Univison up with ratings change; Getty, Focus Brands, Gateway, Global Tel*Link revise deals

By Sara Rosenberg

New York, Nov. 1 - Univision Communications Inc.'s term loans were a little stronger during Monday's trading session as the company's ratings were upgraded, and CCGI Holding's term loan held steady at recent breaking levels.

Over in the primary market, Getty Images Inc. announced some changes to its term loan B early in the morning, including a reduction in spread and the addition of call protection, and Focus Brands Inc. reduced the original issue discount on its facility and added a pricing step-down to the term loan.

Also, Gateway Casinos & Entertainment downsized its term loan A, upsized its term loan B and firmed up pricing, and Global Tel*Link Corp. increased its first-lien term loan B while decreasing its deposit letter-of-credit facility and second-lien term loan.

In addition, the reception towards MedAssets Inc.'s credit facility has been very positive with the deal already more than filling out in the few days that it has been in market, and Endo Pharmaceuticals Holdings Inc.'s bank deal is oversubscribed.

Furthermore, SI Organization released price talk on its term loan as the deal was presented to lenders, Gymboree Corp. and Hanger Orthopedic Group Inc. launched their facilities in line with early guidance, and Virtual Radiologic disclosed discount talk on its B loan.

Univision inches higher

Univision's term loans were a touch better on Monday after the company's corporate credit rating was moved to B from B- with a stable outlook by Standard & Poor's, and the issue level ratings on the company's debt were moved up by one notch, according to a trader.

The extended term loan was quoted at 94 5/8 bid, 95 1/8 offered, up from 94½ bid, 95 offered, and the non-extended term loan was quoted at 94¾ bid, 95¼ offered, up from 94 5/8 bid, 95 1/8 offered, the trader said.

"The rating upgrade reflects the successful extension of roughly $6.2 billion of senior secured credit facilities that was scheduled to mature in 2014, which in our opinion helps to reduce refinancing risk and increase financial flexibility," said credit analyst Michael Altberg in the S&P release.

"The amendment, along with the company's agreement with Televisa, could help to make future refinancing more feasible," Altberg added.

Univision is a Los Angeles-based Spanish-language media company.

CCGI bid steady

CCGI Holding's $165 million term loan held at 98½ bid on Monday, which is where it was quoted upon freeing up late in the day Friday, according to a market source.

Pricing on the term loan is Libor plus 1,000 bps with a 2% Libor floor, and it was sold at an original issue discount of 98. There is call protection of 103 in year one, and 101 in years two and three.

During syndication, the term loan was downsized to $150 million from $250 million and then upsized to $165 million from $150 million, pricing was increased from talk of Libor plus 750 bps to 775 bps, the floor widened from 1.75% and call protection was added.

The $190 million credit facility also includes a $25 million five-year revolver that carries the same spread, floor and discount as the term loan and saw the same changes in pricing during syndication.

Jefferies and UBS are the lead banks on the deal that will be used to refinance existing debt at the San Jose, Calif.-based company, a provider of IT broadband and telecommunications services.

Getty tweaks B loan

Moving to the primary, Getty Images reduced pricing on its $1.27 billion six-year term loan B to Libor plus 375 basis points from Libor plus 425 bps and added 101 soft call protection for one year, according to a market source.

As before, the B loan includes a 1.5% Libor floor and is being sold at an original issue discount of 99.

Lenders were asked to get their recommitments in by the end of the day. By late afternoon, the loan was oversubscribed at the revised talk, a second source added.

Allocations are expected to go out later this week.

Getty funding dividend recap

Proceeds from Getty Images' $1.37 billion credit facility (Ba3/BB-), which also provides for a $100 million revolver, will be used to refinance existing debt and fund a dividend payment.

Early on in syndication, sources were saying that the deal was getting a very good reception, and one of the reasons for the fast response from lenders was that it's a well known credit with an existing bank group.

Barclays, JPMorgan, GE Capital, Bank of America and Goldman Sachs are the lead banks on the deal.

Getty Images is a Seattle-based creator, aggregator and distributor of visual and multimedia content to creative and communication professionals.

Focus Brands trims OID

Focus Brands came out with a second round of changes to its $285 million credit facility (B2/B), this time tightening the original issue discount to 99 from 98½ and adding a pricing step-down to the term loan, according to a market source.

Pricing on the $275 million term loan, as well as on the $10 million revolver, firmed at Libor plus 550 bps with a 1.75% Libor floor. The spread was increased last week from initial talk of Libor plus 475 bps to 500 bps, and, following that change, was quickly oversubscribed.

Now, with the latest round of changes, pricing on the term loan can drop to Libor plus 525 bps based on 3.5 times total leverage, the source remarked.

Focus Brands sets deadline

Recommitments towards Focus Brands' credit facility are due from lenders on Tuesday at noon ET, the source continued, and allocations are expected to go out this week.

Credit Suisse is the lead bank on the deal.

Proceeds will be used to refinance existing debt and fund the acquisition of Auntie Anne's, a Lancaster, Pa.-based hand-rolled soft pretzel chain.

Focus Brands is an Atlanta-based franchisor and operator of ice cream stores, bakeries, restaurants and cafes.

Gateway restructures again

Gateway Casinos made a new set for revisions to its term loans, decreasing the term loan A (BB+) to C$150 million from C$170 million and increasing the term loan B to C$200 million from C$170 million, according to a market source.

Initially, the deal was expected to include a C$250 million five-year first-lien term loan B and no term loan A, but at launch it was said that a term loan A might be added as a result of significant early interest from Canadian banks. And then during syndication, that option was exercised.

Unchanged in size from the very beginning has been the C$35 million revolver.

As a result of the new tranching, the credit facility was upsized to C$385 million from a most recent size of C$375 million and from an initial amount of C$285 million.

Gateway sets pricing

Pricing on Gateway Casinos' term loan A is BA plus 350 bps with an original issue discount of 99, and pricing on the term loan B is Libor plus 475 bps with a 1.75% floor and a discount of 99, the source remarked.

Prior to launch, price talk on the B loan had been whispered at Libor plus 525 bps to 550 bps with a 1.75% Libor floor and an original issue discount of 981/2, and then, at launch, it was described as being in the low 7% range, with spread, floor and discount to be determined.

Recommitments were due from lenders on Monday.

Jefferies, RBS, Goldman Sachs, JPMorgan and Morgan Stanley are the lead banks on the deal that will be used to refinance an exit financing term loan.

Gateway Casinos is a Burnaby, B.C.-based casino and entertainment company.

Global Tel*Link downsizes

Global Tel*Link made some changes to its tranche sizes, including upping the first-lien term loan B to $395 million from $370 million and cutting the deposit letter-of-credit facility to $40 million from $45 million and the second-lien term loan to $105 million from $160 million, according to a market source.

As a result, the total facility, which still includes a $20 million revolver, was reduced to $560 million from $595 million and total leverage at close is decreasing to 4.78 times from 5.07 times, the source said.

Pricing on the revolver, the first-lien term loan B and the deposit letter-of-credit facility remained at Libor plus 550 bps, and pricing on the second-lien loan remained at Libor plus 1,125 bps, with all tranches still having a 1.75% Libor floor and being offered at an original issue discount of 98.

As before, call protection on the second-lien term loan is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

Global Tel*Link lead banks

Credit Suisse, UBS and Goldman Sachs are the lead banks on Global Tel*Link's senior secured credit facility, with Credit Suisse the left lead.

Proceeds will be used to refinance existing debt and to fund a dividend payment.

Recommitments are due from lenders on Tuesday at noon ET.

Prior to the changes, the revolver, first-lien term loan B and deposit letter-of-credit facility were rated at B1/B, and the second-lien term loan was rated at Caa1/CCC+.

Global Tel*Link is a Mobile, Ala.-based correctional communications technology company.

MedAssets going well

MedAssets' book is looking strong with the $600 million six-year term loan B already oversubscribed since launching with a bank meeting just last Thursday, according to a market source.

Price talk on the term loan B is Libor plus 400 bps to 425 bps with a 1.5% Libor floor and an original issue discount of 99. There is 101 soft call protection for one year.

The company's $750 million credit facility (Ba3/BB-) also includes a $150 million five-year revolver that is talked at Libor plus 400 bps to 425 bps with a 1.5% Libor floor as well.

Under the commitment letter, the company was allowed to split the term loan into a $150 million five-year term loan A and a $450 million six-year term loan B or keep it all as a term loan B. It was said in filings with the Securities and Exchange Commission that the term loan A would only be used if corporate credit ratings were more than Ba3/BB-.

MedAssets buying Broadlane

Proceeds from MedAssets' credit facility, along with $360 million of senior unsecured notes, will be used to fund the acquisition of the Broadlane Group and refinance existing bank debt.

Broadlane, a Dallas-based end-to-end cost-management partner for health care providers, is being purchased for roughly $850 million in cash, with $725 million to be paid at closing and $125 million to be paid in January 2012.

Barclays and JPMorgan are the joint lead arrangers on the credit facility, and Bank of America, Raymond James and Fifth Third Bank all signed on as documentation agents prior to the bank meeting.

The total funded debt will be 5.2 times trailing pro forma adjusted EBITDA, taking into consideration the company's estimate for cost-based synergies.

MedAssets is an Alpharetta, Ga.-based provider of technology enabled products and services for hospitals, health systems and ancillary health care providers.

Endo sees strong interest

Endo Pharmaceuticals' $700 million credit facility, which is being marketed to banks, is heavily oversubscribed, with the final affect on sizing still to be determined as a result of the demand, according to a market source.

At launch, the Chadds Ford, Pa.-based specialty health care services company's facility was presented as a $500 million revolver and a $200 million term loan, with both tranches talked at Libor plus 250 bps. The tranches are being offered with upfront fees based on commitment size. There is no Libor floor.

JPMorgan and RBC are the lead banks on the deal that will be used to refinance an existing revolver and help fund the acquisition of Qualitest Pharmaceuticals, a Huntsville, Ala.-based generics company, from Apax Partners for $1.2 billion in cash.

Closing on the transaction is expected late in the fourth quarter of 2010 or early in the first quarter of 2011, subject to regulatory approval.

SI sets talk

SI Organization held a bank meeting on Monday to kick off syndication on its proposed credit facility, at which time lenders were told that the $300 million six-year term loan is being talked at Libor plus 450 bps with a 1.75% Libor floor and an original issue discount of 981/2, according to a market source.

JPMorgan is the lead bank on the $340 million credit facility that also includes a $40 million five-year revolver.

Proceeds will be used to help fund Veritas Capital's acquisition of Lockheed Martin Corp.'s Enterprise Integration Group for $815 million.

The Enterprise Integration Group, which will be named SI Organization, is a Valley Forge, Pa.-based provider of mission-critical systems engineering and integration services and modeling, simulation, analysis and risk mitigation services to the U.S. intelligence community.

Gymboree launches

As expected, Gymboree held a bank meeting on Monday to launch its proposed $720 million seven-year term loan B, according to a market source.

And, the San Francisco-based specialty retailer's term loan B was launched in line with early talk at Libor plus 450 bps with a 1.75% Libor floor and an original issue discount of 981/2, the source said.

There is no call protection being offered on the B loan, the source added.

Credit Suisse and Morgan Stanley are the joint lead arrangers and bookrunners on the tranche, with Credit Suisse the left lead.

Gymboree getting revolver

Gymboree's $945 million senior secured credit facility also includes a $225 million five-year asset-based revolver that is being led by Bank of America.

Based on a commitment letter filed with the SEC, the revolver is expected to be split into a $213 million A tranche and a $12 million first-in, last-out A-1 tranche. If the company opts to reduce or terminate the A-1 tranche, those commitments can be added to the A tranche.

Initial pricing on the tranche A revolver is expected to be Libor plus 250 bps, and initial pricing on the tranche A-1 revolver is expected to Libor plus 400 bps, the filing said. Pricing on the tranche A can range from Libor plus 225 bps to 275 bps, and pricing on the A-1 can range from Libor plus 375 bps to 425 bps, based on average daily excess availability.

The initial commitment fee on the revolver is expected to be 62.5 bps. This fee can range from 37.5 bps to 62.5 bps based on average daily used percentage.

Gymboree being acquired

Proceeds from Gymboree's credit facility will be used to help fund the acquisition of the company by Bain Capital Partners LLC for $65.40 per share, or $1.8 billion. Bain started a tender offer for Gymboree's shares last week.

Other funds for the transaction will come from up to $524 million of equity and the issuance of $520 million of senior unsecured notes.

The notes are backed by a commitment for a $520 million one-year senior unsecured bridge loan that is priced at Libor plus 800 bps, increasing by 50 bps every three months, with a 1.75% Libor floor.

Completion of the transaction is subject to the satisfaction of the minimum tender condition of at least 66% of the company's common shares, approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Hanger comes to market

Also launching with a bank meeting on Monday was Hanger Orthopedic's $425 million credit facility (Ba3/BB-) that consists of a $100 million revolver and a $325 million term loan B, according to a source.

As expected, the term loan B is talked at Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 99. There is 101 soft call protection for one year.

Bank of America, Jefferies, Oppenheimer, SunTrust and RBC are the lead banks on the deal that will be used, along with cash on hand and $200 million of senior notes, to fund the acquisition of Accelerated Care Plus, a Reno, Nev.-based provider of integrated clinical programs for rehabilitation providers, for about $155 million in cash and to refinance existing bank debt.

Closing is expected around Dec. 1, subject to regulatory approvals and financing.

Hanger is an Austin, Texas-based provider of orthotic and prosthetic patient care services.

Virtual Radiologic OID talk

Virtual Radiologic is talking the original issue discount on its $213 million term loan B at 98½ ahead of its Tuesday bank meeting, according to a market source. As was previously reported, price talk on the B loan is Libor plus 550 bps with a 1.75% Libor floor.

The company's $253 million senior secured credit facility also includes a $40 million revolver.

GE Capital and SunTrust are the joint bookrunners on the deal that will be used to help fund the acquisition of NightHawk Radiology Holdings Inc. for $6.50 per share in cash. The transaction is valued at roughly $170 million.

Closing on the transaction is expected in the first quarter of 2011, subject to customary conditions, including the approval of NightHawk's stockholders.

Virtual Radiologic is an Eden Prairie, Minn.-based radiology practice and developer of radiologist workflow technology. NightHawk is a Scottsdale, Ariz.-based provider of radiology services to radiology groups.

Prestige Brands closes

In other news, Prestige Brands Holdings Inc. completed its acquisition of Blacksmith Brands Holdings Inc. for $190 million, according to a news release.

To help fund the transaction, the company got a $115 million incremental term loan (Ba2/BB) priced at Libor plus 325 bps with a 1.5% Libor floor that was sold at an original issue discount of 991/2.

Bank of America and Deutsche Bank acted as the lead banks on the deal.

Prestige Brands is an Irvington, N.Y.-based marketer of branded over-the-counter health care products, household cleaning products and personal care products.

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