Allied Security breaks; Spectrum rebounds; BCBG flexes up; Made2Manage, CharterMac, SPI set talk

By Sara Rosenberg

New York, July 18 - Allied Security Holding LLC's term loan D freed for trading on Tuesday, with the paper seen quoted above par. In other trading news, Spectrum Brands Inc.'s bank debt rebounded a bit from Monday's drop as investors seemed to make peace with the recent negative earnings guidance update.

In primary happenings, BCBG Max Azria Group increased pricing on its third-lien term loan by a fairly significant amount, and Made2Manage Systems Inc., CharterMac and SPI Petroleum LLC all came out with spread talk on their credit facilities.

Allied Security's $275 million term loan D (Ba3/B) hit the secondary during market hours, with levels seen quoted at par ¼ bid, par 5/8 offered, according to a trader.

The term loan is priced with an interest rate of Libor plus 300 basis points. It is essentially comprised of the company's existing term loan debt, which was repriced from Libor plus 375 basis points, plus $85 million of incremental term loan debt that will be used to help fund the acquisition of Initial Security LLC.

Allied Security is acquiring the San Antonio-based security services business of Initial Security in the United States for about £40 million from Rentokil Initial plc.

The term loan D tranche has a maturity of June 30, 2010, with the possibility of an extension for an additional two years under certain circumstances.

Bear Stearns is the lead bank on the deal.

King of Prussia, Pa.-based Allied Security is a private security services firm.

Spectrum heads back up

Spectrum Brands bank debt was stronger on Tuesday as investors had a day to digest the company's Monday announcement that full-year 2006 earnings will be substantially lower than previously expected, according to a trader.

The bank debt closed the session quoted at 99¾ bid, par ¼ offered, up from Monday's closing levels of 99¼ bid, 99¾ offered, the trader said. By comparison, prior to the earnings guidance news, the bank debt was being quoted at par bid, par ½ offered.

On Monday, the company said that full-year numbers will fall below previous guidance of net sales of about $2.6 billion and pro forma fully diluted earnings per share of between $0.90 and $1.00.

The company said that the expected shortfall is attributable to lower-than-expected sales volumes, particularly in its European consumer battery business, and lower-than-expected results from shaving and grooming products in North America.

Spectrum Brands also said that it has hired Goldman Sachs and Co. as financial adviser to assist in evaluating potential selective asset sales designed to sharpen the focus on strategic growth businesses, maximize long-term shareholder value and reduce outstanding debt.

"I think people realized that if there's an asset sale it might be good for the lenders and if they can't get an asset sale done then maybe they'd have to come back to the lenders and they could see a bump up in pricing," the trader speculated.

Spectrum Brands is an Atlanta-based consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides.

Affiliated Computer trades higher

Affiliated Computer Services Inc.'s term loan B headed up by about an eighth of a point during Tuesday's market hours with no specific news seen pushing the paper higher, according to a trader.

The term loan B closed the day quoted at par bid, par ¼ offered, up from previous levels of 99 7/8 bid, par 1/8 offered, the trader said.

"I think it got beaten up for no reason. Now, the add-on came and went and people are more comfortable with it," the trader remarked.

The add-on referred to is the $1 billion of new term loan B debt that the company got earlier this month for class A common stock repurchases, of which $500 million was funded and $500 million was delayed-draw for 90 days.

Affiliated Computer Services is a Dallas-based provider of business process and information technology outsourcing solutions to commercial and government clients.

BCBG ups spread

Switching to primary news, BCBG flexed pricing higher on its proposed $80 million third-lien term loan (B3/CCC+) to Libor plus 800 basis points from original talk at launch of Libor plus 650 basis points, according to a market source.

"They had to do it to get interest in the deal given its third-lien position," the source explained.

Goldman Sachs is the lead bank on the loan.

Proceeds will be used by the Vernon, Calif., clothing company for acquisition financing.

Made2Manage spread guidance

Made2Manage announced opening price talk on its proposed $180 million credit facility as the deal was presented to lenders with a Tuesday afternoon bank meeting, according to a market source.

The $15 million revolver and $100 million term loan B were both launched with price talk of Libor plus 325 basis points, and the $65 million second-lien term loan was launched with price talk of Libor plus 675 basis points, the source said, adding that all talk is subject to ratings.

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

BMO Capital is the lead bank on the deal.

Proceeds will be used by the provider of enterprise information systems to help fund the acquisition of Onyx Software Corp., a Bellevue, Wash.-based provider of customer relationship management software.

Indianapolis-based Made2Manage is the primary asset of M2M Holdings Inc., a holding company jointly owned by Battery Ventures VI, LP and Thoma Cressey Equity Partners.

CharterMac floats talk

CharterMac price talk started floating around the marketplace as the proposed $500 million credit facility (Ba3) is gearing up for its Thursday morning bank meeting in New York, according to a buyside source.

The $150 million three-year revolver is expected to be launched with opening talk of Libor plus 175 basis points, and the $350 million six-year term loan is expected to be launched with opening talk of Libor plus 200 basis points, the source said.

UBS and Bank of America are the lead banks on the deal.

Proceeds from the term loan will be used to fund the acquisition of ARCap Investors, LLC in a transaction valued at $284.5 million.

The revolver will replace the company's existing tax credit warehouse facility and will be used for general corporate purposes.

CharterMac is a New York-based full-service real estate finance company. ARCap is a Dallas-based fund manager specializing in the acquisition, management and servicing of high-yield commercial mortgage-backed securities and high-yield direct real estate loans.

SPI Petroleum price talk

SPI Petroleum released spread guidance on its in-market $340 million credit facility, with the $155 million term loan (B2/B) talked at Libor plus 275 basis points and the $185 million ABL revolver talked at Libor plus 112.5 basis points, according to a market source.

When the deal was launched at the start of last week it was said that the term loan was expected in the high-200's, but nothing official was announced being that ratings had not yet emerged.

JPMorgan and PNC are the lead banks on the deal, with JPMorgan the left lead on the term loan and PNC the left lead on the revolver.

Proceeds will be used to finance acquisitions.

SPI is an Oklahoma City-based marketer of petroleum products.

Infor Global fills out

Infor Global Solutions' $2 billion seven-year term loan B is heard to be oversubscribed at this point, with pricing expected to shake out at Libor plus 375 basis points and call protection of 101 for one year to be included in the transaction, according to a market source.

The expected final spread is the high end of current price talk of Libor plus 350 to 375 basis points. Last week, price talk was revised to the 350 to 375 basis point area from original talk at launch of Libor plus 325 basis points.

JPMorgan, Credit Suisse and Merrill Lynch are joint bookrunners and co-lead arrangers on the deal, with JPMorgan the left lead.

Infor's $2.15 billion euro- and dollar-denominated credit facility (B2/B) also contains a $150 million six-year revolver with a 50 basis point commitment fee.

Proceeds from the new credit facility will be used to help fund the acquisitions of Systems Union Group and SSA Global, finance the combination of Infor and Extensity - which are both currently Golden Gate Capital portfolio companies - and to refinance debt at all four companies.

Infor has also received a commitment for a $1.675 billion subordinated bridge facility, which is intended to be refinanced with high-yield notes.

Under the SSA acquisition agreement, Infor is paying $19.50 per share in cash to SSA Global's shareholders, and, under the Systems Union agreement, Extensity will pay 215p per share in cash to Systems Union stockholders.

Infor is an Alpharetta, Ga.-based software provider focused on the manufacturing and distribution industries. Extensity is an Atlanta-based financial performance management company focused on the needs of finance professionals. SSA Global is a Chicago-based provider of enterprise software applications for manufacturing, distribution, retail, services and public organizations. Systems Union is a U.K.-based financial management, reporting and performance management solutions company.

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