Cannery retranches, tweaks terms; J.L. French ups talk; Solera adds step; Dresser, OSI, Oxbow break

By Sara Rosenberg

New York, May 4 - Cannery Casino Resorts LLC made a round of changes to its credit facility, including moving some funds out of its delayed-draw term loan B and into its revolver, increasing the delayed-draw undrawn fee and adding soft call protection to the funded term loan B.

In other primary news, J.L. French Automotive Castings, Inc. increased price talk on its term loan B and Solera Holdings LLC added a step down in pricing to its term loan B as the tranche was well oversubscribed.

Over in the secondary market, Dresser Inc., OSI Restaurant Partners Inc. and Oxbow Carbon & Minerals Holdings Inc. all saw their credit facilities free up for trading during the session.

Cannery Casino Resorts came out with some revisions to its $860 million credit facility that included shifting some funds to its revolver from its delayed-draw term loan B, upping the delayed-draw ticking fee and adding a soft call premium to the funded term loan B tranche, according to a market source.

The five-year revolver (B2/BB-) is now sized at $110 million, up from $75 million, with pricing left unchanged at Libor plus 225 basis points, the source said.

On the flip side, the six-year final maturity delayed-draw term loan B (B2/BB-) is now sized at $285 million, down from $320 million, and although drawn pricing was left unchanged at Libor plus 225 bps, the unused fee was increased to Libor plus 225 bps from 112.5 bps, the source continued.

Meanwhile, the $350 million six-year funded first-lien term loan B (B2/BB-) was left unchanged in terms of size and pricing, which is set at Libor plus 225 bps, but 101 soft call protection for one year was added to the tranche, the source remarked.

As for the $115 million seven-year second-lien term loan (Caa1/B-), that was left at original terms, which include pricing of Libor plus 450 bps and call premiums of non-callable for one year, then at 102 in year two and 101 in year three.

Recommitments are due from lenders on Monday.

Bank of America and Merrill Lynch are the lead banks on the deal, with Bank of America the left lead on the first-lien debt and Merrill Lynch the left lead on the second-lien debt.

Proceeds will be used to refinance existing debt, to construct a permanent casino in western Pennsylvania and to redevelop the Nevada Palace casino in Las Vegas.

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

J.L. French boosts price talk

J.L. French Automotive Castings raised price talk on its $145 million first-lien term loan B to the Libor plus 400 bps context from original guidance at launch of Libor plus 325 bps to 350 bps, according to a market source.

The $195 million credit facility also includes a $50 million revolver.

Goldman Sachs is the lead bank on the deal, which will be used to refinance the company's existing first-lien bank debt.

The company's current second-lien term loan will remain in place as is.

J.L. French is a Sheboygan, Wis., supplier of high-pressure die-cast aluminum automotive components and assemblies.

Solera B loan gets step

Solera added a step down to its oversubscribed $607.5 million term loan B on Friday, under which pricing can drop from the current rate of Libor plus 200 bps to Libor plus 175 bps when leverage hits 3.25 times, but no earlier than 12 months after close, according to a market source.

The term loan B will be divided into a U.S. and a euro tranche. The split is still to be determined, but it is currently expected that it will be about 60% euro and about 40% U.S.

"[The] total deal size is dependent on the final IPO price/proceeds, so still to be determined," the source added.

Solera's $657.5 million amended and restated senior credit facility (B1/B+) also includes an existing $50 million revolver.

Goldman Sachs and Citigroup are the joint bookrunners on the deal, with Goldman the lead arranger.

Proceeds will be used to refinance existing debt, including a $240 million term loan B, a €220 million term loan B, a €165 million second-lien term loan and an €80 million mezzanine financing.

The facility is being done in connection with the company's initial public offering of common stock.

Solera is a San Ramon, Calif., provider of software and services to the automobile insurance claims processing industry.

Bucyrus well received

Bucyrus International Inc.'s $825 million term loan B is "hugely oversubscribed" at the current price talk of Libor plus 175 bps to 200 bps, according to a market source.

The term loan B will include a euro sub-tranche that will probably be sized around the $100 million equivalent area.

Bucyrus' $1.29 billion credit facility (Ba3/BB-) also includes a $400 million revolver and a $65 million equivalent euro-denominated German revolver that are both talked at Libor plus 175 bps.

Both revolvers will have pricing step downs tied to a leverage grid.

Lehman Brothers is the lead bank on the deal.

Proceeds from the facility are being used to fund the acquisition of Lunen, Germany-based DBT GmbH, a subsidiary of RAG Coal International, for $710 million in cash and 471,476 shares of stock. The completion of this acquisition was announced on Friday.

Bucyrus is a South Milwaukee, Wis., designer and manufacturer of walking draglines, electric rope mining shovels and rotary blasthole drills used by the surface mining industry.

Dresser frees to trade

Moving to the secondary market, Dresser's credit facility allocated and broke for trading, with the $1.3 billion seven-year first-lien term loan (B2/B) quoted at par 7/8 bid, 101 1/8 offered and the $600 million eight-year PIK toggle second-lien term loan (B3/CCC+) quoted at 102 bid, 102¼ offered, according to a trader.

The first-lien term loan is priced at Libor plus 250 bps with a step down to Libor plus 225 bps upon delivery of outstanding financials, and the second-lien term loan is priced at Libor plus 575 bps with call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $1.15 billion with the addition of the pricing step, and the second-lien term loan was downsized from $750 million with pricing firming at the tight end of original guidance of Libor plus 575 bps to 600 bps.

Dresser's $2.05 billion senior secured credit facility also includes a $150 million six-year revolver (B2/B) priced at Libor plus 250 bps, in line with original talk.

Lehman, Morgan Stanley, Credit Suisse and UBS acted as the lead banks on the deal, with Lehman the left lead.

Proceeds were used to help fund the acquisition of Dresser by Riverstone Holdings LLC, First Reserve and Lehman Brothers Co-Investment Partners, the completion of which was announced on Friday.

Dresser is a Dallas-based provider of highly engineered infrastructure products for the energy industry.

OSI breaks

Also hitting the secondary on Friday was OSI Restaurant Partners, with its $1.23 billion seven-year term loan quoted at 101 bid, 101¼ offered, according to a trader.

The term loan is priced at Libor plus 225 bps with a step down to Libor plus 200 bps upon achieving B1 corporate ratings or better. The company's current corporate rating is B2.

During syndication, the term loan was upsized from $1.08 billion after the company downsized its bond offering by $150 million and pricing was lowered from original talk at launch of Libor plus 250 bps to Libor plus 212.5 bps to 225 bps with a 25 bps step down, before firming up at the wide end of that revised guidance.

OSI's $1.48 billion senior secured credit facility (Ba3/BB-) also includes a $150 million six-year revolver that is priced at Libor plus 250 bps and a $100 million six-year pre-funded revolver that is priced at Libor plus 225 bps with a step down to Libor plus 200 bps upon achieving B1 corporate ratings or better.

The pricing changes that were made to the term loan during syndication were also made to the pre-funded revolver.

Deutsche Bank and Bank of America are the lead banks on the deal, with Deutsche the left lead.

Proceeds will be used to help fund the leveraged buyout of the company by an investor group comprised of Bain Capital Partners, LLC, Catterton Partners and company founders Chris T. Sullivan, Robert D. Basham and J. Timothy Gannon.

The total transaction value, including assumed debt, is $3.2 billion, with OSI stockholders receiving $40 per share in cash.

Other leveraged buyout financing will come from $550 million in high-yield notes, real estate financings, $827.3 million in cash equity and $217.5 million in rollover equity.

OSI is a Tampa, Fla., casual dining restaurant company with a portfolio of brands, including Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse & Wine Bar, Roy's, Lee Roy Selmon's, Blue Coral Seafood & Spirits and Cheeseburger in Paradise.

Oxbow trades atop par

Yet another deal to free up for trading on Friday was Oxbow Carbon & Minerals, with its $960 million term loan quoted at par 5/8 bid, par 7/8 offered, according to a trader.

The term loan is priced at Libor plus 200 bps.

During syndication, pricing on the loan was reverse flexed from original talk at launch of Libor plus 225 bps to 250 bps.

Oxbow's $1.11 billion credit facility (B1/B+) also includes a $150 million revolver.

Bank of America is the lead bank on the deal, which will be used to fund the acquisition of Great Lakes Carbon Income Fund at C$14 per unit in cash.

Oxbow Carbon & Minerals is part of the Oxbow Group, a West Palm Beach, Fla., private energy company.

USI closes

GS Capital Partners completed its acquisition of USI Holdings Corp. for $17 in cash per share, according to a news release. The transaction is valued at about $1.4 billion, including repayment of about $365 million of USI's existing debt.

To help fund the transaction, USI got a new $650 million senior secured credit facility (B2/B-) consisting of a $100 million six-year revolver that is priced at Libor plus 250 bps, with a 50 bps commitment fee, and a $550 million seven-year term loan B that is priced at Libor plus 275 bps.

During syndication, the term loan B was upsized from $525 million after the company downsized its bond offering to $400 million from $425 million.

Goldman Sachs and JPMorgan acted as the joint lead arrangers and joint bookrunners on the deal, with JPMorgan the administrative agent.

USI is a Briarcliff Manor, N.Y., distributor of insurance and financial products and services to businesses.

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