Baker, Fleetcor, USI tweak deals; Exide, Cellular set talk; Iconix firms spread; Mosaic dips on paydown

By Sara Rosenberg

New York, April 26 - Baker Tanks Inc. made some changes to its bank deal, including upsizing the term loan B add-on and adding a step down in pricing to the new and existing term loan B debt, Fleetcor Technologies, Inc. reverse flexed pricing on its term loan and USI Holdings Corp. upsized its term loan B.

In other primary news, Exide Technologies Inc. and Cellular South came out with price talk on their credit facilities as the deals were launched with bank meetings on Thursday, and Iconix Brand Group Inc. firmed up pricing on its term loan at the high end of original talk.

Meanwhile, in the secondary market, the Mosaic Co.'s term loan B was bid lower as news of a paydown emerged, and Ford Motor Co. and General Motors Corp. saw their term loans gyrate after Ford released first-quarter numbers.

Baker Tanks announced some modification to its loan transaction on Thursday that included a $25 million upsizing to its term loan B add-on and the addition of a pricing step down to all term loan B debt, according to a market source.

The term loan B add-on is now sized at $200 million, up from $175 million, the source said.

Furthermore, while pricing on the add-on and the existing $245 million term loan B remained unchanged at Libor plus 225 basis points, the spread on the debt can now step down to Libor plus 200 bps upon the earlier of an upgrade or at less than 4.5 times total leverage. However, this step down cannot occur within 12 months of close.

The changes to the term loan B were made as a result of the company announcing a very strong March performance that had last-12-month EBITDA up from the loan marketing materials and because the deal was oversubscribed, the source explained.

Baker Tanks' $225 million incremental bank deal also includes a $25 million revolver add-on that is priced at Libor plus 225 bps, in line with existing pricing.

Goldman Sachs and CIBC are the lead banks on the deal, which will be used for a dividend recapitalization, with Goldman the left lead.

Baker Tanks is a Seal Beach, Calif., liquid and solid containment equipment rental and leasing company.

Fleetcor trims spread

Fleetcor Technologies reduced pricing on its $300 million term loan to Libor plus 225 bps from original talk at launch of Libor plus 275 bps, according to a market source.

The company's $350 million credit facility also includes a $50 million revolver.

JPMorgan is the lead bank on the deal, which will be used to fund a dividend.

Fleetcor is a Norcross, Ga., management services provider for business fleets.

USI upsizes

USI Holdings increased the size of its seven-year term loan B to $550 million from $525 million after downsizing its bond offering to $400 million from $425 million, according to a market source.

Pricing on the term loan B was left unchanged at Libor plus 275 bps.

USI Holdings' now $650 million (up from $625 million) senior secured credit facility (B2/B-) also includes a $100 million six-year revolver that is priced at Libor plus 250 bps, with a 50 bps commitment fee.

Goldman Sachs and JPMorgan are the joint lead arrangers and joint bookrunners on the deal, with JPMorgan the administrative agent.

Proceeds will be used to help fund GS Capital Partners' acquisition of the company for $17 in cash per share. The transaction is valued at about $1.4 billion, including repayment of about $365 million of USI's existing debt.

USI is a Briarcliff Manor, N.Y., distributor of insurance and financial products and services to businesses.

Exide guidance emerges

In other primary happenings, Exide Technologies held a bank meeting on Thursday to kick off syndication on its credit facility, and in connection with the launch, price talk surfaced, according to a market source.

The $295 million secured term loan (B1/B) was presented to lenders with talk of Libor plus 350 bps, while the $200 million asset-based revolver (B1) was presented with talk of Libor plus 175 bps, the source said.

The revolver has a 37.5 bps commitment fee.

Deutsche Bank, Credit Suisse and Wachovia are the lead banks on the $495 million deal, which will be used to refinance the company's existing senior credit facility.

The facility is anticipated to close and fund in May.

Exide is an Alpharetta, Ga., manufacturer and supplier of lead acid batteries used in transportation, motive power, network power and military applications.

Cellular South price talk

Another deal to release price talk was Cellular South, as it too launched with a bank meeting during market hours, according to a source.

The $400 million funded term loan and the $150 million delayed-draw term loan were both launched with talk of Libor plus 175 bps to 200 bps, the source said.

The company's $750 million credit facility also includes a $200 million revolver.

Bank of America is the lead bank on the deal, which will be used to refinance existing debt.

Cellular South is a Jackson, Miss., privately held wireless provider.

Iconix firms pricing

Iconix firmed up pricing on its $212.5 million six-year senior secured term loan (B1/B+) at Libor plus 225 bps, the wide end of original talk of Libor plus 200 bps to 225 bps, according to a market source.

Commitments from lenders were due on Thursday and the loan was oversubscribed, the source added.

Lehman Brothers is the lead bank on the deal.

Proceeds from the term loan, which has already been funded, were used to help fund the acquisition of Rocawear.

Iconix is a New York-based owner, licenser and marketer of consumer brands.

CoCreate flexes up

CoCreate Software Inc. increased pricing on all tranches under its $193 million credit facility, according to a syndicate document.

The $8 million five-year revolver and the $125 million six-year term loan B are now priced at Libor plus 300 bps, up from original talk at launch of Libor plus 250 bps, the document said.

In addition, the $60 million seven-year second-lien term loan is now priced at Libor plus 700 bps, up from original talk of Libor plus 600 bps, the document added.

The revolver has a 50 bps commitment fee.

Credit Suisse is the lead arranger on the deal, which will be used for a recapitalization.

CoCreate Software is a Fort Collins, Colo., marketer of design, drafting and collaborative software for creating mechanical products.

Mosaic softens on repayment

Moving to the secondary market, Mosaic's term loan B was bid lower on Thursday after the company announced plans to repay some of the debt on May 1, according to a trader.

The term loan B ended the day at par ¼ bid, 101 offered, compared with previous levels of par ¾ bid, 101 offered, the trader said.

Early on in the session, the company revealed that it will prepay $145.2 million of its term loan B debt using cash on hand.

In addition, the company will also prepay $94 million of its term loan A-1 debt and $10.8 million of its term loan A debt.

Mosaic is a Plymouth, Minn., producer and marketer of concentrated phosphate and potash crop nutrients.

Ford, GM bounce around

Ford and General Motors both saw their term loans seesaw a bit - trading up early on in the day and then coming back down to end unchanged - after Ford announced first-quarter numbers that were "slightly better than expected", according to a trader.

Ford, a Dearborn, Mich.-based automaker, saw its term loan move as high as 101 bid, 101 1/8 offered before inching back down to par ¾ bid, 101 offered, where it closed out the day, the trader said.

And, General Motors, a Detroit-based automaker, saw its term loan move as high as par 7/8 bid, 101 1/8 offered before sliding back down to par ¾ bid, 101 offered, where it closed out the day, the trader added.

For the first quarter, Ford reported a net loss of 15 cents per share, or $282 million, compared with a net loss of 76 cents per share, or $1.4 billion, in the first quarter of 2006.

First-quarter revenue was $43 billion, up from $40.8 billion a year ago, primarily reflecting mix improvement and favorable currency exchange, partially offset by lower volume.

Diamond Resorts closes

Diamond Resorts LLC completed its $16-per-share tender offer for all outstanding shares of Sunterra Corp., according to a news release.

To help fund the acquisition, Diamond Resorts got a new $415 million senior secured credit facility consisting of a $25 million revolver priced at Libor plus 350 bps with a 50 bps commitment fee, a $250 million five-year first-lien term loan B priced at Libor plus 350 bps and a $140 million six-year second-lien term loan priced at Libor plus 750 bps with call protection of 102 in year one and 101 in year two.

Credit Suisse acted as the lead bank on the deal.

Diamond Resorts is a Las Vegas-based developer, manager, marketer and seller of vacation ownership properties.

NovaStar closes

NovaStar Financial Inc. closed on its $100 million 364-day additional financing facility, according to a company news release.

Wachovia Capital Markets acted as the lead bank on the deal.

The debt consists of a facility collateralized by existing mortgage servicing rights carrying an interest rate of one-month Libor plus 375 bps and a facility collateralized by existing residual securities carrying an interest rate of one-month Libor plus 350 bps.

Proceeds are being used for general corporate purposes.

NovaStar is a Kansas City, Mo.-based residential mortgage lender and portfolio investor.

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