DirecTV price talk surfaces at launch; Burt's Bees modifies B loan; Allied Waste, Maguire break

By Sara Rosenberg

New York, March 17 - DirecTV Group Inc. revealed price talk on its $2 billion credit facility as the deal launched via a bank meeting Thursday and syndication is expected to go smoothly just based on the size of the existing lender group. Also, in the primary, Burt's Bees Inc. increased the size and reverse flexed its in-market term loan B and cut pricing on its revolver as well.

Meanwhile, in the secondary, Allied Waste Industries Inc. and Maguire Properties Inc. broke for trading, with Allied's strip of institutional debt and Maguire's term loan B trading in the 101s.

DirecTV revealed opening price talk on its $2 billion senior secured credit facility at Thursday's meeting, with the $500 million six-year revolver and the $250 million six-year term loan A talked at Libor plus 150 basis points, and the $1.25 billion eight-year term loan B talked at Libor plus 175 basis points, according to a market source.

"I figure it will do well. They're coming out of a B loan that is approximately $1 billion and adding an A. I would guess that rollover would eat up most of this," the source explained.

Bank of America and JPMorgan are the lead banks on the deal, with Bank of America the left lead.

Security is substantially all assets.

Proceeds from the term loans, along with proceeds from a proposed $500 million unsecured senior notes offering, will be used to repay and terminate the company's existing $1.26 billion senior secured credit facility and to repay an unsecured promissory note in a total principal amount of $875 million, with remaining proceeds to be available for working capital or other purposes.

The revolver is expected to be undrawn at closing.

Closing on the facility is targeted for early April.

DirecTV is an El Segundo, Calif., broadcast satellite provider.

Burt's Bees upsizes, cuts spread

Burt's Bees upsized its term loan B to $150 million from $138 million and reduced pricing on the tranche to Libor plus 275 basis points from price talk of Libor plus 300 to 325 basis points, according to a fund manager.

Furthermore, pricing on the $15 million five-year revolver was also reduced to Libor plus 275 basis points from price talk of Libor plus 300 to 325 basis points, the fund manager added.

Pricing on the $25 million seven-year second-lien term loan was left unchanged at Libor plus 675 basis points.

Proceeds from the $190 million facility will be used to refinance existing debt and pay a dividend. The size of the dividend payment is being increased through the upsizing of the term loan B, a market source said.

CIBC is the lead bank on the deal.

Burt's Bees is a Durham, N.C., producer of lip balm, bath oils, soaps, and other personal care products made from beeswax, nut oils, and other natural ingredients.

MTN accounts confirm orders

All accounts have confirmed their orders for Maritime Telecommunications Network's credit facility after the syndicate upsized the term loan B and lowered spreads on all tranches by 50 basis points, according to a market source.

The six-year term loan B was increased to $47.5 million from $45 million due to investor demand and pricing was reduced to Libor plus 300 basis points from Libor plus 350 basis points.

Meanwhile, pricing on the $5 million five-year revolver was reduced to Libor plus 300 basis points from Libor plus 350 basis points and pricing on the $27.5 million 61/2-year second-lien term loan was reduced to Libor plus 650 basis points from Libor plus 700 basis points.

The revolver has a commitment fee of 50 basis points.

Proceeds from the $80 million credit facility will be used to help fund Perseus Capital's leveraged buyout of the company.

"Even with the upsizing, the sponsor's equity still accounts for over 35% of the capitalization," the source added.

Maritime Telecommunications is a Miramar, Fla., satellite communications provider.

Allied Waste strip trades in 101s

Allied Waste allocated its $3.35 billion credit facility (B1/BB/BB-) on Thursday and saw most of its trading activity take place for strips of term loan B and funded letter-of-credit debt, rather than for just term loan B debt or just letter-of-credit debt, according to a market source.

"I think JP traded $40 million very quickly" after the break, the source remarked.

The strip of term loan B and letter-of-credit paper was quoted at 101 3/8 bid, 101¾ offered during the session but by late day the offer side came in slightly to 101 5/8 bid, the source said.

According to a trader, however, the strip of Allied paper was quoted at 101½ bid, 101¾ offered pretty steadily throughout the day with a good flow of activity.

The term loan B paper by itself was quoted closer to 102 during trading hours, the market source said. "I didn't see the term loan B offered by itself under 102. I saw a 102 offer and a 102 1/8 offer," the source added.

However, according to the trader, the term loan B by itself was quoted about an 1/8 better than the strip, making the term loan B around 101 5/8 bid, 101 7/8 offered.

Allied Waste's $1.35 billion seven-year term loan B is priced with an interest rate of Libor plus 200 basis points. The tranche was downsized from $1.45 billion after the company completed a mandatory convertible preferred stock offering that was upsized to $600 million from $500 million. Furthermore, pricing on the tranche came down from Libor plus 225 basis points on strong investor demand.

The company's $450 million institutional letter-of-credit facility is also priced at Libor plus 200 basis points and was also reverse flexed from Libor plus 225 basis points during syndication.

The facility also contains a $1.55 billion five-year revolver with an interest rate of Libor plus 275 basis points.

Basically with the new facility, the Scottsdale, Ariz., waste services company is increasing its existing revolver from $1.5 billion to enhance liquidity, and will also be downsizing its term loan debt.

JPMorgan and Citigroup are the lead banks on the deal, with JPMorgan the left lead.

Proceeds from the credit facility (B1/BB/BB-), along with proceeds from the completed common stock issuance, mandatory convertible preferred stock issuance and senior notes issuance, will be used to repay the remaining $195 million of 10% senior subordinated notes due 2009, repay $125 million of 9.25% senior notes due 2012, repay the $600 million 7.625% senior notes due January 2006, repay the $70 million 7.875% senior notes due March 2005 and fully repay amounts outstanding under the existing credit facility.

Maguire around mid-101

Maguire's $450 million five-year term loan B, which was originally issued at par, hit the secondary on Thursday with quotes seen steadily throughout the session at the 101¼ bid, 101¾ offered level, according to a market source.

The term loan, downsized from $480 million because the company raised more money than was expected in the CMBS market, is priced with an interest rate of Libor plus 175 basis points. Pricing on the tranche was initially talked at Libor plus 200 to 225 basis points but was reverse flexed during syndication.

Maguire's $550 million credit facility (Ba2/BB) also contains a $100 million four-year revolver with an interest rate of Libor plus 175 basis points and a commitment fee of 50 basis points. Pricing on the revolver was also reverse flexed from Libor plus 200 to 225 basis points during syndication.

Credit Suisse First Boston was the sole lead bank on the deal that funded on Tuesday of this week.

Proceeds from the revolver were used to refinance the company's existing $100 million revolver.

Proceeds from the term loan were used to help finance the now completed acquisition of a significant number of assets from CommonWealth Partners LLC's Fifth Street Properties Portfolio, a portfolio of office properties owned through a partnership with Rockefeller Group International Inc and the California Public Employees Retirement System, for about $1.51 billion.

More specifically, Maguire bought 10 office properties comprising nearly 5 million square feet and four development sites entitled for more than 1.5 million square feet of office space. The portfolio is currently 86.4% leased.

In addition to the new bank debt, Maguire assumed about $155 million of mortgage financing and issued new mortgage financing to help fund the acquisition as well.

Maguire is a Los Angeles-based real estate investment company.

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