CSRA frees to trade; NAB tweaks deal; Surgery Center, U.S. Anesthesia change deadlines

By Sara Rosenberg

New York, June 13 – CSRA Inc.’s term loan B made its way into the secondary market on Tuesday, with levels quoted above its issue price.

Moving to the primary market, North American Bancard (NAB Holdings LLC) lowered pricing on its first-lien term loan, and Surgery Center Holdings Inc. and U.S. Anesthesia Partners accelerated the commitment deadlines on their term loans.

Also, INC Research Holdings Inc., Sterling Talent Solutions, Horseshoe Baltimore (CBAC Gaming LLC), Klockner Pentaplast and Quality Distribution (Gruden Acquisition Inc.) disclosed price talk with launch.

In addition, Berry Plastics Corp., Oasis Outsourcing Holdings Inc., Canam Steel Corp. (Canaveral Holdings B Inc.), NEP Group and ABRA Auto Body & Glass joined this week’s primary calendar.

CSRA hits secondary

CSRA’s $650 million term loan B due Nov. 30, 2023 began trading on Tuesday, with levels quoted at par ½ bid, par ¾ offered, according to a market source.

Pricing on the term loan B is Libor plus 200 basis points with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the term loan B was upsized from $466 million and the spread firmed at the low end of the Libor plus 200 bps to 225 bps talk.

MUFG is leading the deal that will be used to reprice an existing term loan B from Libor plus 250 bps with a 0.75% Libor floor and, due to the recent upsizing, to repay a portion of the company’s existing $570 million term loan A-1 due November 2019.

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.

NAB cuts spread

Switching to the primary market, North American Bancard trimmed pricing on its $640 million seven-year first-lien term loan (B) to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps, a market source remarked.

As before, the term loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Wednesday, moved up from 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC and Jefferies LLC are leading the deal that will be used to help fund the acquisition of Total Merchant Services Inc. and to refinance existing debt.

North American Bancard is a Troy, Mich.-based merchant acquirer for payment processing.

Surgery Center moves deadline

Surgery Center accelerated the commitment deadline on its $1.29 billion seven-year senior secured covenant-light term loan to noon ET on Thursday from June 21, according to a market source.

Talk on the term loan is Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $1,365,000,000 of senior secured credit facilities (B1/B) also include a $75 million five-year revolver.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used with $335 million of bonds to fund the acquisition of National Surgical Healthcare Inc. from Irving Place Capital for about $760 million and to refinance an existing term loan.

Also, with the transaction, Bain Capital Private Equity will acquire H.I.G. Capital’s existing equity stake in Surgery Partners, and preferred equity coming from Bain for the transaction will be around $295 million.

Closing is expected this year, subject to regulatory approvals and other customary conditions.

Surgery Center is a Nashville-based health care services company. National Surgical is a Chicago-based owner and operator of surgical facilities in partnership with local physicians.

U.S. Anesthesia accelerated

U.S. Anesthesia Partners moved up the commitment deadline on its $950 million seven-year covenant-light first-lien term loan (B1/B) to noon ET on Thursday from noon ET on June 20, a market source said.

Talk on the term loan is Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $1.4 billion of credit facilities also include a $150 million five-year revolver (B1/B) that will be unfunded at close and a $300 million pre-placed eight-year second-lien term loan (Caa1/CCC+).

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Antares Capital, BMO Capital Markets and Capital One are leading the deal that will be used to refinance existing debt, to pay related fees and expenses and to pay a one-time shareholder dividend and management bonuses.

U.S. Anesthesia Partners is a Fort Lauderdale, Fla.-based physician-service organization that focuses on providing anesthesia and pain management services to patients.

INC Research sets talk

INC Research held its bank meeting on Tuesday morning, and with the event, price talk on its $3.1 billion of credit facilities (Ba2/BB+) was announced, according to a market source.

Talk on the $500 million five-year revolver and $750 million five-year term loan A is Libor plus 175 bps with step-downs and a 0% Libor floor, and talk on the $1.85 billion seven-year covenant-light term loan B is Libor plus 225 bps with a 0% Libor floor and an original issue discount of 99.75, the source said.

The term loan B has 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 90 and the full spread thereafter.

Commitments are due at 5 p.m. ET on June 27.

Credit Suisse Securities (USA) LLC, ING, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., PNC and Wells Fargo Securities LLC are leading the deal, with Credit Suisse the left lead on the term loan B and ING the left lead on the revolver and term loan A.

INC Research refinancing

Proceeds from INC Research’s credit facilities will be used to refinance existing debt in connection with its all-stock merger with inVentiv Health Inc.

At closing, INC Research shareholders are expected to own about 53% and inVentiv shareholders are expected to own about 47% of the combined company on a fully diluted basis. Advent International and Thomas H. Lee Partners, the current equal equity owners of inVentiv, will remain investors in the combined company.

The transaction values inVentiv at an enterprise value of around $4.6 billion, and the combined company at an enterprise value of about $7.4 billion.

Closing is expected in the second half of this year, subject to approval by INC Research shareholders, the satisfaction of regulatory requirements and other customary conditions.

INC Research is a Raleigh, N.C.-based contract research organization providing the full range of Phase I to Phase IV clinical development services for the biopharmaceutical and medical device industries. inVentiv is a Burlington, Mass.-based contract research organization and contract commercial organization.

Sterling reveals guidance

Sterling Talent Solutions came out with talk of Libor plus 425 bps with a 1% Libor floor and 101 soft call protection for six months on its $647 million first-lien term loan B (B2/B) due June 19, 2024 that launched with a morning call, a market source said.

The term loan will be used to amend and extend an existing $492 million first-lien term loan due 2022 priced at Libor plus 425 bps with a 1% Libor floor, and to repay revolver borrowings and an existing $140 million second-lien term loan.

The extension is talked with a par issue price and a 25 bps extension fee, and the $155 million of incremental debt is talked with an original issue discount of 99.75, the source added.

Commitments are due at noon ET on June 23.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets and ING are leading the deal.

Sterling Talent is a Seattle-based provider of employment and background screening services.

Horseshoe Baltimore launches

Horseshoe Baltimore (CBAC) released talk of Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99 on its $300 million seven-year covenant-light term loan B with its morning bank meeting, a market source remarked.

The term loan has 101 soft call protection for six months.

The company’s $315 million of senior secured credit facilities (B3/B) also include a $15 million five-year revolver.

Commitments are due on June 27.

Wells Fargo Securities LLC, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used to refinance an existing credit facility and an existing furniture, fixtures and equipment financing facility.

Pro forma total leverage will be 4.5 times based on March 31 LTM adjusted EBITDA of $68.4 million and 3.9 times based on adjusted EBITDAM.

CBAC, a joint venture between Caesars Growth Partners LLC and several other third parties, is the owner and operator of the Horseshoe Baltimore Casino in Baltimore.

Klockner floats talk

Klockner Pentaplast disclosed price talk on its €855 million U.S. dollar equivalent five-year covenant-light term loan B and €725 million five-year covenant-light term loan B with its London bank meeting on Tuesday, according to a market source. A bank meeting for U.S. investors will take place in New York on Wednesday.

The U.S. term loan B is talked at Libor plus 350 bps to 375 bps with a 1% Libor floor and the euro term loan B is talked at Euribor plus 400 bps to 425 bps with a 0% floor, the source said. Both loans are talked with an original issue discount of 99 and 101 soft call protection for six months.

In addition to the term loans, the company is getting a 4.5-year revolving credit facility.

Commitments are due on June 27, the source added. Closing is expected late this month.

Credit Suisse Securities (USA) LLC and Rabobank are leading the deal that will be used to help refinance existing term loans, redeem notes, fund the acquisition of Linpac Senior Holdings Ltd. and finance a distribution to the shareholders of the KP Group.

Klockner Pentaplast is a Montabaur, Germany-based manufacturer of rigid plastic film solutions.

Quality terms emerge

Quality Distribution held its lender call, launching its fungible $60 million add-on first-lien term loan (B2) due August 2022 at talk of Libor plus 525 bps to 550 bps with a 1% Libor floor and an original issue discount of 98, according to a market source.

With this transaction, the company will reprice its existing first-lien term loan up from Libor plus 475 bps with a 1% Libor floor, and that repricing is talked at Libor plus 525 bps to 550 bps with a 1% Libor floor, the source said.

Also of the term loan debt is getting 101 soft call protection for six months.

Jefferies LLC is the arranger on the deal.

The add-on term loan will be used to pay down revolver borrowings and to pay fees and expenses.

Signatures for the repricing are due 3 p.m. ET on June 19 and commitments for the add-on are due at 3 p.m. ET on June 21, the source added.

Quality Distribution Tampa, Fla.-based operator of a dedicated bulk tank network.

Berry Plastics on deck

In more primary happenings, Berry Plastics set a lender call for 10 a.m. ET on Wednesday to launch a repricing of its $1,695,000,000 covenant-light term loan I due October 2022 and its $500 million covenant-light term loan J due January 2024, a market source remarked.

The repriced loans include 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on June 20, the source added.

Wells Fargo Securities LLC is leading the deal that will reprice the existing term loan I and term loan J down from Libor plus 250 bps with no Libor floor.

Berry is an Evansville, Ind.-based provider of value-added plastic consumer packaging and engineered materials.

Oasis joins calendar

Oasis Outsourcing surfaced with plans to hold a lender call at 1:30 p.m. ET on Thursday to launch $410 million in term loans, a market source said.

The debt consists of a $325 million first-lien term loan and an $85 million second-lien term loan, the source added.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and fund a small acquisition.

Oasis Outsourcing, a Stone Point Capital owned company, is a West Palm Beach, Fla.-based provider of comprehensive and cost-effective HR outsourcing services to small- and medium-sized businesses.

Canam coming soon

Canam Steel will host a lenders’ presentation at 10:30 a.m. ET on Wednesday to launch a $310 million first-lien term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. and BMO Capital Markets Corp. are leading the deal that will be used to fund the acquisition of Canam by American Industrial Partners, members of the Dutil family, Caisse de dépôt et placement du Québec and Fonds de solidarité FTQ for a cash consideration of $12.30 per share.

Closing is expected near the end of June.

Canam is a Quebec-based fabricator of steel components.

NEP readies deal

NEP Group scheduled a lender call for 10 a.m. ET on Wednesday to launch U.S. dollar and euro term loans, a market source said.

The debt consists of a $717,705,729 first-lien term loan, a €284,287,500 first-lien term loan, a fungible $50 million equivalent add-on first-lien term loan to be launched to both U.S. and euro investors, and a $155 million second-lien term loan, the source added.

Barclays and Morgan Stanley Senior Funding Inc. are leading the deal, with Barclays the global coordinator and administrative agent on the first-lien and Morgan Stanley the administrative agent on the second-lien.

Proceeds will be used to reprice the existing euro first-lien term loan and a second-lien term loan, to upsize the first-lien term loan to repay some second-lien term loan borrowings, and to extend the U.S. first-lien term loan and the second-lien term loan by 2.5 years.

NEP is a Pittsburgh-based outsourced provider of comprehensive live and broadcast production solutions.

ABRA plans loan

ABRA Auto Body set a lender call for Wednesday to launch a $325 million first-lien term loan B, according to a market source.

Bank of America Merrill Lynch is the left lead bookrunner on the deal, and Nomura is a bookrunner too.

Proceeds will be used to refinance existing term loan debt.

ABRA is a Brooklyn Park, Minn.-based provider of vehicle damage repair services.

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