DineEquity, Nalco, GenTek, others set price talk; Graham makes draw for acquisition close

By Paul A. Harris

St. Louis, Sept. 23 - DineEquity Inc. gave spread talk for its $900 million seven-year term loan B at Libor plus 475 basis points with a 1.75% Libor floor.

The deal is talked at a reoffer price of 981/2.

Meanwhile, Nalco Co. also set price talk for $750 million of term loans. Spread talk on the $100 million term loan C-1 is Libor plus 175 bps. Price talk is 951/2.

In addition, spread talk on the $650 million term loan B-1 is Libor plus 325 bps with a 1.5% Libor floor. Price talk is 991/2.

GenTek Inc. provided price talk for its $425 million five-year term loan with a spread of Libor plus 500 bps to 525 bps and a 1.75% Libor floor.

The reoffer price talk is 98 to 981/2.

Graham Packaging Company Inc. used some proceeds under its new $913.1 million six-year term loan D to finance the closing of its acquisition of Liquid Container, LP and subsidiaries.

Leveraged loans meanwhile traded flat on Thursday, a trader said.

The LCDX 14 bank loan index dropped 7/16 of a point, closing at 96 5/16 bid, 96 9/16 offered.

However, the massive supply of new deals in the market since the Labor Day break has yet to cause recent loans to waver in the secondary market, the trader insisted.

Valeant Pharmaceuticals Libor plus 400 bps term loan B, which recently priced at 99, was 100¾ bid, 101 3/8 offered on Thursday.

Meanwhile, NBTY's $1.5 billion term loan B, which priced at 99, was 100 7/8 bid, 101 1/8 offered at Thursday's close, according to the trader.

The Visant Holding Corp. $1.25 billion Libor plus 525 basis points 6.25-year term loan, which priced at 98 on Wednesday, was 99½ bid, 100.50 offered in the secondary market on Thursday.

"Everything has held in," the trader remarked.

"We were expecting the secondary to soften up as things were winding down before Labor Day, but you've now had about $17 billion of paper launched post-Labor Day, and you still haven't seen any softness in prices in the secondary."

Meanwhile, cash continued to build in the bank loan mutual funds, which saw $319 million of inflows during the week to Wednesday, according to Lipper-AMG, sources said, adding that the most recent inflow extends year-to-date flows to $9.444 billion.

DineEquity $900 million

The Thursday session saw price talk emerge on several deals, including DineEquity's $900 million term loan B.

The credit facility (Ba2/BB-), sized at up to $975 million, also includes a $50 million to $75 million five-year revolver.

Barclays and Goldman Sachs are the lead banks.

Proceeds from the facility, along with new notes, will be used to refinance existing debt, including the company's $1.385 billion of notes.

Nalco, GenTek loans

Commitments are due on Nalco's $750 million of term loans on Sept. 29. Deutsche Bank is leading the debt refinancing deal.

GenTek's $425 million term loan features soft calls at 102 in year one and at 101 in year two.

The $455 million credit facility (B1/B) also includes a $30 million four-year revolver.

Goldman Sachs is the lead bank on the dividend recapitalization deal.

Seven-handle deals

CCGI Holding set spread talk on its $250 million six-year term loan and its $25 million revolver at Libor plus 750 to 775 basis points with a 1.75% Libor floor.

The price talk is 98.

Commitments are due on Oct. 7

Jefferies and UBS are the lead banks on the deal.

Meanwhile, Hilex Poly Co. gave spread talk for its $160 million six-year term loan at Libor plus 700 basis points, with a 2% Libor floor on Thursday.

Price talk is 98.

Deutsche Bank and GE Capital are the lead banks on the debt refinancing and dividend funding deal.

"It just shows how hot this market is," a trader remarked, adding that a couple of months ago, deals such as CCGI and Hilex Poly might not have drawn much of an audience.

However, the hedge funds, laden with cash and stricken by tenders and redemptions in the high-yield market, are pricking up their ears when talk turns to the bank deals that are coming at the big spreads, the trader said.

Graham acquisition

Graham Packaging Co. along with subsidiaries Graham Packaging GP Acquisition LLC and Graham Packaging LP Acquisition LLC wrapped the acquisition of Liquid Container for $568 million.

The term loan D (B1/B+/B+) carries pricing of Libor plus 425 bps with a 1.75% Libor floor and an original issue discount of 99¼ as well as 101 soft call.

Deutsche Bank and Citigroup were the lead banks.

The York, Pa., designer, manufacturer and seller of technology-based, customized blow-molded plastic containers also completed its offering of $250 million of senior unsecured notes.

Graham used $563 million of term D proceeds, along with cash on hand, to refinance in full its existing term loan B facility and also used some of the term D financing and notes proceeds to fund the acquisition.

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