Orbitz better with acquisition news; Targa breaks; PetSmart, Hoover Container revise deals

By Sara Rosenberg

New York, Feb. 12 – Orbitz Worldwide Inc.’s term loan headed higher in trading on Thursday after news came out that the company is being acquired by Expedia Inc., and Targa Resources Corp. saw its credit facility emerge in the secondary market.

Moving to the primary, PetSmart Inc. lowered pricing on its term loan B, tightened the original issue discount and accelerated the commitment deadline, Hoover Container Solutions widened the spread on its term loan while also shortening the maturity, and Hanson Building Products and Indivior plc released talk with launch.

Orbitz’s term loan was stronger in the secondary market on Thursday following the announcement of its acquisition agreement with Expedia, according to a trader.

The term loan was quoted at par bid, par 1/8 offered, up from 99½ bid, par offered, the trader said.

Under the agreement, Orbitz is being bought by Expedia for $12.00 per share in cash, representing an enterprise value of about $1.6 billion.

Closing is subject to Orbitz shareholder approval, regulatory approvals and other customary conditions.

Chicago-based Orbitz and Bellevue, Wash.-based Expedia are online travel companies.

Targa Resources’ credit facility began trading during the session, with the $430 million seven-year senior secured covenant-light term loan quoted at 99 bid, 99½ offered, a trader remarked.

Pricing on the term loan is Libor plus 475 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98¼. There is 101 soft call protection for one year.

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