First Data dips on refi; Tribune Publishing breaks; American Energy, AmSurg revisions emerge

By Sara Rosenberg

New York, July 7 – First Data Corp.’s 2018 term loans were weaker in the secondary market on Monday as the company approached lenders with a proposed refinancing of the debt, and Tribune Publishing Co. freed up for trading.

Moving to the primary, American Energy – Marcellus LLC tightened spreads and the original issue discounts on its first- and second-lien term loans, and AmSurg Corp. added a pricing step-down to its term loan B and lowered the Libor floor.

Furthermore, Ipreo Holdings LLC released talk with launch, and Gemini HDPE LLC, Onsite Rental Group, Cactus Wellhead LLC, Correct Care Solutions (CCS Intermediate Holdings LLC), The Mutual Fund Store (TMFS Holdings LLC), Paradigm Holdco Sarl and Sinclair Television Group Inc. joined this week’s calendar.

First Data softens

First Data’s March and September 2018 U.S. term loans were lower in trading on Monday following news that the company launched a refinancing, according to a market source.

The term loans were quoted at 99¾ bid, par ¼ offered, down from par 1/8 bid, par 3/8 offered, the source said.

For the refinancing, the company is seeking a $4.25 billion first-lien term loan due March 2018, a €311 million first-lien term loan due March 2018 and a $1,008,000,000 first-lien term loan due September 2018, all talked at Libor/Euribor plus 350 basis points with no Libor floor, and an original issue discount of 99½ for new money and 99¾ for existing money, another source remarked.

By comparison, the existing term loans due in March and September 2018 that are being taken out are priced at Libor/Euribor plus 400 bps with no Libor floor.

Leads, Credit Suisse Securities (USA) LLC and KKR Capital Markets, are asking for commitments for the new loans by 4 p.m. ET on Tuesday.

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

Tribune hits secondary

Also in trading, Tribune Publishing’s credit facility broke, with the $350 million seven-year senior secured covenant-light term loan (B1/B+) quoted at 99½ bid, par offered, a source said.

Pricing on the term loan is Libor plus 475 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from talk of Libor plus 400 bps to 425 bps, the discount firmed at the high end of revised talk of 99 to 99¼ and wide of initial talk of 99½, the call protection was extended from six months, amortization was sweetened to 5% from 1% per annum, the incremental allowance was cut to $100 million from $150 million and the MFN was set for life.

The $490 million facility also includes a $140 million five-year asset-based revolver (BB).

J.P. Morgan Securities LLC is the left lead on the deal that is being done in connection with the company’s separation from Tribune Co. and will be used for working capital and to fund a dividend.

Tribune Publishing, a Chicago-based newspaper publishing and local news and information gathering company, expects to close on the transaction in the third quarter.

American Energy flexes

Over in the primary, American Energy – Marcellus cut pricing on its $750 million six-year first-lien covenant-light term loan (Ba3/B-) to Libor plus 425 bps from Libor plus 450 bps and moved the original issue discount to 99½ from 99, according to a market source, who said the 1% Libor floor and 101 soft call protection for six months were unchanged.

In addition, pricing on the $450 million seven-year second-lien covenant-light term loan (Caa1/CCC) was lowered to Libor plus 750 bps from Libor plus 800 bps and the discount was modified to 98½ from 98, the source continued. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Commitments continue to be due at 5 p.m. ET on Tuesday.

American Energy buying assets

Proceeds from American Energy – Marcellus’ $1.2 billion of senior secured term loans will be used to fund the acquisition of about 48,000 net acres of leasehold in Doddridge, Harrison, Marion, Tyler and Wetzel Counties, W.Va., from East Resources Inc. and an unnamed private company, and $300 million of the first-lien term loan will be used to fund a capital expenditures reserve account.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading the deal that is expected to close on Aug. 4.

American Energy – Marcellus is an American Energy Partners LP platform company. Oklahoma City-based American Energy Partners was founded by Aubrey K. McClendon in April 2013 to capitalize on opportunities available in unconventional resource plays onshore in the United States.

AmSurg tweaks deal

AmSurg added a step-down to its $870 million seven-year covenant-light term loan B to Libor plus 275 bps when total leverage is less than 4.5 times and trimmed the Libor floor to 0.75% from 1%, according to a market source.

Pricing on the term loan remained at Libor plus 300 bps with an original issue discount of 99¾, and there is still 101 soft call protection for six months.

Last week, the term loan B was downsized from $1.09 billion because the company’s senior unsecured notes offering was upsized to $1.1 billion from $880 million, the spread was reduced from Libor plus 325 bps and the discount was tightened from 99½.

The company’s $1.17 billion senior secured credit facility (BB-) also includes $300 million five-year revolver.

Recommitments were due at 5 p.m. ET on Monday, the source added.

AmSurg lead banks

Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Bank of America Merrill Lynch, Jefferies Finance LLC and Wells Fargo Securities LLC are leading AmSurg’s credit facility.

Proceeds from the loan, notes, cash on hand, the issuance of common stock and a mandatory convertible preferred offering will be used to fund the company’s $2.35 billion acquisition of Sheridan Healthcare from Hellman & Friedman LLC, to repay revolver borrowings and existing senior secured notes, for working capital and to add cash to the balance sheet.

Closing is expected in mid-July, subject to customary conditions and regulatory approvals.

Amsurg is a Nashville-based acquirer, developer and operator of ambulatory surgery centers. Sheridan Healthcare is a Sunrise, Fla.-based provider of multi-specialty outsourced physician services to hospitals, ambulatory surgery centers and other health care facilities.

Ipreo discloses guidance

Also on the primary front, Ipreo held its bank meeting on Monday, launching its $320 million seven-year term loan B with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $365 million senior credit facility (B1/B+) also includes a $45 million revolver.

Commitments are due on July 16, the source added.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Blackstone and Goldman Sachs Merchant Banking Division from Kohlberg Kravis Roberts & Co. LP, who will retain a minority ownership stake in the business.

Ipreo is a New York-based provider of new issuance software services across the equity, fixed-income, municipal and syndicated loan markets.

Gemini joins calendar

Gemini HDPE emerged with plans to hold a bank meeting at 10 a.m. ET on Wednesday to launch a $420 million seven-year senior secured term loan B, according to a market source.

Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to fund the construction and operation of a world scale, high-density polyethylene plant at the existing Ineos Battleground Manufacturing Complex in La Porte, Texas, to provide debt service during construction, and to pay related fees and expenses, the source said.

Gemini HDPE, a 50/50 joint venture between Ineos Gemini HDPE Holding Co. LLC and Sasol Chemicals North America, will be one of the largest bimodal HDPE facilities in the world at completion with a capacity of 470 kilo tons annually.

Onsite coming soon

Onsite Rental Group set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $365 million seven-year first-lien covenant-light term loan, according to a market source.

The company is also getting a A$40 million cash flow revolver, the source said.

Commitments are due on July 23.

Credit Suisse Securities (USA) LLC and UBS AG are leading the deal that will be used to refinance existing debt and fund a dividend.

Onsite Rental is an Australian industrial rental equipment company.

Cactus on deck

Cactus Wellhead plans to hold a bank meeting at 9:30 a.m. ET in New York on Tuesday to launch a $350 million six-year first-lien covenant-light term loan, a market source said.

Commitments are due at 5 p.m. ET on July 22, the source added.

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and fund a dividend.

Cactus Wellhead is a Houston-based provider of wellhead services.

Correct Care readies deal

Correct Care Solutions scheduled a bank meeting for 1 p.m. ET in New York on Tuesday to launch a $385 million credit facility, according to a market source.

The facility consists of a $50 million five-year revolver, and a $335 million seven-year first-lien term loan talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

Credit Suisse Securities (USA) LLC, GE Capital Markets, NXT and Ares are leading the deal.

Additionally, Ares is leading a $170 million second-lien term loan for the company.

Commitments are due on July 18, the source added.

Proceeds will be used to fund the merger of Correct Care Solutions with Correctional Healthcare Cos., a Denver-based provider of correctional health care services, and fund a dividend.

Correct Care is a Nashville, Tenn.-based provider of correctional health care.

Mutual Fund plans facility

Mutual Fund Store set a bank meeting for 2 p.m. ET in New York on Wednesday to launch a $170 million credit facility, according to a market source.

The facility consists of a $20 million revolver and a $150 million seven-year first-lien covenant-light term loan, the source said.

Commitments are due at 5 p.m. ET on July 23.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to refinance existing debt and fund a dividend.

Mutual Fund Store is a provider of fee-based investment advisory services.

Paradigm sets launch

Paradigm Holdco scheduled a call for Thursday to launch about $435 million in covenant-light term loans, according to a market source.

The debt consists of a roughly $340 million first-lien term loan and a $95 million second-lien term loan, the source said.

UBS AG, RBC Capital Markets and Goldman Sachs Bank USA are leading the deal that will be used to reprice and upsize by $40 million the existing first-lien term loan from Libor plus 350 bps with a 1.25% Libor floor, and reprice and downsize by $40 million the existing second-lien term loan from Libor plus 925 bps with a 1.25% Libor floor.

Paradigm is a U.K.-based provider of mission-critical software services for the oil and gas exploration and production industry.

Sinclair plans call

Sinclair Television Group set a call for 10 a.m. ET on Wednesday for credit facility lenders, according to a market source.

RBC Capital Markets is the lead bank on the deal.

No further details are available on the purpose of the call, the source added.

Sinclair is a Hunt Valley, Md.-based television broadcasting company.

Overseas allocates

In other news, Overseas Shipholding Group Inc. allocated its $1.35 billion exit financing credit facility, a source said.

The facility consists of a $75 million 4½-year asset-based revolver at OSG Bulk Ships (domestic borrower) with pricing that can range from Libor plus 225 bps to 275 bps based on availability, a $50 million 4½-year cash-flow revolver at OSG International (international borrower) priced at Libor plus 450 bps with a 1% Libor floor, a $600 million five-year covenant-light term loan (B1) at OSG Bulk Ships priced at Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99, and a $625 million five-year covenant-light term loan (B1) at OSG International priced at Libor plus 475 bps with a 1% Libor floor and a discount of 99.

The term loans have 101 soft call protection for six months.

During syndication, the OSG International revolver was downsized from $75 million, the OSG International term loans was upsized from $600 million and pricing was cut from Libor plus 525 bps, and pricing on the OSG Bulk Ships term loan was trimmed from Libor plus 475 bps. Also, the discount on both term loan firmed at the wide end of the 99 to 99½ talk and the call protection as shortened from one year.

Jefferies Finance LLC is leading the deal for the New York-based tanker company.

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