Intergraph breaks; Emergency Medical, Solutia, Custom Building set talk; Revlon tweaks deal

By Sara Rosenberg

New York, March 4 - Intergraph Corp.'s incremental term loan allocated and freed up for trading during Thursday's market hours, with levels quoted above the original issue discount price at which the debt was initially sold.

Also in the secondary market, Western Refining Inc.'s term loan was unchanged to stronger, depending on the trader asked, as the company released quarterly numbers that were better than expected.

On the new deal front, Emergency Medical Services Corp. came out with price talk on its pro rata credit facility as the deal was presented to lenders in the morning, and Solutia Inc. and Custom Building Products Inc. also released guidance in connection with their launches.

And, in more primary happenings, Revlon Consumer Products Inc. made some changes to its term loan, including widening the original issue discount, adding call protection and shortening the maturity.

Intergraph frees to trade

Intergraph's $300 million incremental term loan (B1/BB-) hit the secondary market, with levels seen higher than the original issue discount price, according to traders.

Specifically, the term loan was quoted by one trader at 99¾ bid, par ½ offered and by a second trader at par ¼ bid, 101 offered.

The second trade remarked that he saw levels of 99¾ bid, par ½ offered when the deal first broke for trading and then he saw it move up.

Pricing on the term loan is Libor plus 400 basis points with a 2% Libor floor, and it was sold at an original issue discount of 99. There is also 101 soft call protection for one year.

JPMorgan and Goldman Sachs are the lead banks on the deal that is being used to fund a dividend payment.

Intergraph amending loan

In conjunction with the incremental term loan, Intergraph sought an amendment to its existing credit facility to allow for the new debt.

As part of the amendment, pricing on the existing first-lien term loan was increased to Libor plus 425 bps and pricing on the existing second-lien term loan was increased to Libor plus 825 bps.

In addition, a 2% Libor floor was added to the second-lien loan, and both the first- and the second-lien loans received 101 soft call protection for one year.

Lenders were offered a 50 bps amendment fee.

Intergraph is a Huntsville, Ala.-based provider of spatial information management software and systems.

Western Refining flat to better

Western Refining's term loan was seen as unchanged by some and higher by others after the company came out with quarterly numbers that showed a net loss that was lower than what was being anticipated.

The term loan was quoted by one trader at 92¼ bid, 94¼ offered, up from 90 bid, 91 offered, and by a second trader at 92 bid, 93 offered, flat from Wednesday's levels.

For the fourth quarter, Western Refining reported a net loss of $97.5 million, or $1.11 per diluted share, compared to a net loss of $12.8 million, or $0.19 per diluted share, in the previous year.

The net loss, excluding special items, was $51.1 million, or $0.58 per diluted share, versus net earnings, excluding special items, of $33.6 million, or $0.49 per diluted share, in the fourth quarter of 2008.

Western Refining sales increase

Also on Thursday, Western Refining said that its net sales for the fourth quarter were $1.96 billion, up from $1.66 billion in the prior year.

For the 12 months ended Dec. 31, cash flow from operations was $140.8 million.

As of year-end, total debt was about $1.12 billion, which included $50 million outstanding under the company's revolving credit facility.

Western Refining is an El Paso, Texas-based independent refining and marketing company.

Emergency Medical price talk

Switching to the primary market, Emergency Medical Services held a bank meeting on Thursday morning to kick off syndication on its proposed $550 million credit facility (Baa3), and in connection with the launch, price talk was announced, according to a market source.

Both the $125 million revolver and the $425 million term loan are being talked at Libor plus 300 bps with no Libor floor, the source said.

The revolver includes a 50 bps unused fee, the source added.

Emergency Medical lead banks

Bank of America, Barclays and JPMorgan are the lead banks on Emergency Medical Services' credit facility, with Bank of America the left lead.

The deal is being marketed primarily towards banks as a result of its pro rata structure.

Proceeds will be used to refinance existing debt.

Emergency Medical is a Greenwood Village, Colo.-based ambulance and facility-based physician services company.

Solutia talk emerges

Another company to hold a bank meeting on Thursday was Solutia, at which time it, too, revealed price talk on its proposed loan, according to a market source.

The $750 million term loan due in 2017 was presented to lenders with talk of Libor plus 325 bps to 350 bps with a 1.5% Libor floor and an original issue discount of 99, the source said.

Solutia's $1.05 billion senior secured credit facility (Ba2) also includes a $300 million revolver due in 2015.

Deutsche Bank, Jefferies, Citigroup, HSBC Securities and JPMorgan are the joint lead arrangers and joint bookrunners on the deal.

Solutia refinancing debt

Proceeds from Solutia's credit facility will be used to refinance its existing senior secured term loan facility due in February 2014 and its existing senior secured ABL facility due in February 2013.

The loan could also be used to help fund the recently announced acquisition of Etimex Solar GmbH, a supplier of ethylene vinyl acetate encapsulants to the photovoltaic market, from Etimex Holding GmbH for €240 million.

Furthermore, the company sold $300 million of 7 7/8% senior notes due in 2020 at 99.5 to yield 7.948%, with proceeds earmarked for general corporate purposes which may include funding acquisitions, such as the Etimex Solar transaction, and the repayment of debt.

Closing on the Etimex Solar transaction is expected to take place in the second quarter, subject to customary conditions, including receipt of governmental approvals.

Solutia is a St. Louis-based performance materials and specialty chemicals company.

Custom Building guidance

Custom Building Products launched its $320 million credit facility on Thursday as well and went out with price talk of Libor plus 400 bps with a 1.75% Libor floor on the deal, according to a market source.

Tranching on the deal is comprised of a $25 million revolver and a $295 million term loan B.

The term loan B is being offered with an original issue discount of 99 and the unused fee on the revolver is 75 bps, the source said.

Bank of America and RBC are the lead banks on the deal that will be used to refinance existing debt.

Commitments are due on March 12.

Custom Building Products is a Seal Beach, Calif., provider of installation services for tile and stone.

Revlon revises term loan

Revlon Consumer Products made some modifications to its $800 million term loan (Ba3/B+), including increasing the original issue discount to 98¼ from 99 and adding 101 hard call protection for one year, according to a market source.

Also, the tenor of the term loan was revised to five years from seven years, the source remarked.

Commitments were due at 5 p.m. ET on Thursday, which was the original deadline.

The company's $140 million four-year asset-based revolver (Ba2) was left unchanged. Pricing on this tranche is Libor plus 300 bps with a 75 bps commitment fee.

Revlon led by Citi

Citigroup is the left lead bank on Revlon's $940 million credit facility that will be used to refinance an existing credit facility, which, at Dec. 31, had $815 million outstanding under the term loan and zero drawn under the revolver.

The refinancing is a leverage neutral transaction. Total first-lien secured debt for fiscal year 2009 adjusted EBITDA is 3.1 times and total debt to fiscal year 2009 adjusted EBITDA is 4.8 times.

Financial covenants under the term loan include a maximum senior first-lien secured leverage ratio of 4.0 to 1.0, while financial covenants under the revolver include a springing fixed charge coverage ratio of 1.0 to 1.0 if excess availability is less than $20 million.

Revlon is a New York-based cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirants/deodorants and beauty care products company.

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