Performance Transportation, Landry's set price talk at launch; Panolam ups term loan size

By Sara Rosenberg

New York, Dec. 6 - Price talk surfaced on Performance Transportation Services Inc.'s $175 million credit facility as it launched via a well attended bank meeting on Monday, and although no firm commitments have come in as of yet, indications of interest from investors has been positive. Also surfacing on Monday was price talk on Landry's Restaurants Inc.'s term loan. Lastly, Panolam Industries International Inc. made a small increase to its first-term loan and firmed up pricing.

Performance Transportation Services' $15 million five-year revolver (B2/B), $45 million five-year synthetic letter-of-credit facility (B2/B), and $80 million seven-year term loan B (B2/B) were all launched with opening pricing of Libor plus 325 basis points, according to a market source.

The $35 million 71/2-year second-lien term loan (B3/CCC+) was launched with opening pricing of Libor plus 700 basis points.

Both the first- and second-lien term loans are being offered to investors at par.

"The bank meeting was well attended. Lots of guys on the phone. It's a good story. Good sponsorship (that includes Onex Corp.)," the market source said. "[There has been] indications of interest on both the first and second lien."

Credit Suisse First Boston is the sole lead arranger on the deal that will be used to refinance existing debt.

Performance Transportation Services is a Wayne, Mich., provider of automotive transportation and logistics services for light vehicle original equipment manufacturers.

Landry's talk revealed

Landry's $150 million term loan launched with opening pricing of Libor plus 200 basis points on Monday, according to a market source. Wachovia Capital Markets LLC, Banc of America Securities LLC and Deutsche Bank Securities Inc. are the lead banks on the deal.

The $400 million credit facility (Ba2) also contains a $250 million revolver.

Proceeds, along with proceeds from a proposed $450 million senior notes offering, will be used to refinance substantially all outstanding debt, pay related transaction fees and expenses, and for general corporate purposes, which may include acquisitions, investments and repurchases of its common stock, according to a company news release.

Landry's is a Houston-based owner and operator of full-service, casual dining restaurants.

Panolam upsizes

Panolam increased the size of its first-lien term loan (B1/B+) to $134 million from $130 million and in return, increased the amount of the dividend being paid to shareholders with a portion of the proceeds from the in-market deal, according to a market source.

Furthermore, pricing on the first-lien term loan firmed up at Libor plus 300 basis points from previous talk of Libor plus 300 to 325 basis points and pricing on the $75 million second-lien term loan (B3/B-) firmed up at Libor plus 725 basis points from price talk of Libor plus 700 to 725 basis points, the source added.

The $229 million facility also contains a $20 million revolver (B1/B+).

Deutsche Bank is the lead bank on the deal that will also be used to refinance existing debt.

Panolam is a Shelton, Conn., provider of decorative surfaces for commercial and residential interiors, store and store fixtures, and furniture.

Vertafore nearing oversubscription

Syndication of Vertafore Inc.'s (formerly AMS Services Inc.) in-market $220 million credit facility is looking good as commitments continue to head into the books ahead of next week's deadline creating an anticipation that the deal "should be oversubscribed very shortly," according to a market source.

The facility, which launched on Nov. 30, consists of a $20 million five-year revolver talked at Libor plus 300 basis points, a $120 million six-year first-lien term loan talked at Libor plus 300 basis points, and an $80 million seven-year second-lien term loan talked at Libor plus 650 basis points.

Both the first- and the second-lien term loan are being offered at par.

Credit Suisse First Boston is the sole lead bank on the deal.

Proceeds will be used to help fund the purchase of Vertafore by Hellman & Friedman LLC and JMI Equity from MMC Capital Inc. and other minority investors.

The transaction is expected to close before year-end.

Vertafore is a Windsor, Conn., enterprise software and information services provider to the property and casualty insurance industry.

ON Semiconductor nets orders

ON Semiconductor Corp.'s in-market $645 million seven-year term loan G is also going well, as early commitments have already been placed by investors since the deal's Friday afternoon launch, a market source said, although just how much of the deal is spoken for is unavailable at this time.

The term loan is priced with an interest rate of Libor plus 275 basis points and is being offered at par.

Credit Suisse First Boston and JPMorgan are joint lead arrangers on the deal.

Proceeds will be used along with cash on hand to help fund a tender offer for the company's 12% senior secured notes due in 2008 and 2010 and to refinance debt. The company has about $195 million of 2008 notes outstanding and about $130 million of 2010 notes outstanding. The tender offer expires on Dec. 29.

ON Semiconductor is a Phoenix-based designer, manufacturer and marketer of power and data management semiconductors and standard semiconductor components.

Cosmetic Essence closes

Cosmetic Essence Inc. closed on its new $151 million credit facility consisting of a $97.5 million six-year first-lien term loan with an interest rate of Libor plus 275 basis points, a $28.5 million seven-year second-lien term loan with an interest rate of Libor plus 650 basis points, and a $25 million six-year revolver with an interest rate of Libor plus 275 basis points.

During syndication the first-lien term loan was upsized from $90 million while the second-lien term loan was downsized from $36 million, pricing on the first-lien term loan and the revolver was reduced from Libor plus 325 basis points, and pricing on the second-lien term loan was reduced from Libor plus 700 basis points.

BNP Paribas was the lead bank on the deal that was used to fund Onex Partners LP's acquisition of Cosmetic Essence from Brockway Moran & Partners Inc. in a transaction valued at about $300 million.

Cosmetic Essence is a Holmdel, N.J., contract manufacturer for the personal care products industry.

UPC Distribution closes

UPC Distribution Holding BV, a subsidiary of UnitedGlobalCom Inc. (UGC) that holds and operates broadband network business in 11 European countries, closed on its new seven-year term loan F (B1/B) consisting of a $525 million tranche and a €140 million tranche.

TD Securities Inc. and BNP Paribas were the lead arrangers and bookrunners on the deal, with TD listed on the left.

Interest margins step down after an initial nine-month period to 3.10% on the dollar-denominated tranche and 3.25% on the euro tranche, according to a UGC news release. The dollar-denominated tranche has been swapped into euros through a seven year cross-currency swap.

Proceeds are being used to prepay all outstanding amounts under the company's revolver A, prepay approximately €102 million of a portion of the term loan B that matures in June 2006, and prepay €178 million of facility C debt.

"This partial refinancing of our European debt facilities demonstrates our success in broadening investor appetite for UGC debt securities. We are particularly pleased to be able to improve the terms of Facility F at advantageous swapped equivalent pricing and at the same time increase the overall size of this financing due to over subscription," said Mike Fries, president and chief executive officer of UGC, in the release.

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