Constellation Brands, Vought Aircraft, Cooper-Standard break for trading, top 101

By Sara Rosenberg

New York, Dec. 21 - Constellation Brands Inc., Vought Aircraft Industries Inc. and Cooper-Standard Automotive all allocated on Tuesday, and all three deals saw their term loan Bs reaching 101 plus levels.

Constellation Brands' $1.8 billion term loan B was trading right around 101½ on its first day in the secondary and was quoted at 101¼ bid, 101¾ offered by the end of the day, according to a trader.

The tranche is priced with an interest rate of Libor plus 175 basis points.

Constellation Brands' $2.9 billion credit facility (Ba2/BB) also contains a $500 million revolver and a $600 million term loan A, both priced with an interest rate of Libor plus 150 basis points.

JPMorgan and Merrill Lynch are the lead banks on the deal, with JPMorgan the left lead.

Proceeds, in part, will be used to fund the previously announced acquisition of Robert Mondavi Corp. for about $1.36 billion, including about $1.03 billion of equity on a fully diluted basis plus the assumption of about $325 million of Mondavi net debt. The companies expect to complete the transaction by the end of this year or early next year.

Constellation Brands is a Fairport, N.Y.-based producer and marketer of beverage alcohol brands. Mondavi is a Napa, Calif.-based producer and marketer of table wines.

Vought mid-to-high 101

Vought's $425 million seven-year term loan B opened for trading at 101 bid on Wednesday afternoon before moving up to 101½ bid, 101¾ offered by late day, according to market sources.

The tranche, which was upsized from $400 million, is priced with an interest rate of Libor plus 250 basis points after reverse flexing from Libor plus 275 basis points late last week.

As for allocations, "they were pretty bad. We got just shy of 15% of our order," a buyside source told Prospect News.

Vought's $650 million credit facility (Ba3/B+) also contains a $75 million six-year synthetic letter-of-credit tranche - that was added to the deal last week - with an interest rate of Libor plus 250 basis points and a $150 million six-year revolver - downsized from $250 million - with an interest rate of Libor plus 250 basis points.

Lehman, JPMorgan and Goldman Sachs are the lead banks on the refinancing deal, with Lehman the left lead.

Vought is a Dallas-based aerostructure subcontractor

Coooper-Standard breaks

Cooper-Standard Automotive's term loan B and term loan C were quoted at 101¼ bid, 101½ offered as it too opened for trading during the session, according to traders.

Both the $115 million seven-year term loan B that will be U.S. dollar denominated but borrowed by a Canadian subsidiary and the $185 million seven-year term loan C that will be borrowed by a U.S. subsidiary are priced with an interest rate of Libor plus 200 basis points after reverse flexing from Libor plus 250 basis points during syndication on strong oversubscription.

Cooper-Standard's $475 million credit facility (B1/BB-) also contains a $100 million six-year revolver, a $25 million multi-currency six-year revolver and a six-year term loan A in the Canadian equivalent amount of $50 million, all priced at Libor plus 250 basis points.

Deutsche Bank and Lehman Brothers are joint lead arrangers and joint bookrunners, with Deutsche listed on the left, and Goldman Sachs and UBS are co-documentation agents.

Proceeds, along with proceeds from a bond deal, will be used to help fund the acquisition of Cooper-Standard by an entity formed by The Cypress Group and Goldman Sachs Capital Partners for about $1.165 billion in cash from Cooper Tire & Rubber Co.

Cooper-Standard is a Novi, Mich.-based manufacturer of fluid handling systems, body sealing systems, and active and passive vibration control systems.

Landry's cuts pricing

Landry's Restaurants Inc. reverse flexed pricing on its $150 million six-year term loan B to Libor plus 175 basis points from Libor plus 200 basis points, according to a syndicate document.

Pricing on the $300 million five-year revolver was left unchanged at Libor plus 175 basis points, the document said. The revolver was originally sized at $250 million but was upsized the other week as the company priced a downsized $400 million 10-year senior note offering at 7½% - the high end of the 7¼% to 7½% talk.

Wachovia Capital Markets LLC, Banc of America Securities LLC and Deutsche Bank Securities Inc. are the lead banks on the $450 million credit facility (Ba2/BB-).

Proceeds, along with proceeds from the bond deal, will be used to refinance substantially all outstanding debt, pay related transaction fees and expenses, and for general corporate purposes, which may include acquisitions, investments and repurchases of its common stock.

Landry's is a Houston owner and operator of full-service, casual dining restaurants.

TRW closes

TRW Automotive Holdings Corp. closed on its $1.9 billion credit facility (Ba2/BB+) consisting of a $600 million term loan B with an interest rate of Libor plus 150 basis points and soft call protection of 101 in year one, a $400 million term loan A with an interest rate of Libor plus 137.5 basis points and a $900 million revolver with an interest rate of Libor plus 137.5 basis points.

During syndication the term loan B was downsized from $800 million and reverse flexed from Libor plus 175 basis points, the term loan A was increased from $250 million and the revolver was increased from $850 million.

JPMorgan was the left lead bank on the deal, with Bank of America and Goldman Sachs also acting as joint bookrunners.

Proceeds from the credit facility will be used to refinance $1.7 billion of the company's existing $2 billion credit facility. The initial draw under the new facility is expected to occur in January, according to a company news release.

The new $300 million six-year term loan E, which just closed on Nov. 2 and carries an interest rate of Libor plus 175 basis points with the ability to step down to Libor plus 150 basis points based on ratings, was left in place.

TRW is a Livonia, Mich.-based automotive supplier.

Alliance Atlantis closes

Alliance Atlantis Communications Inc. closed on its new senior secured credit facility (Ba2/BB) consisting of a C$175 million five-year revolver with an interest rate of Libor plus 150 basis points, a $108.6 million five-year term loan A with an interest rate of Libor plus 150 basis points and a $250 million seven-year term loan B with an interest rate of Libor plus 175 basis points.

The interest rate on the revolver and the term loan A is subject to change based on the company's leverage ratio.

Merrill Lynch, Royal Bank of Canada and Toronto Dominion acted as joint lead arrangers and joint bookrunners on the deal, with Merrill listed on the left.

Proceeds were used to redeem $300 million of the company's outstanding 13% senior subordinated notes due 2009 and refinance existing revolver borrowings.

Alliance Atlantis is a Toronto-based broadcaster, creator and distributor of filmed entertainment.

Herbalife closes

Herbalife International Inc. closed on its $225 million credit facility (Ba3/BB-) consisting of a $200 million six-year term loan with an interest rate of Libor plus 225 basis points and a $25 million five-year revolver with an interest rate of Libor plus 200 basis points.

Morgan Stanley and Merrill Lynch were the lead banks on the deal, with Morgan Stanley on the left.

The facility was obtained in connection with a recapitalization that also included an initial public offering and repayment of the company's existing credit facility.

Herbalife is a Century City, Calif.-based marketer of weight management and nutrition products.

Interline Brands closes

Interline Brands Inc. closed on its amended $200 million credit facility (B1) consisting of a $100 million term loan due Dec. 31, 2010 and a $100 million revolver due May 31, 2008. Credit Suisse First Boston and JPMorgan Chase Bank were joint bookrunners, with CSFB the administrative agent and JPMorgan the syndication agent.

Proceeds were used to refinance debt. The facility was obtained in connection with an initial public offering.

Interline Brands is a Jacksonville, Fla., distributor and direct marketer of specialty maintenance, repair and operations products.

Telewest closes

Telewest Global Inc. closed on its new £1.8 billion credit facility. Barclays Capital, BNP Paribas, Citigroup Global Markets Ltd., Credit Suisse First Boston, Deutsche Bank and The Royal Bank of Scotland were book runners.

The facility consists of a £700 million seven-year term loan A with an interest rate of Libor plus 225 basis points, a £425 million eight-year term loan B equivalent with an interest rate of Libor plus 237.5 basis points for euro loans, Libor plus 225 basis points for U.S. loans and Libor plus 250 basis points for Sterling loans, a £325 million nine-year term loan C equivalent with an interest rate of Libor plus 287.5 basis points for euro loans, Libor plus 275 basis points for U.S. loans and Libor plus 300 basis points for Sterling loans, a £100 million seven-year revolver with an interest rate of Libor plus 225 basis points and a £250 million 91/2-year second-lien term loan with an interest rate of Libor plus 400 basis points, according to a company news release.

Originally, the term loan B was expected to be priced at Libor plus 275 basis points and the term loan C was expected to be priced at Libor plus 325 basis points.

"We are extremely pleased to announce execution of our new loan agreement on better terms than previously announced and we look forward to working with our new senior lenders. Combined with the financial restructuring completed last summer, this refinancing completes the rebuilding of Telewest's balance sheet providing us with a significantly improved capital structure and a strong platform for future growth," said Cob Stenham, chairman, in the release.

Proceeds are being used to repay borrowings under the existing £2.03 billion senior credit facilities. The new facilities significantly extend the maturity profile of the group's senior debt and reduce its overall long-term cost of borrowing.

Telewest is a London-based broadband communications and media group.

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