ClientLogic shifts funds; Telcordia ups B loan size; GenTek, Oriental Trading hit the secondary

By Sara Rosenberg

New York, Feb. 24 - ClientLogic Corp. shuffled some funds under its $157 million credit facility, downsizing its first-lien term loan and upsizing its second-lien term loan. And, Telcordia Technologies Inc. increased the size of its term loan B after reducing the size of its proposed bond offering.

Meanwhile, in the secondary, GenTek Inc. broke for trading with its first-lien term loan quoted in the mid-101s to upper 102s and Oriental Trading Co.'s first-lien term loan allocated and freed up for trading, with offers seen in the mid-101s but bids nowhere to be found.

ClientLogic decreased the size of its seven-year term loan B (B3/B) to $77 million from $92 million and increased the size of its 71/2-year second-lien term loan (Caa2/CCC+) to $50 million from $35 million, according to a market source.

Pricing on the term loan B was left unchanged at Libor plus 450 basis points, and pricing on the second-lien term loan was left unchanged at Libor plus 900 basis points.

The change in structure was announced to potential lenders late Wednesday night and Thursday morning, the source said.

ClientLogic's $30 million five-year revolver (B3/B) with an interest rate of Libor plus 450 basis points and a commitment fee of 50 basis points was left unchanged in terms of size and pricing.

Credit Suisse First Boston and TD Securities are joint lead arrangers on the deal.

Proceeds will be used to refinance debt.

ClientLogic, a portfolio company of Onex Corp., is a Nashville, Tenn., business process outsourcing provider.

Telcordia upsizes

Telcordia shifted $50 million into its term loan B from its bond offering, bringing the term loan B to a new size of $570 million from $520 million and the bond offering to a new size of $300 million from $350 million, according to a market source.

Price talk on the term loan B remained at Libor plus 250 basis points, the source added.

"Both have been going well," the source said about the bank and bond transactions, "but it's cheaper on the bank side."

The notes are talked at 9% and are expected to price on Monday.

Telcordia's $100 million revolver talked at Libor plus 250 basis points was left unchanged both in terms of size and pricing.

Proceeds from the $670 million credit facility (B1/B+) and the $300 million senior subordinated notes due 2013 will be used to help fund the leveraged buyout of the company by Providence Equity Partners and Warburg Pincus for $1.35 billion in cash.

JPMorgan, Bear Stearns, Deutsche and Lehman are lead banks on the credit facility, with JPMorgan the left lead.

Telcordia is a Piscataway, N.J, provider of telecommunications software and services for IP, wireline, wireless and cable.

Maguire filling up

Maguire Properties Inc.'s recently launched $580 million credit facility has already started to fill up as the deal received more than $100 million in orders by Wednesday night - just a few hours after the actual bank meeting took place, according to a market source.

The bank meeting itself was very well attended with "great turnout in person and on phone," the source added.

Price talk of Libor plus 200 to 225 basis points was revealed at Wednesday's meeting for both the $480 million five-year term loan and a $100 million four-year revolver, assuming four 'B' rating, the source said. Moody's Investors Service is expected to come out with its rating on the deal by Friday.

Previously, price talk on the term loan had been unavailable, but company officials did say in a January conference call that the interest rate should range somewhere between Libor plus 175 to 225 basis points.

The revolver has a commitment fee of 50 basis points.

The term loan is being offered to investors at par, and revolver commitments get an upfront fee of 25 basis points.

Commitments are due March 2.

Credit Suisse First Boston is the sole lead bank on the deal.

Proceeds from the revolver will be used to refinance the company's existing $100 million revolver.

Proceeds from the term loan will be used to help finance the acquisition of a significant number of assets from CommonWealth Partners LLC's Fifth Street Properties Portfolio, a portfolio of office properties owned through a partnership with Rockefeller Group International Inc and the California Public Employees Retirement System, for about $1.51 billion.

More specifically, Maguire is buying 10 office properties comprising nearly 5 million square feet and four development sites entitled for more than 1.5 million square feet of office space. The portfolio is currently 86.4% leased.

In addition to the new bank debt, Maguire will be assuming about $155 million of mortgage financing and getting $900 million of new mortgage financing to help fund the acquisition as well.

The acquisition is expected to close around mid-March.

Maguire is a Los Angeles-based real estate investment company.

GenTek breaks

GenTek's $395 million credit facility opened for trading on Thursday with the first-lien term loan B quoted at 101½ bid, 102¼ offered pretty much throughout the session and the second-lien term loan quoted at 102 bid, 102¾ offered throughout the session, according to a trader.

The $200 million first-lien term loan (B2/B+) is priced with an interest rate of Libor plus 275 basis points and contains a step down to Libor plus 250 basis points upon the receipt of a B1 rating. The tranche was originally launched with price talk of Libor plus 300 to 325 basis points.

The $135 million second-lien term loan (Caa1/B-) is priced with an interest rate of Libor plus 575 basis points and contains call protection of 102 in year one and 101 in year two. The tranche was originally launched with price talk of Libor plus 700 basis points.

GenTek's facility also contains a $60 million revolver (B2/B+).

Goldman Sachs Credit Partners LP and Banc of America Securities LLC are joint lead arrangers on the deal.

Proceeds will be used to fund a special dividend to shareholders of about $320 million.

GenTek is a Parsippany, N.J., manufacturer of industrial components and performance chemicals.

Oriental Trading offered but no bids

Oriental Trading's $257 million five-year term loan B (B1/B+) allocated and broke for trading, with one dealer offering a $1 million piece at 101½ but no bids seen in the Street, according to a buyside source.

As for allocations, "they were small," the source said. "About 20% of order size if you were lucky."

Through this deal, the term loan B was upsized by $30 million and repriced at Libor plus 250 basis points.

BNP Paribas and Credit Suisse First Boston are joint lead arrangers on the term loan B, with BNP the left lead.

Oriental Trading also got a new $122 million six-year second-lien tranche (B3/B-) with an interest rate of Libor plus 475 basis points that was offered with a 200 basis point fee. Credit Suisse First Boston and BNP Paribas are joint lead arrangers on the deal, with CSFB the left lead on the tranche.

"I haven't seen anything on the second lien. That one, however, was allocated by CSFB some time last week and has been trading since then. A dealer came into me early yesterday morning offering me $2 to $3 million of the second lien around 101.75. I have not seen any bids," the source said.

Originally, Oriental Trading wanted to add $42 million of additional second-lien debt on top of its existing $80 million second-lien term loan and reprice the tranche at Libor plus 550 basis points. But, the deal was reworked to create a whole new second-lien term loan with lower pricing and an upfront fee to appease investors who were not thrilled about potentially missing out on the 102 call protection that they were entitled to under the existing second-lien credit agreement if the tranche was actually being taken out.

The company also repriced its $40 million five-year revolver (B1/B+) at Libor plus 250 basis points. The revolver carries a 50 basis point commitment fee.

The additional bank debt will be used to fund a dividend to shareholders.

Oriental Trading is an Omaha, Neb., direct marketer of novelties, toys, party supplies, crafts, gift items, home décor products and garden accents.

Select Medical closes

EGL Holding Corp. completed its approximately $2.3 billion acquisition of Select Medical Corp. on Thursday, according to a company news release.

To help fund the acquisition, and to repay existing bank debt and repurchase existing subordinated notes tendered, Select Medical got a new $880 million senior secured credit facility (B1/BB-) consisting of a $580 million seven-year term loan B with an interest rate of Libor plus 175 basis points and a $300 million six-year revolver with an interest rate of Libor plus 250 basis points and a commitment fee of 50 basis points.

The term loan was reverse flexed from Libor plus 225 basis points during syndication.

JPMorgan and Wachovia acted as joint lead arrangers and joint bookrunners on the deal, JPMorgan Chase Bank is administrative agent and collateral agent, Wachovia Bank is syndication agent, and Merrill Lynch Capital Corp. is documentation agent.

EGL is a new company formed by an investment group led by Welsh, Carson, Anderson & Stowe for the acquisition of Select Medical, a Mechanicsburg, Pa., operator of specialty hospitals.

Ntelos closes

Ntelos Inc. closed on its new $660 million senior secured credit facility consisting of a $35 million revolver (B2/B) at Libor plus 250 basis points, a $400 million first-lien term loan (B2/B) at Libor plus 250 basis points with a step down to Libor plus 225 basis points if leverage falls below 4x and a $225 million second-lien term loan (B3/CCC+) at Libor plus 500 basis points.

The first-lien term loan was reverse flexed from Libor plus 275 basis points during syndication, the second-lien term loan was reverse flexed from Libor plus 550 basis points during syndication and the revolver was reverse flexed from Libor plus 275 basis points during syndication.

Morgan Stanley Senior Funding Inc. and Bear Stearns & Co. Inc. acted as joint lead arrangers and joint bookrunners, with Morgan Stanley the left lead and administrative agent.

Proceeds were used to help in the recapitalization and sale of the company to affiliates of Quadrangle Capital Partners LP and Citigroup Venture Capital.

Ntelos used the bank debt to refinance its existing debt and repurchase existing equity in a self-tender offer at a price of $40 per common share.

Following receipt of regulatory approvals and satisfaction of other closing conditions, Quadrangle and CVC will purchase the remainder of the company's equity at a price of $40 per share.

Ntelos is a Waynesboro, Va., regional integrated communications provider.

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