Intertape Polymer, EPD set talk; EnergySolutions dips on new debt; Lear trades around

By Sara Rosenberg

New York, June 11 - Intertape Polymer Group Inc. came out with price talk on its credit facility as the deal was launched with a bank meeting on Monday, and EPD Inc. released guidance on its credit facility as it's gearing up for a Tuesday bank meeting.

Meanwhile, in the secondary, EnergySolutions LLC's strip of institutional bank debt headed lower as the company launched a new second-lien term loan and Lear Corp.'s term loan B saw some trading activity on market technicals.

Intertape Polymer Group announced price talk on its $460 million credit facility as the transaction was presented to lenders with a bank meeting on Monday afternoon in New York, according to a market source.

The $60 million six-year revolver (B2/B+) and the $280 million seven-year first-lien term loan B (B2/B+) were both launched with talk of Libor plus 275 basis points, and the $120 million 71/2-year second-lien term loan (Caa2/CCC+) was launched with talk of Libor plus 575 bps, the source said.

The revolver has a 50 bps commitment fee.

The second-lien term loan carries call protection of 102 in year one and 101 in year two.

The credit facility contains a maximum leverage covenant.

Citigroup and Deutsche Bank are the lead banks on the deal, with Citi the left lead.

Proceeds will be used to help fund Littlejohn & Co., LLC's acquisition of the company for $4.76 per share in cash. Including net debt outstanding, the total transaction value is about $500 million.

Other acquisition financing will come from an up to $141 million equity commitment, according to filings with the Securities and Exchange Commission.

The transaction will be implemented by way of a court-approved plan of arrangement under Canadian law and, accordingly, will be subject to the approval of two-thirds of the votes cast by the company's shareholders at a special meeting of shareholders set to take place on June 26.

In addition, the transaction will require approval by the Superior Court of Quebec in the District of Montreal.

Intertape is a Saint Laurent, Quebec, developer, manufacturer and seller of polyolefin films, paper and film pressure-sensitive tapes and complementary packaging systems.

EPD price talk

Also coming out with price talk was EPD, as the company is getting ready to kick off syndication on its $1.26 billion senior secured credit facility with a bank meeting on Tuesday at 10:30 a.m. ET, according to a market source.

The $100 million six-year multi-currency revolver (Ba3/B+), the $650 million seven-year first-lien term loan (Ba3/B+) and the $100 million 12-month delayed-draw, with seven-year final maturity, term loan (Ba3/B+) are all being talked at Libor plus 225 bps to 250 bps, the source said.

And, the $410 million eight-year second-lien term loan (Caa1/CCC+) is being talked at Libor plus 550 bps to 575 bps, with call protection of 102 in year one and 101 in year two.

Lehman Brothers, JPMorgan and Goldman Sachs are the joint lead arrangers and joint bookrunners on the deal.

Proceeds will be used to help fund the Carlyle Group's acquisition of EPD, which is the engineered products division of the Goodyear Tire & Rubber Co., in an all-cash transaction valued at $1.475 billion.

EPD is an Akron, Ohio, manufacturer of hoses, conveyor belts and power transmission belts, as well as tank tracks for military and off-road vehicles.

Biomet extends deadline

Biomet Inc. extended the deadline for commitments on its credit facility to June 22 as a result of the recent increase to the company's purchase price, according to market sources.

Late last week, Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts & Co. and TPG raised their buyout price for Biomet to $46 per share from $44 per share, or roughly $11.4 billion compared with $10.9 billion.

Under the terms of the revised agreement, the consortium will commence a tender offer on or before June 14 to acquire all of the outstanding shares of Biomet's common stock.

Completion of the tender offer is subject to the condition that at least 75% of Biomet common shares are tendered.

As launched, Biomet's $4.35 billion senior secured credit facility consists of a $3.6 billion covenant-light 71/2-year term loan B (B3/B+) talked at Libor plus 250 bps to 275 bps, a $400 million six-year covenant-light cash-based revolver (B1/B+) talked at Libor plus 250 bps to 275 bps and a $350 million six-year asset-based revolver (Ba2/BB-).

Of the total term loan B amount, $1 billion will be a euro sub-tranche.

Bank of America and Goldman Sachs are joint lead arrangers on the deal; Bank of America, Goldman, Bear Stearns, Lehman and Merrill Lynch are joint bookrunners; and Wachovia is co-manager. Bank of America is administrative agent, Goldman is syndication agent, and Bear, Lehman and Merrill Lynch are co-documentation agents.

Biomet is a Warsaw, Ind., designer and manufacturer of musculoskeletal medical products.

EnergySolutions trades down

Moving to the secondary market, EnergySolutions' strip of first-lien institutional bank debt was a touch softer on Monday after news of a new $200 million 61/2-year second-lien term loan emerged, according to a trader.

The first-lien debt ended the day at par 5/8 bid, 101 1/8 offered, down from par ¾ bid, 101¼ offered, the trader said.

On Monday morning, the company held a conference call to present lenders with the new second-lien term loan that is being talked at Libor plus 475 basis points and is being offered to investors at a discount of 991/2.

Call protection is par for months zero through nine, 102 for months 10 through 24, 101 for months 25 through 36 and par after that.

Proceeds will be used to refinance some existing first-lien debt and to fund an acquisition.

Citigroup is the lead bank on the deal.

In connection with this new financing, the company is looking to amend its first-lien credit facility to allow for the additional debt, to loosen the total leverage and interest coverage ratios and to add a first-lien leverage ratio.

EnergySolutions is a Salt Lake City-based national energy services company.

Lear active

Lear's term loan B traded around a bit on Monday, with one trader claiming that the debt was higher on the day, while a second trader labeled the paper as unchanged.

Both traders agreed that the term loan B ended the day at 99 7/8 bid, par 1/8 offered; however, the first trader had the paper going out at 99½ bid, 99¾ offered on Friday and the second trader had it going out at 99 7/8 bid, par 1/8 offered.

According to the first trader, the term loan B is trading up as some investors are continuing to look at the "basis" trade. "Mostly it's hedge fund guys looking to do this. Buy the loan, buy protection against the loan," the trader added.

As for the second trader, he said that everything was unchanged on Monday. "The market was pretty much flat. LCDX was pretty much unchanged. Equity market was unchanged."

LCDX ended the day at 100.47 bid, 100.50 offered, the trader added. On Friday, LCDX went out at 100.49 bid, 100.51 offered.

Lear is a Southfield, Mich.-based supplier of automotive seating, electronics and electrical distribution systems.

Riviera closes

Riviera Holdings Corp. closed on its new $245 million senior secured credit facility (B2/B+) consisting of a $20 million five-year revolver and a $225 million seven-year term loan at Libor plus 200 bps, according to a news release.

During syndication, pricing on the term loan was reverse flexed from original talk of Libor plus 225 bps.

Wachovia acted as the lead bank on the deal.

Proceeds are being used to refinance the company's $215 million of 11% senior secured notes and to refinance its existing revolver.

Riviera is a Las Vegas-based owner and operator of hotels and casinos.

American Tower closes

American Tower Corp. closed on its new $1.25 billion five-year senior unsecured revolving credit facility (Ba1/BB+/BB+), according to a news release.

The revolver is priced at Libor plus 75 bps.

JPMorgan and TD Securities acted as the lead banks on the deal, with JPMorgan the left lead and TD the administrative agent.

Proceeds are being used to repay approximately $1 billion outstanding under the American Towers Inc. opco credit facilities and for general corporate purposes.

American Tower is a Boston-based operator and developer of broadcast and wireless communications sites.

Kronos closes

Hellman & Friedman and JMI Equity completed their acquisition of Kronos Inc. for $55 in cash per share of common stock, according to a news release.

To help fund the transaction, Kronos got a new $1.115 billion senior secured credit facility consisting of a $60 million six-year revolver (Ba3/B) at Libor plus 225 bps, with a 50 bps commitment fee, a $700 million seven-year first-lien term loan (Ba3/B) at Libor plus 225 bps and a $355 million eight-year second-lien term loan (Caa1/CCC+) at Libor plus 575 bps.

During syndication, the first-lien term loan was upsized from $665 million, the second-lien term loan was downsized from $390 million and pricing on the second-lien term loan increased from initial talk of Libor plus 550 bps.

Wachovia, Credit Suisse and JPMorgan acted as the lead banks on the deal.

Kronos is a Chelmsford, Mass., provider of human capital management services.

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