Dave & Buster's, Renal Advantage break; First Data rises; Pabst sets talk; Styron OID emerges

By Sara Rosenberg

New York, May 26 - Dave & Buster's Inc. and Renal Advantage Inc. both saw their credit facilities free up for trading on Wednesday, and First Data Corp.'s term loans were better as investors had a chance to digest the company's recent news of management changes.

Over in the primary market, Pabst Brewing Co. came out with price talk on its credit facility as the deal was launched to investors with a bank meeting during the session.

Also, Styron revealed original issue discount guidance on its first- and second-lien term loans, and chatter is that Citgo Petroleum Corp.'s term loan is already almost fully circled at initial talk.

Dave & Buster's starts trading

Dave & Buster's credit facility hit the secondary market, with the $150 million term loan B quoted at 99¼ bid, par offered, according to a trader.

Pricing on the term loan B is Libor plus 425 basis points with a 1.75% Libor floor, and it was sold at an original issue discount of 99.

The $200 million credit facility (Ba2/BB-) also includes a $50 million revolver.

JPMorgan and Jefferies are the joint lead arrangers and bookrunners on the deal that will be used to fund the buyout of the company by Oak Hill Capital Partners from Wellspring Capital Management LLC in a transaction valued at about $570 million.

Completion of the acquisition is expected in the second quarter, subject to regulatory approvals and customary conditions.

Dave & Buster's is a Dallas-based owner and operator of restaurant/entertainment venues.

Renal Advantage frees to trade

Also breaking for trading on Wednesday was Renal Advantage's credit facility, with the $245 million six-year term loan B quoted at 99¼ bid, 99¾ offered, according to traders.

Pricing on the term loan B firmed in line with initial talk at Libor plus 450 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99.

The $305 million credit facility (Ba3/B) also includes a $60 million revolver that is priced at Libor plus 450 bps with no Libor floor.

Deutsche Bank, Barclays, Bank of America and GE Capital are the lead banks on the deal that will be used to refinance existing debt.

Renal Advantage is a Brentwood, Tenn.-based provider of outpatient dialysis services.

First Data rebounds

First Data's term loan debt recouped most of the losses that were seen on Tuesday after the company revealed a number of changes in management, since the market had a day to mull over the events, according to traders.

The term loan B-1 was quoted by one trader at 84 bid, 84½ offered, up from 83½ bid, 84, and by a second trader at 83 7/8 bid, 84 3/8 offered, up from 83½ bid, 84 offered.

The term loan B-2 was quoted by the first trader at 83 7/8 bid, 84 3/8 offered, up from 83 3/8 bid, 83 7/8 offered, and by the second trader at 83 7/8 bid, 84 3/8 offered, up from 83½ bid, 84 offered.

And, the term loan B-3 was quoted by the first trader at 83 7/8 bid, 84 3/8 offered, up from 83 3/8 bid, 83 7/8 offered, and by the second trader at 83½ bid, 84 offered, up from 83¼ bid, 83¾ offered.

First Data CFO resigned

As was previously reported, early Tuesday morning, First Data announced that Pat Shannon, executive vice president and chief financial officer, will be leaving the company.

Shannon agreed to remain employed by the company through June 30 to assist in the transition of his duties.

Controller Ray Winborne has been promoted to executive vice president, acting chief financial officer.

Additionally, Bob DeRodes, executive vice president of global operations and technology, is leaving the company, too, and he is being replaced by chief technology officer Kevin Kern.

Prior to the news, First Data's term loan B-1 was quoted in the 84 bid, 84 7/8 offered context, the term loan B-2 was in the 84 bid, 84¾ offered context and the term loan B-3 was in the 83¾ bid, 84¾ offered context.

First Data is a Greenwood Village, Colo.-based provider of electronic commerce and payment services.

Pabst Brewing talk emerges

Switching to the primary, Pabst Brewing held a bank meeting on Wednesday in Chicago to kick off syndication on its proposed $100 million five-year senior credit facility, and in connection with the launch, price talk was announced, according to a market source.

Both the $10 million revolver and the $90 million term loan are being talked at Libor plus 475 bps with a 1.5% Libor floor and an original issue discount of 99, the source said.

Expected ratings are B2/B.

GE Capital is the lead bank on the deal that will be used to help fund the acquisition of the company by Dean Metropoulos.

Milwaukee-based Pabst is the third largest brewer in the United States, with 37 beer and malt liquor brands.

Styron sets OID talk

Styron is talking the original issue discount on its $675 million first-lien term loan (BB-) at 99 and the discount on its $125 million second-lien term loan (B-) in the 98 to 99 area, according to a market source.

Price talk on the first-lien term loan is Libor plus 475 bps and on the second-lien term loan is Libor plus 775 bps, with both tranches carrying a 1.75% Libor floor.

Call protection on the second-lien term loan is 103 in year one, 102 in year two and 101 in year three.

A bank meeting to launch the $1.04 billion credit facility, which also includes a $240 million revolver (BB-), took place this past Monday, at which time price talk came out, but original issue discount guidance on the term loans was described as still to be determined.

Commitments from lenders are due on June 7.

Styron lead banks

Deutsche Bank, Barclays and HSBC are the lead banks on Styron's credit facility, with Deutsche the left lead.

Proceeds will be used to help fund the acquisition of the company by Bain Capital from Dow Chemical for $1.63 billion.

As part of the buyout agreement, Dow Chemical has an option to receive up to 15% of the equity of Styron as part of the sale consideration.

The transaction is expected to close by August, subject to the completion of customary conditions and regulatory approvals.

Styron is a diversified chemicals and plastics company that is expected to have $3.5 billion in revenue based on 2009.

Citgo filling up

Citgo's $300 million five-year term loan has been attracting attention since launching about two weeks ago, with over 90% of the tranche subscribed by Wednesday morning, according to a market source.

The source explained that while orders are coming in towards the term loan, investors are also watching the company's proposed $1.5 billion senior secured bond offering to see where price talk emerges and pricing ends up.

Once more information on the bonds is available, the source expects that there will be more clarity on final details of the term loan.

The roadshow for the seven-year and 10-year notes offering wraps up on Thursday.

Currently, the term loan is being talked at Libor plus 350 bps with a 1.75% Libor floor and an original issue discount of 981/2.

Citgo getting revolver

Citgo's $1 billion senior secured credit facility (Ba2/BB+/BB+) also includes a $700 million revolver, which was fully circled ahead of the term loan's launch.

Pricing on the revolver is Libor plus 325 bps with a 62.5 bps commitment fee. The spread is determined by a ratings grid.

And, upfront fees on the revolver range from 100 bps to 150 bps based on order size.

BNP Paribas, RBS and UBS are the lead banks on the deal, with BNP the left lead.

Proceeds from the credit facility and the bonds will be used to refinance existing debt. As a condition of the deal, the company must raise at least $1 billion between the term loan and the new bonds.

Citgo is a Houston-based refiner and marketer of transportation fuels, lubricants, petrochemicals and other industrial products.

SkillSoft closes

The buyout of SkillSoft plc for $11.25 in cash per share by Berkshire Partners LLC, Advent International Corp. and Bain Capital Partners LLC was completed on Wednesday, according to a news release.

To help fund the buyout, SkillSoft got a new $365 million senior secured credit facility (Ba3/BB), consisting of a $40 million five-year revolver priced at Libor plus 450 bps and a $325 million six-year term loan priced at Libor plus 475 bps with a 1.75% Libor floor.

The term loan was sold at an original issue discount of 99 after tightening from initial talk of 98½ during syndication.

Morgan Stanley and Barclays acted as the lead banks on the deal.

SkillSoft is a Dublin, Ireland-based provider of on-demand e-learning and performance support services for global enterprises, government, education and small- to medium-sized businesses.

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