Ply Gem rises on refi; Dex ups pricing; Scientific Games cuts size; Lender Processing, Usana talk emerges

By Sara Rosenberg

New York, June 2 - Ply Gem Industries Inc.'s term loan rallied on Monday after the company announced plans to refinance the debt and General Motors Corp.'s term loan was better following a positive article this weekend.

In other news, Dex Media West raised pricing on its credit facility and widened the original issue discount on the term loan B, and Scientific Games Corp. reduced the size of its credit facility as a senior subordinated notes offering was announced.

Also, Lender Processing Services Inc. announced price talk on its credit facility as the deal was launched during market hours and expected pricing came out on Usana Health Sciences Inc.'s proposed credit facility.

Ply Gem's term loan gained a couple of points in trading as the company revealed that it will be repaying its existing credit facility in full, according to a trader.

The term loan was quoted at par¼ bid, par¾ offered, up from 97¼ bid, 97¾ offered on Friday, the trader said.

The reason why the term loan moved above par is because it contains 101 call protection, the trader explained.

On Monday morning, Ply Gem said that it will get a new $150 million senior secured asset-based revolving credit facility and sell about $700 million in senior secured notes due 2013 in order to refinance its existing credit facility.

Credit Suisse and UBS are the lead banks on the new revolver, with Credit Suisse the left lead.

The company's existing credit facility had just been amended on May 23 to increase pricing, add a 3.25% Libor floor, add two years of 101 call protection under the term loan and revise covenants.

Under the amendment, pricing on the revolver and term loan was increased to a range of Libor plus 575 basis points to 725 bps, depending on senior secured leverage, and the unused fee on the revolver was increased to between 50 bps to 62.5 bps.

Also as part of the amendment, the company was asked to maintain a maximum senior secured leverage ratio of 5.90 to 1.0 until July 4, 2009, which thereafter declines ratably over time from 5.75 to 1.0 to 3.50 to 1.0., and a minimum interest coverage ratio of 1.10 to 1.0 until July 4, 2009, which thereafter increases ratably over time from 1.15 to 1.0 to 1.45 to 1.0.

Ply Gem is a Kearney, Mo.-based manufacturer and marketer of products for use in the residential new construction, do-it-yourself and professional renovation markets.

General Motors gains ground

General Motors' term loan was stronger on Monday in an overall cash market that felt weaker by maybe an eighth of a point as Barron's put out a positive article about the company this weekend, according to a trader.

The Detroit-based automotive company's term loan was quoted at 88¼ bid, 89¼ offered, up from Friday's levels of 88 bid, 89 offered, the trader said.

"Barron's article said the stock is undervalued. American Axle strike will hurt them short-term, but in the long-term should be okay," the trader remarked.

Meanwhile, Ford Motor Co., a Dearborn, Mich.-based automotive company, saw its term loan slip in trading to 85 5/8 bid, 86 3/8 offered from 85¾ bid, 86½ offered, the trader continued.

"Market in general was down today with higher oil prices, but for some reason the market continues to like GM over Ford," the trader added.

LCDX 10 was down as well with levels quoted at 98.80 bid, 98.90 offered, compared to Friday's levels of 99 bid, 99.15 offered.

Dex revises pricing

Switching to primary news, Dex Media West came out with some changes to its credit facility, including flexing pricing higher on all tranches under its credit facility and increasing the original issue discount on the term loan B, according to a market source.

The $950 million term loan B due October 2014 is now priced at Libor plus 400 bps, up from original talk at launch of Libor plus 350 bps to 375 bps, and is being sold at a discount of 97, up from initial talk that was in the 98 area, the source said. The loan has 101 soft call protection for one year.

Meanwhile, the $100 million revolver due October 2013 and the $140 million term loan A due October 2013 are now both priced at Libor plus 375 bps, up from original talk at launch of Libor plus 325 bps to 350 bps, the source continued. Both tranches are being sold at a discount of 981/2. The revolver has a 50 bps commitment fee.

As was the case since launch, all tranches under the credit facility carry a 3% Libor floor.

JPMorgan and Bank of America are the lead banks on the $1.19 billion deal.

There is a $400 million accordion feature that can be used to get additional revolver and/or term loans, of which all of it can be used to refinance senior unsecured notes and only half can be used for general corporate purposes.

Financial covenants include a total leverage ratio and an interest coverage ratio.

Proceeds will be used to refinance the company's existing credit facility.

Cary, N.C.-based Dex Media is a publisher of Yellow Pages and White Pages directories.

Scientific Games tweaks deal

Scientific Games cut the size of its term loan to $550 million from $600 million, while leaving its revolver size at $250 million, according to a news release.

The news of the downsizing emerged when the company announced plans for a private offering of $200 million of senior subordinated notes.

Both tranches under the now $800 million senior secured credit facility (Baa3/BBB-), down from $850 million, are talked at Libor plus 250 bps.

JPMorgan is the lead bank on the deal.

Proceeds from the credit facility and the notes, will be used to refinance the company's existing credit facility and for general corporate purposes.

Scientific Games is a New York supplier of technology-based products, systems and services to gaming markets.

Lender Processing sets talk

Lender Processing Services held a bank meeting on Monday afternoon to kick off syndication on its proposed $1.31 billion senior secured credit facility (Baa3), and in connection with the launch, price talk came out, according to a market source.

The $125 million five-year revolver and the $700 million five-year term loan A are both being guided in the Libor plus 250 bps to 275 bps area, and the $485 million six-year term loan B is being guided in the Libor plus 275 bps to 300 bps area, the source said.

The term loan B is being offered at an original issue discount that is talked in the 98½ context, the source continued.

JPMorgan, Bank of America and Wachovia are the lead banks on the deal that will be used to help fund the tax-free spin-off of the company from Fidelity National Information Services Inc.

Completion of the spin-off is expected to occur in mid-2008.

Corporate family ratings for the company are expected to be Ba1/BB+, the source added.

Lender Processing Services is a provider of integrated data, servicing and technology solutions to large-scale mortgage lenders.

Usana expected pricing

Usana Health Sciences revealed the anticipated pricing on its proposed $215 million five-year senior secured credit facility as a tender offer for the buyout of the company commenced on Monday, according to an SC TO-T filed with the Securities and Exchange Commission.

Both the $15 million revolver and the $200 million term loan are expected to be priced at Libor plus 1,050 bps, with a 3.5% Libor floor, the filing said.

Ableco Finance LLC is the lead arranger, bookrunner, syndication agent and administrative agent on the deal. Ableco may syndicate a portion of the facility to one or more lenders; however, syndication is not a condition to closing.

Covenants include maximum capital expenditures, minimum EBITDA, maximum senior secured debt/EBITDA, minimum fixed charge coverage, limitations on the payment of dividends and prohibitions on other funded debt.

Proceeds from the credit facility will be used to help fund Gull Holdings Ltd.'s proposed buyout of the company, to refinance Usana debt and to fund ongoing working capital requirements.

Gull, through an acquisition vehicle named Unity Acquisition Corp., is offering to acquire all the shares of Usana that it does not already own for about $138 million, or $26 per share. Gull currently owns about 68% of Usana's stock.

Completion of the tender offer, which expires on June 27, is subject to closing of the debt financing, the holders of at least the majority of the publicly held shares tendering their shares in the offer, and Gull owning at least 90% of the outstanding shares at the completion of the offer.

Gull Holdings is controlled by Dr. Myron W. Wentz, chairman and chief executive officer of Usana.

Usana is a Salt Lake City-based developer, manufacturer and distributor of nutritional and personal care products.

VeraSun closes

VeraSun Energy Corp. closed on its new $125 million three-year secured revolving credit facility, according to a news release.

UBS acted as the lead bank on the deal.

Security is accounts receivable and inventory of the company and certain of its subsidiaries.

The facility replaces an existing $30 million secured revolver and borrowings will be used for general corporate purposes.

VeraSun is a Brookings, S.D., producer of renewable fuel.

Cengage closes

Cengage Learning closed on its $625 million incremental term loan due 2014, according to a company document.

RBS Securities acted as the lead bank on the deal.

The term loan bears interest at a floating rate, which is currently 7.5%, and requires annual principal payments of 1%.

Proceeds from the loan, along with $132.5 million of equity and cash on hand, were used to fund the acquisition of Houghton Mifflin's college division for around $768.3 million.

Cengage is a Stamford, Conn., provider of print and digital instructional and reference materials for the higher education and library reference markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.