Colfax firms pricing; Global Tel, FleetPride set Tuesday launches; funds sustain outflows

By Paul A. Harris

Portland, Ore., Nov. 10 - Cash loans were mixed with flows quiet ahead of the Veterans Day holiday weekend in the United States, according to a syndicate banker.

The LCDX 17 bank loan index finished at 93 1/8 bid, up ¼ point on the day, the source added.

In the primary market, Colfax Corp. firmed up price talk for its $900 million seven-year term loan B, while Global Tel*Link Corp., FleetPride, Inc. and B&G Foods Inc. announced plans to launch loans at Tuesday bank meetings.

The bank loan funds sustained outflows during the week to Wednesday, according to both of the prominent services tracking cash flows into and out of asset classes.

Bank loan mutual funds saw $43 million of outflows during the period, according to the weekly report from Lipper-AMG, a market source said.

Meanwhile, loan funds saw $151 million of outflows on the week to Wednesday, according to EPFR Global.

Bank loan exchange-traded funds saw five consecutive days of outflows, according to a mutual fund manager whose portfolio includes both loans and high-yield bonds.

Colfax firms talk

Colfax firmed up price talk for its $900 million seven-year term loan B on Thursday.

Talk is Libor plus 375 basis points with a 1.25% Libor floor at 99, with a 101 one-year soft call.

Commitments are due on Nov. 23.

The Libor spread talk came below previous discussions, which took place in the low 400 basis points area.

The term loan B is part of a $2.1 billion credit facility (Ba2/BB+).

Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are the joint lead arrangers. Barclays Capital, SunTrust Robinson Humphrey, RBS Securities Inc. and KeyBanc Capital Markets are agents.

In addition to the institutional tranche, the facility consists of a $300 million revolver, a $200 million term A-1 tranche, a $700 million term A-2 tranche and a $900 million term loan B.

Price talk on the revolver and term loan As is Libor plus 300 basis points.

Financial covenants include a maximum total leverage ratio and a minimum interest coverage ratio.

Proceeds, along with $805 million of new equity from certain existing shareholders and BDT Capital Partners and the issuance of $480 million of shares, will be used to fund the purchase of Charter International plc for 910p per share, or roughly $14.45, comprised of 730p in cash and a fixed ratio of 0.1241 of a Colfax common share per share. The total consideration is $2.43 billion.

Global Tel to launch Tuesday

Global Tel*Link plans to launch its $655 million credit facility at a Tuesday bank meeting.

The deal consists of a $50 million five-year revolver and a $605 million six-year term loan.

Credit Suisse Securities (USA) LLC, UBS Securities LLC, GE Capital Markets and Nomura are the lead banks on the deal, with Credit Suisse the left lead.

Proceeds will be used to help fund the company's buyout by American Securities from Veritas Capital and GS Direct.

NXP launches $500 million

NXP Semiconductors NV announced that its subsidiary, NXP BV, together with NXP Funding LLC, has launched a transaction seeking commitments for up to $500 million of new senior secured loans due 2017.

The new secured loans would be drawn as additional loans under NXP's existing senior secured term loan facility due 2017.

Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are the joint bookrunners.

The proceeds would be used to refinance a portion of NXP's existing secured floating rate notes.

NXP further announced that NXP BV and NXP Funding closed the initial tranche of the previously announced private exchange transaction, issuing $534.5 million of senior secured floating-rate notes due 2016 in exchange for $250.5 million of its floating-rate notes due 2013 and €200.5 million of floating-rate notes due 2013.

FleetPride bank meeting

FleetPride plans to launch a $430 million credit facility at a Tuesday bank meeting.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are the leads.

The deal is comprised of a $370 million six-year term loan and a $60 million revolver.

The Woodland, Texas-based distributor of heavy truck and trailer parts plans to use the proceeds to refinance bank debt.

B&G Foods sets Tuesday launch

B&G Foods set a Tuesday bank meeting for its $300 million term loan B.

The term loan is part of the company's $500 million senior secured credit facility, which also includes a $100 million five-year revolver and a $100 million five-year term loan A.

Price talk on the revolver and term loan A, which were launched into syndication on Thursday, is Libor plus 300 basis points, with the revolver having a 50 bps unused fee.

Amortization on the term loan A is 5% in year one, 10% in year two, 15% in years three and four and 55% in year five.

Credit Suisse Securities (USA) LLC, Barclays Capital Inc. and RBC Capital Markets LLC are the lead banks on the deal.

Proceeds will be used to fund the acquisition of six brands from Unilever United States Inc. for $325 million and refinance the company's existing senior secured credit facilities.

NPC plans $450 million loan

NPC International Inc. announced plans to put in place $450 million of new credit facilities.

Barclays Capital Inc. and Goldman Sachs & Co. are the leads.

Timing remains to be determined. The deal, however, is expected to hit the market in the coming weeks, the source said.

The deal features a $375 million term loan and a $75 million revolver.

Proceeds will be used to help finance the acquisition of Overland Park, Kan.-based NPC, the nation's largest Pizza Hut franchisee, by Olympus Partners.

Funding for the acquisition also includes mezzanine debt, according to a buyside source who is familiar with the situation.

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