Greatbatch, Sirius, HelpSystems break; Jarden slips, Visant gains on combination news

By Sara Rosenberg

New York, Oct. 14 – Deals from Greatbatch Ltd., Sirius Computer Solutions Inc. and HelpSystems LLC all freed up for trading on Wednesday, Jarden Corp.’s term debt was slightly softer while Visant Holding Corp.’s term loan was higher after word emerged that Jarden is acquiring Visant, and Pilot Travel Centers LLC’s term loan B weakened with the launch of a repricing proposal.

Switching to the primary market, First Eagle Investment Management Inc. hopped onto this week’s new issue calendar, and Alpha Media surfaced with new deal plans.

Greatbatch hits secondary

Greatbatch’s credit facility broke for trading on Wednesday, with the $1,025,000,000 seven-year term loan B quoted at 99½ bid, 100¼ offered, according to a trader.

Pricing on the term loan B is Libor plus 425 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The company’s $1.6 billion credit facility (B1/B+) also includes a $200 million five-year revolver and a $375 million six-year term loan A.

Pricing on the term loan A is Libor plus 325 bps, subject to a leverage-based grid, and it was issued at a discount of 99.75.

Last week, pricing on the term loan B was increased from Libor plus 375 bps, and the term loan A was upsized from $300 million as the company’s proposed bond offering was downsized to $360 million from $435 million.

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.

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

Sirius starts trading

Sirius Computer Solutions’ credit facility was another deal to free up during the session, with the $445 million seven-year covenant-light first-lien term loan (Ba3/B+) seen at 98¼ bid, 99¼ offered and the $150 million eight-year covenant-light second-lien term loan (B3/B-) seen at 97 bid, 98 offered, a trader said.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor, and it was issued at a discount of 98. The tranche has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 950 bps with a 1% Libor floor and was issued at 97. This debt has call protection of 102 in year one and 101 in year two.

Recently, pricing on the first-lien term loan was lifted from talk of Libor plus 425 bps to 450 bps, the discount was revised from 99 and the call protection was extended from six months, and the spread on the second-lien term loan was raised from talk of Libor plus 875 bps to 900 bps while the discount widened from 98.5.

Sirius lead banks

Credit Suisse Securities (USA) LLC, Barclays and Citigroup Global Markets Inc. are leading Sirius Computer’s $655 million credit facility, which also includes a $60 million revolver (Ba3/B+).

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.

HelpSystems frees up

HelpSystems’ credit facility began trading too, with the $300 million six-year first-lien term loan (B2/B) quoted at 98 bid, 99 offered and the $130 million seven-year second-lien term loan (Caa2/CCC+) quoted at 97 bid, 98 offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 525 bps with a 1% Libor floor, and it was sold at an original issue discount of 98. The debt has 101 call protection for one year.

The second-lien term loan is priced at Libor plus 950 bps with a 1% Libor floor and was issued at a discount of 97. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, pricing on the first-lien term loan was lifted from Libor plus 475 bps, the discount was revised from 99, the call protection was extended from six months and the maturity was shortened from seven years. Also, pricing on the second-lien term loan was increased from Libor plus 875 bps, the discount widened from 98.5, the call protection was sweetened from 102 in year one and 101 in year two, and the maturity was shortened from eight years.

HelpSystems getting revolver

In addition to the first- and second-lien term loans, HelpSystems’ $465 million credit facility includes a $35 million revolver (B2/B).

Credit Suisse Securities (USA) LLC and Antares Capital led the deal.

Proceeds were used to help fund the buyout of the company by H.I.G. Capital from Summit Partners, the closing of which was announced on Tuesday.

HelpSystems is an Eden Prairie, Minn.-based provider of system and network management, business intelligence, and security and compliance solutions.

Jarden dips, Visant rises

Also in the secondary market, Jarden’s term loans were a bit lower and Visant’s term loan strengthened by a few points as it was announced that Jarden is buying Visant for around $1.5 billion from investment funds managed by KKR, aPriori Capital Partners and other stockholders, traders remarked.

Jarden’s term loan B-1 was quoted at par bid, 100½ offered, down from 100 1/8 bid, 100 5/8 offered and its term loan B-2 was quoted at 99 5/8 bid, 100 1/8 offered, down from par bid, 100 3/8 offered, one trader said.

Visant’s term loan, on the other hand, jumped up to 99 bid, par offered from 93 bid, 94 offered, a second trader added.

Closing on the transaction is expected in the fourth quarter, subject to customary conditions.

Jarden evaluating financing

Jarden officials said in a conference call in the morning that the company is considering using bonds, bank debt, excess cash on hand and/or common equity to fund the acquisition of Visant.

A financing commitment for the full amount needed to complete the transaction has been obtained from Barclays.

Pro forma bank leverage is about 3.7 times as of June 30, officials added in the call.

Jarden is a Boca Raton, Fla.-based consumer products company. Visant is a Minneapolis-based marketing and publishing services enterprise servicing the school affinity, direct marketing, fragrance, cosmetic and personal care sampling and packaging and educational and trade publishing segments.

Pilot Travel slides

Pilot Travel Centers’ term loan B fell a quarter of a point to 100 1/8 bid, 100 3/8 offered as the company launched with its lender call on Wednesday a repricing of the debt, according to a trader.

The repricing is talked at Libor plus 300 bps to 325 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, compared to current pricing of Libor plus 325 bps with a 1% Libor floor.

As part of the repricing, lenders are offered a $500 million pay down on the term loan B that will be funded from revolver borrowings and cash on hand, a source said.

Commitments are due at noon ET on Oct. 22, the source added.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc. and U.S. Bank NA are leading the deal.

Pilot is a Knoxville, Tenn.-based operator of travel centers and travel plazas.

First Eagle on deck

Moving to the primary market, First Eagle Investment Management set a bank meeting for 10:30 a.m. ET in New York on Thursday to launch a $1.5 billion senior secured credit facility, according to a market source.

The facility consists of a $150 million revolver and a $1.35 billion term loan B, the source said.

Morgan Stanley Senior Funding Inc., HSBC Securities Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc. and UBS AG are leading the deal that will be used to help fund the buyout of the company by Blackstone and Corsair Capital from TA Associates in a transaction with a total enterprise value of about $4 billion.

Closing is expected in the fourth quarter, subject to receipt of consent by both First Eagle’s mutual fund board and fund shareholders, as well as customary regulatory approvals.

First Eagle is a New York-based independent, privately held asset management firm.

Alpha Media readies deal

Alpha Media scheduled a bank meeting for Oct. 21 to launch a $285 million first-lien credit facility that consists of a $20 million revolver and a $265 million term loan, a market source said.

The company is also getting a $65 million second-lien term loan has been privately placed, the source continued.

Citizens Bank is leading the deal that will be used to fund the acquisition of radio stations from Digity LLC

Closing is subject to approval by the Federal Communications Commission and the Department of Justice.

Alpha Media is a Portland, Ore.-based radio broadcast media company.

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