Invenergy Thermal, Integro free to trade; Sirius Computer, Greatbatch deal revisions surface

By Sara Rosenberg

New York, Oct. 9 – Invenergy Thermal Operating I LLC’s first-lien term loan B emerged in the secondary market on Friday, with levels quoted above its original issue discount, and Integro Ltd.’s credit facility began trading as well.

Moving to the primary market, Sirius Computer Solutions Inc. lifted spreads on its first- and second-lien term loans while also widening original issue discounts, and extended the call protection on the first-lien tranche.

Also, Greatbatch Ltd. raised pricing on its term loan B and upsized its term loan A, and timing emerged on the launch of Lannett Co. Inc.’s credit facility.

Invenergy starts trading

Invenergy Thermal Operating’s $340 million seven-year term loan B freed up for trading on Friday morning, with levels seen at 98½ bid, 99½ offered, according to a trader.

Pricing on the term loan B is Libor plus 550 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98. The debt has hard call protection of 102 in year one and 101 in year two.

Invenergy is also getting a $70 million revolver and a $200 million privately-placed second-lien term loan.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to retire existing corporate and some project-level debt and to fund reserves.

This credit facility is essentially a restructured version of the deal that the company had brought to market in July but was unable to syndicate. That transaction consisted of a $70 million revolver and a $537 million seven-year term loan B talked at Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Invenergy is a power producer consisting of six gas fired power plants.

Integro hits secondary

Integro’s credit facility broke too, with the first-lien term debt quoted at 96¼ bid, 97¼ offered and the second-lien term debt quoted at 98 bid, par offered, a trader said.

The seven-year first-lien loan consists of a $195 million funded tranche and a $75 million delayed-draw tranche priced at Libor plus 575 bps with a 1% Libor floor, and sold at an original issue discount of 96. The debt has 101 soft call protection for one year.

The eight-year second-lien debt consists of a $105 million funded tranche and a $15 million delayed-draw tranche priced at Libor plus 925 bps with a 1% Libor floor, and issued at a discount of 98. This debt is non-callable for one year, then at 103 in year two and 101 in year three.

Along with the first- and second-lien term loans, the company’s $440 million credit facility includes a $50 million five-year revolver.

Goldman Sachs Bank USA and Jefferies Finance LLC are leading the deal.

First-lien leverage is 3.7 times and second-lien leverage is 5.7 times.

Integro being acquired

Proceeds from Integro’s credit facility will help fund its buyout by Odyssey Investment Partners LLC, which is expected to close in the fourth quarter, subject to customary conditions.

Recently, the funded first-lien term loan was downsized from $220 million, the delayed-draw first-lien term loan was reduced from $90 million, pricing was lifted from talk of Libor plus 475 bps to 500 bps, the discount was revise from 99, the call protection was extended from six months, and the delayed-draw was modified so that it will fully fund at close into escrow as opposed to having a ticking fee of half the coupon from days 31 to 60 and the full coupon plus the floor thereafter.

Also during syndication, the funded second-lien loan was upsized from $80 million, the second-lien delayed-draw piece was added, pricing was changed from talk of Libor plus 875 bps to 900 bps, the discount was adjusted from 98.5, and the call protection was sweetened from 102 in year one and 101 in year two.

Other changes included increasing the excess cash flow sweep, reducing the incremental allowance, removing the 18-month MFN sunset and revising the permitted acquisition definition.

Integro is a New York-based insurance brokerage and risk management firm.

Sirius reworks deal

Switching to the primary market, Sirius Computer Solutions increased pricing on its $445 million seven-year covenant-light first-lien term loan (Ba3/B+) to Libor plus 500 bps from talk of Libor plus 425 bps to 450 bps, changed the original issue discount to 98 from 99 and pushed out the 101 soft call protection to one year from six months, according to a market source, who said the 1% Libor floor was unchanged.

As for the $150 million eight-year covenant-light second-lien term loan (B3/B-), pricing was lifted to Libor plus 950 bps from talk of Libor plus 875 bps to 900 bps and the discount was moved to 97 from 98.5, while the 1% Libor floor and call protection of 102 in year one and 101 in year two were left intact, the source continued.

The company’s $655 million credit facility also includes a $60 million revolver (Ba3/B+).

Recommitments are due at 5 p.m. ET on Tuesday, the source added.

Sirius lead banks

Credit Suisse Securities (USA) LLC, Barclays and Citigroup Global Markets Inc. are leading Sirius Computer’s credit facility.

Proceeds will be used to help fund the buyout of the company by Kelso & Co. from Thoma Bravo and Harvey Najim, the company’s founder, which is expected to close in the fourth quarter, subject to regulatory approvals and other closing conditions.

Sirius is a San Antonio-based provider of data center-focused technology integration services.

Greatbatch changes emerge

Greatbatch widened pricing on its $1,025,000,000 seven-year term loan B to Libor plus 425 bps from Libor plus 375 bps, and kept the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source remarked.

Additionally, the company upsized its six-year term loan A to $375 million from $300 million as its proposed bond offering was downsized to $360 million from $435 million, the source continued.

Pricing on the term loan A is still Libor plus 325 bps, subject to a leverage-based grid, with an original issue discount of 99.75.

The company’s now $1.6 billion credit facility also includes a $200 million five-year revolver.

Greatbatch buying Lake Region

Proceeds from Greatbatch’s credit facility and notes will be used to fund the acquisition of Lake Region Medical, a Wilmington, Mass., provider of outsourced manufacturing and engineering services to the medical device industry.

Credit Suisse Securities (USA) LLC, M&T Bank and Keybanc Capital Markets are leading the deal, with Credit Suisse left lead on the term loan B and M&T left lead on the revolver and term loan A.

Recommitments are due at 3 p.m. ET on Tuesday, the source added.

Greatbatch is a Frisco, Texas-based medical device company.

Lannett readies launch

Lannett set a bank meeting for 11 a.m. ET in New York on Tuesday to launch its previously announced $1,285,000,000 senior secured credit facility, a market source said.

The facility consists of a $1.16 billion seven-year term loan B and a $125 million five-year revolver, with official price talk not yet available.

However, the commitment letter filed with the Securities and Exchange Commission had pricing on the term loan and revolver expected at Libor plus 425 bps, with the term loan having a 1% Libor floor and 101 soft call protection for six months, and the revolver having a 50 bps commitment fee.

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Citigroup Global Markets Inc. are leading the deal.

Lannett funding acquisition

Proceeds from Lannett’s credit facility and cash on hand will be used to help finance the purchase of Kremers Urban Pharmaceuticals Inc., the U.S. specialty generic pharmaceuticals subsidiary of biopharmaceuticals company UCB SA, for $1.23 billion plus potential contingency payments.

Closing is expected in the fourth quarter.

Lannett is a Philadelphia-based manufacturer of generic pharmaceutical products.

Park Resorts allocates

In other news, Park Resorts allocated its £530 million seven-year term loan B (B1/B+) that is priced at Libor plus 525 bps with no floor and was issued at a discount of 98.5, according to a market source. The debt has 101 soft call protection for one year.

During syndication, the term loan was downsized from £550 million, the spread was increased from talk of Libor plus 475 bps to 500 bps, the discount widened from 99 and the call protection was extended from six months.

Barclays, J.P. Morgan Securities LLC, RBS and SMBC are the bookrunners on the deal that will be used to refinance existing debt and to support the merger of Park Resorts and Parkdean.

Park Resorts and Parkdean are holiday park operators in the United Kingdom.

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