SRAM breaks; Gibson Energy, Il Fornaio revise deals; AWAS Aviation finalizes spread

By Sara Rosenberg

New York, June 3 - SRAM International Corp.'s credit facility freed up for trading during Friday's market hours, with the first- and second-lien term loans quoted above their original issue discount prices.

Moving to the primary, Gibson Energy ULC revealed changes to its deal, downsizing the term loan while lifting pricing and upsizing the revolver, and Il Fornaio Corp. reduced pricing, tightened the original issue discount and added call protection to its term loan.

Also, AWAS Aviation Capital Ltd. firmed pricing on its term loan at the low end of guidance, and FTD's credit facility is oversubscribed within initial talk, but pricing has yet to firm up since the deal is waiting on private ratings.

Furthermore, timing and structure came out on Husky International Ltd.'s proposed buyout financing facility, and NANA Development Corp. surfaced with new deal plans.

SRAM starts trading

SRAM's credit facility made its way into the secondary market on Friday morning, with the $605 million seven-year first-lien term loan (Ba2/B+) quoted at 99¾ bid, par ¼ offered on the open and then it moved to 99¾ bid, par 1/8 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 350 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the first-lien term loan was upsized from $575 million and pricing was reduced from Libor plus 400 bps.

SRAM second-lien levels

Meanwhile, SRAM's $185 million 71/2-year second-lien term loan (B3/B-) was quoted at par bid, 101 offered on the break and then it moved to par ½ bid, 101¼ offered, the trader said.

Pricing on the second-lien term loan is Libor plus 700 bps with a 1.5% floor and was sold at a discount of 99. Call protection is 103 for 18 months, with an equity carve-out, then 102, 101.

The second-lien term loan had been downsized from $215 million when the first-lien term loan was upsized, pricing was cut from Libor plus 750 bps and the discount tightened from 98.

J.P. Morgan Securities LLC is the lead banks on the $840 million credit facility, which also includes a $50 million five-year revolver (Ba2/B+).

SRAM repaying debt, units

SRAM will use the proceeds from its credit facility to repay all of its existing bank debt and to acquire all 3.64 million class A units of SRAM Holdings LLC held by Trilantic.

The Chicago-based bicycle components company then plans on doing an initial public offering of class A common stock and using proceeds to repay some debt under the new credit facility.

The existing credit facility due in 2015 was obtained as a $25 million revolver and a $290 million term loan in April 2010 via lead bank GE Capital Markets. As of Dec. 31, there was $235 million of outstanding borrowings left under the term loan.

Pricing on the existing term loan is Libor plus 350 bps with a step-down to Libor plus 325 bps when corporate ratings are B1/B+. There is a 1.5% Libor floor, and it was sold at s discount of 99 3/8. The revolver pricing at close was Libor plus 350 bps with a 1.5% Libor floor and a 50 bps unused fee.

Gibson reworks deal

Over in the primary, Gibson Energy ULC modified sizes of its term loan and revolver and sweetened the pricing and call protection on the institutional debt, according to a market source.

The seven-year term loan is now sized at $625 million, down from $700 million, pricing flexed to Libor plus 450 bps from talk of Libor plus 350 bps to 375 bps and the 101 soft call protection was extended to two years from one year, the source said.

The term loan's 1.25% Libor floor and original issue discount of 99 were left unchanged.

In addition, the company upsized its upsized its five-year revolver to $275 million from $250 million, the source continued.

Rumors of a pricing flex on the term loan had been circulating earlier in the week, with some expecting that the rate was going to move to Libor plus 400 bps.

Gibson repaying debt

Proceeds from Gibson's credit facility, along with an initial public offering, will be used to refinance $560 million of 11¾% first-lien senior secured notes due 2014 and $200 million of 10% senior unsecured notes due 2018, to repay borrowings under an asset-based credit facility and for general corporate purposes.

The tender offers for the notes will expire on June 13.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and UBS Securities LLC are the lead banks on the now $900 million senior secured credit facility (B1), down from $950 million initially.

Gibson is a Calgary, Alberta-based midstream energy company, a crude oil transporter and a retail propane distributor.

Il Fornaio lowers pricing

Also making changes was Il Fornaio, as it cut pricing on its $130 million six-year term loan to Libor plus 525 bps from Libor plus 550 bps, moved the discount price to 99½ from 99 and added 101 soft call protection for one year, while leaving the 1.25% Libor floor unchanged, according to a market source.

The company's $145 million facility (B1/BB-) also includes a $15 million five-year revolver.

With the revisions, the commitment deadline was accelerated to Monday from Wednesday, the source added.

Credit Suisse Securities (USA) LLC is the lead bank on the deal that will be used, along with $50 million of mezzanine debt from DLJ Investment Partners, to fund the buyout of the company by Roark Capital Group from Bruckmann, Rosser, Sherrill & Co.

Il Fornaio, an operator and franchiser of restaurants and one production bakery, will have leverage of 3.5 times through the term loan.

AWAS sets pricing

AWAS Aviation firmed the spread on its roughly $500 million term loan B at Libor plus 400 bps, the tight end of the Libor plus 400 bps to 425 bps talk, while leaving the 1.25% Libor floor, par offer price and call protection of 102 in year one and 101 in year two intact, according to a market source.

Allocations are expected to go out during the week of June 6.

Goldman Sachs & Co. and Morgan Stanley & Co. Inc. are the lead banks on the deal, which, the source said, is "well oversubscribed."

Proceeds will be used to reprice the Dublin-based aircraft leasing company's existing B loan from Libor plus 575 bps with a 2% Libor floor. The debt was sold at an original issue discount of 97 when it was obtained in 2010 and existing lenders are being paid out at 102 due to call protection.

FTD well met

Another deal to see a positive reception is FTD's $315 million credit facility, which is oversubscribed. Pricing, however, is not expected to firm up until next week as the company is still waiting on a private rating from Moody's Investors Service, according to a market source.

A private rating from Standard & Poor's has already been received, the source said.

The deal consists of a $50 million revolver and a $265 million term loan talked at Libor plus 325 bps to 350 bps with a 1.25% Libor floor and an original issue discount of 991/2.

Wells Fargo Securities LLC is the lead bank on the deal that will be used to refinance existing debt.

FTD is a Downers Grove, Ill.-based floral company.

Endo shuts books

Commitments were due on Friday on Endo Pharmaceuticals' $900 million seven-year term loan B, which was described by sources as being roughly two times oversubscribed before the deadline hit.

The B loan is talked at Libor plus 325 bps with a 1% Libor floor and a par offer price and includes a step-down to Libor plus 300 bps at 3.0 times net leverage and 101 soft call protection for six months.

One source heard that there are no changes expected on the deal, and allocations could go out sometime next week.

The company's $2.9 billion senior secured credit facility also provides for a $500 million five-year revolver and a $1.5 billion five-year term loan A that are talked at Libor plus 250 bps, with the revolver having a 50 bps unused fee. The spread can range from Libor plus 175 bps to 250 bps based on leverage.

Endo lead banks

Morgan Stanley & Co. Inc. and Bank of America Merrill Lynch are the lead banks on Endo's credit facility that will be used to help fund the acquisition of American Medical Systems for $30 per share, or $2.9 billion in cash, which includes the assumption and repayment of $312 million of debt.

Other funds for the transaction will come from $700 million of senior notes.

Closing on the acquisition is expected late in the third quarter, subject to customary conditions, regulatory approval and American Medical stockholder approval.

Endo is a Chadds Ford, Pa.-based specialty health care company focused on branded products and specialty generics. American Medical is a Minnetonka, Minn.-based provider of devices and therapies for male and female pelvic health.

Husky details emerge

In more primary news, Husky has scheduled a bank meeting for Wednesday morning to launch its proposed credit facility, which was revealed to be sized at $1.03 billion, according to a market source.

The facility consists of a $110 million revolver and a $920 million covenant-light term loan B, the source said.

Goldman Sachs & Co., Morgan Stanley & Co. Inc., RBC Capital Markets LLC and TD Securities (USA) LLC are the lead banks on the deal that will be used to help fund the acquisition of the company by Berkshire Partners LLC and Omers Private Equity Inc. from Onex Corp. for $2.1 billion.

Closing is expected early in the third quarter, subject to customary conditions.

Husky is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry.

NANA readies deal

NANA Development will hold a bank meeting on Tuesday to launch a proposed $435 million six-year term loan B that is being led by Goldman Sachs & Co., according to sources.

The company is also getting an $85 million five-year ABL revolving credit facility, which is being held by Bank of America Merrill Lynch, sources said.

Proceeds will be used to refinance an existing credit facility and fund the acquisition of Grand Isle Shipyard Inc., a Galliano, La.-based service provider for the oil and gas industry, with closing expected before the end of this month.

NANA Development is an Anchorage, Alaska-based provider of engineering and construction, resource development, facilities management and logistics, real estate and hotel development, and information technology and telecommunications services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.