Juno Lighting breaks for trading with both the first and second lien term loans reaching plus par levels

By Sara Rosenberg

New York, May 20 - Juno Lighting Inc.'s $245 million credit facility allocated and broke for trading on Thursday with both term loans moving higher from their original offer price to plus par levels.

Investors have been on the lookout for allocations on Juno since late last week.

"Allocations were decent," a fund manager said. "We got 37% of our order for the first lien and 60% of our order on the second lien."

The $165 million first lien term loan (B1/B+) was quoted at 100.875 bid, 101.25 offered and the $50 million second lien term loan (B2/B-) was quoted at 100.25 bid, 100.50 offered, according to a fund manager.

The second lien term loan was quoted lower than the first lien in the secondary because "of the additional credit risk and thus lower demand for second liens versus first liens," the fund manager speculated.

Originally the first lien term loan was sized at $150 million and the second lien term loan was sized at $60 million, but the tranches were shuffled a bit during syndication.

Furthermore, during syndication, pricing on the tranches was changed with the first lien term loan ending up at Libor plus 275 basis points, reverse flexed from original pricing of Libor plus 300 basis points, and the second lien term loan ending up at Libor plus 550 basis points, reverse flexed from original pricing of Libor plus 575 basis points.

And, a stepdown in pricing was added to the first lien term loan during syndication with the interest rate able to go down to Libor plus 250 basis points if leverage falls below 4x.

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

Juno's credit facility also contains a $30 million revolver (B1/B+), left unchanged since launch, with an interest rate of Libor plus 300 basis points and stepdowns in pricing depending on leverage.

Leverage is 3.2 times through the first lien and 4.5 times through the second lien. Interest coverage is just over four times. Furthermore, the company generates $25 to $30 million of free cash flow per year that could be used for debt reduction.

Proceeds would be used to retire $160 million of long-term debt and pay a $50 to $60 million dividend to its preferred and common stockholders.

Wachovia is the lead bank on the deal.

Juno is a Des Plaines, Ill., lighting fixtures manufacturer.

Consol Energy restructured

Consol Energy Inc.'s $600 million credit facility (Ba2/BB) was restructured, with the revolver downsized by $50 million and the term loan B converted into a synthetic letter-of-credit facility, reverse flexed and increased by $50 million, according to a market source.

The facility now consists of a $400 million revolver with an interest rate of Libor plus 300 basis points and a $200 million synthetic letter-of-credit facility with an interest rate of Libor plus 250 basis points, the source said.

Pricing on the revolver is subject to a rating grid after six months.

Pricing on the synthetic letter-of-credit facility can step down to Libor plus 225 basis points if ratings are bumped up by one level by both rating agencies.

Originally, the facility consisted of a $450 million revolver priced with an interest rate of Libor plus 300 basis points and a $150 million term loan B priced with an interest rate of Libor plus 300 basis points.

Citigroup and PNC are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Consol is a Pittsburgh multi-fuel energy producer and energy services provider.

Primary Energy Steel reworked

Primary Energy Steel LLC's credit facility was reworked with the total size reduced to $350 million from $375 million and funds shifted from the second lien term loan into the first lien tranche, according to a syndicate document.

The seven-year first lien term loan was increased to $225 million from $175 million. Pricing on the tranche remained at Libor plus 600 basis points.

The seven-year second lien term loan was reduced to $125 million from $200 million. Pricing on the tranche remained unchanged at Libor plus 900 basis points.

Credit Suisse First Boston is the sole lead arranger and bookrunner on the deal.

Proceeds from the credit facility will be used to refinance existing debt.

Primary Energy Steel is an Oak Brook Ill., developer, owner and operator of power and thermal cogeneration systems onsite at industrial facilities.

Alpha Natural flexed up

Pricing on Alpha Natural Resources LLC's $175 million five-year revolver (B1/B) was flexed up to Libor plus 275 basis points from Libor plus 225 basis points, according to a syndicate document. There is a 50 basis points commitment fee for the loan.

Credit Suisse First Boston, UBS and Citibank are all joint lead arrangers and joint bookrunners on the Abingdon, Va., coal miner's deal.

On May 13, the company priced a downsized issue of $150 million (from $200 million) of eight-year senior notes to yield 10%. Original price talk on the deal had been 8½% to 8¾%, but it was later revised to 9½% to 9¾% prior to pricing.

However, pricing on the revolver did not flex up until more recently as it was initially left alone following the changes to the bond deal, an informed source told Prospect News.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Clean Harbors pricing

Pricing of Libor plus 400 basis points on Clean Harbors Inc.'s $95 million five-year synthetic letter-of-credit facility (B2) emerged on Thursday, according to a syndicate document.

Credit Suisse First Boston and Goldman Sachs are the joint lead arrangers and joint bookrunners on the refinancing deal.

Clean Harbors is a Braintree, Mass., provider of environmental and hazardous waste management services.

Boyd Gaming closes

Boyd Gaming Corp. closed on its new $1.6 billion credit facility (Ba2/BB), according to a company news release. The facility consists of a $1.1 billion five-year revolver and a $500 million seven-year term loan B with an interest rate of Libor plus 175 basis points, reverse flexed during syndication from price talk of Libor plus 200 basis points.

Bank of America, CIBC World Markets, Wells Fargo Bank, Calyon and Deutsche Bank were the lead banks on the deal that will be used to help fund the $1.3 billion merger with Coast Casinos Inc.

More specifically, proceeds will be used to refinance Coast's existing credit facility, Coast's 9½% bonds due 2009 and Boyd's existing credit facility.

The credit facility's effectiveness is dependent on the completion of the Coast Casinos merger.

Boyd Gaming is a Las Vegas gaming company. Coast Casinos is a Las Vegas owner and operator of hotel-casinos.

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