Airvana breaks; NBTY, Advance Pierre firm; Aspen Dental readies deal; High Sierra pulled

By Sara Rosenberg

New York, Aug. 24 - Airvana Inc.'s term loan freed up for trading during Tuesday's market hours, with levels seen above the tranche's original issue discount price, and Burger King Holdings Inc.'s term loan B was steady after the release of earnings.

Over in the primary market, NBTY Inc. and Advance Pierre Foods zeroed in on timing for the launch of their proposed credit facilities as bank meetings for the two deals have been scheduled for the week of Labor Day, and a deal for Aspen Dental surfaced for the September calendar.

Also, High Sierra Energy LP's proposed term loan has been shelved for now as the company has decided not to refinance its existing debt, and Pet Supplies Plus' credit facility is almost fully subscribed and the hope is that syndication will wrap shortly.

Airvana frees to trade

Airvana's $360 million term loan hit the secondary market on Tuesday, with levels quoted at 99 bid, 99¾ offered, according to a trader.

Pricing on the term loan is Libor plus 900 basis points with a 2% Libor floor, and it was offered at an original issue discount of 98.

During syndication, the loan was upsized from $330 million and pricing was increased from official talk at launch of Libor plus 800 bps to 850 bps.

Prior to the deal's bank meeting, rumor was that the term loan was being whispered at Libor plus 700 bps with a 2% Libor floor and an original issue discount of 97 to 98, and it was said that the size was flexible, with the ability for an increase based on demand.

The loan includes amortization and a 100% excess cash flow sweep.

Airvana lead banks

Jefferies, Societe Generale and Macquarie are the lead banks on Airvana's term loan, with Jefferies the left lead.

Proceeds will be used to refinance existing debt and to pay a dividend. This dividend was increased as a result of the term loan upsizing.

However, leverage is actually lower than previously expected - even with the upsizing - since the company's LTM EBITDA increased as of July. Leverage will be just under 2.0 times, down modestly from the originally expected 2.0 times level.

Airvana is a Chelmsford, Mass.-based provider of mobile broadband network infrastructure products. In April, the company was acquired by 72 Mobile Holdings LLC, an entity that was formed by S.A.C. Private Capital Group LLC, GSO Capital Partners, Sankaty Advisors LLC and ZelnickMedia.

Burger King firm with numbers

Burger King's term loan B was unmoved in trading after the company announced quarterly results that weren't too different from what was seen in the prior year's comparable period, according to traders.

The term loan B was quoted by one trader at 99½ bid, par ¼ offered, and by a second trader at 99¾ bid, par ¼ offered, with both claiming that levels were unchanged on the day.

For the fiscal fourth quarter, Burger King reported net income of $49 million, or $0.36 per diluted share, compared to net income of $58.9 million, or $0.43 per diluted share, in the previous year.

Total revenues for the quarter were $623 million, down 1% from $629.9 million in the fiscal fourth quarter of 2009.

And, adjusted EBITDA for the quarter was $114.6 million, compared to $113.3 million in the prior year.

Burger King repays debt

Burger King also said on Tuesday that during the 2010 fiscal year, it repaid $67.7 million of debt and capital leases.

Net debt to EBITDA during the fiscal year was reduced to 1.5 times from 1.9 times in the 2009 fiscal year.

"Although we experienced negative worldwide comparable sales this fiscal year, our financial fundamentals are solid and our cash flow continues to be strong benefited by our highly-franchised business model," said Ben Wells, chief financial officer, in a news release.

"In fiscal 2010, we paid down $68 million in debt and capital leases, invested $150 million primarily to enhance our company restaurant portfolio and returned $34 million to shareholders through our quarterly dividend payments while increasing our cash balance by $66 million," Wells added.

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

NBTY sets retail launch

Moving to the primary, NBTY has scheduled a retail round bank meeting for the afternoon of Sept. 7 to kick off syndication on the institutional portion of its proposed $1.7 billion senior secured credit facility, according to a market source.

Timing on the deal had previously been described as roughly mid-September business.

As was already reported, the facility consists of a $200 million revolver, a $200 million term loan A and a $1.3 billion term loan B. Originally, filings with the Securities and Exchange Commission had said that there would be $1.5 billion of term loan debt, but there was no breakdown given between an A and a B loan.

Barclays, Bank of America and Credit Suisse are the lead banks on the deal, with Barclays the left lead.

NBTY pro rata marketed

NBTY's revolver and term loan A were already launched to banks on Aug. 11, and commitments are being sought by this Friday.

Since launching, a few orders have come in towards the pro rata bank debt, although specifics aren't being disclosed as of yet, the source remarked.

Banks are being offered the revolver and the term loan A with upfront fees that are based on commitment size, and price talk on the tranches is Libor plus 425 bps with a 1.75% Libor floor.

There is no official talk out on the term loan B. It is, however, expected to come wider than the pro rata debt. There have been some rumors floating around that the B loan is guided in the Libor plus 450 bps to 475 bps area with a 1.75% Libor floor and an original issue discount of 98 to 981/2, but the source said that until ratings come out, no official talk will be available.

NBTY being acquired

Proceeds from NBTY's credit facility will be used to help fund the buyout of the company by the Carlyle Group for $55 per share in cash. The transaction is valued at $3.8 billion.

Other funding for the acquisition will come from $900 million of senior unsecured notes, which are backed by a bridge loan commitment, and up to $1.6 billion in equity.

Closing on the transaction is expected to occur before the end of the year, subject to customary conditions, including approval of NBTY stockholders, which will be sought at a special meeting on Sept. 22, and regulatory approvals. It is not subject to any financing condition.

NBTY is a Ronkonkoma, N.Y.-based manufacturer and marketer of nutritional supplements.

Advance Pierre timing

Advance Pierre Foods narrowed down timing on the launch of its proposed $1.14 billion credit facility with the scheduling of a bank meeting for Sept. 8, whereas before, all that was known was that the deal would come during the week of Sept. 6, according to a market source.

The facility is comprised of a $75 million ABL revolver, an $835 million first-lien term loan and a $230 million second-lien term loan, with price talk still to be determined.

Structure on the deal just came out the other day. Initially, the only description on tranching had been that there would be roughly $1 billion of first- and second-lien term loan debt and an ABL revolver.

Credit Suisse, Barclays Capital, Morgan Stanley and BMO Capital Markets are the lead banks on the deal, with Credit Suisse the left lead.

Advance Pierre funding merger

Proceeds from Advance Pierre Foods' credit facility will be used to fund the creation of the company through the merger of Pierre Foods Inc., Advance Food Co. Inc. and Advance Brands LLC.

Following completion of the merger, Oaktree Capital Management, the current majority shareholder of Pierre Foods, will maintain a majority share of the combined company. The current shareholders of Advance Food, the Allen and McLaughlin families, will own a minority share of the combined company.

Advance Pierre Foods will be a Cincinnati-based supplier of value-added protein and handheld convenience food products to the foodservice, school, retail, club, vending and convenience store channels.

Aspen Dental post-Labor Day

Aspen Dental is expected to hold a bank meeting sometime in September after Labor Day to launch its proposed $230 million credit facility, according to market sources.

The facility consists of a $35 million revolver and a $195 million term loan, sources said.

UBS is the lead bank on the deal that will be used to help fund the buyout of the company by Leonard Green & Partners LP.

Total leverage will be around 4.0 times.

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

High Sierra cancels loan plans

High Sierra Energy's $150 million senior secured term loan (B2) is not moving forward because the company decided not to refinance its debt, according to a market source.

The deal was initially expected to launch on July 19, but that launch was delayed since the company was waiting on a rating from Standard & Poor's. In the end, the launch never ended up taking place.

Credit Suisse was the lead bank on the deal.

High Sierra is a Denver-based holding company that identifies, acquires, manages and integrates businesses and revenue generating assets in the natural resources industry.

Pet Supplies close to done

Pet Supplies Plus' $120 million credit facility "is almost filled out" at initial talk, and the lead banks are still working with a handful accounts with the belief that syndication will probably wrap next week, according to a market source.

The deal consists of a $15 million revolver, an $85 million term loan and a $20 million delayed-draw term loan, with all tranches talked at Libor plus 525 bps with a 1.75% Libor floor and an original issue discount of 98.

BNP Paribas and Societe Generale are the lead banks on the facility that will be used to help fund the buyout of the company by Irving Place Capital.

Pet Supplies Plus is a Farmington Hills, Mich.-based pet supplies store chain.

Toys 'R' Us closes

In other news, Toys 'R' Us Inc. completed its $700 million six-year secured term loan (B1/BB-/B-), according to a news release.

Pricing on the term loan is Libor plus 450 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 981/2. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $500 million upon the downsizing of the company's bond offering to $350 million from $500 million.

Bank of America, Goldman Sachs and JPMorgan acted as the lead banks on the deal that was used with the notes to repay an existing $800 million secured term loan and $181 million senior unsecured facility and for general corporate purposes.

Toys 'R' Us is a Wayne, N.J.-based toy retailer.

Ferro wrap revolver

Ferro Corp. closed on its $350 million five-year secured revolving credit facility on Tuesday that was used to replace an existing credit facility, according to an 8-K filed with the SEC.

Pricing on the revolver is Libor plus 275 bps with a 45 bps commitment fee. The spread can range from Libor plus 225 bps to 350 bps and the commitment fee can range from 35 bps to 50 bps, based on leverage.

PNC Bank acted as the lead bank on the deal.

Ferro is a Cleveland-based supplier of technology-based performance materials for manufacturers.

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