HealthPort reworks pricing, issue price; Lonestar updates OID; Packers reveals guidance

By Sara Rosenberg

New York, Nov. 13 – In the primary market on Thursday, HealthPort (CT Technologies Intermediate Holdings and Smart Holdings Corp.) lowered the spread on its term loan and modified the original issue discount, and Lonestar Generation LLC set the offer price on its add-on term loan at the tight end of guidance.

In addition, Packers Holdings LLC (PSSI) disclosed price talk with launch, and timing surfaced on Global Cash Access Holdings Inc.’s credit facility.

HealthPort flexes lower

HealthPort trimmed pricing on its $325 million seven-year first-lien covenant-light term loan on Thursday to Libor plus 500 basis points from Libor plus 550 bps and moved the original issue discount to 99 from 98˝, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s $355 million credit facility (B2/B) also includes a $30 million revolver.

Commitments are due at 5 p.m. ET on Friday, the source remarked.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the buyout of the company by New Mountain Capital.

HealthPort is an Alpharetta, Ga.-based provider of release-of-information services for the health care industry.

Lonestar firms OID

Lonestar Generation set the original issue discount on its fungible $160 million add-on senior secured covenant-light term loan B due Feb. 20, 2021 at 99, the low end of the 98 to 99 talk, removed the MFN sunset provision and kept pricing at Libor plus 425 bps with a 1% Libor floor, a market source said.

Commitments for the add-on are due at noon ET on Friday with allocations to follow, the source continued. The deadline was revised from 5 p.m. ET on Friday.

With the add-on, the company is repricing its existing $512 million senior secured covenant-light term loan B due Feb. 20, 2021 to Libor plus 425 bps with a 1% Libor floor from Libor plus 375 bps with a 1% Libor floor, and existing term loan B lenders were offered a 12.5 bps consent fee for the repricing amendment.

As before, all of the term loan B debt is getting 101 soft call protection for six months.

Lonestar lead banks

Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading Lonestar Generation’s loan transaction.

Proceeds from the add-on will be used with an additional equity contribution to acquire Twin Oaks and Walnut Creek and combine them into the Lonestar portfolio.

Closing on the amendment and add-on are expected in mid-to-late November.

Lonestar is an owner of Texas gas-fired power stations.

Packers reveals talk

Also in the primary, Packers Holdings came out with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 to 99˝ and 101 soft call protection for six months on its $355 million seven-year first-lien term loan B that launched with a morning bank meeting, a source remarked.

The company’s $385 million senior credit facility also includes a $50 million revolver.

Commitments are due on Nov. 24, the source added.

Morgan Stanley Senior Funding Inc. and GE Capital Markets are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners LP from Harvest Partners LP.

Packers Holdings is a Kieler, Wis.-based contract sanitation service provider.

Global Cash on deck

Global Cash Access set a bank meeting for Friday to launch its previously announced $850 million senior secured credit facility, according to a market source.

The facility consists of a $50 million five-year revolver and an $800 million seven-year covenant-light term loan B.

Official price talk on the deal is not yet available, however, filings with the Securities and Exchange Commission said that pricing on the revolver is expected at Libor plus 350 bps with a 50 bps unused fee, and the term loan B is expected at Libor plus 400 bps with a 1% Libor floor and 101 soft call protection for six months.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal.

Global Cash buying Multimedia

Proceeds from Global Cash’s credit facility and an expected $400 million senior unsecured notes offering will be used to fund the acquisition of Multimedia Games Holding Co. Inc. for $36.50 per share, for an aggregate purchase price of about $1.2 billion in cash.

The notes are backed by a commitment for a $400 million senior unsecured bridge loan that is priced at Libor plus 675 bps with a 1% Libor floor. The spread will step up by 50 bps every three months until it hits a cap.

Total leverage will be around 5.5 times.

Closing is expected in early 2015, subject to customary conditions, including receipt of Multimedia Games shareholder approval, and antitrust and gaming regulatory approvals

Global Cash is a Las Vegas-based provider of fully integrated cash access and related services to the gaming industry. Multimedia Games is an Austin, Texas-based developer and distributor of gaming technology.

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