Nuance ups term loan pricing; Entegra, RailAmerica free to trade; Ford, General Motors soften

By Sara Rosenberg

New York, April 2 - Nuance Communications Inc. increased the spread on its term loan B add-on and on its existing term loan B debt and bumped the entire leverage-based pricing grid higher.

Meanwhile, in the secondary market, Entegra Power Group LLC's credit facility broke for trading, with its second-lien term loan quoted in the low par's, and RailAmerica Inc. broke as well, with its term loan also quoted in the low par context.

In other trading news, Ford Motor Co. and General Motors Corp. both saw their term loans come in a little in trading on market technicals.

Nuance Communications flexed pricing higher on its term loan B add-on as well as on its existing term loan B debt, and revised the pricing grid that the debt carries, according to a market source.

Under the changes, the $90 million term loan B add-on (B1/B+) is now priced at Libor plus 200 basis points, up from original talk at launch of Libor plus 175 bps, the source said.

In addition, the company will now increase pricing on its existing term loan B debt to Libor plus 200 bps from current pricing of Libor plus 150 bps, as opposed to just increasing it to Libor plus 175 bps.

Furthermore, with the flex up, the company moved all levels on its term loan pricing grid higher by 25 bps, the source remarked.

Under the revised grid, if the consolidated leverage ratio is greater than 3.75 times, then pricing will be Libor plus 225 bps. If the consolidated leverage ratio is greater than 3.00 times but less than 3.75 times, then pricing will be Libor plus 200 bps. If the consolidated leverage ratio is greater than 2.50 times but less than 3.00 times, then pricing will be Libor plus 175 bps. And, if the consolidated leverage ratio is less than 2.50 times and the company has a Ba3 corporate rating, then pricing will be Libor plus 150 bps.

Proceeds from the add-on will be used to fund an acquisition.

In connection with this transaction, the company is looking to revise its existing term loan B to a covenant-light deal, with the same applying to the add-on.

Citigroup and UBS are the lead banks on the deal.

Nuance is a Burlington, Mass.-based provider of speech and imaging services for businesses and consumers.

Entegra trades atop par

Over in the secondary, Entegra Power Group's credit facility broke for trading, with the $450 million seven-year second-lien term loan (B3/B+) quoted at par 1/8 bid, par 3/8 offered, according to a market source.

The second-lien term loan is priced at Libor plus 250 bps. During syndication, pricing on the loan was reverse flexed from original talk of Libor plus 275 bps.

Entegra's credit facility also includes a $30 million seven-year second-lien synthetic revolver (B3/B+) priced at Libor plus 250 bps. This tranche was also reverse flexed during syndication from original talk at launch of Libor plus 275 bps.

The company is also getting an $850 million 81/2-year third-lien mezzanine tranche that is priced at Libor plus 600 bps PIK. During syndication, pricing on this loan was reverse flexed from Libor plus 700 bps PIK.

Lehman and Credit Suisse are joint bookrunners on the deal, which will be used to repay existing debt.

Entegra is a Tampa, Fla., owner and operator of power plants.

RailAmerica breaks

RailAmerica's credit facility also freed up for trading on Monday, with the $625 million term loan B quoted at par bid, par 3/8 offered, according to a trader.

The term loan B is priced at Libor plus 225 bps.

RailAmerica's $650 million 18-month senior secured credit facility also includes a $25 million revolver that is priced at Libor plus 225 bps as well.

There is a co-borrower structure, so $20 million of the revolver and $587 million of the term loan B will be at a U.S. borrower and $5 million of the revolver and $38 million of the term loan B will be at a Canadian borrower.

Citigroup and Morgan Stanley are the lead banks on the deal.

Proceeds are being used to help back Fortress Investment Group LLC's already completed leveraged buyout of the company.

RailAmerica is a Boca Raton, Fla., short-line and regional rail service provider.

Ford, GM trade lower

Also in trading, Ford and General Motors' term loans both came in by about an eighth of a point during Monday's quiet trading session, with traders attributing the descent to market technicals.

Ford, a Dearborn, Mich.-based automaker, saw its term loan close the day at par bid, par ¼ offered, traders said.

General Motors, a Detroit-based automaker, saw its term loan end the session at par ¼ bid, par ¾ offered, traders added.

Advanced Medical closes

Advanced Medical Optics Inc. completed its acquisition of IntraLase Corp. for about $808 million in cash, according to a company news release.

To help fund the transaction, Advanced Medical Optics got a new $750 million senior secured credit facility (Ba1/BB) consisting of a $300 million six-year revolver priced at Libor plus 175 bps and a $450 million seven-year term loan priced at Libor plus 175 bps with a step down to Libor plus 150 bps based on leverage.

During syndication, the term loan was upsized from $400 million, pricing was reverse flexed from original talk at launch of Libor plus 200 bps, and the step down was added.

UBS, Bank of America and Goldman Sachs acted as the lead banks on the deal, with UBS the left lead.

Advanced Medical is a Santa Ana, Calif., developer, manufacturer and marketer of medical devices for the eyes. IntraLase is an Irvine, Calif., designer, developer and manufacturer of ultra-fast laser products for vision correction.

International Aluminum closes

Genstar Capital, LLC completed its acquisition of International Aluminum Corp. for $53.00 per share in cash in a transaction with a total implied equity value of about $228 million, according to a news release.

To help fund the buyout, International Aluminum got a new $145 million credit facility consisting of a $20 million six-year revolver and a $125 million six-year term loan, with both tranches priced at Libor plus 275 bps.

CIBC and Jefferies acted as the lead banks on the deal, with CIBC the left lead.

International Aluminum is a Monterey Park, Calif., manufacturer of diversified lines of aluminum and vinyl products.

Coleman closes

Coleman Cable Inc. completed its acquisition of Copperfield, LLC from Spell Capital Partners for about $214 million on Monday, according to an 8-K report filed with the Securities and Exchange Commission.

To help fund the transaction, Coleman got a $200 million amended and restated revolving credit facility, which was also used to refinance the company's existing revolver.

Wachovia acted as the lead bank on the deal.

Coleman is a Waukegan, Ill., manufacturer and innovator of electrical and electronic wire and cable products.

Dean Foods closes

Dean Foods Co. closed on its new $4.8 billion senior secured credit facility (Ba3/BB), according to a company news release.

The facility consists of a $1.8 billion seven-year term loan B, a $1.5 billion five-year revolver and a $1.5 billion five-year term loan A, with all three tranches priced at Libor plus 150 bps.

During syndication, pricing on the term loan B was lowered from original talk at launch of Libor plus 175 bps.

JPMorgan, Bank of America and Wachovia acted as the lead banks on the deal.

Proceeds were used for a recapitalization that will include a $1.94 billion one-time special cash dividend to shareholders and the refinancing of existing senior secured bank debt.

The company also replaced its existing receivables facility with a new secured $600 million three-year facility.

Dean Foods is a Dallas-based food and beverage company.

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