NRG, Calpine firm terms, start trading; Univita sets spread; DEI, Open Mobile float talk

By Sara Rosenberg

New York, June 10 - NRG Energy Inc. finalized the spread and original issue discount on its term loan B on Friday and then freed up for trading above that discount price, and Calpine Corp. set the original issue discount on its term loan B-2 in line with talk and broke as well.

In more loan happenings, Univita Health firmed pricing on its credit facility at the high end of initial guidance, DEI Holdings Inc. and Open Mobile began circulating price talk on their upcoming deals, and Mondrian Investment Partners Ltd. surfaced with plans for a new term loan B.

Additionally, U.S. HealthWorks Medical Group's credit facility closed the books on its credit facility, and as a result of recent changes, the deal ended up oversubscribed.

NRG prices, breaks

NRG Energy established pricing on its $1.6 billion term loan B at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps talk, and firmed the original issue discount at 993/4, smack in the middle of the 99½ to par guidance, according to a market source.

As before, the term loan B has a 1% Libor floor and 101 soft call protection for one year.

After these details were finalized, the term loan B allocated and emerged in the secondary market, with levels seen at par bid, par ½ offered, a trader added.

Morgan Stanley & Co. Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and RBS Securities Inc. are the joint bookrunners on the deal.

NRG getting revolver

NRG Energy is still in the process of syndicating its $2.3 billion revolver, with commitments on that tranche not scheduled to be due until July 17.

Price talk on the revolver is Libor plus 275 bps with a 50 bps unused fee, and upfront fees are 75 bps for commitments of $25 million, 100 bps for commitments of $35 million and 125 bps for commitments of $50 million.

Proceeds from the $3.9 billion senior secured deal (Baa3) will be used to refinance an existing credit facility comprised of a $1 billion revolver, a $1.3 billion letter-of-credit facility and two outstanding term loan B tranches. Slightly more than $1 billion of the existing debt being replaced is scheduled to come due in 2013, with the remainder in 2015.

NRG is a Princeton, N.J.-based power generation company.

Calpine trades atop OID

Also freeing up was Calpine's $360 million first-lien senior secured covenant-light term B-2 (B1/NA/BB), with levels of 99 3/8 bid, 99 7/8 offered, according to a market source. By late afternoon, a second source was quoting the B-2 at 99½ bid, 99 7/8 offered.

The original issue discount on the loan firmed in line with talk at 991/4, and pricing is Libor plus 325 bps with a 1.25% Libor floor. There is 101 soft call protection that is in place until March 2012.

Spread, Libor floor and call protection on the term loan B-2 mirror the existing $1.3 billion covenant-light term loan B-1. When the B-1 was obtained in March of this year, however, it was issued at par.

Morgan Stanley & Co. Inc. is the lead bank on the deal that will be used by the Houston-based power company to refinance existing debt.

OneLink holds steady

OneLink Communications' first-lien term loan opened at 99¼ bid, par offered and its second-lien term loan opened at par ½ bid, 101½ offered on Friday, after breaking at those levels during the previous session, according to a trader, who said that levels remained consistent throughout the day.

The $345 million six-year first-lien term loan (B2/B+) is priced at Libor plus 450 bps with a 1.5% Libor floor and was sold at a discount of 99, while the $145 million seven-year second-lien term loan (Caa2/CCC+) is priced at Libor plus 850 bps with a 1.5% floor and was sold at a discount of 98.

The first-lien term loan has 101 soft call protection for one year, and the second-lien has call protection of 103 in year one, 102 in year two and 101 in year three.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. Inc. led the deal that was used by the provider of cable services in the San Juan area in Puerto Rico to refinance existing debt and fund a dividend.

Univita finalizes spread

Back over in the primary, Univita Health determined that pricing on its $220 million senior secured credit facility (B2/B) will be Libor plus 475 bps, which is the wide end of the original Libor plus 450 bps to 475 bps talk, according to a market source.

The facility consists of a $20 million five-year revolver and a $200 million six-year term loan.

The 1.5% Libor floor and original issue discount of 99 on the deal were left unchanged, as was 101 soft call protection for one year on the term loan, the source remarked.

Barclays Capital Inc. and Jefferies & Co. Inc. are the lead banks on the deal that will be used to repay existing credit facility and mezzanine debt.

Univita, a Scottsdale, Ariz.-based provider of home-based care, expects to complete the transaction during the week of June 13.

DEI reveals guidance

DEI Holdings is holding a bank meeting on Tuesday to launch a proposed $205 million senior secured credit facility, and price talk on the deal has already started to make its way around the market, according to a market source.

The facility, comprised of a $30 million revolver and a $175 million term loan, is being talked at Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 99, the source said.

GE Capital Markets and Oppenheimer & Co. Inc. are leading the deal that will be used, along with equity, to fund the buyout of the company by Charlesbank Capital Partners for $3.79 to $3.81 per share in cash, or about $285 million, including the assumption of debt.

Closing is expected to occur in late June, subject to customary approvals and conditions.

DEI is a Vista, Calif.-based designer and marketer of home theater loudspeakers and vehicle security and remote start systems, and a supplier of mobile audio.

Open Mobile floats talk

Open Mobile began talking its $71.5 million term loan B add-on at Libor plus 475 bps with a 2% Libor floor and an original issue discount of 99 ahead of the Monday bank meeting that will officially kick off syndication, according to a market source.

The spread and Libor floor match pricing on the company's existing term loan B. However, when the existing loan was obtained about a year ago, it was sold at an original issue discount of 981/2.

SunTrust Robinson Humphrey Inc. and Morgan Stanley & Co. Inc. are the lead banks on the deal that will be used to take out preferred equity.

Open Mobile is a provider of pre-paid wireless service in Puerto Rico.

ATI readies add-ons

ATI Physical Therapy is also set to hold a bank meeting on Monday to launch incremental bank debt, with its deal comprised of a $10 million revolver add-on and a $40 million term loan add-on, according to a market source.

Barclays Capital Inc. is the lead bank on the $50 million deal that will be used for acquisition financing.

In 2010, the company completed a $170 million credit facility for its buyout by GTCR Golder Rauner LLC comprised of a $145 million term loan and a $25 million revolver and priced at Libor plus 550 basis points with a 2% Libor floor. The debt was sold at an original issue discount of 97 and the term loan included call protection of 102 in year one and 101 in year two against refinancings and repricings.

ATI Physical Therapy is a Bolingbrook, Ill.-based rehabilitation provider.

Mondrian plans term B

Also on the topic of upcoming deals, Mondrian Investment Partners has scheduled a bank meeting for Tuesday morning to launch a proposed $500 million senior secured term loan B, according to a market source, who said that further details on the transaction are not yet available.

Morgan Stanley & Co. Inc. and Deutsche Bank Securities Inc. are the lead banks on the deal.

Mondrian is a money manager with offices in London and Philadelphia.

U.S. HealthWorks fills out

U.S. HealthWorks Medical Group's credit facility was oversubscribed by Friday's commitment deadline at recently modified terms, and it is expected that allocations will go out during the week of June 13, according to a market source.

The deal is wrapping as a $20 million five-year revolver and a $120 million five-year first-lien term loan B, both priced at Libor plus 475 bps with a 1.5% Libor floor and an original issue discount of 99, and a $65 million second-lien term loan priced at Libor plus 900 bps with a 1.5% Libor floor and an original issue discount of 981/2.

By comparison, the facility was originally launched as a $25 million revolver and a $150 million first-lien term loan B, both talked at Libor plus 425 bps with a 1.5% floor and a discount of 99, and a $50 million second-lien term loan talked at Libor plus 800 bps with a 1.5% floor and a discount of 98 to 99.

U.S. HealthWorks protection

U.S. HealthWorks' first-lien term loan B has 101 soft call protection for one year that was added during syndication, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

GE Capital Markets is the lead bank on the $205 million credit facility.

Proceeds will be used refinance existing debt and redeem preferred equity.

U.S. HealthWorks is a Valencia, Calif.-based provider of health care for on-the-job injuries and urgent care.

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