Golden Living up with tender; Buffalo Gulf Coast, Telx set talk; Garden Ridge OID emerges

By Sara Rosenberg

New York, Sept. 8 - Golden Living's term loan gained ground on Thursday as investors reacted to recent news of a tender offer for some of the debt, and Walter Energy Inc.'s term loan B continued to trend higher.

Over in the primary, Buffalo Gulf Coast Terminals and Telx Group Inc. released price talk on their new deals as both transactions were presented to lenders early in the session, and Garden Ridge came out with the original issue discount guidance on its in market B loan.

Additionally, BJ's Wholesale Club Inc. nailed down timing on the launch of its credit facility, which is coming at a smaller size than previously expected, Levi Strauss & Co. announced new deal plans, and the structure on Go Daddy Group Inc. surfaced.

Golden Living rises

Golden Living's term loan strengthened to 90¾ bid, 91¾ offered on Thursday from 89¾ bid, 90¾ offered at the close of the prior session in reaction to the company's buy back offer, according to a trader.

As was already reported, the company launched on Wednesday a tender offer for $25 million of its term loan at a price in the range of 88 to 903/4.

However, the tender offer news hit so late in the day that a lot of guys didn't have the chance to react to it until Thursday, the trader explained.

Citigroup Global Markets Inc. is the acting administrative agent on the loan.

Golden Living, a Fort Smith, Ark.-based provider of post-acute health and wellness services, is asking for responses to the tender by Monday.

Walter Energy gains continue

Walter Energy's term loan B moved to 96 7/8 bid, 97 7/8 offered from 96 5/8 bid, 97 5/8 offered, adding to the gains that were seen in the name after rumors emerged that Anglo American plc may be considering an offer to purchase the company, according to a trader.

Prior to the acquisition chatter that circulated on Wednesday, the B loan was quoted at 95 bid, 96½ offered.

Whether Thursday's improvement was related to the news or the overall positive tone in the secondary market is unclear, the trader remarked.

Some guys were seeing the loan market higher by about a quarter of a point on the day, while others were calling it anywhere from unchanged to up as much as half a point, depending on the name.

Walter Energy is a Tampa, Fla.-based producer and exporter of metallurgical coal. Anglo American is a London-based mining company.

Buffalo Gulf price talk

Switching to the primary, Buffalo Gulf Coast held a bank meeting on Thursday morning to kick off syndication on its proposed $275 million secured term loan, at which time price talk was announced, according to a market source.

The term loan is talked at Libor plus 600 basis points with a 1.5% Libor floor and an original issue discount of 98 and is non-callable for one year, then at 102 in year two and 101 in year three, the source said.

Barclays Capital Inc. is the lead bank on the deal and is asking for commitments by Sept. 16.

Proceeds will be used to help fund the acquisition of Houston Fuel Oil Terminal Co. LLC, a provider of crude and residual fuel oil storage in the Gulf of Mexico, from ArcLight Capital Partners.

Telx discloses guidance

Also holding a bank meeting in the morning was Telx Group, and it too released price talk with the event, according to a market source.

The company's $50 million five-year revolver is being talked at Libor plus 450 bps, subject to a leverage-based grid, with a 1.25% Libor floor and an original issue discount of 96 to 97, the source said.

And, the $290 million six-year term loan is being talked at Libor plus 600 bps to 625 bps with a 1.25% floor and a discount of 96 to 97, the source continued, adding that this tranche is prepayable at par.

Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC are the lead banks on the $340 million senior secured credit facility (B1/B) that will be used to help fund the buyout of the company by ABRY Partners and Berkshire Partners LLC from GI Partners.

Telx, a New York-based provider of interconnection and colocation facilities, is seeking commitments from lenders by Sept. 19.

Garden Ridge reveals OID

Garden Ridge came out with original issue discount talk of 97 on its $250 million six-year term loan B (B2/B+) on Thursday, according to a market source. The deal launched with a bank meeting on Wednesday, but at that time, the issue price had been described as to be determined.

Meanwhile, the coupon and floor talk on the term loan emerged earlier this week at Libor plus 625 bps to 650 bps with a 1.5% Libor floor. There is 101 soft call protection for one year.

The company's $330 million credit facility also provides for an $80 million ABL revolver.

Bank of America Merrill Lynch and UBS Securities LLC are the lead banks on the deal that will be used to fund the buyout of the company by AEA Investors LP.

Garden Ridge is a Houston-based seller of mattresses, ready-to-assemble furniture, discount apparel and handbags and books.

BJ's timing emerges

BJ's Wholesale Club, a Westborough, Mass.-based operator of warehouse clubs, firmed up timing on its senior secured credit facility, with the scheduling of a bank meeting for Monday afternoon, according to market sources.

The roughly $2.2 billion deal is expected to consist of a $900 million asset-based revolver and about $1.3 billion of first- and second-lien term loans, with specific tranche sizes to be announced at the meeting, the source said.

The company originally said in filings with the Securities and Exchange Commission that it would be getting a $1.25 billion first-lien term loan and a $425 million second-lien term loan. However, the source explained that the amount of term loan borrowings is being reduced on dollar-for-dollar basis as a result of sale and leaseback proceeds of around $400 million that are expected to come at closing.

BJ's lead banks

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Barclays Capital Inc., Jefferies & Co., GE Capital Markets and Wells Fargo Securities LLC are leading the BJ's credit facility.

Proceeds will be used to help fund the buyout of the company by Leonard Green & Partners LP and CVC Capital Partners for $51.25 per share in cash. The all-cash transaction is valued at $2.8 billion.

Other funds for the transaction will come from $640 million in equity.

Closing is expected in the fourth quarter, subject to approval of BJ's shareholders, customary conditions and regulatory approvals.

Levi plans revolver

Continuing on the topic of upcoming deals, Levi Strauss has set a bank meeting for Tuesday to launch a proposed $850 million ABL revolving credit facility, according to a market source.

Price talk on the revolver is Libor plus 175 bps with a 50 bps unused fee, the source remarked.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC and HSBC Securities (USA) Inc. are the lead banks on the deal.

Proceeds will be used by the San Francisco-based apparel maker to refinance an existing revolver.

Go Daddy structure

Details on Go Daddy's credit facility have been released, including that the $825 million deal is comprised of a $75 million revolver that will be undrawn at close and a $750 million term loan, sources told Prospect News.

Some accounts are currently getting an early look at the deal, and a general syndication bank meeting is expected to take place at a later date, sources said.

Barclays Capital Inc., Deutsche Bank Securities, Inc., RBC Capital Markets LLC and KKR Capital Markets are the leads on the facility.

Proceeds, along with $300 million of unsecured notes already placed and $1.3 billion of equity, will be used to fund a strategic investment and partnership with KKR, Silver Lake and Technology Crossover Ventures.

Go Daddy is a Scottsdale, Ariz.-based provider of web hosting and domain names.

Reynolds wraps acquisition

In other news, Reynolds Group Holdings Ltd. completed its purchase of Graham Packaging Co. Inc. for $25.50 per share in cash, for a total enterprise value, including net debt, of about $4.5 billion, according to a news release.

To help fund the transaction, Reynolds got a new $2 billion senior secured term loan due August 2018 (Ba3/BB-) that is priced at Libor plus 525 bps with a 1.25% Libor floor and was sold at an original issue discount of 99. There is two years of 101 soft call protection that was added during syndication.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. led the deal.

Reynolds is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products. Graham is a York, Pa.-based supplier of plastic containers.

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