HCA extends maturity on $2 billion; Advantage Sales sets Wednesday meeting for $975 million

By Paul A. Harris

St. Louis, April 5 - The new LCDX 14 bank loan index traded at 97 1/8 bid, 97 3/8 offered in the early East Coast afternoon, unchanged on the day, according to a syndicate official.

The leveraged loan market passed a moderately quiet Monday, with many players away from work because of the holidays, sources said.

HCA extends maturity on $2 billion

HCA Inc. extended the maturity on a $2 billion amount of its term loan B by 3.5 years, market sources said on Monday.

The new B-2 tranche, which is priced at Libor plus 325 bps, will now mature in March 2017. The former maturity was November 2013.

The extended tranche broke for trading, and was seen at 98 1/8 bid, 98½ offered, sources said.

Advantage Sales to launch Wednesday

Meanwhile, Advantage Sales & Marketing will hold a Wednesday bank meeting for its $975 million of new credit facilities (expected ratings B2/B).

The deal is comprised of a $625 million first-lien term loan talked with a Libor plus 375 basis points coupon at an original issue discount of 99.

In addition, the deal features a $275 million second-lien term loan talked with a Libor plus 750 bps coupon, to price at 98.50.

There is also a $75 million revolver, talked with a Libor plus 375 bps coupon at 98.00.

There is an across-the-board 2% Libor floor.

Credit Suisse is the lead bookrunner and administrative agent. Bank of America Merrill Lynch and UBS Investment Bank are joint bookrunners.

Proceeds will be used to refinance debt and partially fund a dividend.

Hawkeye existing loan up

Elsewhere, on Monday, the existing Hawkeye Renewables term loan traded higher after the market learned that Hawkeye Growth LLC is expected to sell up to $150 million of first-lien notes to refinance debt.

The existing loan was trading 60 bid, 61½ offered, on Monday afternoon, up from 58 bid, 60 offered at the Monday open.

Boutique underwriter PrinceRidge Group has the books on Hawkeye's new junk bond deal.

Proceeds, along with cash on hand, will be used to refinance debt.

The Ames, Iowa-based ethanol company filed for bankruptcy late last year.

N.E.W. Customer Service above issue

Meanwhile, the N.E.W. Customer Service Cos. Inc. two-part deal, which priced last month, was seen trading above issue price on Tuesday, according to a bank loan investor who played in the deal.

The term loan B was at 99½ bid, par offered, and the term loan C was at 98 5/8 bid, 99 5/8 offered.

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