Infonxx sets talk; Idearc reverse flexes; Generac, Greenwood revise talk; Thompson breaks

By Sara Rosenberg

New York, Nov. 1 - Infonxx Inc. released price talk on its credit facility as the deal was launched with a bank meeting Wednesday, Idearc reduced pricing on its term loan B and Generac Power Systems Inc. lowered price talk on all of its tranches.

In other primary happenings, Greenwood Racing Inc. adjusted price talk on its term loan to just focus on the low end of guidance and MediMedia finalized spreads on its credit facility at the tight end of talk.

Meanwhile, in secondary news, Thompson Creek Metals Co.'s credit facility allocated and freed for trading, with the first-lien term loan bid in the upper par's.

Infonxx launched its proposed $600 million credit facility to investors on Wednesday with a bank meeting, and at that time pricing guidance was released on the transaction, according to a market source.

The $275 million first-lien term loan (B1) was presented to lenders with talk of Libor plus 300 to 400 bps, and the $125 million second-lien term loan (Caa1) was presented to lenders with talk of Libor plus 600 bps to 700 bps.

The deal also includes an existing $200 million revolver (B1) that is being amended to allow for the additional debt and increase pricing, although, according to one source, it's uncertain whether the amendment will actually get the 51% approval needed from lenders to pass.

Bank of America is the lead bank on the deal that will be used to repay existing bank debt and for acquisition financing.

Infonxx is a Bethlehem, Pa., independent directory assistance supplier.

Idearc B loan flex

Idearc reduced pricing on its $4.75 billion term loan B to Libor plus 200 bps from original talk at launch of Libor plus 225 bps, a move that had previously been anticipated by the market based on the level of interest received on the deal, according to a source.

When the deal first launched, the term loan B was actually being talked in the Libor plus 200 to 225 bps range, but shortly after the bank meeting, pricing was adjusted to just Libor plus 225 bps.

Idearc's $6.5 billion credit facility (Ba2/BB+) also includes a $250 million revolver and a $1.5 billion term loan A, with both tranches priced at Libor plus 150 bps.

JPMorgan and Bear Stearns are the lead banks on the deal.

Proceeds from the facility, along with $2.85 billion of senior notes, will be used to help fund the spinoff of the print and internet yellow pages directories business from Verizon Communications Inc.

Leverage through the bank debt will be 3.9 times, and leverage through the bonds will be 5.7 times.

Generac cuts spread talk

Generac Power Systems lowered guidance on its $1.53 billion credit facility, with the $150 million revolver and $950 million first-lien term loan now being talked at Libor plus 250 bps as opposed to the Libor plus 275 bps area, and the $430 million second-lien term loan now being talked at Libor plus 600 bps as opposed to the Libor plus 650 bps area, according to a market source.

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

Proceeds will be used to help fund the acquisition of Generac by CCMP Capital Advisors from the company's founder, Robert Kern, and other shareholders.

Generac is a Waukesha, Wis., manufacturer of standby power products.

Greenwood revisits talk

Greenwood Racing's $265 million first-lien senior secured term loan (B2/B+) is now being talked at Libor plus 250 bps, instead of at Libor plus 250 to 275 bps, as the book is well-oversubscribed at the lower spread point, according to a market source.

Commitments on the transaction are due at the end of this week.

The term loan has a $200 million accordion feature.

Starting in 2008, the loan will be subject to a 3.5 times leverage test, dropping down to 3.0 times by the end of 2008.

There also will be an EBITDA to interest coverage test of 2.5 times starting in 2008, the source said.

Bear Stearns is the lead bank on the deal that will be used to repay existing debt, fund renovation costs, purchase slot machines, furniture, fixtures and other equipment and provide initial liquidity.

Greenwood Racing is Bensalem, Pa., owner and operator of racetracks and wagering facilities.

MediMedia sets pricing

MediMedia finalized pricing on both tranches under its $250 million credit facility (Ba3/B+) at Libor plus 250 bps, the tight end of original talk of Libor plus 250 to 275 bps, according to a market source.

Tranching on the deal is comprised of a $50 million six-year revolver and a $200 million seven-year term loan B.

The deal has been received so well by the market that the syndicate recently moved up the commitment deadline to the close of business this past Tuesday from this coming Thursday.

Goldman Sachs and Credit Suisse are the lead banks on the deal, with Goldman the left lead.

Proceeds from the credit facility, along with $150 million in senior subordinated high-yield bonds, will be used to fund the buyout of MediMedia by Vestar Capital Partners and management from Cinven, The Carlyle Group and Apax Partners.

The revolver is expected to be undrawn at closing.

MediMedia is a Chatham, N.J.-based specialty health care communications, publishing and patient education company.

InfrastruX reworks deal

InfrastruX Group Inc. made some changes to its credit facility, increasing pricing on its revolver and term loan, and eliminating a $50 million delayed-draw term loan from the capital structure, according to a market source.

Both the $100 million revolver and the $330 million term loan are now priced at Libor plus 325 bps, up from original talk at launch of Libor plus 300 bps, the source said.

The cancelled delayed-draw term loan had been talked at Libor plus 300 bps with an unused fee that was the full spread of Libor plus 300 bps.

The revolver carries a 50 bps commitment fee.

Credit Suisse and UBS are joint lead arrangers on the $430 million credit facility, with Credit Suisse the left lead.

Closing on the credit facility is scheduled for Friday, with allocations expected to go out either on the closing date or on Monday, the source added.

In addition, Credit Suisse has committed to provide a $75 million revolver at a joint venture that is being created by TXU Corp. and InfrastruX Group called InfrastruX Energy Services. This revolver, which is talked at Libor plus 250 bps with a 50 bps commitment fee, is not currently being syndicated. The transaction will begin its syndication process when the joint venture formation date is set.

The joint venture, which will consist of TXU's electric transmission and distribution company, TXU Electric Delivery, and InfrastruX's legacy business assets, is expected to be fully operational by the end of the year, subject to customary conditions, including the restructuring of existing debt held by InfrastruX Group.

InfrastruX Group is a Bellevue, Wash.-based provider of end-to-end infrastructure construction services, primarily for the electric and natural gas utility end-markets.

Sterigenics cuts pricing

Sterigenics International reverse flexed pricing on its $290 million term loan B to Libor plus 250 bps from original talk at launch of Libor plus 300 bps, according to a market source.

The company's $320 million credit facility (B2/B+) also includes a $30 million revolver.

JPMorgan is the lead bank on the deal that will be used to refinance existing bank debt and fund a distribution to financial sponsors.

Sterigenics is an Oak Brook, Ill., provider of sterilization and ionization services for the health care, food safety and advanced applications industries.

Thompson Creek frees to trade

Moving to the secondary market, Thompson Creek's credit facility broke for trading on Wednesday, with its $340 million first-lien term loan (B2/B) quoted at par ¾ bid, no offers, according to a market source.

The first-lien term loan is priced at Libor plus 475 bps with soft call protection of 102 in year one and 101 in year two. During syndication, the tranche was upsized from $325 million, pricing was flexed up from original talk at launch around the Libor plus 350 to 400 bps area and the soft call premiums were added.

Thompson's $427 million credit facility also includes a $62 million second-lien term loan (Caa2/CCC+) priced at Libor plus 1,000 bps and a $25 million revolver priced at Libor plus 475 bps. During syndication, the second-lien loan was downsized from $125 million with pricing flexing up from original talk at launch around the Libor plus 650 to 700 bps area, and pricing on the revolver was increased from original talk at launch around the Libor plus 350 to 400 bps area.

The second-lien term loan carries call protection of 104 in year one, 103 in year two, 102 in year three and 101 in year four. During syndication, the call premiums were revised from non-callable for two years, then at 103 in year three, 102 in year four and 101 in year five.

Proceeds were used to fund Blue Pearl Mining Ltd.'s acquisition of Thompson Creek Metals Co., a privately owned, integrated North American molybdenum producer, for $575 million. The completion of the acquisition was announced last Thursday.

UBS acted as the lead bank on the deal.

Blue Pearl is a Toronto-based resource company developing the Davidson Deposit, a high-grade underground molybdenum deposit near Smithers, B.C.

VeriFone closes

VeriFone Holdings, Inc. completed its acquisition of Lipman Electronic Engineering, Ltd., a Rosh Haayin, Israel-based provider of electronic payment systems, and refinance VeriFone's existing bank debt, according to a company news release.

To help fund the transaction, VeriFone got a new $540 million senior secured credit facility (B1/BB-) consisting of a $40 million six-year revolver at Libor plus 150 bps and a $500 million seven-year term loan B at Libor plus 175 bps.

During syndication, pricing on the term loan B was reverse flexed from original talk at launch of Libor plus 200 bps.

JPMorgan and Lehman Brothers acted as the lead banks on the deal, with JPMorgan the left lead.

VeriFone is a San Jose, Calif., provider of electronic payment solutions and services.

Endeavour closes

Endeavour Exploration closed on its new $75 million five-year second-lien term loan on Wednesday, according to a market source.

The loan is priced at Libor plus 700 bps with call protection of 103 in year one, 102 in year two and 101 in year three.

Covenants include a maximum total debt to EBITDA requirement of 2.75 times.

Credit Suisse acted as the lead bank on the deal that is being used to help fund the acquisition of producing properties in the United Kingdom sector of the North Sea from Talisman Energy.

Endeavour is a Houston-based independent energy company.

Buffets closes

Buffets, Inc. closed on its new $640 million credit facility (Ba3/B-) consisting of a $40 million five-year revolver at Libor plus 325 bps, a $70 million seven-year synthetic letter-of-credit facility at Libor plus 300 bps with a step down to Libor plus 275 bps at less than 4x net leverage, and a $530 million seven-year term loan at Libor plus 300 bps with a step down to Libor plus 275 bps at less than 4x net leverage.

During syndication, pricing on the term loan and synthetic letter-of-credit facility was reverse flexed from original talk at launch of Libor plus 325 bps with the addition of the step down, and the term loan was upsized from $500 million when the company decided to downsize its bond deal to $300 million from $330 million.

Credit Suisse and UBS acted as joint bookrunners and lead arrangers on the deal, with Credit Suisse the left lead.

Proceeds from the facility and the bonds were used to refinance existing debt and help fund the acquisition of Ryan's Restaurant Group, Inc., which was completed on Wednesday, according to a news release.

Buffets is an Eagan, Minn., operator of buffet-style restaurants. Ryan's is a Greer, S.C., restaurant company.

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