CBRL frees to trade; Movie Gallery heads higher ahead of numbers; Silgan sets price talk

By Sara Rosenberg

New York, May 8 - In secondary news Monday, CBRL Group Inc.'s credit facility broke for trading, with the funded term loan B piece quoted atop par and the delayed-draw term loan B piece seen wrapped around par.

Also in trading, Movie Gallery Inc.'s term loan B once again saw an improvement in levels, with the momentum still being explained by optimism toward the company's upcoming release of financial results.

In primary happenings, Silgan Holdings Inc. came out with price talk on its term loan as the deal was presented to lenders during Monday's market hours.

CBRL Group allocated its credit facility during market hours, with the new funded $800 million seven-year term loan B bank debt then freeing for trading in the par ¼ bid, par ½ offered context where it was seen closing out the day, according to a trader.

In addition, the $200 million delayed-draw seven-year final maturity term loan B tranche broke for trading, with this paper quoted in the 99¾ bid, par ¼ offered context, the trader said.

The funded and delayed-draw term loan B bank debt are both priced with an interest rate of Libor plus 150 basis points. The delayed-draw paper has a 75 basis point ticking fee.

CBRL's $1.25 billion senior secured credit facility (Ba2/BB+) also contains a $250 million revolver that is priced with an interest rate of Libor plus 150 basis points as well and carries a 25 basis point unused fee.

Wachovia Securities acted as the lead bank on the deal that is effective as of April 27.

Proceeds from the $800 million funded term loan are being used to fund a modified Dutch auction tender offer common stock repurchase plan.

Proceeds from the $200 million delayed-draw term loan may be used next year to refinance convertible debt.

And, the $250 million revolver replaced the company's existing revolver.

CBRL is a Lebanon, Tenn., operator and developer of 539 Cracker Barrel Old Country Store restaurants and gift shops located in 41 states and 135 company-operated and 25 franchised Logan's Roadhouse restaurants in 20 states.

Movie Gallery still on the rise

Movie Gallery's term loan B headed up by another point during Monday's session as investors continue to remain optimistic about what they might hear when the company releases its first-quarter financial results on Thursday, according to a trader.

The term loan B closed the session quoted at 94½ bid, 96 offered, the trader said. By comparison, on Friday, the bank debt had closed the session quoted at 93½ bid, 95 offered, which was stronger by about half a point to a point when compared to Thursday's levels.

Some have said that the positive sentiment toward the upcoming financial results is possibly attributable to the recent positive earnings announcement released by both Netflix Inc. and Blockbuster Inc.

Movie Gallery is a Dothan, Ala.-based movie rental company.

Silgan spread talk

Silgan released price talk on its proposed €200 million term loan as the deal was launched into syndication on Monday with a target audience of predominantly U.S. investors, with some European investors likely participating as well, according to a market source.

The term loan was presented with opening price talk of Libor plus 112.5 basis points and is being offered at par, the source said.

Deutsche Bank is the bookrunner on the deal.

Proceeds will be used to fund the €230 million acquisition of Amcor Ltd.'s White Cap closures business, a Hanover, Germany-based supplier of metal closures to consumer goods packaging companies in the food and beverage industries in Europe, Asia Pacific and South America.

Silgan is a Stamford, Conn., manufacturer of consumer goods packaging products.

Cebridge closes

Cebridge Connections Inc., with backing by majority investors GS Capital Partners and Oaktree Capital Management LLC, completed its acquisition of certain cable television systems operations from Cox Communications Inc., according to a company news release.

To help fund the purchase, Cebridge got a new $3.255 billion credit facility consisting of a $2.1 billion 71/2-year first-lien term loan B (B1/B+) with an interest rate of Libor plus 225 basis points and a step down to Libor plus 200 basis points when leverage is below 6x or the corporate credit rating - currently B2 - improves to B1, a $200 million seven-year revolver (B1/B+) with an interest rate of Libor plus 225 basis points and a 50 basis point commitment fee, a $280 million 11/2-year interim term loan and a $675 million eight-year second-lien term loan (Caa1) that is divided into $337.5 million of cash pay debt with an interest rate of Libor plus 450 basis points and $337.5 million of pay-in-kind with an interest rate of Libor plus 600 basis points.

During syndication, the term loan B was upsized from $2 billion and the pricing step down was added to the tranche and the second-lien term loan was added to the capital structure as the company decided not to go ahead with a $775 million bond offering that was originally part of its acquisition financing plans.

Also during syndication, pricing on the cash pay portion of the second-lien loan was lowered from original talk of Libor plus 475 basis points and the call protection on this cash pay paper was changed to non-callable for two years, then at 102 in year three and 101 in year four from 103 in year one, 102 in year two and 101 in year three.

The PIK second-lien debt is non-callable for three years.

Goldman Sachs and Credit Suisse acted as joint lead arrangers on the deal, with Goldman the left lead.

Cebridge is a St. Louis-based provider of cable television and internet access.

Billing Services closes

Billing Services Group LLC closed on its new $290 million credit facility, according to a company news release. Deutsche Bank acted as lead arranger, bookrunner and administrative agent on the deal.

The facility consists of a $15 million revolver (B1/B+) with an interest rate of Libor plus 250 basis points, a $215 million first-lien term B (B1/B+) with an interest rate of Libor plus 250 basis points and a $40 million second-lien term loan (B3/B-) with an interest rate of Libor plus 600 basis points.

Loans are denominated in both dollars and euros.

During syndication the first-lien term loan was upsized from $190 million due to substantial oversubscription by institutional investors and the second-lien term loan was downsized from $55 million. In addition, pricing on the revolver and first-lien term loan came in at the high end of original guidance of Libor plus 225 to 250 basis points.

The credit agreement also allows for a $60 million term loan facility reserved for future acquisitions, which was uncommitted at closing.

At close, the company used proceeds from the term loan B and the second-lien term loan to repay all existing debt, to pay fees and expenses associated with the refinancing and to supplement working capital.

"The refinancing accomplishes some pivotal objectives. It enhances the group's capital; it lowers interest costs; and it gives the group greater flexibility in managing its worldwide business," said Patrick J. Haynes III, chairman, in the release.

Billing Services is a Glenview, Ill., provider of outsourced customer care, billing and collection clearinghouse services.

InfrastruX closes

InfrastruX Group Inc. closed on its new $275 million credit facility Monday, consisting of a $150 million six-year first-lien term loan B with an interest rate of Libor plus 300 basis points, a $55 million seven-year second-lien term loan with an interest rate of Libor plus 650 basis points and a $70 million five-year senior secured revolver with an interest rate of Libor plus 325 basis points, according to a market source.

KeyBanc Capital Markets was the lead arranger and administrative agent on the deal.

Proceeds from the term loans were used to help fund Tenaska Power Fund's leveraged buyout of InfrastruX from Puget Energy Inc.

The revolver will provide funds for working capital.

Senior leverage is about 3x, and total leverage will be about 4x.

InfrastruX is a Bellevue, Wash.-based provider of end-to-end infrastructure construction services, primarily for the electric and natural gas utility end-markets.

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