Myers, Symbion, CompuCom, Deerfield, Stoneridge set talk; Chrysler Financial tweaks deal

By Sara Rosenberg

New York, July 19 - Myers Industries Inc., Symbion Inc., CompuCom Systems Inc., Deerfield Triarc Capital Corp. and Stoneridge Inc. came out with price talk on their new loans as all of these transactions were launched with bank meetings during Thursday's market hours.

In other primary news, Chrysler Financial made some changes to its credit facility, including increasing pricing, adding original issue discounts and reworking call premiums, and InterGen is considering taking pricing back down on its term loan B after revising it higher just two days ago.

Switching to the secondary, things were once again lower, with both LCDX and cash feeling the burn.

Myers held a bank meeting on Thursday at 10 a.m. ET to kick off syndication on its proposed $685 million senior secured credit facility (Ba3/B+), and in connection with the launch, price talk surfaced, according to a market source.

Both the $535 million seven-year term loan and the $150 million six-year revolver are being talked at Libor plus 250 basis points, the source said.

By comparison, according to filings with the Securities and Exchange Commission, both tranches were said to be expected to carry pricing of Libor plus 225 bps.

Goldman Sachs is the lead bank on the deal that was originally supposed to launch on June 27 but was postponed to post-July 4 business.

Proceeds will be used to help fund the buyout of Myers by GS Capital Partners in a transaction valued at $1.07 billion, including the assumption or repayment of about $276 million of debt. Shareholders will receive $22.50 per share in cash for each share of common stock they hold.

Other financing will come from $265 million of senior subordinated notes and an up to $285 million equity commitment, the SEC filings said.

The transaction is subject to certain closing conditions, including the approval of Myers' shareholders, regulatory approvals and the other customary conditions of closing. There is no financing condition.

Myers is an Akron, Ohio, manufacturer of polymer products for industrial, agricultural, automotive, commercial and consumer markets.

Symbion spread talk

Symbion revealed price talk of Libor plus 250 bps on all tranches under its $350 million senior secured credit facility (Ba3/B) as this was another deal to launch with a bank meeting during the session, according to a market source.

Tranching on the facility is comprised of a $250 million seven-year term loan B, a $25 million seven-year delayed-draw term loan and a $75 million six-year revolver.

The term loan B is being sold to investors with an original issue discount of 991/2, the source added.

Previously, based on filings with the Securities and Exchange Commission, the facility was expected to be sized at $275 million, consisting of a $150 million term loan B, a $50 million delayed-draw term loan and a $75 million revolver.

In addition, according to those SEC filings, all three tranches were expected to be priced at Libor plus 200 bps.

Merrill Lynch and Bank of America are the lead banks on the deal.

Proceeds will be used to help fund Crestview Partners LP's acquisition of the company for $22.35 per share in cash. The transaction is valued at about $637 million, including the assumption of certain debt obligations.

Leverage is 6.7 times.

Symbion is a Nashville owner and operator of short-stay surgical facilities.

CompuCom guidance emerges

CompuCom announced opening price talk in the Libor plus 300 bps area on its proposed $190 million term loan B (Ba2/BB) in connection with the Thursday morning bank meeting that was held to present the transaction to lenders, according to a market source.

Bear Stearns is the lead bank on the deal.

Proceeds will be used to help fund the acquisition of the company by Court Square Capital Partners from Platinum Equity.

Other financing will come from a $210 million senior subordinated notes offering, $50 million borrowed under the company's existing receivable securitization facility and equity of about 30%.

The transaction is valued at about $628 million and is expected to close in the second half of 2007, subject to regulatory approvals as well as satisfaction of other customary closing conditions.

In connection with the buyout, CompuCom intends to tender for all of its outstanding 12% senior notes due 2014.

In addition, CHR Intermediate Holding Corp., another subsidiary of CompuCom's parent company CHR Holding Corp., plans to tender for all of its outstanding senior floating-rate toggle notes due 2013.

Leverage through the secured debt will be around 2.7 times, and total leverage will be around 5.0 times.

CompuCom is a Dallas-based provider of technology services that help clients through the requisition, procurement, deployment, management and retirement lifecycle of their IT assets.

Deerfield Triarc price talk

Deerfield Triarc was another name to release price talk on its new deal as it too held a bank meeting on Thursday, according to a market source.

The $155 million five-year senior secured term loan (B1/B) is being talked at Libor plus 250 bps, the source said.

Corporate ratings are Ba2/BB-.

UBS and Bank of America are the joint lead arrangers and joint bookrunners on the deal.

Covenants will include maximum senior leverage, minimum interest coverage and minimum tangible net worth requirements.

Proceeds will be used to help fund the acquisition of Deerfield & Co. LLC from Triarc Cos., Inc. for about $290 million, consisting of about $145 million in stock and $145 million in cash.

Deerfield Triarc is a Rosemont, Ill., diversified financial company. Deerfield is a Chicago-based investment adviser.

Stoneridge opening guidance

Stoneridge also announced price talk on its $300 million credit facility in connection with its Thursday bank meeting, according to a syndicate document.

The $100 million five-year ABL revolver is being talked at Libor plus 100 bps, with a 50 bps commitment fee, and the $200 million senior secured seven-year term loan (B1/B+) is being talked at Libor plus 250 bps, the document said.

Credit Suisse and Deutsche Bank are the joint bookrunners and joint lead arrangers on the term loan. Nat City is the lead arranger on the ABL.

Proceeds will be used to redeem the company's outstanding $200 million 11½% senior notes due May 1, 2012.

Stoneridge is a Warren, Ohio, designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the automotive, medium- and heavy-duty truck, agricultural and off-highway vehicle markets.

Production Resource floats guidance

Continuing on the price talk front, Production Resource Group LLC circulated guidance on its in-market deal now that B1/B+ ratings have been announced on the credit facility, according to a market source.

The $75 million revolver and $325 million first-lien term loan are both being guided in the Libor plus 225 bps to 250 bps area, the source said.

Goldman Sachs is the lead bank on the $400 million credit facility that will be used to help fund the buyout of the company by the Jordan Co. and management.

Production Resource Group is a New Windsor, N.Y., supplier of entertainment technology products, including video, lighting, audio, scenery and automation systems.

Chrysler Financial reworks deal

Chrysler Financial came out with modifications to its $8 billion credit facility, including flexing pricing higher on all tranches, adding discounts to the first- and second-lien term loans and giving lenders juicier call premiums, according to a market source.

Under the changes, the $2 billion ABL revolver (B1/BB-) is now priced at Libor plus 300 bps, up from original talk at launch of Libor plus 275 bps, the source said.

The $4 billion first-lien term loan B (B1/BB-/BBB-) is also now priced at Libor plus 300 bps, up from original talk of Libor plus 275 bps, plus the paper is now being sold at a discount of 991/2, as opposed to at par, and call protection is now 102 in year one and 101 in year two, as opposed to just 101 in year one, the source continued.

Lastly, the $2 billion second-lien term loan (B2/CCC+/BB) is now priced at Libor plus 550 bps, up from original talk of Libor plus 500 bps, the paper is now being sold at a discount of 99, as opposed to at par, and call protection is now 103 in year one, 102 in year two and 101 in year three, as opposed to just 102 in year one and 101 in year two, the source added.

Prior to the official changes being announced, there was speculation that pricing on the deal could come around 25 bps higher than initial terms and that discounts could be added.

The ABL and the first-lien term loan, which share the same collateral and the same covenants, went through a senior managing agent round, at which time price talk of Libor plus 250 bps to 275 bps was being circulated on the tranches.

During the senior managing agent round, banks were offered $100 million of the revolver for "buy and hold" and $125 million of the first-lien term loan B for underwriting.

JPMorgan, Citigroup, Goldman Sachs, Bear Stearns and Morgan Stanley are the joint bookrunners on the deal, with JPMorgan, Citigroup and Goldman Sachs the joint lead arrangers.

Proceeds will be used to help fund the buyout of the provider of financial services for vehicles in the NAFTA region by Cerberus Capital Management LP from DaimlerChrysler AG.

Cerberus is also buying Chrysler Corp. LLC, a producer and seller of Chrysler, Dodge and Jeep vehicles, from DaimlerChrysler.

Chrysler Financial and Chrysler Corp. will both be subsidiaries of a new holding company called Chrysler Holding LLC in which Cerberus will have an 80.1% equity interest and DaimlerChrysler will have a 19.9% interest.

In connection with the buyout, Chrysler Corp. is also in market with a credit facility, with its deal sized at $12 billion.

As was reported earlier this week, Chrysler Corp. revised talk on its credit facility, with the $10 billion first-lien term loan B (B1/B+/BB+) now being guided at Libor plus 375 bps, up from original talk at launch of Libor plus 325 bps, and the $2 billion second-lien term loan (Caa1/B-/BB+) now being guided at Libor plus 700 bps, up from original talk of Libor plus 600 bps.

Furthermore, market speculation for the past few days has been that the first-lien term loan will be sold at a discount that could range from 98 to 99 and that the second-lien term loan will be sold at a discount in the 97 area. Some are currently expecting the first-lien term loan discount to end up at 98½ and the second-lien term loan discount to end up around 971/2, the source said.

The first-lien term loan B is non-callable for one year then at 101 in year two, and the second-lien term loan is non-callable for one year, then at 103 in year two and 101 in year three.

JPMorgan, Goldman Sachs, Citigroup, Bear Stearns and Morgan Stanley are the joint bookrunners on the deal, with JPMorgan, Goldman and Citigroup the joint lead arrangers.

The loans are based on asset coverage, not cash flow.

Proceeds will be used to put cash on the balance sheet for liquidity. Along with the equity, the company will have approximately $17.5 billion of cash at closing.

"JPMorgan still has not announced anything official, although they are out in the market previewing terms right now," the source said about Chrysler Corp. "I think all the OID's are still very much to be determined. I don't expect anything official until tomorrow or so."

InterGen mulls spread drop

InterGen is currently anticipated to take pricing on its $800 million term loan B back down after increasing it earlier this week, according to a market source.

It is now expected that the term loan B may end up at Libor plus 225 bps, the high end of original guidance of Libor plus 200 bps to 225 bps, but inside of the recently revised guidance of Libor plus 250 bps to 275 bps, the source said.

However, no definitive decision on pricing has been made as of yet, the source added.

The term loan B will be split between U.S. and euro.

InterGen's $1.55 billion credit facility (Ba3/BB-) also includes a $750 million five-year revolver that is priced at Libor plus 150 bps, in line with initial talk.

Merrill Lynch, Lehman Brothers and Barclays are the lead banks on the deal, with Merrill Lynch the left lead.

Proceeds will be used to refinance existing debt, to fund a dividend payment and for working capital needs and general corporate purposes.

InterGen is a Burlington, Mass., power generation company.

Norwood flexes again

Norwood Promotional Products Inc. increased pricing for a second time on its first- and second-lien term loans, according to a syndicate document.

The $135 million seven-year first-lien term loan (B2/B) is now priced at Libor plus 350 bps, up from most recent talk of Libor plus 325 bps and from original talk of Libor plus 275 bps, the document said.

In addition, the $75 million 71/2-year second-lien term loan (B3/CCC) is now priced at Libor plus 750 bps, up from most recent talk of Libor plus 700 bps and from original talk of Libor plus 600 bps, the document added.

The second-lien term loan carries call protection of 102 in year one and 101 in year two.

Norwood's $260 million credit facility also includes a $50 million five-year ABL revolver that is priced in line with initial talk at Libor plus 150 bps, with a 37.5 bps commitment fee.

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

Norwood Promotional is an Indianapolis-based supplier of promotional items.

DeltaTech ups pricing

DeltaTech Controls, Inc. increased pricing on its $220 million credit facility, according to a syndicate document.

The $25 million six-year revolver (B1/B+) and the $141 million seven-year first-lien term B (B1/B+) are now both priced at Libor plus 300 bps, up from Libor plus 250 bps, and the $54 million 71/2-year second-lien term loan (Caa1/B) is now priced at Libor plus 675 bps, up from Libor plus 600 bps, the document said.

The revolver has a 50 bps commitment fee.

Credit Suisse and UBS are the lead banks on the $220 million deal.

Proceeds will be used to help fund the acquisition of the company by Littlejohn & Co., LLC.

Leverage is roughly 4.6 times through the second-lien debt.

DeltaTech is a Hong Kong-based designer, manufacturer and marketer of customized electromechanical switches, interface controls and dome arrays.

LCDX, cash weaken

Over in trading news, LCDX and the cash market both ended Thursday's session at lower levels, and two "on the run names" that usually trade pretty well - Georgia Pacific Corp. and Kinder Morgan Inc. - hit their all-time lows, according to a trader.

The LCDX index ended the session at 95.35 bid, 95.45 offered, down from 96.00 bid, 96.20 offered on Wednesday, the trader said.

And the cash market was down anywhere from a quarter to a half a point depending on the name.

For example, Georgia-Pacific, an Atlanta-based manufacturer and marketer of tissue, packaging, paper, building products and related chemicals, saw its term loan B end the day at 98¾ bid, 99 1/8 offered, down about a quarter to three-eighths of a point, the trader continued.

Also, Kinder Morgan, a Houston-based energy infrastructure provider, saw its term loan B end the day at 98 3/8 bid, 98 7/8 offered, down about three-eighths to half a point, the trader added.

Movie Gallery drops

Movie Gallery Inc.'s first-lien term loan was lower on Thursday in sympathy with the rest of the market, rather than on any particular news, according to a trader.

The first-lien term loan B ended the day at 94 bid, 95 offered, down from 95½ bid, 96½ offered, the trader said.

"There's just general risk management going on across the board. Not credit specific," the trader added.

Movie Gallery is a Dothan, Ala.-based video rental company.

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