Health Management up with refi; PolyOne, NewWave tweak deals; CSC Holdings, Boyd set talk

By Sara Rosenberg

New York, Oct 31 - Health Management Associates Inc.'s term loan B headed higher in trading on Monday as news of a refinancing hit the market, and also on the secondary side, a $455 million Bid Wanted in Competition (BWIC) surfaced in the morning, comprised of roughly 130 names.

Moving to the primary, PolyOne Corp. made some changes to its term loan B, including reducing the coupon and setting the original issue discount price at the tight end of guidance, and NewWave Communications LLC downsized its revolver tranche.

Additionally, CSC Holdings LLC announced plans for a new term loan A, launched it and came out with price talk, Boyd Gaming Corp. released guidance on its term loan in connection with its bank meeting, and Diversified Machine Inc. disclosed new deal plans.

Health Management rises

Health Management Associates' term loan B moved up to 99½ bid, par offered on Monday from 97¾ bid, 98¼ offered on Friday after word of a refinancing transaction emerged, according to a trader.

The company is planning to approach the loan market with a new $2.7 billion credit facility (BB-) - comprised of a $500 million five-year revolver, a $1 billion five-year term loan A and a $1.2 billion seven-year term loan B - to take out its existing bank debt.

A bank meeting to launch the new deal is set for Wednesday.

Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are the joint bookrunners on the new facility and are joint lead arrangers with Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc. and Barclays Capital Inc.

Health Management is a Naples, Fla.-based operator of acute care hospitals.

BWIC bids due soon

In more secondary happenings, a $455 million BWIC was announced on Monday morning, and bids are being sought by 1 p.m. ET on Tuesday, according to a market source.

The portfolio has around 130 issuers in it, and the largest pieces being offered include over $7 million blocks of Laureate Education Inc.'s extended term loan and Goodyear Tire & Rubber Co.'s loan.

Topping the $6 million amount in the portfolio are Sensata Technologies BV's term loan, CHS/Community Health Systems Inc.'s non-extended funded term loan, ServiceMaster Co.'s term loan, MEG Energy Corp.'s initial term loan, USI Holdings Corp.'s term loan B, MetroPCS Wireless Inc.'s extended term loan B-2, West Corp.'s term loan B-4, Berry Plastics Holding Corp.'s term loan C and Kronos Inc.'s initial term loan.

Clear Channel dips

CC Media Holding Inc.'s (Clear Channel Communications) term loans were a touch softer on Monday, although given how weak the rest of the market felt, the name was actually described as holding in pretty well," a trader told Prospect News.

The company's term loan A was quoted at 87¾ bid, 88¾ offered, down from 88½ bid, 89½ offered, its term loan B was quoted at 78¼ bid, 79¼ offered, down from 78½ bid, 79½ offered, and its term loan C was quoted at 75 bid, 77 offered, down from 75½ bid, 77½ offered, the trader said.

In the afternoon, CC Media released third-quarter results, showing a net loss of $67 million, versus a net loss of $150 million in the prior year, and revenues of $1.58 billion, compared to $1.48 billion, in the 2010 quarter.

CC Media is a San Antonio, Texas-based media and entertainment company specializing in radio, digital, out of home, mobile and on-demand entertainment and information services.

PolyOne cuts pricing

Over in the primary, PolyOne updated the spread and discount on its $300 million six-year term loan B (Ba1/BB-) to reflect the overwhelming demand that the debt has seen from investors since launching on Oct. 25, according to a market source.

The term loan B is now priced at Libor plus 375 basis points with a 1.25% Libor floor and an original issue discount of 99, compared to initial talk of Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 98 to 99, the source said.

Also, a pricing step down to Libor plus 350 bps was added when leverage is 2.25 times or less.

As before, the loan includes 101 soft call protection for one year.

Recommitments were due at 5 p.m. ET on Monday and allocations are expected to go out on Tuesday, the source added.

PolyOne getting revolver

PolyOne's $600 million credit facility also provides for a $300 million five-year ABL revolver that is talked at Libor plus 200 bps.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the facility, with Bank of America left lead on the B loan and Wells Fargo left lead on the revolver.

Proceeds, along with cash on hand, will be used to fund the acquisition of ColorMatrix Group Inc. for $486 million. The purchase is being made on a cash-free, debt-free basis, and the price is subject to a customary working capital adjustment and other closing conditions.

Closing is targeted for Nov. 17, subject to regulatory approvals.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials and services. ColorMatrix is a Berea, Ohio-based specialty provider of liquid colorants, additives and fluoropolymers.

NewWave revises size

NewWave Communications modified its credit facility as well, reducing its revolver amount to $34 million from $40 million, while leaving pricing unchanged at Libor plus 400 bps with no Libor floor, according to a market source.

The now $134 million five-year credit facility, down from $140 million, still includes a $100 million term loan A priced at Libor plus 400 bps with no floor.

GE Capital Markets and SunTrust Robinson Humphrey Inc. are the lead banks on the deal that will be used to refinance existing debt and fund a dividend, and is expected to close on Tuesday.

NewWave is a Sikeston, Mo.-based communications services company.

CSC launches A loan

Also on the primary front, CSC Holdings held a conference call on Monday to launch a $600 million term loan A (Baa3/BBB-), which is being talked at Libor plus 200 bps, and offered with a 37.5 bps upfront fee, according to a market source.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, Natixis, RBC Capital Markets LLC, RBS Securities Inc., Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc., UBS Securities LLC and U.S. Bancorp Investments Inc. are leading the deal.

Proceeds, along with $1 billion of senior notes, which was upsized from $500 million, will be used to fund the tender offers for the 6¾% senior notes due 2012, 8½% senior notes due 2014 and 8½% senior notes due 2015 as well as for general corporate purposes.

CSC Holdings is a Bethpage, N.Y.-based subsidiary of Cablevision Systems Corp., a media and telecommunications company.

Boyd reveals talk

Another deal to launch during the session was Boyd Gaming's $300 million incremental term loan (Ba3/BB-) due December 2015, and price talk surfaced as Libor plus 475 bps to 500 bps with a 1.25% Libor floor and an original issue discount of 97 to 98, according to a market source.

As was previously reported, the loan has 101 soft call protection for one year.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Barclays Capital Inc. are leading the deal that will be used to pay down revolver borrowings.

Boyd is a Las Vegas-based owner and operator of gaming entertainment properties.

Diversified Machine readies

Diversified Machine joined the calendar, scheduling a bank meeting for Thursday to launch a proposed a $235 million credit facility that is being led by BMO Capital Markets Corp. and Mizuho Securities USA Inc., according to a market source.

The facility consists of a $60 million asset-based revolver and a $175 million term loan, the source said.

Diversified Machine, a Howell, Mich.-based precision machining company specializing in providing automotive powertrain components, will use the credit facility to help fund its buyout by Platinum Equity from the Carlyle Group.

KapStone closes

In other news, KapStone Paper and Packaging Corp. completed its new $525 million five-year senior secured credit facility comprised of a $150 million revolver and a $375 million term loan, according to a news release.

Pricing on the facility is Libor plus 200 bps, with the revolver having a 40 bps unused fee.

Bank of America Merrill Lynch and Barclays Capital Inc. led the deal that was used, along with cash on hand, to fund the acquisition of U.S. Corrugated Inc. and to refinance KapStone's existing $101 million term loan.

KapStone is a Northbrook, Ill.-based producer of unbleached kraft paper products and linerboard. U.S. Corrugated is a Newark. N.J.-based operator of a recycled containerboard paper mill and converting facilities.

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