Alere dips on subpoena news; UPC, Coveris deal changes emerge; UFC accelerates deadline

By Sara Rosenberg

New York, July 28 – Alere Inc.’s term loan retreated in trading on Thursday on the back of news that the company received a subpoena from the U.S. Department of Justice regarding Medicare, Medicaid and Tricare billings.

Switching to the primary market, UPC Financing Partnership upsized its term loan AN and firmed the original issue discount at the tight end of guidance, Coveris Holdings SA trimmed the spread on its add-on term loan and tightened the issue price, and UFC Holdings LLC accelerated the commitment deadline on its term loans.

Also, Polyconcept, CAMP International Holding Co., MRP Generation Holdings LLC (Middle River Power), PolyOne Corp. and ION Trading Finance Ltd. released price talk with launch, On Assignment Inc. brought back its repricing transaction, and The Bay Club, Albaugh Inc. and California Pizza Kitchen Inc. surfaced with new deal plans.

Alere softens

Alere’s term loan headed lower in the secondary market on Thursday following news that a subpoena from the U.S. Department of Justice was received on July 1 related to Medicare, Medicaid and Tricare billings dating back to 2010 for patient samples tested at the company’s Austin, Texas, pain management laboratory, according to traders.

One trader had the term loan quoted at 98¼ bid, 99 offered, down from 99 5/8 bid, 100 1/8 offered and another trader had the loan at 98¼ bid, 98¾ offered, down from 99 5/8 bid, par offered.

In a statement about the subpoena, Alere said that for the first nine months of 2015, Medicare, Medicaid and Tricare billings at the Austin pain management laboratory accounted for significantly less than 1% of its total revenues, and the belief is that the matters to which the subpoena relates are not material.

Alere is a Waltham, Mass.-based provider of rapid diagnostic tests.

UPC Financing reworked

Moving to the primary market, UPC Financing Partnership raised its eight-year covenant-light term loan AN to $2.15 billion from $825 million and set the original issue discount at 99.5, the tight end of the revised talk of 99.25 to 99.5 and initial talk of 99 to 99.5, a market source said.

As before, the loan is priced at Libor plus 300 bps with no floor and has 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Thursday.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are the global coordinators on the deal and joint bookrunners with Scotiabank, Credit Suisse, HSBC and Nomura. Scotia is the administrative agent.

UPC, a subsidiary of Liberty Global, a TV and broadband company, will use the new term loan to refinance $675 million of senior secured notes due 2021 and $75 million of senior secured notes due 2022, and, because of the upsizing, to refinance a term loan AH, the source added.

Coveris revises loan

Coveris reduced pricing on its fungible $350 million-equivalent U.S. dollar and euro add-on term loan (B2) due May 8, 2019 to Libor/Euribor plus 350 bps from Libor/Euribor plus 375 bps and changed the original issue discount to 99.51 from talk of 99 to 99.5, according to a market source.

As before, the term loan has a 1% floor.

Goldman Sachs Bank USA, Credit Suisse International and J.P. Morgan Ltd. are leading the deal that will be used to redeem Coveris Holding Corp.’s 10% senior notes due 2018, to repay a portion of the amounts outstanding under the North American and United Kingdom asset-backed revolving credit facilities and to pay transaction fees and expenses.

Currently, the company has a $342.2 million term loan and a €244.7 million term loan, both due May 8, 2019 and priced at Libor/Euribor plus 350 bps with a 1% floor.

Initially, pricing on the existing term loan debt was going to be revised to match the add-on term loan pricing, but because of the reverse flex on the add-on loan, no spread change will be made to the existing loans.

Coveris amending

In addition to the add-on loan, the company is seeking an amendment to its existing senior secured term debt to allow for the new loan and the repayment of the notes and to provide more capacity for, among other things, additional debt, restricted payments, dispositions, investments and acquisitions.

Lenders are being offered a 25-bps amendment fee.

Recommitments and consents are due by 8 a.m. ET on Friday, the source added.

Net secured leverage is 2.9 times, and net total leverage is 4.5 times based on LTM first quarter 2016 pro forma adjusted EBIDTA, including synergies, of $358.8 million.

Closing is expected in August.

Coveris, a Sun Capital Partners Inc. portfolio company, is a Chicago-based manufacturer and distributor of packaging solutions and coated film technologies.

UFC moves deadline

UFC accelerated the commitment deadline on its $1.3 billion seven-year senior secured covenant-light first-lien term loan B (B1/B+) and on its $500 million eight-year second-lien term loan (Caa1/CCC+) to 3 p.m. ET on Tuesday from noon ET on Aug. 4, market sources said.

The first-lien term loan B is talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 850 bps with a 1% Libor floor, an original issue discount of 98 and call protection of 102 in year one and 101 in year two.

As previously reported, the second-lien term loan was added to the transaction on Tuesday to replace a previously contemplated $500 million unsecured notes offering.

UFC being acquired

Proceeds from UFC’s term loans will be used to help fund its acquisition by WME | IMG, and as part of the transaction, Silver Lake Partners and KKR will join WME | IMG as new strategic investors, along with MSD Capital LP and MSD Partners LP, which will provide preferred equity financing.

Goldman Sachs & Co., Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, KKR Capital Markets LLC, Citigroup Global Markets Inc. and UBS Investment Bank are the leads on first-lien term loan B, with Goldman the left lead.

Deutsche Bank, Goldman Sachs, Barclays, Credit Suisse and KKR are the bookrunners on the second-lien term loan, with Deutsche the left lead.

Closing is subject to customary conditions.

UFC is a Las Vegas-based sports brand and pay-per-view event provider. WME | IMG is an entertainment, sports and fashion company.

Polyconcept releases talk

Also in the primary market, Polyconcept held its bank meeting on Thursday, and with the event, talk on its $435 million seven-year senior secured first-lien term loan B (B1/B) came out at Libor plus 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Aug. 11, the source added.

The company’s $523 million credit facility also includes an $88 million ABL revolver (BB-).

Goldman Sachs & Co., RBC Capital Markets and Natixis are leading the deal that will be used with a privately placed second-lien term loan to help fund the buyout of the company by Charlesbank Capital Partners from Investcorp.

Polyconcept is a supplier of promotional products.

CAMP sets guidance

CAMP International disclosed price talk on its first- and second-lien term loans with its morning bank meeting, according to a market source.

The $529 million seven-year first-lien term loan is talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $188 million eight-year second-lien term loan is talked at Libor plus 850 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $757 million senior secured credit facility also includes a $40 million five-year revolver.

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

UBS Investment Bank is leading the deal that will be used to refinance the company’s existing holdco facility.

CAMP is a Merrimack, N.H.-based provider of aircraft maintenance tracking software and information services to business aviation.

MRP Generation launches

MRP Generation released talk of Libor plus 550 bps to 575 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year on its $310 million six-year term loan B that launched with an afternoon bank meeting, a source remarked.

The company’s $340 million senior secured credit facility (BB-) also includes a $30 million super priority revolver.

Commitments are due by the close of business on Aug. 11, the source added.

Goldman Sachs & Co. is leading the deal that will be used to refinance existing debt.

MRP Generation is the platform established to manage Avenue Capital’s U.S. power generation investment portfolio. The portfolio consists of High Desert (830 MW), Big Sandy (300 MW) and Wolf Hills (250 MW).

PolyOne details emerge

PolyOne held its call in the morning, launching its $100 million incremental senior secured covenant-light term loan B due Nov. 12, 2022 with talk of Libor plus 275 bps with a 0.75% Libor floor, in line with existing term loan B pricing, and an original issue discount of 99.75, a market source said.

Commitments are due at noon ET on Wednesday and closing is targeted for the week of Aug. 8, the source added.

Citigroup Global Markets Inc. is leading the deal that will be used to repay revolver borrowings that were used to fund the acquisitions of Gordon Composites and Polystrand for an aggregate purchase price of $85.5 million.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials, services and solutions.

ION terms revealed

ION Trading Finance launched with a morning call its €200 million equivalent seven-year add-on term loan with talk of Libor plus 325 bps and Euribor plus 350 bps with a 1% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

The company’s €240 million equivalent in senior secured bank debt also includes a €40 million revolver.

UBS Investment Bank is leading the deal that will be used to repay existing debt and to fund a dividend.

In addition, the company is looking to extend its existing loan maturities by two years.

Commitments and consents are due on Wednesday, the source added.

ION Trading is a software provider of trading, treasury and workflow solutions.

On Assignment repricing

On Assignment relaunched on Thursday the repricing of its roughly $700 million term loan B with talk of Libor plus 275 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

The repricing will take the term loan B down from Libor plus 300 bps with a 0.75% Libor floor.

Wells Fargo Securities LLC is leading the deal.

This repricing is a relaunch of the one that company had postponed in June.

On Assignment is a Calabasas, Calif.-based provider of diversified professional staffing solutions.

Trader deadline surfaces

Trader Corp. held its bank meeting on Thursday to launch its C$510 million seven-year first-lien term loan B (B2/B), and lenders were told that commitments are due by noon ET on Aug. 9, a market source said.

As reported earlier, the term loan B is talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s C$760 million credit facility also includes a C$50 million revolver (B2/B) and a C$200 million privately placed second-lien term loan (Caa2/CCC+).

Goldman Sachs & Co., J.P. Morgan Securities LLC, UBS Investment Bank and Macquarie Capital are leading the debt, with Goldman left on the first-lien debt and JPMorgan left on the second-lien loan.

Proceeds will be used to help fund the roughly C$1,575,000,000 buyout of the company by Thoma Bravo LLC, which is expected to close by the fourth quarter, subject to customary conditions.

Trader Corp. is an Etobicoke, Ont.-based digital automotive marketplace.

Bay Club joins calendar

Bay Club scheduled a bank meeting for Monday afternoon to launch a $445 million credit facility, split between a $20 million revolver, a $350 million first-lien term loan and a $75 million one-year asset-sale bridge loan, a source remarked.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt.

Bay Club is a San Francisco-based active lifestyle and hospitality company with a network of 24 country clubs across 10 campuses.

Albaugh readies loan

Albaugh set a lender call for 10 a.m. ET on Friday to launch a fungible $75 million add-on term loan priced at Libor plus 500 bps with a 1% Libor floor, in line with existing term loan pricing, according to a market source.

Original issue discount talk on the add-on loan is still to be determined.

HSBC Securities (USA) Inc. is leading the debt that will be used for general corporate purposes.

Albaugh is an Ankeny, Iowa-based producer of generic crop protection products.

California Pizza on deck

California Pizza Kitchen will hold a bank meeting mid-day Tuesday to launch first- and second-lien term loans, a market source said.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt.

California Pizza Kitchen is a casual dining chain and a distributor of frozen food products.

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