Prism upsizes, trims second-lien pricing; Green Valley retranches, cuts spreads; Novelis widens

By Sara Rosenberg

New York, Jan. 26 - Prism Business Media Holdings, Inc. made some changes to its credit facility including upsizing its first-lien term loan, downsizing its second-lien term loan and lowering pricing on the second-lien tranche.

Also in the primary, Green Valley Ranch Gaming LLC shifted some funds between tranches and reduced pricing on both its first- and second-lien term loans.

As for the secondary, Novelis Inc.'s bank debt widened out quite a bit as investors are weighing the possibility that the company might be sold.

Prism Business Media revised its credit facility structure as it increased its first-lien term loan by $36 million, decreased its second-lien term loan by $24 million and reverse flexed pricing on the second-lien paper, according to a market source.

The six-year first-lien term loan B (B1/B+) is now sized at $620 million, up from an original size of $584 million, bringing leverage through the first lien up to 5.25 times from 4.9 times, the source said.

Pricing on the first-lien term loan B was unchanged at Libor plus 225 basis points.

Meanwhile, the seven-year second-lien term loan (Caa1/CCC+) is now sized at $266 million, down from an original size of $290 million, bringing leverage through the second lien to 7.5 times, the source remarked.

Furthermore, pricing on the second-lien term loan was reverse flexed to Libor plus 500 bps from original talk at launch of Libor plus 600 bps, the source added.

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

Prism's now $966 million (up from $954 million) senior secured credit facility also includes an $80 million six-year revolver (B1/B+) priced at Libor plus 225 bps. This tranche was left unchanged throughout syndication.

UBS, JPMorgan and General Electric Capital Corp. are the lead banks on the deal, with UBS the left lead.

Proceeds will be used to help fund the acquisition of Penton Media, Inc. for about $530 million, including the assumption or repayment of the expected debt at closing and the payment to Penton's stockholders of $194.2 million.

The increase in the overall amount of funded debt by $12 million that was a result of the first-lien term loan B upsizing will be used to reduce a cash equity contribution toward the transaction.

Prism is an Overland Park, Kan.-based business-to-business media company. Penton is a Cleveland-based business-to-business media company.

Green Valley reworks deal

Green Valley Ranch Gaming also announced some modifications to its credit facility, including moving $50 million out of its second-lien term loan and into its first-lien term loan, and lowering pricing on both term loan tranches, according to a market source.

The first-lien term loan B (B1/B+) is now sized at $550 million, up from an original size of $500 million, and pricing was reverse flexed to Libor plus 200 bps from original talk of Libor plus 250 bps, the source said.

Meanwhile, the second-lien term loan (Caa1/CCC+) is now sized at $250 million, down from an original size of $300 million, and pricing was reverse flexed to Libor plus 325 bps from original talk of Libor plus 350 bps, the source added.

Green Valley's $830 million senior secured credit facility also includes a $30 million revolver (B1/B+).

Recommitments from lenders are due on Monday.

Bank of America is the lead bank on the deal that will be used by the Henderson, Nev., resort to refinance existing bank debt and to pay a special dividend to the company owners.

ClientLogic trims spread

ClientLogic Corp. reverse flexed pricing on its $675 million term loan B to Libor plus 250 bps from original talk at launch of Libor plus 275 bps on strong investor demand, according to a market source.

Pricing on the company's $85 million revolver was left unchanged at Libor plus 275 bps, the source added.

Goldman Sachs and General Electric Capital Corp. are the lead banks on the $760 million senior secured credit facility (B2/B+), with Goldman the left lead.

Proceeds will be used to help fund the acquisition of Sitel Corp.

Prior to launch, the company was planning on getting a $745 million credit facility consisting of a $660 million term loan and an $85 million revolver, but the size of the term loan was increased upon an amendment to the acquisition agreement that called for a higher purchase price.

Under the revised purchase agreement, ClientLogic is paying Sitel stockholders $4.25 in cash per share, up from the originally agreed upon price of $4.05 per share.

In addition to funding the acquisition, the new credit facility will refinance $321.9 million of existing ClientLogic debt.

ClientLogic, a portfolio company of Onex Corp., is a Nashville, Tenn., global business process outsourcing provider in the customer care and back office processing industries. Sitel is an Omaha, Neb., provider of outsourced customer support services.

McJunkin flexes

Another company to announce a change to its deal was McJunkin Corp. as it reduced pricing on its $575 million term loan B (B2/B+) to Libor plus 225 bps from original talk at launch of Libor plus 275 bps, according to a market source.

Pricing on the upsized $300 million ABL revolver (Ba1/BB) was left unchanged at Libor plus 175 bps, the source added. The revolver was increased from $200 million earlier on in the syndication process.

Goldman Sachs and Lehman are the lead banks on the $875 million deal, with Goldman the left lead.

Proceeds will be used to help fund Goldman Sachs Capital Partners' acquisition of the company.

McJunkin is a Charleston, W.Va., distributor of industrial and oilfield supplies.

Baldor not upsizing

Baldor Electric Co. has decided not to upsize its term loan since it raised enough funds in the equity market to avoid the need for more debt, according to a market source.

As was previously reported, the company was thinking of changing its term loan size to $1.05 billion from $1 billion since it canceled its $150 million mandatory convertible preferred stock offering.

However, the company also said that if its common stock offering resulted in additional funds being raised, then the term loan upsizing would be eliminated.

The well-oversubscribed seven-year term loan is being talked at Libor plus 225 bps.

Baldor's $1.2 billion credit facility (Ba3/BB) also includes a $200 million five-year revolver.

BNP Paribas and SunTrust are the lead banks on the deal that will be used to help fund the acquisition of Reliance Electric Co. and certain of its affiliated companies from Rockwell Automation, Inc. for $1.8 billion, comprised of $1.75 billion in cash and 1.6 million shares of Baldor common stock.

Baldor is a Fort Smith, Ark., manufacturer of industrial electric motors, drives and generators.

Cambridge price talk

Cambridge Information Group is talking its $240 million first-lien term loan at Libor plus 300 to 325 bps and its $60 million second-lien term loan in the Libor plus 650 bps area, according to a market source.

The company's $340 million credit facility, which was launched with a bank meeting this past Wednesday, also includes a $40 million revolver.

Morgan Stanley and Goldman Sachs are the lead banks on the deal that will be used to fund the acquisition of ProQuest Information and Learning from ProQuest Co. for about $222 million.

Cambridge Information Group is a Bethesda, Md., privately owned group of information services companies and educational institutions.

Novelis levels widen

Switching to secondary happenings, levels on Novelis' bank debt were wide on Friday after the company announced that it is in discussions with various parties that could lead to a potential sale, according to a trader.

The bank debt closed the session at par ¼ bid, 101¼ offered, compared to the par 7/8 bid, 101 3/8 offered levels that were seen prior to the news, the trader said.

"It's just because if the deal goes through then the bank debt will be taken out at par. If the deal doesn't, it was trading pretty strong before. Wide because nothing definitive has been announced," the trader explained.

Novelis is an Atlanta-based aluminum rolled products and aluminum can recycling company.

Verso trades atop 99

Verso Paper Finance Holdings LLC's $225 million six-year senior unsecured loan was seen trading on Friday at 99 bid, 99½ offered, according to a trader, who said that the paper freed for trading on Thursday night.

The loan is priced at Libor plus 625 bps, has call protection of 102 in year one and 101 in year two, and was offered to investors at an original issue discount of 99. Original price talk on the loan was in the Libor plus 600 bps area.

Credit Suisse and Citigroup are the joint lead arrangers on the deal.

Proceeds will be used to pay a dividend to equity holders.

Verso Paper is a Memphis, Tenn.-based coated and supercalendered papers company.

Weight Watchers closes

Weight Watchers International Inc. closed on its new $1.2 billion in new term loan debt (Ba1/BB) consisting of a $500 million term loan B and a $700 million term loan A, according to an 8-K filed with the Securities and Exchange Commission Friday.

The term loan B is priced at Libor plus 150 bps with a step down to Libor plus 125 bps at 3 times leverage, and the term loan A add-on priced at Libor plus 125 bps.

During syndication, the step down in pricing under the term loan B was added to the deal.

In connection with this transaction, the company's existing term loan A debt and revolving credit facility had their pricing grids revised to reflect the increase in debt, resulting in the two tranches being repriced at Libor plus 125 bps from Libor plus 100 bps.

Credit Suisse acted the lead bank on the deal that is being used to refinance the debt of the company's subsidiary, WeightWatchers.com., and to fund a modified Dutch auction self-tender offer for 8.3 million of its common shares at $54 per share.

Weight Watchers is a New York-based provider of weight management services.

Aramark closes

The acquisition of Aramark Corp. by chairman and chief executive officer Joseph Neubauer and investment funds managed by GS Capital Partners, CCMP Capital Advisors and J.P. Morgan Partners, Thomas H. Lee Partners and Warburg Pincus LLC was completed on Friday, according to a news release.

To help fund the LBO, Aramark got a new $5 billion credit facility (Ba3/B+/BB-) consisting of a $600 million six-year revolver priced at Libor plus 200 bps, a $250 million seven-year synthetic letter-of-credit facility priced at Libor plus 212.5 bps with a step down to Libor plus 200 bps when senior secured leverage is less than 3½ times, and a $4.15 billion seven-year term loan B priced at Libor plus 212.5 bps with a step down to Libor plus 200 bps when senior secured leverage is less than 3½ times.

During syndication, the term loan B was upsized from $3.66 billion when the company's bond deal was downsized to $1.78 billion from $2.27 billion, pricing on the heavily oversubscribed term loan B and synthetic letter-of-credit facility was reverse flexed from revised recent talk of Libor plus 225 bps and original talk at launch of Libor plus 250 bps, and the pricing step down provision was added to the two institutional tranches.

Goldman Sachs and JPMorgan acted as joint bookrunners, joint lead arrangers and co-syndication agents on the deal.

Aramark is a Philadelphia-based professional services company that provides food, hospitality, facility management services as well as uniform and work apparel.

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