Chrysler strong with positive sales; Fogo de Chao reworks deal; Coeur d'Alene shelves loan

By Sara Rosenberg

New York, July 3 - Chrysler Group LLC's term loan B was seen by some as a touch better in trading during Tuesday's session as the company released monthly sales numbers that showed a year-over-year improvement.

Meanwhile, over in the primary, Fogo de Chao Churrascaria (Holdings) LLC made a number of revisions to its credit facility, including lifting the size of the first-lien term loan and increasing pricing and discount on all of its institutional debt.

In addition, Coeur d'Alene Mines Corp. withdrew its revolver from market in connection with the cancellation of a proposed bond offering, and CDC Software emerged with new deal plans.

Chrysler firm in trading

Chrysler's term loan B was quoted higher by some traders and unchanged by others following the announcement of favorable June sales numbers.

The term loan B was quoted by some at par 7/8 bid, 101 3/8 offered, up a quarter of a point on the day, while others had it at par ¾ bid, 101¼ offered, flat from prior levels.

For the month of June, Chrysler reported U.S. sales of 144,811 units, a 20% increase from sales of 120,394 units in June 2011.

June was the company's 27-consecutive month of year-over-year sales gains and were the best results since June 2007, a news release said.

The total sales results included car sales of 44,988, up 42% from 31,659 last year, and truck sales of 99,823, up 12% from 88,735 in June 2011.

Chrysler is an Auburn Hills, Mich.-based automotive company.

Fogo de Chao updates terms

Switching to the new deal front, Fogo de Chao Churrascaria modified the size, pricing and original issue discounts on its loan, asked for comments on the agreement by July 10 and is targeting allocating on July 11, according to a market source.

Under the revisions, the seven-year first-lien term loan (B1/B+) is sized at $182.5 million, up from $180 million, and pricing is Libor plus 625 basis points with a 1.25% Libor floor and an original issue discount of 97, versus initial talk of Libor plus 575 bps with a 1.25% floor and a discount of 98, the source said. There is still 101 soft call protection for one year.

Also, the $70 million 71/2-year second-lien term loan (Caa1/B-), size unchanged, was flexed to Libor plus 950 bps with a 1.5% floor and a discount of 97 from talk of Libor plus 900 bps with a 1.5% floor and a discount of 96, the source continued. The hard call protection of 103 in year one, 102 in year two and 101 in year three was left intact.

Fogo de Chao lead banks

J.P. Morgan Securities LLC and Jefferies Finance LLC are the leads on Fogo de Chao's now $277.5 million credit facility, which also includes a $25 million five-year revolver (B1/B+).

Proceeds will be used to help fund the buyout of the company by Thomas H. Lee Partners LP from GP Investments Ltd. The upsizing to the first-lien term loan will cover the increased original issue discount prices, the source added.

Closing on the transaciton is expected in the third quarter, subject to regulatory approvals and other customary conditions.

Fogo de Chao is a Dallas-based steakhouse chain in the United States and Brazil.

Coeur d'Alene pulls deal

In more primary news, Coeur d'Alene Mines terminated plans for a $100 million four-year secured revolver since its concurrent $350 million senior notes offering was withdrawn, a source said.

"Weak overall conditions in the debt markets led us to conclude that the proposed offering of senior notes would not be in the best interest of shareholders under the terms currently available," remarked Mitchell J. Krebs, president and chief executive officer, in a news release.

"We had hoped to opportunistically access the debt markets to augment our already strong balance sheet, but we will only do so in a disciplined manner," Krebs added.

Proceeds from the notes would have been used by the Coeur d'Alene, Idaho-based silver and gold producer to fund internal and external growth initiatives and for general corporate purposes.

Wells Fargo Securities LLC and Barclays Capital Inc. were the joint lead arrangers on the revolver, and were the bookrunners on the notes as well.

CDC readies loan

CDC Software joined next week's calendar, setting a bank meeting for July 10 to launch a proposed $260 million credit facility that is being led by BMO Capital Markets Corp. and Golub Capital, according to sources.

The facility consists of a $10 million revolver, a $100 million term loan A and a $150 million term loan B, sources remarked.

Proceeds will be used to help fund the purchase of Consona Corp., an Indianapolis-based provider of customer relationship management and enterprise resource planning software and services.

Vista Equity Partners, CDC's current sponsor, is buying the company and will then merge it with CDC, an Atlanta-based enterprise software provider of on-premise and cloud technologies.

LifePoint sets deadline

In other happenings, LifePoint Hospitals is looking for commitments towards its $800 million credit facility by July 16, a market source told Prospect News.

As was previously reported, the deal, which launched with a bank meeting on Monday, consists of a $350 million revolver and a $450 million term loan A that are both talked at Libor plus 175 bps.

Citigroup Global Markets Inc., Barclays Capital Inc. and Bank of America Merrill Lynch are the lead banks on the facility.

Proceeds will be used to refinance existing debt.

LifePoint Hospitals is a Brentwood, Tenn.-based hospital company.

eResearch closes

The buyout of eResearchTechnology Inc. by Genstar Capital LLC for $8 per share in cash has been completed, according to an S-8 POS filed with the Securities and Exchange Commission on Tuesday.

For the transaction, the company got a new $270 million credit facility (B+) that consists of a $50 million five-year revolver and a $220 million six-year term loan.

Pricing on the term loan is Libor plus 650 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 96. There is 101 soft call protection for one year.

During syndication, the spread flexed from Libor plus 600 bps and the discount widened from 97.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC led the deal.

eResearchTechnology is a Philadelphia-based technology-driven provider of health outcomes research services and customizable medical devices.

Ultra Clean wraps

Ultra Clean Holdings Inc. closed on its new senior secured credit facility that was used to help fund its acquisition of American Integration Technologies LLC, to refinance existing debt, to provide ongoing working capital and for other general corporate purposes, according to an 8-K filed with the Securities and Exchange Commission.

The $80 million four-year deal is comprised of a $40 million revolver and a $40 million term loan.

Silicon Valley Bank and U.S. Bank are the lenders on the facility.

Ultra Clean is a Hayward, Calif.-based developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, medical, energy and research industries. American Integration is a Chandler, Ariz.-based supplier of critical subsystems to the semiconductor capital equipment, medical, energy, industrial and aerospace industries.

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