AGS breaks; HD Supply reacts to paydown news; Endurance International revises deal

By Sara Rosenberg

New York, June 6 – AGS’ credit facilities emerged in the secondary market on Tuesday, with the first-lien term loan quoted above its original issue discount, and HD Supply Holding Inc.’s term loan B-1 was softer with repayment plans.

Over in the primary market, Endurance International Group (EIG Investors Corp.) modified issue price talk on its term loan, and American Addiction Centers (AAC Holdings Inc.) and Zelis Healthcare disclosed price talk with launch.

Furthermore, U.S. Anesthesia Partners, Coinmach Services (Spin HoldCo Inc.), SRS Distribution Inc. and Energy Future Intermediate Holding Co. LLC surfaced with new deal plans.

AGS frees up

AGS’ credit facilities allocated and broke for trading on Tuesday, with the $450 million seven-year first-lien term loan quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the term loan is Libor plus 550 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the discount on the term loan was tightened from 99.5.

The company’s $480 million of credit facilities (B2/B+) also include a $30 million five-year revolver.

Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance the company’s existing first-lien term loan, to repay certain seller notes and to put cash on the balance sheet for general corporate purposes.

AGS is a Las Vegas-based designer and manufacturer of gaming products for the casino floor.

HD Supply dips

Also in the secondary market, HD Supply’s term loan B-1 dropped to par 3/8 bid, par ¾ offered from par 5/8 bid, 101 offered after the company revealed that it plans to repay the debt with a portion of the proceeds from the sale of its Waterworks business, a trader remarked.

The company’s term loan B-2 was unchanged at par 5/8 bid, 101 offered as this debt is expected to remain outstanding, the trader added.

Under the agreement, the Waterworks business is being sold to Clayton, Dubilier & Rice for $2.5 billion.

Aside from using $533 million of the proceeds from the sale to repay the term loan B-1, HD Supply plans to use $1.25 billion of the proceeds to redeem first-lien notes, $80 million of the proceeds to pay the first-lien make whole and accrued interest, and $537 million of the proceeds to add cash to the balance sheet.

Closing is expected during HD Supply’s third quarter of fiscal 2017, subject to customary conditions, including regulatory approvals.

HD Supply is an Atlanta-based industrial distributor.

Endurance tweaks loan

Switching to the primary market, Endurance International Group changed issue price talk on its $1,697,000,000 first-lien term loan due February 2023 to 99.75, from 99.5 on extended and new money commitments and par on commitments from existing 2023 loan lenders, a market source remarked.

As before, the loan is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, and has 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, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Jefferies LLC and Societe Generale are leading the deal that will be used to refinance existing first-lien term loans due in 2019 and 2023.

Endurance is a Burlington, Mass.-based provider of cloud-based platform solutions designed to help small and medium-sized businesses succeed online.

American Addiction sets talk

American Addiction Centers held its bank meeting on Tuesday afternoon, and a few hours before the event kicked off, price talk on its $210 million six-year first-lien term loan came out at Libor plus 550 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

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

The company’s $265 million of senior secured credit facilities (B3) also include a $55 million revolver.

Commitments are due at 5 p.m. ET on June 20.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance existing debt.

Closing is expected late this month.

American Addiction Centers is a Brentwood, Tenn.-based provider of inpatient and outpatient substance abuse treatment services.

Zelis discloses guidance

Zelis Healthcare came out with talk of Libor plus 350 bps to 375 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months on its $325 million seven-year covenant-light term loan B that launched with a morning bank meeting, a market source said.

The company’s $350 million of credit facilities (B+) also include a $25 million revolver.

Commitments are due on June 20, the source added.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt.

Zelis Healthcare, a Parthenon Capital Partners portfolio company, is a Bedminster, N.J.-based healthcare information technology company and provider of end-to-end healthcare claims cost management and payments solutions.

U.S. Anesthesia on deck

In more primary happenings, U.S. Anesthesia Partners set a lender call for 10 a.m. ET on Thursday to launch a $950 million seven-year first-lien term loan, according to a market source.

The company’s $1.4 billion of credit facilities also include a $150 million five-year revolver that will be unfunded at close and a $300 million pre-placed eight-year second-lien term loan, the source said.

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, pay related fees and expenses, and 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. The company was founded in 2013 by Greater Houston Anesthesiology; Welsh, Carson, Anderson & Stowe and management.

Coinmach joins calendar

Coinmach Services will hold a lender call at 10 a.m. ET on Wednesday to launch $1,686,000,000 of senior secured credit facilities, a market source remarked.

The facilities consist of a $120 million revolver and a $1,566,000,000 first-lien term loan B, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to amend and extend the company’s existing revolver and term loan B, and upsize the term loan B by $76,404,978 to fund a tuck-in acquisition and pay related fees and expenses.

Coinmach is a Plainview, N.Y.-based laundry equipment service provider.

SRS readies deal

SRS Distribution scheduled a lender call for 11 a.m. ET on Wednesday to launch a repricing of its $704.5 million first-lien term loan (B2/B) due Aug. 25, 2022, a market source said.

Barclays and UBS Investment Bank are leading the deal.

SRS Distribution is a McKinney, Texas-based roofing products distributor.

Energy Future coming soon

Energy Future Intermediate Holding set a lender call for 1 p.m. ET on Wednesday to launch a new loan deal, according to a market source.

Citigroup Global Markets Inc. is the left lead on the deal.

Energy Future is a Dallas-based power generation company and utility operator.

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