anticipated as April business, according to a market source.

Tranching on the New York-based apparel company's credit facility is comprised of a $450 million revolver expected to be undrawn at close, a $500 million term loan A and a $1.5 billion term loan B, the source remarked.

Barclays Capital and Deutsche Bank are the global debt coordinators and bookrunners on the deal, with Barclays the left lead. Other bookrunners include Bank of America, Credit Suisse and RBC Capital Markets.

Phillips Van-Heusen selling notes

Phillips-Van Heusen expects that other funding for the acquisition and the refinancing will come from $600 million of senior unsecured notes that could be issued in both U.S. dollar and euro tranches, company officials said in a conference call on Monday.

Also, the company will issue $200 million of perpetual convertible preferred stock and roughly $200 million of common stock, and use $385 million of cash on hand.

Under the acquisition agreement Phillips-Van Heusen is purchasing Tommy Hilfiger for €2.2 billion (approximately $3 billion) plus the assumption of €100 million in liabilities.

Closing of the transaction is anticipated for the company's second fiscal quarter, subject to receipt of financing and other customary conditions, including receipt of required regulatory approvals.

At close, the pro forma debt to EBITDA ratio is anticipated to be 3.6 times, but this is expected to drop to 2.0 times at the end of fiscal 2012 due to deleveraging with strong free cash flow.

Ozburn-Hessey coming this week

Ozburn-Hessey is expected to hold a bank meeting on Friday to launch its proposed $380 million credit facility (B), according to a market source.

Tranching on the deal is comprised of a $35 million revolver and a $345 million term loan B, the source said.

Bank of America is the lead bank on the deal that will be used to refinance existing debt.

Ozburn-Hessey is a Brentwood, Tenn.-based third party logistics provider.

Prove Craft tweaks deal

Provo Craft made some changes to its credit facility, including increasing the term loan to $130 million from $120 million, while decreasing the revolver to $40 million from $50 million, according to a market source.

In addition, pricing on the term loan was flexed up to Libor plus 600 bps from the Libor plus 550 bps area, the original issue discount firmed at 97, the wide end of the 97 to 97½ talk, and call protection of 102 in year one and 101 in year two was added, the source said.

As before, the term loan includes a 2% Libor floor.

Prior to launch, unofficial talk on the term loan was circulating as Libor plus 500 bps with a 2% Libor floor and an original issue discount of 98.

Provo Craft being acquired

Proceeds from Provo Craft's $170 million facility (B1/B+), along with $65 million of mezzanine debt, will be used to help fund the buyout of the company by BAML Capital Partners.

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

Senior leverage is around 2.3 times and total leverage is around 3.6 times.

Provo Craft is a Spanish Fork, Utah-based manufacturer and distributor of craft, hobby and education products.

MultiPlan closes

In other news, MultiPlan Inc. announced in a news release on Monday that it completed its acquisition of Viant Inc.

To help fund the transaction, MultiPlan got a new $315 million incremental senior secured term loan (B+) priced at Libor plus 425 bps with a 1.5% Libor floor. It was sold at an original issue discount of 99.

Goldman Sachs, Bank of America and Credit Suisse acted as the joint lead arrangers on the deal.

MultiPlan is a New York-based provider of health care cost management services. Viant is a Naperville, Ill.-based provider of health care payment services.

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