Teladoc breaks above OID; Viewpoint releases guidance; primary calendar continues to build

By Sara Rosenberg

New York, July 6 – Teladoc Inc.’s credit facilities allocated and made their way into the secondary market on Thursday, with the term loan quoted above its original issue discount.

Meanwhile, in the primary market, Viewpoint Inc. came out with price talk on its first-and second-lien term loans with launch.

Also, Duravant LLC (Engineered Machinery Holdings Inc.), Hayward Industries Inc. and A Place for Mom jumped onto the near-term primary calendar.

Teladoc frees up

Teladoc’s credit facilities began trading on Thursday, with the $175 million five-year term loan seen at 99˝ bid, par ˝ offered, according to a trader.

Pricing on the term loan is Libor plus 725 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has hard call protection of 103 in year one, 102 in year two and 101 in year three.

The company’s $185 million of senior secured credit facilities also includes a $10 million three-year revolver.

Jefferies LLC is leading the deal that will be used to help fund the acquisition of Best Doctors for $375 million in cash and $65 million of Teladoc common stock and to refinance existing debt.

Closing is expected by the end of July, subject to regulatory approvals and customary conditions.

Teladoc is a Purchase, N.Y.-based telehealth platform. Best Doctors is a Boston-based medical consultation company.

Viewpoint sets talk

Switching to the primary market, Viewpoint held its bank meeting on Thursday morning, and shortly before the event kicked off price talk on its first-and second-lien term loans was announced, according to a market source.

Talk on the $210 million seven-year covenant-light first-lien term loan (B1/B) is Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the $95 million eight-year covenant-light second-lien term loan (Caa1/CCC) is Libor plus 825 bps to 850 bps with a 1% Libor floor and a discount of 99, the source said.

As previously reported, the first-lien term loan has 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $335 million of credit facilities also include a $30 million revolver (B1/B).

Commitments are due at 5 p.m. ET on July 17.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and for acquisition financing.

Viewpoint is a Portland, Ore.-based provider of construction-specific software solutions to the construction and capital project industries.

Duravant readies deal

Duravant set a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch $780 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $70 million five-year revolver, a $500 million seven-year first-lien term loan that has 101 soft call protection for six months and a $210 million eight-year second-lien term loan that has hard call protection of 102 in year one and 101 in year two, the source added.

Jefferies LLC, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Antares Capital are leading the deal.

The credit facilities will be used to help fund the buyout of the company by Warburg Pincus from Odyssey Investment Partners, which is expected to close in the third quarter, subject to customary regulatory approvals.

Duravant is a Downers Grove, Ill.-based automation and engineered equipment company serving the food processing, packaging and material handling sectors.

Hayward coming soon

Hayward Industries scheduled a bank meeting for 1:30 p.m. ET on Monday to launch an $850 million seven-year covenant-light first-lien term loan B, according to a market source.

The company is also getting a $285 million privately placed second-lien term loan, the source said.

Bank of America Merrill Lynch, Jefferies LLC, Morgan Stanley Senior Funding Inc. and Nomura are leading the debt that will be used to help fund the buyout of the company by a partnership led by CCMP Capital Advisors LP and MSD Partners LP, and including the Alberta Investment Management Corp.

Closing is expected in the third quarter, subject to customary conditions.

Hayward is an Elizabeth, N.J.-based manufacturer of residential and commercial pool equipment.

A Place for Mom on deck

A Place for Mom surfaced with plans to hold a bank meeting on Tuesday to launch $180 million of credit facilities, a market source said.

The facilities consist of a $20 million revolver and a $160 million term loan B, the source added.

Citizens Bank and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Silver Lake and General Atlantic from Warburg Pincus.

Closing on the buyout is subject to customary conditions.

A Place for Mom is a Seattle-based provider of resources and assistance in finding senior living options.

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