Immucor upsizes term B, breaks; Insight Pharmaceuticals tweaks deal; Plaze talk emerges

By Sara Rosenberg

New York, Aug. 17 - Immucor Inc. lifted its senior secured term loan B size to compensate for a wider original issue discount that was announced earlier this week and helped get the tranche to oversubscription levels - as did a flex up in spread and the addition of a financial covenant - and then the deal freed up for trading.

In more loan happenings, Insight Pharmaceuticals Corp. reworked its credit facility structure, moving funds between the first- and second-lien tranches, and lifting pricing, and Plaze Inc. released price talk on its deal as the transaction was launched to investors during the session.

Immucor ups loan size

Immucor increased its seven-year term loan B to $615 million from $600 million as its original issue discount was recently widened by a few points, according to a market source.

Pricing on the B loan is Libor plus 575 bps with a 1.5% Libor floor and an original issue discount of 96, and there is 101 soft call protection for one year.

Earlier in the week, the company raised the coupon on the loan from talk of Libor plus 450 bps to 475 bps, widened the original issue discount to 96 from 99 and added a senior secured net leverage covenant of 5.25 times to what was previously a covenant-light deal.

Prior to launch, the company had said in filings with the Securities and Exchange Commission that term loan B pricing was expected at Libor plus 475 bps with a 1.5% floor.

Immucor trades atop OID

After the upsizing was announced, Immucor's term loan B hit the secondary market, with levels quoted by one trader at 96½ bid, 97½ offered, and by a second trader at 96½ bid, 97¼ offered.

The company's now $715 million senior secured credit facility (Ba3/BB-), up from $700 million, also includes a $100 million five-year revolver, of which no more than $25 million can be drawn at closing.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint lead arrangers and bookrunners on the deal, and UBS Securities LLC is a bookrunner as well.

Proceeds will be used to help fund the buyout of the company by TPG Capital for $27.00 per share in cash. The transaction has a fully diluted equity value of $1.973 billion.

As part of the buyout agreement, TPG is in the process of tendering for Immucor's common stock shares. The tender offer expires on Aug. 18, and there is a minimum tender condition of 84%.

Immucor sells notes

Other funds for the acquisition of Immucor will come from $400 million of new senior notes and up to $691 million of equity. The 11 1/8% notes priced on Tuesday at 98.714 to yield 11 3/8%. Price talk had been 11¼% to 11½%.

Closing on the buyout is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act, the receipt of approvals under German antitrust or merger control laws and other customary conditions. The company announced earlier this month that the waiting period under Hart-Scott-Rodino has expired and Germany's Federal Cartel Office has granted clearance of the transaction.

Immucor is a Norcross, Ga.-based provider of automated instrument-reagent systems to the blood transfusion industry.

Insight restructures

Another deal to come out with changes on Wednesday was Insight Pharmaceuticals, as it downsized its first-lien term loan, upsized its second-lien term loan and revised pricing on the debt, according to a market source.

The first-lien term loan is now sized at $255 million, down from $290 million, and pricing is Libor plus 600 bps with a 1.5% Libor floor and an original issue discount of 981/2, the source said. Most recent talk had been Libor plus 550 bps, with all other terms the same, and prior to that, talk had been Libor plus 500 bps with a discount of 99.

Included in the first-lien term loan is 101 soft call protection for one year, a feature that was added at the time of the first pricing flex.

As a result of the changes, first-lien leverage is 3.1 times, down from 3.56 times.

Insight second-lien details

To counteract the first-lien term loan downsizing, Insight Pharmaceuticals' second-lien term loan was increased to $145 million from $110 million, the source continued. Pricing on the second-lien loan is Libor plus 1,175 bps with a 1.5% Libor floor and an original issue discount of 98, revised from initial guidance of Libor plus 900 bps with a discount of 981/2.

The second-lien loan is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four versus original talk of 103 in year one, 102 in year two and 101 in year three.

GE Capital Markets, SunTrust Robinson Humphrey Inc. and RBC Capital Markets LLC are leading the $420 million deal, which also includes a $20 million revolver and will be used for acquisition financing.

Insight Pharmaceuticals is a Langhorne, Pa.-based marketer and distributor of branded over-the-counter pharmaceutical products.

Plaze sets guidance

Also in the primary, Plaze held a bank meeting on Wednesday morning to launch its proposed $150 million senior credit facility, and in connection with the event, price talk was disclosed, according to a market source.

The facility, which is comprised of a $20 million revolver and a $130 million term loan, is being talked at Libor plus 500 bps with a 1.5% Libor floor and an original issue discount of 991/4, the source said.

GE Capital Markets and PNC Capital Markets LLC are the lead banks on the deal that will be used, along with $50 million of mezzanine debt, to fund the buyout of the company by Olympus Partners.

Leverage through the senior facility is 3.75 times and leverage through the mezzanine financing is 5.25 times.

Plaze is a St. Clair, Mo.-based full service contract aerosol and liquid packager.

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