B/E Aerospace frees to trade; Roofing Supply reworks structure, pricing

By Sara Rosenberg

New York, Aug. 22 - B/E Aerospace Inc.'s credit facility freed for trading early on in the session Tuesday, with the term loan B quoted in the lower-par context.

Meanwhile, in primary happenings, The Roofing Supply Group tweaked its credit facility, dropping the second-lien tranche altogether, increasing pricing on the first-lien term loan B and whispering possibilities of an original issue discount to lenders.

B/E Aerospace's new deal hit the secondary market on Tuesday morning, with the $300 million term loan B quoted at par 1/8 bid, par ½ offered immediately following the break, settling in at par bid, par ¼ offered by midday and rebounding to par ¼ bid, par ½ offered by the close, according to a fund manager.

The term loan B is priced with an interest rate of Libor plus 175 basis points. During syndication, pricing was reverse flexed from original price talk at launch of Libor plus 200 basis points as the tranche was something like 3x oversubscribed.

B/E Aerospace's $450 million credit facility (Ba3/BB+) also contains a $150 million revolver that is priced in line with initial talk of Libor plus 175 basis points.

JPMorgan, UBS and Credit Suisse are the lead banks on the deal, with JPMorgan the left lead.

In July, the company closed on a $225 million credit facility led by the same three banks consisting of a $150 million five-year revolver with an interest rate of Libor plus 175 basis points and a $75 million six-year term loan with an interest rate of Libor plus 200 basis points.

Proceeds from this $225 million credit facility were used to help fund the company's tender offer for its 8½% senior notes and refinance its existing $50 million revolver.

Upon announcing the completion of the tender offer and the entrance into the new credit facility, the company had said that it planned on raising a new term loan, the proceeds of which would be used to repay all outstanding amounts borrowed under the revolver, and to negotiate a new revolver at that time.

B/E is a Wellington, Fla., manufacturer of aircraft cabin interior products and an aftermarket distributor of aerospace fasteners.

Cebridge lower

Cebridge Connections Inc.'s term loan B dipped slightly lower during Tuesday's trading hours on market technicals, according to a trader.

By the end of the day, the bank debt had fallen by about an eighth of a point to 99¼ bid, 99¾ offered, the trader said.

Cebridge is a St. Louis-based provider of cable television and internet access.

Roofing Supply revises deal

In primary news, Roofing Supply made a number of changes to its credit facility including, flexing pricing higher on the first-lien term loan B again, discussing the potential for an original issue discount and eliminating the previously proposed $85 million second-lien term loan, according to a buyside source.

Under the revisions, the $185 million first-lien term loan B is being talked at Libor plus 325 basis points, up from most recent talk of Libor plus 300 basis points and from original talk at launch of Libor plus 250 to 275 basis points, the source said.

In addition, lenders are being told that they can expect an original issue discount on the first-lien term loan B. "The deal may come at 99.5 or even maybe 99," the source said. "[They] haven't posted anything about the discount to Intralinks yet. They only posted the structural changes to the Intralinks site."

Also under the modifications, the $85 million second-lien term loan that was being talked at Libor plus 700 basis points after flexing up from original talk at launch of Libor plus 600 to 650 basis points, was dropped from the capital structure.

To replace the lost funds, the company will now get a $65 million senior subordinated mezzanine facility, will draw $10 million under the proposed revolver tranche that was originally expected to be undrawn at close, and will receive an additional $10 million of cash equity from the sponsor, the source said.

Roofing Supply's proposed revolver is sized at $50 million.

With the tweaks now in place, talk is that the deal is almost done, the buyside source added.

The $235 million all first-lien credit facility is expected to allocate and close on Wednesday and fund on Thursday.

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

Proceeds will be used to help fund Sterling's leveraged buyout of the company.

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