Burger King, Aspen Dental break; Dresser up; J.T. Baker tweaks deal; Auto Europe sets talk

By Sara Rosenberg

New York, Oct. 6 - Burger King Holdings Inc. and Aspen Dental both saw their credit facilities free up for trading during Wednesday's market hours, and both companies' term loans moved above their original issue discount prices.

Also in trading, Dresser Inc.'s bank debt was higher on news that the company is being acquired and Univision Communications Inc.'s term loan was a touch better as details on the company's amendment and extension proposal surfaced.

Meanwhile, in the primary market, J.T. Baker Holdings SA upsized its credit facility and revised pricing, Auto Europe and First American Payment Systems LP released price talk on their deals, and Goodman Global Group Inc. revealed plans for a new facility.

Burger King frees up

Burger King's credit facility hit the secondary market on Wednesday, with the U.S. piece of the $1.85 billion term loan quoted at par ¾ bid, 101 1/8 offered on the break and then moving to par 7/8 bid, 101 1/8 offered, according to a trader.

Pricing on the term loan is Libor plus 450 basis points for the U.S. piece and Euribor plus 475 bps on the euro piece, with the whole tranche having a 1.75% Libor floor and 101 soft call protection for one year. The debt was issued at an original issue discount of 99.

During syndication, the term loan was upsized from $1.75 billion, the size of the euro tranche firmed at €250 million from talk of €200 million to €250 million, pricing on the U.S. tranche was reduced from Libor plus 475 bps, the original issue discount on the entire term loan was tightened from 98½ and the soft call protection was added.

The company's $2 billion credit facility (Ba3/BB-) also includes a $150 million revolver.

Burger King being acquired

Proceeds from Burger King's credit facility will be used to help fund the buyout of the company by 3G Capital for $24.00 per share, or $4 billion, including the assumption of debt, and to refinance existing debt.

Other funding is coming from $800 million of bonds, which were downsized from $900 million as a result of the term loan upsizing.

JPMorgan and Barclays Capital are the lead banks on the credit facility.

Closing on the transaction is expected to take place in the fourth quarter, subject to satisfaction of the minimum tender condition of 79.1% of the company's common shares, the receipt of financing and other customary conditions.

Burger King is a Miami-based fast food hamburger chain.

Aspen Dental starts trading

Another deal to free for trading was Aspen Dental, with its $195 million six-year term loan quoted at 99¼ bid, 99¾ offered on the break and then moving up to par bid, par ½ offered, according to a market source. A second source had the term loan quoted at 99¾ bid, par ¾ offered in the afternoon.

Pricing on the term loan is Libor plus 600 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $150 million as a $45 million six-year last-out term loan was eliminated.

When the deal was divided into two term loans, the first-out term loan was talked at Libor plus 500 bps to 525 bps, and the last-out term loan was being talked at Libor plus 725 bps to 775 bps. Both tranches were being offered with a 1.75% Libor floor and an original issue discount of 98.

Aspen Dental getting revolver

In addition to the term loan, Aspen Dental's $230 million credit facility (B2/B) includes a $35 million five-year revolver that is priced at Libor plus 600 bps with a 1.75% Libor floor. There is a 75 bps undrawn fee.

UBS and Jefferies are the lead banks on the deal, with UBS the left lead.

Proceeds will be used to help fund the buyout of the company by Leonard Green & Partners LP.

Aspen Dental is a provider of denture and dental care services.

Univision inches up

Univision's term loan was a little stronger on Wednesday after terms of the company's amendment and extension were announced, and it was made clear that the at least $750 million bond offering will be used to repay term loan debt, according to traders.

The term loan was quoted by one trader at 93 bid, 93½ offered, up from 92¼ bid, 92¾ offered, by a second trader at 92 7/8 bid, 93 1/8 offered, versus 92 5/8 bid, 93 1/8 offered, and by a third trader at 92 7/8 bid, 93 1/8 offered, up from 92½ bid, 93 offered.

Under the amendment and extension that was launched with a conference call in the morning, the company is asking to push out the maturity on $2.5 billion of its term loan due September 2014 by two-and-a-half years to 2017 and the $750 million revolver due March 2014 by two years to 2016, sources said.

Pricing on the extended term loan and revolver would be Libor plus 400 bps, up from current pricing of Libor plus 225 bps.

Univision seeks permission to refinance

In addition to the extension, Univision's amendment would permit the refinancing of the credit facility with additional first-lien, second-lien or unsecured debt.

And, the amendment would allow additional future extensions of the maturity dates of the revolver and term loan.

Deutsche Bank is leading the amendment and extension and is offering lenders a 5 bps amendment fee.

The amendment and extension is conditioned on the company's note offering being completed.

Closing on the transaction is expected to take place this month.

Los Angeles-based Univision is a Spanish-language media company.

Dresser up on buyout

Dresser's term loans were better by a few points following the company's announcement that it is being acquired by GE, according to a trader.

The first-lien term loan was quoted at 99 1/8 bid, 99 7/8 offered, up from 96¼ bid, 96¾ offered, and the second-lien term loan was quoted at 99½ bid, par ½ offered, up from 97 bid, 97 3/8 offered, the trader said.

Under the agreement, GE is buying the company from Riverstone Holdings LLC and First Reserve Corp. for $3 billion.

The deal is subject to customary closing conditions and is expected to close promptly after receiving regulatory approval.

Dresser is and Addison, Texas-based energy infrastructure company.

J.T. Baker reworks loan

Moving to the primary market, J.T. Baker came out with a number of changes to its oversubscribed deal, including upsizing the revolver and the term loan, and tightening the pricing and discount on the term loan, according to sources.

The term loan is now sized at $145 million, up from $125 million, and pricing is Libor plus 450 bps with a 1.75% Libor floor and an original issue discount of 99, sources said. Initial talk on the loan had been Libor plus 500 bps with a 1.75% floor and a discount of 98.

The revolver is also priced at Libor plus 450 bps and is being sold at an original issue discount of 97, sources continued.

Credit Suisse is the lead bank on the now $180 million, up from $145 million, credit facility (Ba3/BB-) that will be used to back the already completed acquisition of Mallinckrodt Baker Inc. by New Mountain Capital LLC from Covidien for about $280 million.

J.T. Baker is a Phillipsburg, N.J.-based specialty chemical manufacturer.

Auto Europe talk comes out

Auto Europe held a bank meeting on Wednesday morning to kick off syndication on its proposed credit facility, and in connection with the launch, price talk on the first-lien debt was announced, according to a market source.

The $15 million revolver and $150 million first-lien term loan are both being talked at Libor plus 500 bps to 550 bps with a 1.75% Libor floor, the source said, adding that the original issue discount on the first-lien term loan is still to be determined.

The company's $235 million credit facility also includes a $70 million second-lien term loan, but price talk on this tranche has not yet been released.

Oppenheimer & Co. and KeyBanc Capital Markets are the lead banks on the deal and are asking for commitments in two weeks.

Auto Europe, a Portland, Maine-based distributor of car rental services for Europe-bound leisure travelers, will use the proceeds to refinance existing debt and fund a dividend payment.

First American releases guidance

Also launching with a bank meeting was First American Payment Systems, at which time price talk of Libor plus 475 bps with a 1.75% Libor floor and an original issue discount of 98½ was revealed on the $225 million term loan, according to a market source.

The company's $255 million credit facility (B+) also includes a $30 million revolver.

JPMorgan is the lead bank on the deal that will be used to fund a dividend payment and refinance existing debt.

First American Payment is a Fort Worth, Texas-based provider of payment processing services for credit card, debit card and check transactions.

Goodman Global readies launch

Goodman Global has set a conference call for Thursday to launch its proposed $2.025 billion secured credit facility that is being led by JPMorgan, according to a market source.

The facility consists of a $250 million revolver (Ba3), a $1.4 billion first-lien term loan (Ba3) and a $375 million second-lien term loan (B3), the source said.

Proceeds will be used to repay substantially all of the company's outstanding debt, to fund a distribution to equityholders and for other general corporate purposes.

Goodman is a Houston-based manufacturer of heating, ventilation and air conditioning products for residential and light commercial use.

CraftWorks floats talk

CraftWorks released price talk of Libor plus 525 bps with a 1.75% Libor floor and an original issue discount of 98½ on its $150 million credit facility, according to a market source.

The deal consists of a $125 million term loan and a $25 million revolver, the source said.

Wells Fargo and GE Capital are the lead banks on the deal that launched with a bank meeting on Tuesday.

Proceeds will be used to help fund Centerbridge Partners' acquisition of the restaurant brands Rock Bottom Brew Pubs and Gordon Biersch Brewery.

Nalco closes

In other news, Nalco Co. closed on its $750 million of new term loans (BB+) consisting of a $650 million seven-year term loan B-1 and a $100 million term loan C-1 due May 2016, according to a news release.

Pricing on the term loan B-1 is Libor plus 300 bps with a step-down to Libor plus 275 bps when corporate ratings are Ba1/BB+. There is a 1.5% Libor floor and 101 soft call protection for one year, and it was sold at an original issue discount of 991/2.

During syndication, pricing on the term loan B-1 was reduced from Libor plus 325 bps and the step-down was added.

Pricing on the term loan C-1 is Libor plus 175 bps, and it was sold at a discount of 951/2.

Deutsche Bank acted as the lead bank on the deal for the Naperville, Ill.-based manufacturer and seller of specialized service chemical programs that was used to refinance an existing $750 million term loan. Additionally, the company repaid its roughly $100 million term loan that was set to mature in November.

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