Astoria lowers pricing; Calpine shifts funds, cuts second-lien spread; RGIS, Ply Gem, Gentiva firm talk

By Sara Rosenberg

New York, Feb. 9 - Astoria Energy reduced pricing on its credit facility Thursday and added step downs to the first-lien institutional debt, as the tranches were all at least three times oversubscribed.

Also, Calpine Corp. tweaked its debtor-in-possession financing facility, moving some funds out of the second-lien term loan and into the first-lien term loan, while at the same time reverse flexing pricing on the downsized second-lien tranche.

And, in other primary happenings, RGIS Inventory Specialists finalized term loan pricing at the tight end of talk, Ply Gem Industries Inc. came out with price talk on its incremental term loan as the deal launched on Thursday, and Gentiva Health Services Inc. firmed up term loan price talk and revolver upfront fees now that ratings have emerged.

Astoria Energy reverse flexed pricing on its credit facility and added step down provisions to the first-lien term loan and synthetic letter-of-credit facility, on strong investor demand, according to a market source.

The $430 million first-lien term loan (B1/BB-) and $120 million synthetic letter-of-credit facility (B1/BB-) are now priced with an interest rate of Libor plus 200 basis points compared to original price talk at launch of Libor plus 225 basis points, the source said.

Furthermore, both the first-lien term loan and synthetic letter-of-credit facility now contain step downs to Libor plus 175 basis points, based on debt repayment, the source continued.

In addition, pricing on the company's $300 million second-lien term loan (B3/B) was reverse flexed to Libor plus 375 basis points from original price talk at launch of Libor plus 450 basis points, the source added.

Recommitments are due on Tuesday, allocations are likely going to go out sometime next week and closing is targeted for around month's end.

Astoria Energy's $900 million credit facility also contains a $50 million revolver (B1/BB-).

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

Proceeds from the credit facility will be used to fund the acquisition of three New York City power plants from Reliant Energy Inc. - the Astoria, Gowanus and Narrows plants - by U.S. Power, a New York-based electricity generating asset acquisition company, and private equity firm Madison Dearborn Partners LLC.

Calpine tweaks DIP

Calpine made some changes to its two-year debtor-in-possession financing facility on Thursday, moving funds around from the second-lien term loan to the first-lien term loan, and changing second-lien pricing, according to a market source.

The first-lien term loan is now sized at $400 million, up from an original size of $350 million, the source said, adding that price talk on the tranche remained unchanged at Libor plus 225 basis points.

On the flip side, the second-lien term loan is now sized at $600 million, down from an original size of $650 million, the source said.

Furthermore, pricing on the second-lien term loan was reverse flexed to Libor plus 400 basis points from original price talk at launch of Libor plus 450 basis points, the source added.

Calpine's $2 billion secured debtor-in-possession financing facility also contains a $1 billion revolver, which was left unchanged in terms of size and pricing - currently set at Libor plus 225 basis points. The revolver carries a 75 basis point commitment fee that drops to 50 basis points if usage is greater than 65%.

Deutsche Bank and Credit Suisse are joint lead arrangers and joint bookrunners on the deal.

Calpine is a San Jose, Calif., power company.

RGIS comes at tight-end

RGIS Inventory finalized pricing on its $300 million term loan at Libor plus 250 basis points, the tight end of the original Libor plus 250 to 275 basis points guidance that the deal was launched with in January, according to a market source.

The $370 million credit facility (B1/B+) also contains a $70 million revolver.

JP Morgan is the lead bank on the deal that will be used to fund a dividend.

RGIS is an Auburn Hills, Mich., third-party inventory services provider.

Ply Gem price talk

Ply Gem decided to launch its $121 million incremental senior secured term loan (B1/BB-) on Thursday with price talk of Libor plus 250 basis points - in line with existing term loan pricing, according to a market source.

UBS and Deutsche Bank are joint lead arrangers on the deal, and JPMorgan is involved as well.

Proceeds from the incremental term loan, along with equity, will be used to fund the acquisition of AWC Holding Co. (Alenco) from Linsalata Capital Partners and management in a cash transaction valued at approximately $120 million.

Completion of the transaction, which is expected to occur in or before March, is subject to customary closing conditions.

Ply Gem is a Kearney, Mo., manufacturer of exterior building products. Alenco is a Bryan, Texas, manufacturer of aluminum and vinyl windows and doors.

Gentiva firms talk

Gentiva firmed up price talk on its $370 million seven-year term loan at Libor plus 225 basis points now that ratings of Ba3/B+ were publicly announced on the deal, according to a market source.

On Wednesday, the term loan was presented to lenders with price talk of Libor plus 225 to 250 basis points, with specific guidance depending on ratings.

In addition, the syndicate has come out with upfront fees on the $75 million revolver - information that was also waiting on ratings to be released.

For revolver commitments of $15 million, lenders will get 50 basis points on allocation, the source said.

The revolver was launched with opening price talk of Libor plus 225 basis points at Wednesday' bank meeting.

Lehman is the lead bank on the $445 million senior credit facility.

Proceeds from the term loan, along with about $55 million in common stock and about $58 million in cash on hand, will be used to finance the acquisition of The Healthfield Group Inc. for $454 million, refinance more than $183 million in existing Healthfield debt and fund transaction costs.

The transaction, which is subject to Hart-Scott-Rodino review, is expected to close in the first quarter.

Gentiva is a Melville, N.Y.-based provider of comprehensive home health services. Healthfield is an Atlanta-based provider of home health care and hospice.

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