LB Pacific charges into the secondary, wrapping around 102; MTN sets price talk ahead of launch

By Sara Rosenberg

New York, March 2 - LB Pacific LP's $175 million seven-year term loan B (B1/B-) allocated on Wednesday and freed up for trading with levels moving from around mid-101 to around 102 throughout the session.

Meanwhile, on the primary front, price talk surfaced on Maritime Telecommunications Network's credit facility as the deal is gearing up to launch via a bank meeting on Thursday.

LB Pacific's term loan B opened for trading around 101¼ bid, 101¾ offered on Wednesday morning and then traded up to 101¾ bid, 102¼ offered before midday where it remained throughout the rest of the session, according to a market source.

As for allocations, "the book was more than two times oversubscribed so guys obviously came down," the source said.

Pricing on the term loan is set at Libor plus 275 basis points with a step down to Libor plus 250 basis points that becomes effective when debt to distributable cash flow falls below 41/2x.

Originally, the deal was launched as a $170 million term loan but was upsized by $5 million during syndication so the company could gain extra liquidity.

Furthermore, pricing came in from Libor plus 300 basis points during syndication due to the strong investor demand.

The syndicate also added 101 soft call protection for one year at the time of the upsizing and reverse flex. However, any loan repayments made with proceeds from the sale of 25% of the company's subordinated shares and any required prepayments made with excess cash flow are excluded from the call protection.

Citigroup is the lead arranger and bookrunner on the deal, and Lehman is the syndication agent.

Proceeds from the term loan will be used to help fund LB Pacific's acquisition of The Anschutz Corp.'s 36.7% interest in Pacific Energy Partners LP for about $340 million.

More specifically, LB Pacific, a company newly formed by Lehman Brothers Merchant Banking Group, is getting a 100% ownership interest in Pacific Energy GP Inc. (the general partner), which owns a 2% general partner interest in Pacific Energy Partners and the incentive distribution rights, and 10.465 million Pacific Energy Partners subordinated units representing a 34.7% limited partner interest in Pacific Energy Partners.

Closing on the term loan is targeted for Thursday.

Pacific Energy Partners is a Long Beach, Calif., gatherer, transporter, storer and distributor of crude oil and other related products.

MTN price talk

Maritime Telecommunications Network (MTN) will be launching its $5 million five-year revolver and $45 million six-year term loan B with opening price talk of Libor plus 350 basis points, and the $27.5 million 61/2-year second-lien term loan will be launched with opening price talk of Libor plus 700 basis points, according to a market source.

The revolver has a commitment fee of 50 basis points.

Credit Suisse First Boston is the sole lead arranger on the $77.5 million credit facility that will be launched to investors on Thursday.

Proceeds from the facility will be used to help fund Perseus Capital's leveraged buyout of MTN, a Miramar, Fla., satellite communications provider.

Eye Care Centers closes

Eye Care Centers of America Inc. closed on its $190 million senior secured credit facility (B2/B) consisting of a $25 million five-year revolver and a $165 million seven-year term loan B.

Proceeds from the term loan, $163 million of equity and $150 million of senior subordinated notes, were used to fund the now completed acquisition of Eye Care Centers by Golden Gate Capital, Moulin Global Eyecare Holdings Ltd. (formerly Moulin International Holdings Ltd.) and management for $450 million.

JPMorgan was the agent bank on the San Antonio, Texas, retail optical chain's deal. Bank of America and Merrill Lynch acted as co-syndication agents.

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