Aearo, BOC Edwards, Advanstar set talk; Edgen Murray firms second-lien spread; AMR breaks

By Sara Rosenberg

New York, May 9 - Aearo Technologies, BOC Edwards and Advanstar Holdings Corp. came out with price talk on their new credit facilities as all three deals were launched with bank meetings during Wednesday's session.

In other primary news, Edgen Murray, LP firmed up pricing on its second-lien loan at the wide end of talk while adding a step down to the tranche, and an original issue discount was added to its term loan that is for a Cayman borrower.

Meanwhile, in the secondary market, AMR Corp.'s repriced term loan B freed for trading with levels quoted atop par.

Aearo Technologies held a bank meeting on Wednesday morning to present lenders with its proposed $735 million senior secured credit facility, and in conjunction with the launch, price talk on the transaction was announced, according to a market source.

The $60 million revolver (B1/B+) was launched with opening talk set at Libor plus 200 to 225 basis points, the $475 million first-lien term loan B (B1/B+) was launched with opening talk of Libor plus 225 bps to 250 bps and the $200 million second-lien term loan (Caa1/CCC+) was launched with talk of Libor plus 550 bps, the source said.

Second-lien call protection is 102 in year one and 101 in year two.

Bank of America, Bear Stearns and Deutsche Bank are the lead banks on the deal.

Proceeds will be used for a recapitalization that will include a refinancing of the company's existing credit facility and funding a preferred stock redemption.

Aearo, a Permira portfolio company, is an Indianapolis-based manufacturer and supplier of personal protective equipment and energy-absorbing products.

BOC price talk

Another deal to release price talk on Wednesday was BOC Edwards, as it too launched with a bank meeting during market hours, according to an informed source.

The $100 million super-priority revolver (Ba1/BB+) was presented to lenders with talk of Libor plus 200 bps to 225 bps, the $370 million first-lien term loan B (B1/BB-) was presented with talk of Libor plus 225 bps to 250 bps and the $245 million second-lien PIK toggle term loan (B3/B) was presented with talk of Libor plus 600 bps to 625 bps cash pay, the source said.

If the company elects PIK on its second-lien term loan, then the spread will increase by 75 bps, the source remarked.

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

Deutsche Bank, Lehman Brothers, Barclays Bank and RBS Securities are the lead banks on the $715 million deal.

Proceeds will be used to fund CCMP Capital's acquisition of BOC Edwards from The Linde Group for about €685 million.

BOC Edwards is a manufacturer of vacuum and semiconductor equipment.

Advanstar guidance emerges

Continuing on the price talk theme, Advanstar released guidance on its proposed $835 million credit facility in connection with its Wednesday bank meeting as well, according to a market source.

The $515 million first-lien term loan (B) and the $75 million revolver (B) were both launched with opening talk of Libor plus 250 bps, and the $245 million second-lien term loan (CCC+) was launched with talk of Libor plus 500 bps to 550 bps, the source said.

Credit Suisse and Barclays Capital are the lead banks on the deal.

Proceeds from the credit facility, along with a $75 million holdco PIK loan, will be used to help fund the buyout of the company by Veronis Suhler Stevenson, Citigroup Private Equity and New York Life Capital Partners from DLJ Merchant Banking Partners III, LP for $1.142 billion in cash.

In addition to help fund the acquisition, the credit facility will be used to refinance the company's senior credit facility and tender for its 15% senior discount notes, 12% senior subordinated notes and 10¾% senior-priority senior secured notes.

Advanstar is a New York-based media company.

Edgen sets second-lien pricing

In more primary happenings, Edgen Murray finalized pricing on its second-lien term loan at the high end of talk and added a step down based on leverage, and the first-lien term loan at the Cayman borrower saw the inclusion of an original issue discount, according to a market source.

The $75 million eight-year second-lien term loan (B3/CCC+) is now priced at Libor plus 625 bps, the wide end of original guidance of Libor plus 600 bps to 625 bps, and a step down was added under which pricing can drop to Libor plus 600 bps if leverage falls below 4.0 times, the source said.

Second-lien call premiums of 102 in year one and 101 in year two were left unchanged.

As for the company's $145 million first-lien term loan at a Cayman borrower, pricing on that tranche was left unchanged at Libor plus 275 bps, however, an original issue discount of 99½ was added to the paper, the source added.

The company's $500 million of new term loan debt also includes a $280 million seven-year first-lien term loan (B3/B) at a U.S. borrower that is priced at Libor plus 275 bps, in line with original guidance.

Lehman Brothers and Jefferies Finance LLC are the lead banks on the term loans.

Edgen Murray will also be getting a $150 million ABL revolver that is being led by GMAC and being done via a separate syndication.

Proceeds will be used for a recapitalization of the company that will include the refinancing of existing credit facility debt, $136 million of 9 7/8% senior secured notes due 2011 and $130 million of senior secured floating-rate notes due 2010.

In addition, Jefferies Capital Partners and Edgen Murray management will purchase the company's subsidiaries from its existing partners, using cash from a portion of the refinancing proceeds and equity financing proceeds.

The remainder of the net cash proceeds are expected to be used for general corporate purposes.

Edgen Murray is a Baton Rouge, Pa.-based distributor of high performance carbon and alloy steel products for use primarily in specialized applications in the energy infrastructure market.

AMR frees to trade

Moving to the secondary, AMR's repriced term loan B broke for trading, with levels quoted at par 1/8 bid, par 5/8 offered, according to a trader.

The repriced term loan B carries an interest rate of Libor plus 200 bps.

Pricing came at the wide end of original guidance of Libor plus 175 bps to 200 bps.

Prior to the repricing, the term loan B carried an interest rate of Libor plus 325 bps.

There is no call protection on the term loan B.

Citigroup is the left lead bank on the Fort Worth, Texas, airline's deal.

Baker bid rises

In other secondary news, Baker Tanks Inc. saw the bid on its funded term loan B add-on rise by about an eighth of a point in post-break trading, according to a market source.

The $200 million funded term loan B add-on ended the session at par ¾ bid, par 7/8 offered, up from the par 5/8 bid, par 7/8 offered levels that were seen when the deal freed for trading late in the day Tuesday, the source said.

The term loan B add-on is priced at Libor plus 225 bps with a step down to Libor plus 200 bps upon the earlier of an upgrade from Moody's Investors Service or at less than 4.5 times total leverage. This step down cannot occur within 12 months of close.

During syndication, the term loan B was upsized from $175 million and the pricing step down was added.

Baker Tanks' $235 million incremental bank deal also includes a $15 million delayed-draw term loan B tranche and a $20 million revolver add-on.

The delayed-draw term loan, which was added to the deal during syndication, is available for one year for capital expenditures and will carry a 100 bps undrawn fee. Once funded, pricing on the delayed-draw term loan will be the same as the funded term loan B.

The revolver add-on, which was downsized from $25 million during syndication, is priced at Libor plus 225 bps. The revolver has a $15 million accordion feature that was added at the same time as the downsizing.

Goldman Sachs and CIBC are the lead banks on the deal, which will be used for a dividend recapitalization, with Goldman the left lead.

Baker Tanks is a Seal Beach, Calif., liquid and solid containment equipment rental and leasing company.

TRW closes

TRW Automotive Inc. closed on its new $2.5 billion credit facility (Baa3/BBB-/BB+) consisting of a $1.4 billion five-year revolver, a $600 million six-year term loan A and a $500 million 63/4-year term loan B, according to a company news release.

The revolver and term loan A are both priced at Libor plus 112.5 bps, and the term loan B is priced at Libor plus 150 bps.

The revolver has a 25 bps undrawn fee.

JPMorgan and Bank of America acted as joint lead arrangers on the deal that was used to refinance existing bank debt.

TRW is a Livonia, Mich., automotive supplier.

Stelco closes

Stelco Inc. closed on its new $270 million (C$297 million) six-year term loan priced at Libor plus 350 bps, according to a company news release.

During syndication, the term loan was upsized from C$275 million U.S. dollar equivalent because of strong demand.

General Electric Capital Corp. acted as the lead bank on the Hamilton, Ont., steel company's deal.

Proceeds were used to refinance the company's C$375 million revolving term loan with a more traditional facility that has significantly lower interest rates.

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