Grifols, GenTek price; index continues to grind higher; DaVita talks $1.75 billion term loan

By Paul A. Harris

St. Louis, Oct. 1 - The LCDX 14 index went out ¼ point higher on Friday at 97 5/8 bid, 97 7/8 offered, according to a market source.

Meanwhile in the primary, allocations were made on a pair of Grifols term loan B tranches, which are part of its financing for the acquisition of Talecris Biotherapeutics Holdings Corp.

The deal features a $1.3 billion Libor plus 425 bps tranche and a €220 million Euribor plus 450 bps tranche.

Both tranches have six-year maturities, 1.75% Libor floors and one-year soft calls at 101.

Both priced at original issue discounts of 99.

The dollar-denominated tranche was spotted at 100 7/8 bid, 101¼ offered in trading, a bank loan trader said.

Both tranches also carry a 200 bps ticking fee in effect from the allocation date until Dec. 1, 2010.

In addition, the $3.4 billion facility includes a $1.5 billion term loan A priced at Libor plus 375 bps/Euribor plus 400 bps and a $300 million revolver.

Deutsche Bank, Nomura, BBVA, BNP Paribas, HSBC and Morgan Stanley are the lead banks on the deal.

Proceeds from the facility, along with $1.1 billion of notes backed by a bridge loan commitment, will be used to help fund the acquisition of Talecris.

Under the agreement, Grifols is buying Talecris for a combination of cash and newly issued Grifols non-voting shares totaling $3.4 billion. The enterprise value of the transaction is $4 billion if Talecris' debt is included.

GenTek's $425 million allocates

Meanwhile GenTek Inc.'s $425 million term loan priced with a Libor spread of 500 basis points and a 98.5 reoffer price on Friday.

It traded to 100 3/8 bid, 100¼ offered in the secondary, a bank loan trader said.

The Libor spread printed at the tight end of the 500 bps to 525 bps price talk. The reoffer price came at the rich end of the 98 to 98.5 discount talk.

The deal comes with a 1.75% Libor floor and soft calls at 102 in year one and 101 in year two.

The $455 million credit facility (B1/B) also includes a $30 million four-year revolver.

Goldman Sachs is the lead bank on the facility.

Proceeds will be used for a dividend recapitalization.

Tekni-Plex talks six-year deal

Tekni-Plex Inc.'s $285 million Libor plus 600 bps six-year term loan priced at 98 on Friday, and allocated.

The deal came with a 2% Libor floor.

The original issue discount matched talk of 98.

Commitments are due on Oct. 14.

Deutsche Bank and Bank of America are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

DaVita talks $1.75 billion term loan

DaVita Inc. set spread talk for its $1.75 six-year term loan B at Libor plus 350 basis points with a 1.75% Libor floor.

Price talk is 99.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Credit Suisse are the lead banks on the deal.

The $3 billion credit facility also consists of a $250 million five-year revolver and a $1 billion five-year term loan A.

Proceeds from the facility, along with new unsecured debt, will be used to refinance the company's $1.8 billion of outstanding bank debt, $700 million of its 6 5/8% senior notes due 2013 and $850 million of its senior subordinated notes due 2015 and for general corporate purposes and other opportunities, including potential acquisitions, share repurchases and other growth investments.

Alaska Communications sets call

Market forces assure that the calendar will remain strong, a trader said on Friday.

Cash continues to flow into the asset class, the trader remarked, noting that the latest news on the cash position of the buy-side surfaced Thursday when $303 million of inflows were reported by Lipper-AMG.

Also, leveraged loans continue to attract high-yield investors, said the trader, adding that lately the institutional pieces of term loans seem cheap relative to double-B rated junk bonds.

With reference to the calendar, Alaska Communications Systems Group, Inc. will host a lender call on Monday for its $470 million senior secured credit facility (existing ratings Ba3/BB-).

The deal, which is being managed by J.P. Morgan Securities LLC, features a $440 million six-year term loan B and a $30 million revolver.

Proceeds will be used to refinance and extend the maturity of the company's existing $426 million term loans and $45 million revolver.

The revolving component of the existing facility matures Feb. 1, 2011 and the term loans under the existing facility mature Feb. 1, 2012.

NBTY closes

NBTY, Inc. said alternative asset manager Carlyle Group completed its acquisition of the company for $4 billion.

Helping finance the transaction was a new $2 billion senior secured credit facility (Ba3/BB-).

The bank debt was led by Barclays, Bank of America and Credit Suisse.

Included in the facility is a $1.5 billion term B with a coupon of Libor plus 450 bps that can step down to Libor plus 425 bps based on leverage. The tranche was priced with an original issue discount of 99 and includes a soft call at 101 and a 1.75% Libor floor. Also part of the facility is a $250 million term A priced at Libor plus 425 bps with a 1.75% Libor floor and a $250 million revolver, also priced at Libor plus 425 bps with a 1.75% Libor floor.

NBTY is a Ronkonkoma, N.Y., manufacturer and marketer of nutritional supplements.

Clopay Ames completes loan

Griffon Corp. announced it completed its acquisition of Ames True Temper, Inc., along with financing that included a new $500 million credit facility for subsidiary Clopay Ames True Temper Holding Corp.

As part of the facility, Clopay Ames obtained a $375 million six-year term loan (B1/BB+) at Libor plus 600 bps with a 1.75% Libor floor, priced at an OID of 98 and a $125 million four-year asset-based revolver (Ba1/BB+) at Libor plus 225 bps. The term loan has a soft call at 101.

Goldman Sachs and Deutsche Bank led the term loan while JPMorgan and Deutsche Bank led the revolver.

Griffon is a New York-based manufacturing company.

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