Catalent, North American Bancard break; Travelport rises; Sabre up with extension proposal

By Sara Rosenberg

New York, April 24 - Catalent Pharma Solutions Inc. nailed down the original issue discount on its add-on term loan and then allocated and freed up for trading on Tuesday, and North American Bancard began trading as well.

Also, Travelport Ltd.'s extended term loan was better with news that company will be getting a new loan to take out non-extended borrowings, and Sabre Inc.'s non-extended debt was stronger as an extension proposal was presented to lenders.

Over in the primary, 4L Holdings reworked its term loan B, reducing the size, raising the coupon and widening the original issue discount, Physiotherapy Associates tightened the spread and discount on its deal, and Granite Broadcasting Corp. released price talk on its first-lien term loan B with launch.

Catalent hits secondary

Catalent Pharma Solutions' $205 million add-on to its incremental term loan due Sept. 15, 2017 broke for trading on Tuesday, with levels quoted at par bid, par ½ offered, according to a trader.

Pricing on the add-on is Libor plus 400 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 99½ after firming in the morning at the low end of the 99 to 99½ guidance, a source said. There is 101 soft call protection until Feb. 22, 2013.

The spread and floor on the add-on match the existing incremental loan that was sold at a discount of 99 when obtained in February. The add-on and existing debt is fungible.

Morgan Stanley Senior Funding Inc. is leading the deal.

Catalent repaying debt

Proceeds from Catalent's add-on loan will be used to take out non-extended U.S. term loan B borrowings due in 2014.

The add-on was just launched on Monday and originally commitments were due at 5 p.m. ET on Tuesday, but the deadline was accelerated to 10:30 a.m. ET due to strong demand, a source added.

Catalent is a Somerset, N.J.-based provider of advanced technologies and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer health care companies.

North American frees up

North American Bancard's credit facility was another deal to make its way into the secondary market, with the $150 million six-year term loan quoted at 99½ bid, according to a market source.

Pricing on the term loan is Libor plus 550 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 981/2. There is 101 repricing protection for one year.

During syndication, the discount was tightened from 98.

The company's $160 million credit facility (Ba3/BB+) also includes a $10 million five-year revolver that is priced at Libor plus 550 bps with a 1.5% Libor floor.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the lead banks on the deal that will be used to repay existing debt and fund a dividend.

North American Bancard is a Troy, Mich.-based merchant acquirer for payment processing.

Travelport heads higher

In more trading news, Travelport's extended loan was quoted at 91¼ bid, 92¼ offered, up about half a point on the day, as plans for a new $175 million 11/2-lien term loan surfaced, according to a trader.

The new loan due Nov. 22, 2015 is talked at Libor plus 1,100 bps with a 1.5% Libor floor and an original issue discount of 96 ahead of the Wednesday morning call that will launch the deal into syndication, a source remarked. There is hard call protection of 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are the lead banks on the new loan that will be used to repay the company's non-extended term loan due in 2013.

Travelport is an Atlanta-based provider of transaction processing services to the travel industry.

Sabre gains ground

Sabre's non-extended term loan rose to 96 3/8 bid, 97 1/8 offered from 93¼ bid, 94 offered following news that the company is looking to extend the debt to Dec. 29, 2017 from Sept. 30, 2014, according to a trader.

The existing extended term loan due September 2017 was basically unchanged at 94¾ bid, 95½ offered, versus 94¾ bid, 95¼ offered on Monday, the trader continued.

The new extended term loan is talked at Libor plus 575 bps, with lenders offered an 85 bps extension fee and a 15 bps amendment fee - in line with pricing and fees offered on the existing roughly $1.175 billion extended term loan that was done in February, a source said. Pricing on the non-extended loan due in 2014 is Libor plus 225 bps.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal.

With the amendment, the Southlake, Texas-based online travel company is selling $400 million of senior secured notes to repay some of the 2014 loan and for general corporate purposes.

4L tweaks loan

Moving to the primary, 4L Holdings made a number of changes to its term loan B, including cutting the size to $250 million from $300 million, raising pricing to Libor plus 550 bps from Libor plus 500 bps and moving the discount to 97 from 981/2, according to a market source. The 1.25% Libor floor was left intact.

Recommitments towards the restructure loan are due on Thursday, the source remarked.

J.P. Morgan Securities LLC is the lead bank on the deal that will be used to refinance existing debt.

4L Holdings is an electronics company.

Physiotherapy cuts pricing

Also coming out with revisions was Physiotherapy Associates, as it lowered pricing on its $125 million credit facility (Ba2/BB-) to Libor plus 475 bps from Libor plus 500 bps and moved the Libor floor to 1.25% from 1.5%, according to a market source. The original issue discount remained at 98.

The facility consists of a $25 million five-year revolver and a $100 million six-year term loan B.

Recommitments were due at 5 p.m. ET on Tuesday. Allocations are targeted to go out on Wednesday, the source continued.

Jefferies & Co., GE Capital Markets and RBC Capital Markets LLC are leading the deal that will be used, along with $210 million of 11 7/8% seven-year senior notes, to fund the buyout of the company by Court Square Capital Partners from Water Street Healthcare Partners and Wind Point Partners.

Physiotherapy Associates is an Exton, Pa.-based provider of outpatient rehabilitation services.

Granite discloses guidance

Meanwhile, Granite Broadcasting held a conference call in the afternoon to launch its credit facility, at which time price talk on the $215 million seven-year first-lien term loan B (B2/B) was announced, according to a market source.

The B loan is guided at Libor plus 650 bps with a 1.25% Libor floor and an original issue discount in the 98½ area and includes 101 soft call protection for one year, the source said.

The company's $265.6 million credit facility also provides for a $5 million five-year revolver (B2/B) and a $45.6 million 10-year second-lien term loan.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Granite Broadcasting is a New York-based television broadcasting company focused on operating local TV, online and mobile properties.

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