Consolidated Container, Pinnacle, US Cable tweak deals; Spectrum, Itron, Cardinal PTS set talk

By Sara Rosenberg

New York, March 21 - Consolidated Container Co. revised its credit facility on Wednesday by upsizing its first-lien term loan B while reducing pricing on the tranche and downsizing its second-lien term loan while increasing pricing on the tranche.

Also, Pinnacle Foods Group Inc. increased the size of its term loan B following a reduction in its bond offering, and US Cable of Coastal-Texas LP launched its credit facility on Wednesday with a slightly larger size than was previously expected.

Furthermore, Spectrum Brands Inc., Itron Inc. and Cardinal Health Inc.'s pharmaceutical technologies and services segment came out with price talk on their deals.

Consolidated Container made a number of changes to its credit facility, including increasing the size of its first-lien term loan B, decreasing the size of its second-lien term loan and modifying pricing on both term loan tranches, according to a market source.

The seven-year first-lien term loan B (B1/B-) is now sized at $405 million, up from $390 million, and pricing was reverse flexed to Libor plus 225 basis points from original talk at launch of Libor plus 250 bps, the source said.

On the flip side, the 71/2-year second-lien term loan (Caa1/CCC) is now sized at $225 million, down from $250 million, and pricing was flexed up to Libor plus 550 bps from original talk at launch of Libor plus 475 bps to 500 bps, the source continued.

Second-lien call premiums of 102 in year one and 101 in year two were left unchanged.

Being that the first-lien term loan B was only increased by $15 million, while the second-lien term loan was decreased by $25 million, the company has decided to borrow $10 million under its ABL revolver, the source explained.

The six-year ABL revolver, which was left unchanged throughout the syndication process, is sized at $100 million and priced at Libor plus 150 bps.

Last on the list of modifications had to do with covenants, as the first-lien incurrence/acquisition test was changed to 4.75 times, the source added.

Deutsche Bank, Bank of America and Lehman Brothers are the bookrunners on the now $730 million (down from $740 million) senior secured credit facility, with Deutsche and Bank of America the joint lead arrangers and Deutsche the left lead.

Proceeds will be used to refinance existing bank debt, to help fund the purchase of the company's $207 million 10¾% senior secured discount notes due 2009 and $185 million 10 1/8% senior subordinated notes due 2009 and for working capital, acquisitions and other corporate purposes.

Consolidated Container is an Atlanta-based developer, manufacturer and marketer of rigid plastic containers for consumer products and beverage companies.

Pinnacle Foods upsizes

Pinnacle Foods increased the size of its term loan B to $1.25 billion from $1.175 billion after downsizing its senior notes offering by the equivalent amount, according to a market source.

In addition, the commitment deadline for the deal was moved up to Thursday at 5:00 p.m. ET from Friday, the source added.

Price talk on the covenant-light term loan was left unchanged at Libor plus 275 bps.

Pinnacle Foods' now $1.375 billion (up from $1.3 billion) senior secured credit facility (B2/B-) also includes a $125 million revolver talked at Libor plus 275 bps.

The revolver has a total leverage covenant, but only when it is drawn.

Lehman and Goldman Sachs are the lead banks on the deal, with Lehman the left lead.

Proceeds will be used to fund the Blackstone Group's buyout of the company from J.P. Morgan Partners, LLC, J.W. Childs Associates, LP, CDM Group and former bondholders of Aurora Foods Inc. for $2.16 billion in cash.

The actual borrower under the credit facility will be Peak Finance LLC, the affiliate of the Blackstone Group that is being merged into Pinnacle.

Pinnacle Foods is a Cherry Hill, N.J., manufacturer, marketer and distributor of branded food products.

US Cable increases deal size

In more primary happenings, US Cable of Coastal-Texas held a bank meeting on Wednesday morning to launch its proposed credit facility, at which time it presented lenders with a larger-than-previously-anticipated revolver tranche so as to gain some extra liquidity, according to a market source.

The six-year revolver, as launched, is sized at $20 million, up from the $10 million size that was originally outlined when the deal was first announced, the source said.

Price talk on the revolver, however, remained in line with prior expectations at Libor plus 275 bps to 300 bps, the source continued.

US Cable of Coastal-Texas' now $130 million (up from $120 million) credit facility also includes a $110 million seven-year term loan B that is talked at Libor plus 275 bps to 300 bps.

SunTrust is the lead bank on the deal, which will be used to refinance existing debt.

US Cable of Coastal-Texas is a provider of cable television services and high-speed Internet services that is 52% owned by US Cable and 48% owned by a subsidiary of Comcast Corp.

Spectrum guidance surfaces

Spectrum Brands held a bank meeting on Wednesday as well to kick off syndication on its proposed $1.65 billion six-year credit facility, and with the launch, price talk of Libor plus 350 bps to 400 bps emerged on both tranches under the transaction, according to a market source.

The facility consists of a $1.6 billion term loan and a $50 million synthetic letter-of-credit facility.

Goldman Sachs and Bank of America are the joint lead arrangers and joint bookrunners on the deal, with Goldman also acting as syndication agent.

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

Pro forma for the transaction, net first-lien leverage will be 5.9 times and net total leverage will be 10 times based on last-12-months Dec. 31 EBITDA of $257 million, according to an 8-K report filed with the Securities and Exchange Commission Wednesday.

However, assuming that the company's recently announced $50 million cost reduction program is implemented and fully recognized as of Dec. 31, pro forma last-12-months Dec. 31 EBITDA is $307 million, meaning that first-lien net leverage will be 5.0 times and total net leverage will be 8.4 times, according to the filing.

The refinancing is anticipated to be completed by March 30.

The new senior secured credit facility will provide the company with nearly $100 million of additional liquidity and significant covenant flexibility to better manage the business as it undertakes various operational initiatives to stabilize financial performance and drive revenues.

Currently, the company anticipates replacing a portion of the first-lien term loan with an up to $300 million asset-based revolving credit facility later this year following closing.

Spectrum Brands is an Atlanta-based consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides.

Itron floats talk

Itron price talk started making its way around the market as the company is getting ready to launch its credit facility with a bank meeting in New York on Thursday and with another in London on Tuesday, according to a market source.

The $605 million first-lien term loan is being talked at Libor plus 225 bps, the €310 million first-lien term loan is being talked at Euro Libor plus 225 bps and the £50 million first-lien term loan is being talked at U.K. Libor plus 225 bps, the source said.

Itron's approximately $1.2 billion senior secured credit facility (Ba3/B+) also includes a $115 million multicurrency revolver.

UBS Securities LLC is the lead bank on the deal, which will be used to help fund the acquisition of Actaris Metering Systems for €800 million, plus the retirement of about €445 million of debt, which, at an exchange rate of 1.3 dollars per euro, totals about $1.6 billion.

Following the transaction, total debt to EBITDA will be around 5.8 times and EBITDA to interest expense will be around 2.8 times.

Itron is a Liberty Lake, Wash., provider of hardware, software and services to integrate the creation, measurement, collection, management, application and forecasting of data for electric, gas and water utilities. Actaris is a Luxembourg-based gas and water metering company.

Cardinal Health PTS spread guidance

Cardinal Health's pharmaceutical technologies and services segment announced price talk on its $1.76 billion credit facility on the heels of the release of a B+ loan rating by Standard & Poor's, according to a market source.

Both the $350 million revolver and the $1.41 billion term loan are being talked at Libor plus 225 bps to 250 bps, the source said.

Morgan Stanley, Goldman Sachs, Bank of America and Bear Stearns are the lead banks on the deal that launched with a bank meeting this past Monday, with Morgan Stanley the left lead.

Proceeds will be used to help fund the Blackstone Group's acquisition of the pharmaceutical technologies and services segment for about $3.3 billion in cash.

The segment develops, manufactures and packages medication and other products for pharmaceutical and biotech firms.

TME sets talk

Also in price talk news, TME came out with guidance on its in-market $160 million senior credit facility, with the $20 million multicurrency revolver, $20 million U.S. first-lien term loan and $75 million equivalent U.K. first-lien term loan all being talked at Libor plus 325 bps, and the $45 million second-lien term loan being talked at Libor plus 700 bps, according to a market source.

RBS Securities and TD Securities are joint lead arrangers on the deal, with RBS the left lead.

Proceeds will be used to help fund the purchase of the company by an undisclosed private equity sponsor.

TME is a Secaucus, N.J., provider of medical communications, independent medical education and marketing sales support to pharmaceutical companies operating under the names of Gardiner-Caldwell, Physicians World and Scientific Connexions.

Entegra PIK loan flexes

Entegra Power Group LLC lowered pricing on its $850 million 81/2-year third-lien mezzanine tranche to Libor plus 600 bps PIK from Libor plus 700 bps PIK, according to a market source.

No changes were made to the $30 million synthetic revolver (B3/B+) and the $450 million second-lien term loan (B3/B+), which are both still being talked at Libor plus 275 bps, the source added.

Lehman and Credit Suisse are joint bookrunners on the deal, which will be used to repay existing debt.

Entegra is a Tampa, Fla., owner and operator of power plants.

Cosmetic Essence cuts spread

Cosmetic Essence Inc. reverse flexed pricing on its $122 million seven-year term loan to Libor plus 225 bps from original talk at launch of Libor plus 275 bps, according to a fund manager.

Pricing on the company's $35 million six-year revolving credit facility remained unchanged at Libor plus 275 bps, the fund manager added.

Allocations are expected to go out by the end of this week.

BNP Paribas is the lead bank on the $157 million credit facility, which will be used to refinance existing debt.

Cosmetic Essence is a Holmdel, N.J., contract manufacturer for the personal care products industry.

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