Lantheus frees up; GNC seeks reworked loan deal; Calpine, SunSource set talk with launch

By Sara Rosenberg

New York, Nov. 27 – Lantheus Medical Imaging Inc. firmed the spread on its term loan at the tight side of guidance and then the debt made its way into the secondary market on Monday above its issue price.

In more happenings, GNC Holdings Inc. relaunched its refinancing transaction to include all term loan debt and remove plans for a bond offering, Calpine Corp. and SunSource Holdings Inc. released price talk with launch, and details surfaced on CSRA Inc.’s proposed loan transaction.

Furthermore, BMC Software, Varsity Brands Inc., ABC Financial Inc., Dealogic, Continental Building Products Operating Co. LLC, Autodata Inc., Gemini HDPE LLC, AccentCare, Direct ChassisLink Inc., Duff & Phelps Corp., CenseoHealth & Advance Health and American Gaming Systems joined the near-term calendar.

Lantheus updated, breaks

Lantheus Medical Imaging set pricing on its $274 million term loan (B+) at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months intact, according to a market source.

After terms finalized, the loan freed to trade on Monday and levels were quoted at par 1/8 bid, par 5/8 offered, the source said.

Citizens Bank and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan from Libor plus 450 basis points with a 1% Libor floor.

Lantheus Medical is a North Billerica, Mass.-based developer, manufacturer, seller and distributor of diagnostic imaging agents.

GNC revised

GNC Holdings modified its loan deal to consist of a $300 million term loan B-1 due Jan. 31, 2020 talked at Libor plus 850 bps to 900 bps with a 1% Libor floor and an original issue discount of 96, and a $905 million term loan B-2 due Jan. 31, 2021 talked at Libor plus 950 bps to 1,000 bps with a 1% Libor floor and a discount of 96, a market source said.

Both loans are non-callable for one year then at 102 in year two, the term loan B-1 has amortization of 10% per annum and the term loan B-2 has amortization of 5% per annum.

By comparison, the company initially came to market this month with a $705 million five-year term loan B talked at Libor plus 700 bps with a 1% Libor floor, an original issue discount of 97.5 to 98 and hard call protection of 102 in year one and 101 in year two, and was also planning on issuing $500 million of senior secured notes.

Commitments are due at noon ET on Thursday, the source added.

Bank of America Merrill Lynch, Barclays, BMO Capital Markets, Citizens Bank and J.P. Morgan Securities LLC are leading the deal that will be used to repay existing credit facilities.

GNC is a Pittsburgh-based specialty health, wellness and performance retailer.

Calpine holds call

Also in the primary market, Calpine surfaced in the morning with plans to hold a lender call at 3:30 p.m. ET on Monday to launch $2,659,000,000 in term loans (Ba2/BB), a market source remarked.

The debt consists of a $1,564,000,000 term loan B-5 due January 2024, a $540 million term loan B-6 due January 2023 and a $555 million term loan B-7 due May 2023, all talked at Libor plus 225 bps to 250 bps with a 0% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, the source added.

Commitments are due at noon ET on Thursday.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used to reprice an existing term loan B-5 down from Libor plus 275 bps with a 0.75% Libor floor, and existing term B-6 and term B-7 loans down from Libor plus 275 bps with a 0% Libor floor.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.

SunSource guidance emerges

SunSource held its lender call in the late morning, launching its $235 million seven-year first-lien term loan (B2/B) at talk of Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

Commitments are due at noon ET on Dec. 6, the source said.

Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, ING, Natixis and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice.

SunSource is an Addison, Ill.-based distributor of fluid power and motion control technologies.

CSRA proposal details

CSRA intends to launch on its previously announced lender call at 10 a.m. ET on Tuesday a $200 million add-on term loan B, according to a market source.

The company will also launch an amendment and extension of its existing $700 million revolver and $1,549,000,000 term loan A-2 to extend maturities to November 2022, the source said.

Commitments for the term loan B are due on Dec. 5 and approvals from pro rata lenders to the amendment and extension are due by Dec. 12.

MUFG is leading the deal.

The add-on term loan B will fund at year end and be used to repay revolver borrowings used to finance a portion of the recent acquisitions of NES Associates and Praxis Engineering.

Currently, the term loan B due November 2023 is sized at $650 million and priced at Libor plus 200 bps with a 0% Libor floor.

Pro forma leverage would be around 3 times including the add-on term loan B.

CSRA is a Falls Church, Va.-based provider of next-generation IT solutions and professional services to help government clients enhance public safety and support the well-being of U.S. citizens.

BMC plans refi/reprice

BMC Software scheduled a lender call for 10:30 a.m. ET on Tuesday to launch $2,482,000,000 in term debt due September 2022 and €924 million in term debt due September 2022, a market source said.

The U.S. term debt is split between a $150 million tack-on loan talked at Libor plus 325 bps to 350 bps with a 0% Libor floor and an original issue discount of 99.5 and a repricing of an existing $2,332,000,000 term loan talked at Libor plus 325 bps to 350 bps with a 0% Libor floor and a par issue price, the source continued.

The euro debt is split between a €240 million tack-on loan and a repricing of an existing €684 million term loan, both talked at Euribor plus 375 bps with a 0% floor and a discount of 99.75 to par.

All of the term loans (B1/B+) are getting 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Dec. 6, the source added.

Credit Suisse is the left lead on the deal, and other leads include Goldman Sachs, HSBC and Mizuho.

The tack-on loans will be used to refinance existing debt, the U.S. term loan repricing will take the existing loan down from Libor plus 375 bps with a 1% Libor floor and the euro loan repricing will take the existing loan down from Euribor plus 450 bps with a 0% floor.

BMC is a Houston-based provider of IT digital enterprise management solutions.

Varsity Brands coming soon

Varsity Brands set a lender call for Wednesday to launch a $1,125,000,000 seven-year first-lien term loan that includes 101 soft call protection for six months, according to a market source.

The company is also getting a $500 million privately placed eight-year second-lien term loan that has call protection of 102 in year one and 101 in year two, the source said.

Jefferies LLC, Barclays and Cowen are leading the deal, which will be used to repay existing debt.

Varsity Brands is a Memphis, Tenn.-based provider of sports, cheerleading and achievement-related products to schools.

ABC Financial on deck

ABC Financial will hold a bank meeting at 10:30 a.m. ET on Wednesday to launch $285 million of first-lien senior secured credit facilities, according to a market source.

The facilities consist of a $25 million five-year revolver and a $260 million seven-year first-lien term loan that has 101 soft call protection for six months, the source said.

The company is also getting a privately placed $115 million eight-year second-lien term loan that has hard call protection of 102 in year one and 101 in year two.

Jefferies LLC, Macquarie Capital and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Thoma Bravo LLC.

Closing is expected in the fourth quarter, subject to customary conditions and regulatory approvals.

ABC Financial is a Little Rock, Ark.-based software and payment processing company.

Dealogic recapitalizing

Dealogic set a bank meeting for Dec. 4 to launch a $660 million senior secured term loan, a market source remarked.

UBS Investment Bank is leading the deal that will be used to help fund a recapitalization in connection with the acquisition by ION Investment Group of a controlling stake in the company. The Carlyle Group and management are retaining significant ownership in Dealogic.

Closing is expected this quarter, subject to customary approvals.

Dealogic is a New York and London-based provider of data and analytics, market intelligence and capital markets software solutions for financial institutions.

Continental Building repricing

Continental Building Products will hold a lender call at 10 a.m. ET on Tuesday to launch a $270 million covenant-light first-lien term loan (Ba3/BBB-) due August 2023 talked at Libor plus 225 bps with a 25 bps step-down, a 0.75%Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due on Dec. 4, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 250 bps with a 0.75% Libor floor.

Continental Building is a Herndon, Va.-based manufacturer of wallboard and gypsum-based products.

Autodata joins calendar

Autodata scheduled a bank meeting for noon ET in New York on Wednesday to launch $385 million of senior secured credit facilities, a market source said.

The facilities consist of a $25 million revolver, a $260 million first-lien term loan and a $100 million second-lien term loan, the source added.

RBC Capital Markets and KKR Capital Markets are leading the deal that will be used to capitalize the business as a standalone entity.

Autodata, a Kohlberg Kravis Roberts & Co. LP portfolio company that was carved out of the Internet Brands Inc., is a provider of data and software solutions that power the automotive industry.

Gemini HDPE plans call

Gemini HDPE will hold a lender call at 10 a.m. ET on Tuesday to launch a $406 million seven-year senior secured term loan B (BB), according to a market source.

Barclays is leading the deal that will be used to amend an existing term loan B.

Gemini HDPE is a bimodal, high-density polyethylene plant in Texas.

AccentCare readies deal

AccentCare is set to hold a lender call on Tuesday to launch add-on first-lien facilities and a repricing of its existing first-lien credit facilities, according to a market source.

The add-on debt will be used for acquisition purposes, the source said.

Capital One is leading the deal.

The company’s existing facilities consist of a $50 million revolver, a $164 million first-lien term loan and a $60 million second-lien term loan.

AccentCare, an Oak Hill portfolio company, is a Dallas-based home health provider.

Direct ChassisLink on deck

Direct ChassisLink intends to hold a bank meeting at 10:30 a.m. ET in New York on Wednesday to launch a new loan transaction, a market source said.

Citigroup Global Markets Inc. is the left lead on the deal that will be used to fund the acquisition of TRAC Intermodal’s fleet of about 72,000 53-foot domestic chassis and related customer and hosting contracts with Class I railroads and intermodal shipping companies.

Closing is expected in January, subject to customary conditions.

Direct ChassisLink is a Charlotte, N.C.-based provider of chassis leasing.

Duff & Phelps sets timing

Duff & Phelps will hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a senior secured credit facility, a market source remarked.

UBS Investment Bank is leading the deal that will be used to help fund the buyout of the company by Permira from the Carlyle Group, Neuberger Berman, the University of California’s Office of the Chief Investment Officer of the Regents and Pictet & Cie for $1.75 billion.

Closing is expected in the first quarter of 2018, subject to customary conditions.

Duff & Phelps is a New York-based independent advisor with expertise in the areas of valuation, corporate finance, disputes and investigations, compliance and regulatory matters, and other governance-related issues.

CenseoHealth schedules meeting

CenseoHealth & Advance Health set a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch a new senior secured credit facility, according to a market source.

UBS Investment Bank is leading the debt that will be used to help fund the buyout of the company.

CenseoHealth is a Dallas-based provider of in-home health assessments conducted by physicians.

American Gaming readies loan

American Gaming Systems scheduled a lender call for 10:30 a.m. ET on Wednesday to launch an incremental term loan, a market source said.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

American Gaming is a Las Vegas-based manufacturer and operator of gaming machines.

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