Skype allocating soon; Busch upsizes term loan; TASC readies new deal; PODS sets launch

By Sara Rosenberg

New York, Nov. 9 - Skype Technologies (Springboard Finance LLC) is close to allocating its credit facility now that litigation has been settled and the term loan has been upsized to cover the new expense.

Also, Busch Entertainment Corp. increased the size of its term loan due to strong demand and decreased the size of its mezzanine financing.

In more primary happenings, TASC Inc. is getting ready to kick off syndication on its proposed buyout credit facility and is looking at next week as the possible launch timeframe, and PODS Enterprises Inc. has scheduled a bank meeting for later this week to launch its new deal.

Skype allocations near

Skype Technologies is hoping to allocate on Thursday its credit facility that will be used to help fund the purchase of a stake in the company from eBay Inc. The in investor group is led by Silver Lake and including Index Ventures, Andreessen Horowitz and the Canada Pension Plan Investment Board.

Allocations are coming on the heels of a final change being made to the credit facility as a result of the settlement of litigation, according to a market source.

Under the latest revision, the five-year term loan was increased to $700 million from $600 million, the source said.

The extra $100 million of term loan funds is being provided by eBay Inc. and the investor group that is buying a stake in Skype, under the condition that this debt is not allowed to be sold for at least six months, the source explained.

Pricing on the upsized term loan is Libor plus 750 basis points with a 2% Libor floor and an original issue discount of 96. Earlier in the syndication process, pricing had been flexed up from initial talk of Libor plus 600 bps and the original issue discount widened from 97.

Skype investors getting smaller stake

The investor group that is purchasing a portion of Skype is now only getting a 56% piece of the company instead of a 65% piece as a result of the litigation settlement agreement.

The settlement was reached with Joltid Ltd. and Joost NV, giving Skype ownership over all software previously licensed from Joltid and ending all litigation against the investor group and eBay at the closing of the acquisition.

Upon completion of the sale, eBay will receive about $1.9 billion in cash and a note from the buyer in the principal amount of $125 million. The deal, which values Skype at $2.75 billion and is not subject to a financing condition, is expected to close in the fourth quarter.

JPMorgan, Barclays and RBC Capital Markets are the lead banks on the Skype $730 million credit facility (B1/B), which also includes a $30 million four-year revolver.

Skype is a Luxembourg-based software that enables individuals and businesses to make free video and voice calls, send instant messages and share files with other Skype users.

Busch ups term loan

Busch Entertainment upsized its term loan to $1.05 billion from $1 billion since the deal is oversubscribed, while it downsized its mezzanine financing to $400 million from $450 million, according to sources.

Busch's now $1.175 billion, up from $1.125 billion, credit facility (Ba2/BB+) also includes a $125 million revolver.

This is the second upsizing that the deal has seen. Originally, the term loan was expected to be sized at $950 million and the revolver was expected at $100 million, but they were both increased prior to launching to a select audience on Oct. 28.

Pricing on the term loan is talked at Libor plus 350 bps with a 2.25% Libor floor and an original issue discount of 981/2.

Busch being bought

Proceeds from Busch's credit facility will be used to help fund the buyout of the company by the Blackstone Group from Anheuser-Busch InBev for $2.3 billion in cash plus the right to participate in Blackstone's return on its initial investment capped at $400 million.

Bank of America Merrill Lynch, Barclays, Deutsche Bank, Goldman Sachs and Mizuho Corporate Bank are the lead banks on the deal.

As a result of the first credit facility upsizing, the equity for the buyout was reduced to $975 million.

Closing of the transaction is subject to customary conditions, including regulatory clearance.

Busch Entertainment is an entertainment park operator.

TASC eyes next week

TASC is targeting the week of Nov. 16 to hold a bank meeting for its proposed $680 million senior secured credit facility, but specific timing has not yet been determined, according to a market source.

Structure on the facility is also still being worked on; however, it is known that there will be a $100 million revolver and $580 million of term loan A and term loan B debt.

Price talk is not yet available. There will be a Libor floor, but details on that are also still to be determined, the source continued.

Barclays Capital, Deutsche Bank Securities and RBC Capital Markets are the lead banks on the deal, with Barclays the left lead. In addition, CPPIB Credit Investments Inc. has provided commitments towards the facility as an investor.

Investors to buy TASC

Proceeds from the TASC credit facility will be used to help fund the purchase of the company by an investor group led by General Atlantic LLC and Kohlberg Kravis Roberts & Co. from Northrop Grumman Corp. in a transaction valued at $1.65 billion.

Other funds for the buyout will come from mezzanine debt that has been pre-placed, the source remarked. KKR Capital Markets arranged the mezzanine financing and Highbridge Mezzanine Partners is the lead investor, although there are other investors involved as well.

Closing on the transaction is expected to take place in the fourth quarter, subject to customary approvals.

TASC, which generates about $1.6 billion in revenue, is a Chantilly, Va.-based provider of advanced systems engineering and technical assistance to the defense, intelligence, federal, state and local markets.

PODS brings refinancing deal

PODS is coming to market with a $145 million credit facility to refinance existing bank debt and has scheduled a bank meeting for Thursday to present the transaction to potential lenders, according to a market source.

The facility is comprised of a $25 million revolver and a $120 million term loan, with price talk still to be determined, the source said.

Barclays is the lead bank on the deal.

PODS is a Clearwater, Fla.-based provider of moving and storage services.

Louis Dreyfus attracting interest

In other news, Louis Dreyfus Highbridge Energy LLC's $350 million credit facility is "going very well" in terms of syndication, according to a market source.

The facility consists of a $100 million three-year revolver talked at initial pricing of Libor plus 350 bps and a $250 million five-year term loan B talked at initial pricing of Libor plus 425 bps.

Pricing on the tranches is based on a leverage grid, with the revolver pricing able to range from Libor plus 300 bps to 350 bps and the term loan B pricing able to range from Libor plus 325 bps to 425 bps.

Both tranches include a 1% Libor floor.

UBS, Wells Fargo and RBS are the joint bookrunners on the deal that will be used to refinance existing debt, with UBS the left lead.

Louis Dreyfus Highbridge Energy is a Wilton, Conn.-based merchant energy company.

Universal Orlando closes

Universal Orlando closed on its $975 million credit facility (Ba2/B+), consisting of a $900 million five-year term loan B and a $75 million four-year revolver, according to an 8-K filed with the Securities and Exchange Commission late Friday.

The term loan B and the revolver are priced at Libor plus 425 bps with a 2.25% Libor floor. The term loan B was sold at an original issue discount of 981/2.

During syndication, the original issue discount on the term loan B was decreased from 98 and the Libor floor on both tranches was lowered from 2.5%.

JPMorgan and Bank of America acted as the joint lead arrangers and bookrunners on deal, and Barclays, Deutsche Bank, Goldman Sachs and Morgan Stanley were also bookrunners.

Proceeds were used to help fund the redemption of the company's 11¾% senior notes due in 2010, 8 3/8% senior notes due in 2010 and floating-rate senior notes due in 2010.

Universal Orlando is an Orlando, Fla.-based owner and operator of theme parks.

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