DineEquity breaks; Cincinnati Bell dips; Brickman reworks deal; Goodman, Asurion set talk

By Sara Rosenberg

New York, Oct. 7 - DineEquity Inc.'s credit facility hit the secondary market on Thursday, with the term loan B quoted above its original issue discount price, and Cincinnati Bell Inc.'s term loan softened on paydown news.

Over in the primary, Brickman Group Ltd. came out with a few changes to its oversubscribed covenant-light term loan, including increasing the size, reducing the spread and lowering the original issue discount.

Also, Goodman Global Group Inc. and Asurion released price talk on their new bank deals as the transactions were presented to lenders during the session, and Global Tel*Link Corp. emerged with plans for a new credit facility.

DineEquity starts trading

DineEquity's credit facility freed up for trading, with the $900 million seven-year term loan B quoted at 99¼ bid on the break and then moving up to par ¾ bid, 101 1/8 offered, according to sources.

Pricing on the term loan B is Libor plus 450 basis points with a 1.5% Libor floor and an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing was reduced from Libor plus 475 bps, the floor was cut from 1.75% Libor and the discount tightened from 981/2.

The company's $950 million credit facility (Ba2/BB-) also includes a $50 million five-year revolver. Initially, the revolver size was talked at $50 million to $75 million, before firming at the low end.

DineEquity lead banks

Barclays and Goldman Sachs are the lead banks on DineEquity's credit facility, with Barclays the left lead.

Proceeds will be used to refinance existing debt, including the company's $1.385 billion of notes.

Other funding for the refinancing will come from $825 million of eight-year senior unsecured notes that priced at par to yield 9½%.

Senior leverage is 3.5 times and total leverage is 5.7 times.

DineEquity is a Glendale, Calif.-based owner of Applebee's Neighborhood Grill & Bar and IHOP Restaurants.

Cincinnati Bell weakens

Cincinnati Bell's term loan B retreated after the company announced plans to repay a significant portion of the debt using proceeds from a $500 million senior notes offering that priced at par to yield 8 3/8%, according to a trader.

The term loan B was quoted at par bid, par 1/8 offered, down from par ¾ bid, 101¼ offered, the trader said.

As of June 30, the company had $758.1 million of term loan B borrowings. Adjusted for the bond deal and repayment, the outstanding amount would have been $268.1 million.

There were no outstanding amounts under the revolver at June 30.

After giving effect to the offering of the notes and the application of the proceeds, the company would have had the ability to borrow an additional $185.2 million under its credit facility, reflecting $24.8 million of outstanding letters of credit.

Cincinnati Bell is a Cincinnati-based provider of integrated communications solutions.

Brickman tweaks term loan

Moving to the primary, Brickman made some revisions to size and pricing of its covenant-light term loan as a result of overwhelming demand, and asked for recommitments by 5 p.m. ET on Thursday, with the hope being that allocations will go out on Friday, according to a market source.

The term loan has been oversubscribed for quite a few days now and in fact, the initial commitment deadline had been moved up to Wednesday from Thursday because of the strong reception. With the modifications, however, the deadline essentially moved back to its original timeframe.

Under the changes, the six-year term loan is now sized at $550 million, up from $500 million, pricing was reduced to Libor plus 550 bps from Libor plus 575 bps, a step down to Libor plus 525 bps at less than 5.0 times leverage was added, and the original issue discount was tightened to 99 from 98, the source said.

Unchanged was the term loan's 1.75% Libor floor and soft call protection of 102 in year one and 101 in year two.

Brickman cuts notes

As a result of the term loan upsizing, Brickman opted to reduce its senior notes offering to $250 million from $300 million, the source remarked. The notes priced at par to yield 9 1/8%.

Proceeds from the credit facility and the notes will be used to fund a dividend payment and to refinance existing debt.

Barclays and Bank of America are the lead banks on the credit facility, with Barclays the left lead.

The company's now $600 million, up from $550 million, credit facility (B1/B+) still provides for a $50 million five-year revolver.

Brickman is a Gaithersburg, Md.-based commercial landscaping company.

Goodman announces talk

Goodman Global held a conference call on Thursday to kick off syndication on its proposed JPMorgan-led $2.025 billion secured credit facility, and in connection with the launch, price talk emerged, according to a market source.

The $250 million revolver (Ba3/B+) and the $1.4 billion first-lien term loan (Ba3/B+) are both being talked at Libor plus 450 bps, the source said.

The first-lien term loan has a 1.75% Libor floor and an original issue discount of 981/2.

Meanwhile, the $375 million second-lien term loan (B3/B-) is being talked at Libor plus 800 bps with a 2% Libor floor and an original issue discount of 971/2, the source remarked. This tranche is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

Proceeds will be used to repay substantially all of the company's outstanding debt, to fund a distribution to equityholders and for other general corporate purposes.

Goodman provides financials

Additionally on Thursday, Goodman Global released guidance for the rest of 2010 and the full year 2011 in an 8-K filed with the Securities and Exchange Commission.

For the three months ended Sept. 30, net sales are expected to range between $525 million to $535 million, compared to $530 million in 2009, and operating profit is expected to range between $84 million and $89 million, compared to $99 million last year.

For the three months ending Dec. 31, net sales are expected to range between $415 million and $425 million, compared to $418 million in the prior year, and operating profit is expected to range between $40 million and $45 million, compared to $51 million in 2009.

And, for 2011, net sales are expected to range between $2.03 billion to $2.13 billion, and operating profit is expected to range between $315 million and $335 million.

Goodman Global is a Houston-based manufacturer of heating, ventilation and air conditioning products for residential and light commercial use.

Asurion releases official guidance

Another company to launch a new deal on Thursday was Asurion, and it too came out with official talk in connection with the event, according to a market source.

The proposed $900 million incremental first-lien term loan was presented with talk of Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 99 - which is in line with the rumored guidance that was circulating ahead of the early afternoon bank meeting.

Barclays, Credit Suisse, Morgan Stanley and Goldman Sachs are the lead banks on the deal that will be used to fund a dividend.

Asurion is a Nashville, Tenn.-based provider of technology protection services.

Global Tel*Link readies deal

Global Tel*Link is anticipated to come to market this month with a new $595 million credit facility that is being shown to a select group of investors, according to market sources.

The facility consists of a $20 million revolver, a $370 million term loan B, a $45 million letter-of-credit facility and a $160 million second-lien term loan, sources said.

Credit Suisse, UBS and Goldman Sachs are the lead banks on the deal that will be used to refinance existing debt, to fund a dividend payment and for acquisition financing.

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

CHG Healthcare closes

In other news, CHG Healthcare Services closed on Thursday on its $353 million credit facility consisting of a $70 million five-year revolver, a $230 million six-year first-lien term loan and a $53 million 61/2-year second-lien term loan.

Pricing on the revolver is Libor plus 550 bps with a 1.75% Libor floor, pricing on the first-lien term loan is Libor plus 550 bps with a step-down to Libor plus 525 bps when leverage is less than 4.0 times, a 1.75% Libor floor and an original issue discount of 98, and pricing on the second-lien loan is Libor plus 950 bps with a 1.75% Libor floor and an original issue discount of 98.

The fist-lien term loan has 101 soft call protection for one year, and the second-lien has call protection of 103 in year one, 102 in year two and 101 in year three.

CHG funds dividend recap

Proceeds from CHG Healthcare Services' credit facility were used to repay debt and fund a dividend.

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

During syndication, the first-lien term loan was upsized from $225 million, the second-lien term loan was downsized from $60 million, pricing on the revolver and first-lien loan firmed from talk of Libor plus 500 bps to 550 bps, the step-down was added to the first-lien loan, and pricing on the second-lien firmed from talk of Libor plus 900 bps to 950 bps.

The downsizing of the overall credit facility from $355 million was done because the company had more cash on its balance sheet than it initially expected.

Leverage through the first-lien is 3.5 times, and total net leverage is 4.3 times.

CHG Healthcare Services is a Salt Lake City-based health care staffing provider.

Fortress wraps deal

Fortress Investment Group LLC closed on its $340 million credit facility (BBB-/BBB) priced at Libor plus 400 bps with a 1.75% Libor floor, according to an 8-K filed with the SEC.

The deal is comprised of a $60 million three-year revolver and a $280 million five-year term loan.

The term loan is non-callable for two years, then at 101 in years three and four.

During syndication, the term loan was downsized from $340 million and the revolver was downsized from $100 million.

Bank of America, Wells Fargo, Citigroup and Barclays acted as the joint lead arrangers and bookrunners on the deal.

Proceeds were used by the New York-based investment management firm to refinance existing debt.

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