TriZetto, Pep Boys, Valeant, Ollie's break; Getty, AdvancePierre, CAMP tweak deals

By Sara Rosenberg

New York, Sept. 27 - TriZetto Group Inc. and Pep Boys - Manny, Moe & Jack updated terms on their deals and then freed up for trading on Thursday, and Valeant Pharmaceuticals International Inc. and Ollie's Bargain Outlet hit the secondary market as well.

Over in the primary, Getty Images Inc. upsized its term loan B and reduced pricing as a result of strong demand, and AdvancePierre Foods increased its first-lien loan, reverse flexed the coupon and added a second-lien tranche.

Also, CAMP International Holding Co. nailed down pricing on its term loan at the low end of guidance, and Deltek Inc. moved up the commitment deadline on its credit facility.

Furthermore, Gray Television Inc., GCA Services Group Inc., Calpine Corp., Leap Wireless International Inc., Cornerstone Healthcare Group Holding Inc., Telx Group, Hertz Global Holdings Inc., Pro Mach Inc., Northfield Park Associates and Roofing Supply Group LLC released talk as the deals were launched to investors during the session.

TriZetto frees up

TriZetto finalized pricing on its $150 million 61/2-year second-lien term loan (Caa1/CCC+) and then broke for trading on Thursday, with levels quoted at 99 bid, 99½ offered, according to a trader.

The spread on the loan came at Libor plus 725 bps, the low end of the Libor plus 725 bps to 750 bps guidance, a source said. There is a 1.25% Libor floor as well as call protection of 103 in year one, 102 in year two and 101 in year three, and the debt was sold at an original issue discount of 981/2.

RBC Capital Markets is leading the deal that will be used to refinance the company's revolving credit facility and put additional cash on its balance sheet.

TriZetto is a Greenwood Village, Colo.-based health care information technology company to the health care payer industry.

Pep Boys tops par

Pep Boys' $200 million term loan B (Ba2/BB-) made its way into the secondary after updates came out, with levels quoted at par bid, par ½ offered on the break, and then it moved to par 3/8 bid, par 7/8 offered, according to a market source.

Pricing on the B loan is Libor plus 375 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 991/4, after flexing from Libor plus 400 bps with a 1.25% floor and a discount of 99, a source remarked. There is 101 soft call protection for one year.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are leading the deal that will refinance an existing term loan and senior subordinated notes.

Pep Boys is a Philadelphia-based automotive aftermarket chain.

Valeant breaks

Valeant Pharmaceuticals' $1 billion seven-year term loan B (Ba1/BBB-) started trading too, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 325 bps, after flexing earlier from Libor plus 375 bps. There is a 1% Libor floor, 101 soft call protection till October 2013 and a ticking fee of 325 bps until March 31, 2013, at which time it will move to the higher of Libor and the Libor floor plus the full margin. The debt was sold at a discount of 991/2.

Meanwhile, the company's existing roughly $1.3 billion term loan B due February 2019, which is being repriced to Libor plus 325 bps from Libor plus 375 bps, was quoted at par ¼ bid, par ¾ offered, the trader said.

The repriced loan has a 1% Libor floor and was sold at par, after firming at the tight end of the 99¾ to par offer price. There is 101 soft call protection for one year from the closing date.

Valeant buying Medicis

Proceeds from Valeant's incremental loan and $1.75 billion of bonds will be used to fund the acquisition of Medicis Pharmaceutical Corp. for $44 per share in cash and to repay Medicis convertible notes. The transaction is valued at about $2.6 billion.

J.P. Morgan Securities LLC is the lead bank on the deal.

Closing is expected in the first half of 2013, subject to customary conditions, including approval by Medicis stockholders and expiration of any applicable regulatory waiting period.

Valeant is a Mississauga, Ont.-based specialty pharmaceutical company. Medicis is a Scottsdale, Ariz.-based specialty pharmaceutical company focused primarily on the treatment of dermatological and aesthetic conditions.

Ollie's starts trading

Another deal to break was Ollie's Bargain Outlet, with its $225 million term loan (B2/B) quoted at 99½ bid on the open and then it moved up to par bid, according to a trader.

Pricing on the term loan is Libor plus 500 bps, after flexing recently from Libor plus 550 bps, with a 1.25% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

The company's $300 million senior secured credit facility also includes a $75 million asset-based revolver, of which $25 million will be funded at close.

Jefferies Finance LLC, M&T Bank and KeyBanc Capital Markets are leading the deal that will be used with around $465 million in new and rollover equity to fund CCMP Capital Advisors LLC's buyout of the company from KarpReilly LLC for about $700 million.

Total leverage will be in the low-to-mid 4 times context.

Ollie's is a Harrisburg, Pa.-based retailer of closeouts, excess inventory and salvage merchandise.

Getty revises deal

Moving to the primary, Getty Images made some changes to its seven-year covenant-light term loan B, including lifting the size to $1.9 billion from $1.7 billion, cutting pricing to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps, and adding a step-down to Libor plus 325 bps when total leverage is less than 5.3 times, sources told Prospect News.

As before, the loan has a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

The company's now $2.05 billion senior secured credit facility also provides for a $150 million five-year revolver that has a leverage covenant when more than 20% is drawn.

Lead banks, Barclays, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and RBC Capital Markets LLC, are seeking recommitments by 10 a.m. ET on Friday with the plan being to allocate next week.

Getty trims notes

Because of the upsizing to the term loan B, Getty Images reduced its planned bond offering to $550 million from $750 million, sources remarked.

Proceeds from the credit facility, notes and equity will help fund the buyout of the company by the Carlyle Group and management from Hellman & Friedman for $3.3 billion.

Closing is expected to occur in mid-October.

Total leverage is 6.3 times.

Getty Images is a Seattle-based creator and distributor of still imagery, video and multimedia products.

AdvancePierre restructures

AdvancePierre Foods lifted its 43/4-year covenant-light first-lien term loan (B1/B) to $925 million from $825 million and reduced the spread to Libor plus 450 bps from Libor plus 475 bps, according to a market source. The debt continues to have a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Furthermore, the company added a $350 million five-year covenant-light second-lien term loan (expected ratings Caa1/CCC+) to the capital structure that is talked at Libor plus 825 bps with a 1.25% Libor floor and an original issue discount of 98 to 99, for an all-in yield of 9¾% to 10%, the source said. This debt is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

The first-lien upsizing and the addition of the second-lien loan was done to replace a $450 million senior notes offering that the company decided not to move forward with, the source explained.

AdvancePierre revolver

AdvancePierre Foods' $1.425 billion credit facility also provides for a $150 million asset-based revolver.

Commitments are due at 1 p.m. ET on Friday, the source added.

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance debt and fund a dividend.

AdvancePierre is a Cincinnati-based supplier of value-added protein and handheld convenience products to the food service, school, retail, club, vending and convenience store channels.

CAMP firms spread

CAMP International set the coupon on its $255 million covenant-light first-lien term loan at Libor plus 400 bps, the tight end of the Libor plus 400 bps to 425 bps talk, and accelerated the commitment deadline to noon ET on Thursday from Friday, according to a market source.

The loan still has a 1.25% Libor floor, a par offer price and 101 soft call protection for one year.

Deutsche Bank Securities Inc. is leading the deal that will reprice the existing $255 million term loan from Libor plus 525 bps with a 1.25% Libor floor.

Existing lenders are getting taken out at 101 due to the presence of call protection.

CAMP is a Ronkonkoma, N.Y.-based provider of maintenance tracking for business aviation.

Deltek changes deadline

Deltek revised the commitment deadline on its $680 million senior secured credit facility to noon ET on Monday from Oct. 4, according to a market source.

The facility consists of a $30 million revolver, a $425 million first-lien term loan and a $225 million second-lien term loan.

The first-lien term loan is talked at Libor plus 475 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and the second-lien term loan is talked at Libor plus 875 bps with a 1.25% Libor floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three.

Jefferies Finance LLC and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Thoma Bravo LLC for $13 per share, or about $1.1 billion.

Closing is expected in the fourth quarter, subject to regulatory approvals.

Deltek is a Herndon, Va.-based provider of enterprise software and information for professional services firms and government contractors.

Gray Television guidance

In more primary news, Gray Television held a conference call at 11 a.m. ET on Thursday to launch its credit facility, and with the event, talk on the $575 million term loan B (B2/B+) came out at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, a source said, adding that the all-in-yield is 5% to 5.25%.

The Atlanta-based television broadcast company's $615 million senior secured credit facility also includes a $40 million super-priority revolver (Ba3/BB-).

Lead banks, Wells Fargo Securities LLC and Bank of America Merrill Lynch, are asking for commitments by Oct. 4, the source remarked.

Proceeds, along with $300 million of senior notes that priced earlier this week at 99.266 to yield 7 5/8%, will refinance existing bank debt, repurchase up to $268.5 million of 10½% senior secured second-lien notes due 2015 in a tender offer that expires on Oct. 22 and redeem series D perpetual preferred stock.

When the bonds priced, the offering was upsized from $250 million, and as a result, the term loan B was downsized from an original anticipated amount of $625 million.

GCA reveals terms

GCA released talk on its $315 million seven-year first-lien term loan at Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 99, and on its $150 million eight-year second-lien term loan at Libor plus 825 bps to 850 bps with a 1.25% floor and a discount of 981/2, a market source said.

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

The company's $525 million credit facility, which launched with an afternoon bank meeting, also includes a $60 million revolver.

Commitments are due on Oct. 11, the source added.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Jefferies & Co. are leading the deal. that will help fund the purchase of the company by Blackstone from Nautic Partners LLC and other minority shareholders.

Closing is expected in October, subject to government approvals and other customary conditions.

GCA Services is a Cleveland-based provider of custodial services.

Calpine comes to market

Calpine launched on Thursday a $615 million seven-year senior secured term loan (B1), and shortly before the afternoon conference call kicked off, price talk was announced, according to a market source.

The loan is talked at Libor plus 325 bps with a 1.25% Libor floor and an original issue discount of 99 to 991/2, and includes 101 soft call protection for one year, the source said.

Commitments are due at noon ET on Friday. The deadline was accelerated from 5 p.m. ET on Monday, the source added.

Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are leading the deal that will be used to redeem 10% of each series of the company's existing notes at 103 plus accrued interest.

Initially, the redemption was going to be funded with a $615 million senior secured notes offering, but the notes were pulled when the Houston-based power company could not get the sale done in its hoped for area of 5% to 5¼%.

Leap talk emerges

Leap Wireless released guidance on its $400 million term loan (Ba2/B+) at Libor plus 400 bps to 425 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

The loan, which launched with a bank meeting on Thursday, is being led by Deutsche Bank Securities Inc., UBS Securities LLC and Bank of America Merrill Lynch.

Commitments are due on Oct. 4, the source said.

Proceeds will be used to refinance $300 million of outstanding 10% senior notes due 2015 and for general corporate purposes.

The loan is being issued by Cricket Communications Inc.

Leap is a San Diego-based provider of digital wireless services.

Cornerstone pricing

Cornerstone Healthcare's $150 million 31/2-year term loan was presented to investors in the afternoon with talk of Libor plus 525 bps to 550 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments on the CLO-friendly deal are due on Oct. 10, the source said.

Goldman Sachs & Co. is leading the transaction that will refinance existing debt and add cash to the balance sheet.

The company had an initial round of syndication with a handful of relationship banks, but is now going out in a second round to the broader institutional market.

Cornerstone is a Dallas-based operator of long term acute care hospitals and medical rehabilitation hospitals.

Telx details surface

Talk on Telx Group's $362.7 million term loanB due Sept. 26, 2017 came out as well, with it launching at Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 99¾ and 101 soft call protection for one year, a source said.

Of the total term loan amount, $327.7 million is repricing an existing term loan from Libor plus 650 bps with a 1.25% Libor floor and $35 million is incremental debt that will be used for general corporate purposes.

The company's $373 million deal (B1/B) also includes a $10 million incremental revolver.

Commitments are due on Wednesday, the source continued.

Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC are leading the transaction.

Telx is a New York-based provider of interconnection and colocation facilities.

Hertz add-on guidance

Hertz launched its $750 million 51/2-year add-on term loan with original issue discount talk of 99 to 991/2, and pricing on the debt is Libor plus 275 bps with a 1% Libor floor, in line with existing term loan pricing, according to a market source. There is 101 soft call protection for one year.

Deutsche Bank Securities Inc., Barclays and Bank of America Merrill Lynch are leading the deal that will help fund the acquisition of Dollar Thrifty Automotive Group Inc. for $87.50 per share, or about $2.6 billion.

Hertz is a Park Ridge, N.J.-based auto and equipment rental company. Dollar Thrifty is a Tulsa, Okla.-based renter and leaser of vehicles.

Pro Mach discloses structure

Pro Mach launched with a call on Thursday afternoon a roughly $290 million senior secured credit facility that is comprised of a $50 million revolver, which is being upsized from $35 million currently, a $25 million add-on term loan due July 16, 2017 and about $215 million of existing term loan B debt due July 16, 2017, according to a market source.

Price talk on the facility is Libor plus 400 bps to 425 bps. All of the term loan debt has a 1.25% Libor floor and 101 soft call protection for one year, and the add-on is being offered at an original issue discount of 99 to 991/2, the source said.

Proceeds will be used to reprice the existing term loan B from Libor plus 475 bps with a 1.5% Libor floor and for acquisitions.

Barclays, the lead arranger on the deal, is asking for commitments by 5 p.m. ET on Oct. 4.

Senior secured leverage is 3.7 times, gross leverage is 3.7 times and net total leverage is 3.4 times.

Pro Mach is a Loveland, Ohio-based provider of packaging machinery services and related aftermarket products to clients in the food, beverage, household goods and pharmaceutical industries.

Northfield price talk

Northfield Park Associates is talking its $150 million six-year term loan and $20 million six-year delayed-draw term loan at Libor plus 775 bps with a 1.25% Libor floor and an original issue discount of 98, according to market sources. The debt is non-callable for 11/2-years, then at 102, 101 and par.

The company's $195 million credit facility (B1/B), which launched with a meeting on Thursday, also includes a $25 million five-year revolver that is being offered at an original issue discount of 981/2.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal.

Proceeds will be used fund the construction of the Hard Rock Casino.

Northfield Park Associates is a Cleveland-based casino operator.

Roofing Supply holds call

Roofing Supply launch on Thursday a $315 million term loan with talk of Libor plus 375 bps with a 1.25% Libor floor and 101 soft call protection for one year, according to a market source.

Deutsche Bank Securities Inc. is leading the deal, of which $290 million will be used to reprice an existing term loan from Libor plus 525 bps with a 1.25% floor, and is being offered at par, and $25 million will be used for general corporate purposes, and is being offered at an original issue discount of 99, the source remarked.

Lenders are getting paid out at 101 on the repricing portion due to existing call protection.

Roofing Supply is a Dallas-based wholesale distributor of roofing supplies and related materials.

Brand Energy sets deadline

Brand Energy & Infrastructure Services Inc. launched its $825 million credit facility with a meeting on Thursday morning, and told lenders that commitments are due by Oct. 11, according to a market source.

The facility consists of a $75 million five-year revolver (B2/B), a $50 million six-year funded letter-of-credit facility (B2/BB-) and a $700 million six-year term loan B (B2/B).

As previously reported, talk on the B loan is Libor plus 475 bps to 500 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

UBS Securities Inc., Goldman Sachs & Co. and Morgan Stanley Senior Funding Inc. are the lead banks on the deal that will be used to refinance existing debt.

Brand Energy is an Edmonton, Alta.-based provider of specialty multi-craft services to the North American downstream energy infrastructure market.

TriNet launches

TriNet launched a $350 million credit facility (B1/B+) during the session that consists of a $50 million revolver, a $125 million term loan A and a $175 million term loan B, the source said.

KeyBanc Capital Markets LLC and Bank of America Merrill Lynch are leading the transaction that will fund the acquisition of Strategic Outsourcing Inc. from Clarion Capital Partners LLC and refinance existing debt.

TriNet is a San Leandro, Calif., cloud-based provider of on-demand HR services. Strategic Outsourcing is a Charlotte, N.C.-based provider of human resources outsourcing to small- and medium-sized businesses.

National Mentor refinancing

National Mentor Holdings Inc. also held a bank meeting, launching its $550 million term loan B due Feb. 9, 2017 at previously outlined talk of Libor plus 475 bps to 500 bps with a 1.25% Libor floor , a par offer price and 101 soft call protection for one year, according to a market source.

The company's $625 million credit facility also includes a $75 million revolver due Feb. 9, 2016.

Proceeds will be used to reprice an existing term loan down from Libor plus 525 bps with a 1.75% Libor floor and pay down revolver borrowings.

Lead bank, UBS Securities Inc., is seeking commitments by Oct. 5.

National Mentor is a Boston-based provider of home and community-based health and human services.

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