Reynolds rolls out $1.5 billion, Visant talks term loan; LCDX finishes up 1/8 point

By Paul A. Harris

St. Louis, Sept. 8 - The LCDX bank loan index closed the Wednesday session at 96 5/16 bid, up 1/8 point on the day, a debt capital markets banker said.

Meanwhile the primary market continued to crank out news at a heavy rate.

Reynolds Group Holdings Ltd. launched a $1.5 billion credit facility and announced plans to sell $3.5 billion of bonds.

No official timing on the bank meeting was available, the source said.

Earlier in the week, however, a market source said that the bank meeting is expected to take place on Monday.

The facility features a $1 billion term loan B which is structured as an amendment to the company's existing term loan B.

The spread on the new term loan B is set at Libor plus 500 bps, with a 2% Libor floor. The spread on the existing term loan B increases to Libor plus 500 bps from Libor plus 425 bps.

In addition, Reynolds Group launched a new $500 million term loan A at Libor plus 450 bps, also with a 2% Libor floor.

Proceeds will be used to help fund the acquisition of Pactiv Corp.

The acquisition financing also includes $3.5 billion of new bonds, $2 billion of which will be secured.

Timing for the launch of the bond deal remains to be determined, according to a syndicate source.

Credit Suisse will also quarterback the bond deal.

Other funds for the acquisition will come from roughly $2 billion in equity from Reynolds and its parent company, Rank Group Ltd.

Visant sets talk

Elsewhere, Visant Holding Corp. and Visant Corp. talked their $1.25 billion term loan at a 475 bps to 500 bps spread to Libor.

The deal is being shopped at original issue discount talk of 98.

The term loan features a 1.75% Libor floor, and a soft call at 101.

Credit Suisse and Goldman Sachs are leading the $1.425 billion credit facility, which also includes a $175 million revolving credit facility.

Proceeds will be used to help fund a recapitalization which includes tender offers for Visant's 10¼% senior discount notes due 2013, its 8¾% senior notes due 2013 and its 7 5/8% senior subordinated notes due 2012.

The refinancing also includes $750 million of new notes.

Tomkins talks $1 billion deal

Tomkins plc set spread talk for its $1 billion six-year term loan B at Libor plus 475 bps, with a 1.75% Libor floor.

Price talk is 98 to 99.

The deal also includes a $300 million revolver and a $300 million term loan A.

Citigroup and Bank of America Merrill Lynch are lead arrangers and joint bookrunners. Barclays Capital, RBC Capital Markets and UBS are also joint bookrunners.

Proceeds will be used to help fund the acquisition of the company by Pinafore Acquisitions Ltd., a company jointly owned by Onex Corp. and Canada Pension Plan Investment Board, for 325p per share in cash.

GenOn sets Libor plus 450 bps talk

GenOn Energy Inc. talked its $500 million seven-year term loan B with a Libor plus 450 bps spread, and a 1.75% Libor floor.

The loan is part of a credit facility of up to $1.5 billion backing the merger of Mirant Corp. with RRI Energy, Inc..

The bank deal also includes a revolver that will up to $1 billion in size.

JP Morgan, Credit Suisse, Deutsche Bank, Morgan Stanley and Goldman Sachs & Co. are managing the facility.

The merger financing also includes up to $1.4 billion of new bonds.

Valeant launches $1.875 billion

Valeant Pharmaceuticals International Inc. launched a $1.875 billion credit facility on Wednesday.

The deal includes a $250 million revolver, a $750 million five-year term loan A, a $725 million six-year term loan B and a $150 million delayed-draw B loan.

Goldman Sachs, Morgan Stanley and Jefferies are the joint lead arrangers and joint bookrunners on the deal, with Goldman the administrative agent and the left lead.

Proceeds will be used to help fund a merger with Biovail Corp. and to refinance existing debt, including Valeant's 7 5/8% and 8 3/8% senior unsecured notes.

Alliant meeting for Thursday

Alliant Techsystems Inc. plans to launch up to $1 billion of new pro rata bank debt at a Thursday bank meeting.

The deal will be comprised of a $400 million five-year term loan A and $600 million five-year revolver, both with pricing tied to a ratings-based grid opening at Libor plus 225 bps.

Bank of America Merrill Lynch, RBS, US Bank, Wells Fargo Securities and SunTrust Robinson Humphrey are managing the deal.

Denny's $300 million for Thursday

Elsewhere, Denny's Corp. will hold a Thursday bank meeting for a new $300 million credit facility.

The deal features a $250 million term loan and a $50 million revolver.

Pricing remains to be determined.

Bank of America Merrill Lynch and Wells Fargo Securities are managing the deal.

Also, FTI Consulting Inc. launched a five-year revolving credit facility on Thursday.

Price talk remains to be determined for the deal which is being led by Bank of America Merrill Lynch.

Graham Packaging restructures

Graham Packaging Co. Inc. shifted $50 million to its bank loan from its proposed bond deal, according to a Wednesday press release.

The shift upsizes the term loan D to $350 million from $300 million, and downsizes the senior secured notes offer to $250 million from $300 million.

Citigroup and Deutsche Bank are the leads.

Proceeds will be used to help finance the acquisition of Liquid Container LP.

Wyle closes

Wyle Inc. said it completed its acquisition of CAS, Inc. from ITT Corp., a transaction financed in part by a $195 million term loan add on (B1/BB).

The new bank debt was priced at Libor plus 575 bps with a 2% Libor floor and an original issue discount of 981/2.

Barclays and JPMorgan were the lead arrangers.

Wyle is an El Segundo, Calif., provider of high-tech systems engineering, testing and information technology services. CAS is a Huntsville, Ala.-based provider of systems engineering and technical assistance services to the U.S. Department of Defense.

Wyle said the acquisition would "significantly enhance and diversify" its core business.

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