FTD's $150 million credit facility gears up to launch Jan. 22

By Sara Rosenberg

New York, Jan. 15 - A bank meeting date of Jan. 22 has finally been nailed down for FTD Inc.'s proposed $150 million credit facility, which is a deal that the market has known about since October when news of the leveraged buyout first emerged.

Previously the launch was given a timeframe of late January, early February.

The facility consists of a $50 million five-year revolver and a $100 million seven-year term loan, according to a syndicate release. Interest rates are still to be determined, according to a syndicate source.

Credit Suisse First Boston and UBS are joint lead arrangers on the deal.

FTD will use the facility to help support its leveraged buyout by Green Equity Investors IV LP, an affiliate of Leonard Green & Partners LP.

Equity financing for the LBO has been committed by Leonard Green through Green Equity Investors IV LP, a $1.85 billion private equity fund. More specifically, Leonard Green will make an equity investment equal to $200.6 million minus the amount of cash and cash equivalents on the company's balance sheet at the closing, provided that the equity commitment will not be less than $190.5 million, according to the filing.

As was previously reported, under the terms of the agreement, FTD's stockholders will receive $24.85 per share in cash upon the closing of the merger. The aggregate value of the merger transaction is about $420 million.

The closing of the transaction is subject to stockholder approval, receipt of antitrust clearance and the completion of financing. FTD's principal stockholders, who collectively own 72% of the outstanding shares of FTD's common stock, have agreed to vote their voting shares in favor of the merger.

FTD is a Downers Grove, Ill., floral company.

FTD joins a number of other deals that are scheduled for next week including Centennial Communications Corp., Arinc Inc. and Express Scripts Inc.

Centennial Communications will hold a bank meeting Tuesday for a $750 million senior secured credit facility (B2) consisting of a $150 million six-year revolver with an interest rate of Libor plus 325 basis points and a commitment fee of 50 basis points, and a $600 million seven-year term loan B with an interest rate Libor plus 325 basis points.

Credit Suisse First Boston is the joint lead arranger, joint bookrunner and administrative agent. Lehman Brothers is the joint lead arranger, joint bookrunner and syndication agent on the deal.

Term loan borrowings, together with proceeds from a $250 million proposed senior notes offering, will be used to refinance and replace the existing secured credit facilities, fund the repurchase of all outstanding unsecured subordinated notes due 2009 and pay related fees and expenses.

Centennial is a Wall, N.J., wireless telecommunications service provider.

Arinc is also scheduled to hold a bank meeting on Tuesday. The $200 million secured credit facility (BB) consists of a $125 million term loan B due 2011 and a $75 million revolver due 2009 both talked in the low 200 spread over Libor area.

Wachovia is the lead bank on the deal.

Proceeds will be used to help fund a benefit pension plan, refinance existing bank debt and refinance existing bond debt.

Arinc is an Annapolis, Md., provider of transportation communications and systems engineering solutions for aviation, airports, defense, government and transportation.

Express Scripts is set to hold a bank meeting on Wednesday for an $800 million credit facility consisting of a $400 million five-year revolver, a $200 million five-year term loan A and a $200 million six-year term loan B.

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

Proceeds will be used by the St. Louis-based independent pharmacy benefits manager to help fund the acquisition of the capital stock of Orlando, Fla.-based CuraScript Pharmacy Inc. and CuraScript PBM Services Inc. for $335 million, and to refinance debt.

Giant Eagle to allocate Friday

Giant Eagle Inc.'s $100 million add-on to its term loan B is now expected to allocate and break for trading on Friday, according to a trader, although previous market talk had the deal anticipated to hit the secondary on Thursday.

The add-on being led by Citigroup is priced with an interest rate of Libor plus 250 basis points.

The Pittsburgh grocery store chain plans to use proceeds from the deal to help fund the acquisition of stores.

Meanwhile, Nextel Communications Inc.'s bank debt seemed unfazed by the news that it may be one of a number of potential buyers of AT&T Wireless Services Inc.

In fact, levels were said to be unchanged with the term loan A quoted at 99¼ bid, 99¾ offered and the term loan E quoted at 101 1/8 bid, 101½ offered, according to a trader.

Nextel is a Reston, Va., wireless communications provider.

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