Town Sports, Fenwal cut spreads; Atlantic Broadband details repricing; PGS breaks; Supervalu softens

By Sara Rosenberg

New York, Feb. 15 - Town Sports International LLC reduced pricing on its term loan B and added a leverage-based step down to the tranche, Fenwal Inc. reverse flexed its first- and second-lien institutional debt and Atlantic Broadband Finance, LLC came out with price talk on its add-on/repricing as the transaction was launched on Thursday morning.

In the secondary market, PGS Inc.'s credit facility freed for trading with the term loan B quoted atop 101, and Supervalu Inc.'s term loan B weakened a touch on repricing news.

Town Sports lowered pricing on its $185 million term loan B and added a step down that is based on the company meeting a specified leverage test, according to a market source.

The term loan B is now priced at Libor plus 200 basis points, down from original talk of Libor plus 225 bps, the source said.

In addition, a step down to Libor plus 175 bps was added to the loan, effective when senior secured leverage is 1.5 times, the source remarked.

Town Sports' $260 million senior credit facility (Ba2/B+) also includes a $75 million revolver that is priced at Libor plus 225 bps, in line with original talk.

Deutsche Bank is the lead bank on the facility that will be used to fund a tender offer for the company's $169.9 million of 9 5/8% senior notes due 2011.

The tender offer will expire on Feb. 26.

Town Sports is a New York-based owner and operator of fitness clubs.

Fenwal trims pricing

Fenwal also came out with a pricing change on Thursday, reducing the spreads on its first-lien term loan B, delayed-draw term loan and second-lien term loan, according to a market source.

The $300 million first-lien term loan B (B+) and the $50 million delayed-draw term loan (B+) are now both priced at Libor plus 225 bps, down from original talk of Libor plus 275 bps, the source said.

And, the $75 million second-lien term loan (B-) is now priced at Libor plus 525 bps, down from original talk of Libor plus 600 bps, the source added.

The second-lien term loan carries call protection of 102 in year one and 101 in year two.

Fenwal's $475 million credit facility also includes a $50 million revolver (B+).

Morgan Stanley and Citigroup are the lead banks on the deal, with Morgan Stanley the left lead.

Proceeds will be used to help fund the acquisition of Baxter International Inc.'s Transfusion Therapies business by Texas Pacific Group and Maverick Capital, Ltd.

Texas Pacific and Maverick are buying the blood collection and processing business from Baxter for $540 million.

Atlantic Broadband sets repricing

Atlantic Broadband announced on its conference call Thursday morning that it will be repricing its term loan B at Libor plus 250 bps from Libor plus 275 bps, in conjunction with doing a $110 million term loan B add-on (B1/B), according to a market source.

Previously, it was known that the company was going to ask lenders to reprice and upsize the bank debt, but specifics on the new spread were unavailable, while the size of the add-on was revealed a few days ago.

Merrill Lynch and Credit Suisse are the lead banks on the deal.

Proceeds from the add-on will be used to redeem a portion of the preferred securities of Atlantic Broadband Group, LLC, to repay all term loan A borrowings and to reduce a portion of its revolver borrowings.

Atlantic Broadband is a Quincy, Mass., provider of digital video, high-speed internet and phone service.

Autocam flexes up

Autocam Corp. increased pricing on both tranches under its $150 million credit facility as corporate credit ratings emerged as B3/B and loan ratings emerged as B2/B, according to a market source.

With the change, both the $30 million revolver and the $120 million term loan are now priced at Libor plus 375 bps, up from original talk at launch of Libor plus 300 bps, the source said.

Credit Suisse is the lead bank on the deal that will be used, in conjunction with $85 million of equity and the conversion of existing subordinated debt into equity, to recapitalize the company.

Autocam is a Kentwood, Mich., designer and manufacturer of specialty metal alloy components for the transportation and medical device industries.

Mattress Firm upsizes again

Mattress Firm increased the size of its seven-year term loan B again, this time to $225 million from $205 million, according to a market source. The other week, the tranche had been upsized to $205 million from $185 million.

The funds for both term loan B upsizings were taken out of the company's mezzanine financing, which was downsized to $80 million from $120 million.

Pricing on the term loan B is set at Libor plus 225 bps. At the time of the first upsizing, pricing had been reverse flexed from original talk at launch of Libor plus 275 bps.

The company's now $250 million (up from $210 million) credit facility (B1/B) also includes a $25 million six-year revolver priced at Libor plus 275 bps, in line with original talk.

UBS is the lead bank on the deal that will be used to fund J.W. Childs Associates LP's leveraged buyout of the company from Sun Capital Partners.

Mattress Firm is a Houston-based specialty bedding retailer.

Cenveo sets talk

Price talk of Libor plus 200 bps surfaced on Cenveo Inc.'s $725 million term loan (Ba3/B+) now that the deal has been launched with a bank meeting this past Wednesday, according to a market source.

Of the total term loan amount, $125 million is delayed draw and the remaining $600 million will be funded.

Wachovia is the lead bank on the deal that will be used to help fund the acquisition of Cadmus Communications Corp. for $24.75 per share in cash.

Cenveo is a Stamford, Conn., provider of print and visual communications. Cadmus is a Richmond, Va., provider of end-to-end integrated graphic communications and content processing services to professional publishers, not-for-profit societies, and corporations.

PGS frees to trade

Moving to the secondary, PGS (Pearson Government Solutions) saw its credit facility break for trading, with the $240 million term loan B quoted at 101 1/8 bid, 101½ offered, according to a trader.

The term loan B is priced at Libor plus 225 bps, with a step down to Libor plus 200 bps. During syndication, pricing on the tranche was reverse flexed from original talk of Libor plus 250 to 275 bps.

PGS' $280 million credit facility (Ba3/BB-) also includes a $40 million revolver.

Wachovia and Goldman Sachs acted as the lead banks on the deal.

Proceeds were used to fund Veritas Capital Partners' acquisition of the company from Pearson plc for $600 million. Now that the buyout has been completed, PGS has been renamed Vangent.

PGS is an Arlington, Va., business solutions company that serves national and local governments, education institutions and corporations.

Supervalu dips on repricing

Supervalu's term loan B came under a bit of pressure on Thursday as the company announced plans to launch a repricing of the loan on Friday morning, according to a trader.

The term loan B closed the day at par ½ bid, 101 offered, down from previous levels of par 7/8 bid, 101¼ offered, the trader said.

Under the proposal, the company is looking to take term loan B pricing down to Libor plus 150 bps from Libor plus 175 bps.

In addition, the company will ask lenders to reprice its term loan A at Libor plus 137.5 bps from Libor plus 150 bps.

The term loan A debt was unchanged in trading on the news, closing the session at par 1/8 bid, par 5/8 offered, the trader added.

RBS Securities is the lead bank on the Eden Prairie, Minn., supermarket operator's repricing.

Cydcor closes

Golden Gate Capital and JP Capital Partners completed their leveraged buyout of Cydcor Inc., according to a news release.

To help fund the LBO, Cydcor got a new $105 million credit facility consisting of a $10 million six-year revolver priced at Libor plus 325 bps with a 50 bps commitment fee, a $60 million six-year term loan B priced at Libor plus 325 bps and a $35 million seven-year second-lien term loan priced at Libor plus 650 bps.

During syndication, pricing on the revolver and the term loan B was flexed up from original talk of Libor plus 300 bps, pricing on the second lien was flexed down from original talk of Libor plus 700 bps, the term loan B was downsized from $70 million and the second-lien term loan was upsized from $25 million.

Credit Suisse acted as the lead arranger on the deal.

Cydcor is a Westlake Village, Calif., provider of outsourced face-to-face sales.

Claymont closes

Claymont Steel, Inc. closed on its new $80 million senior secured credit facility consisting of a $20 million three-year term loan (B+) and a $60 million revolver, according to a company news release.

The term loan is priced at Libor plus 250 bps, and the revolver can carry pricing ranging from Libor plus 100 to 175 bps depending on availability.

Proceeds are being used to refinance existing debt, including the redemption of the company's senior secured floating-rate notes due 2010.

Claymont Steel is a Claymont, Del., manufacturer and seller of custom discrete steel plate.

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