Energy Future, Blue Bird, Gray Television revise deals; Gates Global accelerates deadline

By Sara Rosenberg

New York, June 9 – In the primary market on Monday, Energy Future Intermediate Holding Co. LLC (EFIH Finance Inc.) tightened the offer price on its first-lien debtor-in-possession term loan, and Blue Bird Body Co. reworked its tranche sizes while widening pricing on its term loan.

Also, Gray Television Inc. upsized its term loan, Gates Global LLC moved up the commitment deadline on its credit facility, GST AutoLeather Inc. and Verdesian Life Sciences disclosed price talk with launch, and Seadrill and Progressive-PMSI released original issue discount talk on their add-on term loans.

Furthermore, Healogics Inc., Academi Holdings LLC, Alion Science and Technology Corp., Birch Communications Inc., New Albertson’s Inc. and Spencer Spirit Holdings Inc. are getting ready to bring new deals to market.

Energy Future tweaks deal

Energy Future Intermediate Holding modified the offer price on its $1,325,000,000 24-month superpriority first-lien debtor-in-possession term loan to par from 99 and kept pricing at Libor plus 325 basis points with a 1% Libor floor, according to a market source.

Commitments were due at 5 p.m. ET on Monday, the source said.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., RBC Capital Markets and Union Bank are leading the deal that will be used to fund Chapter 11 expenses, to refinance existing first-lien notes, for adequate protection payments, working capital and general corporate purposes and to comply with any legal and/or regulatory requirements.

Energy Future is a Dallas-based power generation company and utility operator.

Blue Bird restructures

Blue Bird Body trimmed its six-year first-lien term loan to $235 million from $250 million, lifted pricing to Libor plus 550 bps from Libor plus 450 bps, widened the original issue discount to 98½ from 99, extended the 101 soft call protection to one year from six months, increased amortization to 5% per annum from 1% and eliminated the MFN sunset provision, a market source said.

Additionally, the five-year revolver was upsized to $60 million from $50 million.

Recommitments are due at 5 p.m. ET on Wednesday, the source added.

Societe Generale, Macquarie Capital and Fifth Third Securities Inc. are leading the now $295 million credit facility that will be used to refinance existing debt and fund a dividend.

Total leverage is 3.55 times and total net leverage is 3.04 times.

Blue Bird is a Fort Valley, Ga.-based manufacturer of school buses and a provider of aftermarket parts and services.

Gray lifts loan size

Gray Television raised its term loan to $525 million from $500 million and left pricing at Libor plus 300 bps with a 0.75% Libor floor and an original issue discount of 99¾, a market source remarked.

Last week, the Libor floor was cut from 1% and the discount was revised from 99½.

The company’s now $575 million senior secured credit facility (Ba3/BB) also includes a $50 million revolver.

Allocations are expected in the first half of this week, the source added.

Wells Fargo Securities LLC, Bank of America Merrill Lynch and RBC Capital Markets are leading the deal that will be used to refinance existing debt and to complete pending acquisitions.

Closing is expected on or before June 30.

Gray Television is an Atlanta-based owner and operator of television stations and digital assets.

Gates shutting early

Gates Global accelerated the commitment deadline on its credit facility to Thursday from June 19 and the deal is already oversubscribed, a market source said.

The deal includes a $125 million five-year revolver, a $325 million five-year ABL revolver, a $2.49 billion seven-year first-lien covenant-light term loan and a €200 million seven-year first-lien covenant-light term loan.

Talk on the term loans is Libor/Euribor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., UBS AG and Macquarie Capital (USA) Inc. are leading the deal that will be used with senior unsecured notes to fund the buyout of the company by Blackstone from Onex Corp. and Canada Pension Plan Investment Board.

Gates Global is a Denver-based manufacturer of power transmission belts and fluid power products.

GST AutoLeather talk

Also in the primary, GST AutoLeather launched with an afternoon bank meeting its $150 million six-year term loan B with talk of Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $180 million senior secured credit facility also includes a $30 million five-year revolver.

Commitments are due on June 23, the source said.

RBC Capital Markets is leading the deal that will be used to refinance existing debt.

GST is a Southfield, Mich.-based automotive leather manufacturer.

Verdesian launches

Verdesian Life Sciences released talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $200 million six-year term loan B that launched with a bank meeting, according to a market source.

The company’s $225 million credit facility (BB-) also includes a $25 million revolver.

Commitments are due on June 23, the source remarked.

Goldman Sachs Bank USA is leading the deal that will be used to fund an acquisition.

Verdesian is a Cary, N.C.-based provider of patented technologies for high-value specialty crops, row crops, and turf and ornamental markets.

Seadrill OID guidance

Seadrill held its bank meeting during the session, launching its $1 billion add-on term loan B (Ba3/BB-) due February 2021 with original issue discount talk of 98 to 98½, according to a market source.

Pricing on the add-on matches the existing term loan B at Libor plus 300 bps with a 1% Libor floor, and there is 101 soft call protection through February 2015.

The company is also seeking an amendment to its existing $1.8 billion term loan to accommodate the add-on, and lenders are being offered a 12.5 bps consent fee.

Amendment consents are due at noon ET on June 16 and commitments for the add-on are due at noon ET on June 18, the source said.

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to refinance existing debt associated with West Auriga and West Capricorn.

Seadrill is an Oslo-based provider of offshore drilling services to the oil and gas industry.

Progressive reveals discounts

Progressive-PMSI came out with original issue discount talk of 99½ on both its $130 million add-on first-lien term loan due October 2020 (B) and $80 million add-on second-lien term loan due October 2021 (CCC+) that launched with a call in the afternoon, a source said.

Pricing on the add-on first-lien loan is Libor plus 450 bps with a 1% Libor floor and there is 101 soft call protection for one year, and pricing on the add-on second-lien term loan is Libor plus 850 bps with a 1% Libor floor and there is call protection of 103 through October 2014, 102 through October 2015 and 101 through October 2016.

Spreads and floors on the add-on loans match the existing first- and second-lien term loans, and it is expected that the debt will be fungible.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the $210 million deal that will be used to return capital to equity holders.

With the transaction, the company is seeking an amendment, and lenders are offered a 25 bps consent fee.

The Tampa, Fla.-based pharmacy benefit manager for workers’ compensation is asking for commitments by June 16.

Healogics readies deal

Healogics emerged with plans to hold a bank meeting at 2 p.m. ET in New York on Wednesday to launch a $720 million credit facility, according to a market source.

The facility consists of a $100 million revolver (B), a $400 million seven-year first-lien covenant-light term loan (B) with 101 soft call protection for six months, and a $220 million eight-year second-lien covenant-light term loan (CCC+) with call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on June 25.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the deal, with JPMorgan left lead on the first-lien debt and Credit Suisse left lead on the second-lien loan.

Proceeds will be used to help fund the $910 million buyout of the Jacksonville, Fla.-based provider of advanced wound care services by Clayton, Dubilier & Rice from Metalmark Capital and Scale Venture Partners.

Closing is expected this quarter or next quarter.

Academi coming soon

Academi Holdings scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $430 million five-year credit facility, according to a market source.

The facility consists of a $150 million revolver and a $280 million term loan talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

Bank of America Merrill Lynch is leading the deal that will be used to fund the acquisition of Constellis Group Inc., to refinance existing debt and for general corporate purposes.

Academi is a McLean, Va.-based provider of training and security services focused on counterterrorism, force protection, law enforcement and security operations. Constellis is a provider of security, support and advisory services to government, multinational corporations and international organizations.

Alion joins calendar

Alion Science and Technology will hold a bank meeting at 1 p.m. ET on Tuesday to launch a $300 million five-year term loan B, according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used to refinance PIK notes, the source said.

Alion is a McLean, Va.-based research and development, IT and operational services company.

Birch on deck

Birch Communications set a bank meeting for Thursday to launch its $500 million senior secured credit facility, according to a market source.

As previously reported, the facility consists of a $50 million revolver and a $450 million term loan.

Jeffries Finance LLC and PNC Capital Markets LLC are leading the deal that will be used to help fund the acquisition of Cbeyond Inc. for about $10 per share in cash, for a total purchase price of around $323 million.

Birch is an Atlanta-based IP-based telecommunications and managed services provider. Cbeyond is an Atlanta-based technology ally to small- and mid-sized businesses.

New Albertson’s plans loan

New Albertson’s scheduled a bank meeting for 11 a.m. ET on Wednesday to launch a new loan, according to a market source.

Citigroup Global Markets Inc. is leading the deal that will be used to fund the acquisition of Safeway Inc.’s eastern division, the source added.

New Albertson’s is a food and drug retailer.

Spencer sets meeting

Spencer Spirit will hold a bank meeting on Wednesday to launch a new loan, according to sources.

Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal for the Egg Harbor Township, N.J.-based specialty retailer.

Long Term Care closes

In other news, the buyout of Long Term Care Group Inc. by Stone Point Capital from Univita Health has been completed, a news release said.

For the transaction, the company got a new $195 million senior secured credit facility consisting of a $20 million revolver and a $175 million term loan B due 2020.

Pricing on the term loan B is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 99½. There is101 soft call protection for one year.

During syndication, the spread on the term loan B was reduced from Libor plus 525 bps.

RBC Capital Markets and MCS Capital Markets led the deal.

Long Term Care Group is an Eden Prairie, Minn.-based business process outsourcing company for the long-term care insurance industry.

Compass completes loan

Compass Diversified Holdings closed on its $725 million credit facility that includes a $400 million five-year revolver and a $325 million seven-year term loan B, according to a news release.

Pricing on the revolver can range from Libor plus 200 bps to 275 bps based on leverage, and pricing on the term loan is Libor plus 325 bps with a 1% Libor floor and it was sold at an original issue discount of 99½. The term loan has 101 soft call protection for one year.

During syndication, the B loan was upsized from $280 million and pricing was cut from Libor plus 350 bps.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., TD Securities and U.S. Bank led the deal that was used to refinance existing bank debt.

Compass Diversified is a Westport, Conn.-based owner and manager of middle-market businesses.

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