Strategic Partners reduces spread, discount, readies break; Centerplate revised talk revealed

By Sara Rosenberg

New York, Aug. 19 - Strategic Partners lowered pricing on its credit facility and the original issue discount on its term loan as the deal was met with strong interest by investors, and the expectation is that the deal will free up for trading on Monday.

Also on the new deal front, some additional details on Centerplate Inc.'s revised price talk emerged, and syndication of the facility is still grinding away with the hope that it can wrap up by the end of this month.

Strategic Partners tweaks deal

Strategic Partners came out with some issuer-friendly revisions to its $205 million credit facility (B1/B), including a reduction in spread and a tighter discount on the term loan, according to a market source.

Both the $175 million term loan and the $30 million revolver are now priced at Libor plus 550 basis points, down from initial talk at launch of Libor plus 600 bps, the source said.

In addition, the original issue discount on the $175 million term loan was lowered to 99 from 98, the source continued.

The 1.75% Libor floor on the term loan and the revolver was left unchanged.

It is anticipated that the facility will break for trading on Monday, the source added.

Strategic Partners being acquired

Proceeds from Strategic Partners' credit facility will be used to help fund the buyout of the company by BAML Capital.

Other funding for the transaction will come from $75 million of mezzanine debt.

Leverage through the credit facility is 3.3 times and total leverage is 4.6 times.

Credit Suisse and Bank of America are the lead banks on the deal, with Credit Suisse the left lead. And, prior to the deal's bank meeting, GE Capital and Union Bank of California signed on as documentation agents.

Strategic Partners is a Chatsworth, Calif.-based designer and manufacturer of medical, school and footwear uniforms.

Centerplate new talk surfaces

Sources are hearing that Centerplate is talking its $194 million term loan B at Libor plus 850 bps with a 2% Libor floor and an original issue discount of 97 and that call protection of 102 in year one and 101 in year two is being offered.

By comparison, at launch the term loan B was presented at Libor plus 625 bps to 675 bps with a 2% Libor floor and an original issue discount of 98 and no call protection.

It has been known for over a week now that price talk on the B loan was being discussed with investors at a higher level than the initial talk, but specifics were not being given out.

And, this past Monday, a source told Prospect News that the tranche was starting to fill out at the revised talk and that maybe syndication of the deal could be completed this month.

Centerplate revolver, A loan

Centerplate's $314 million credit facility (B3/B+) also includes a $70 million revolver and a $50 million term loan A.

Macquarie, UBS and BMO Capital Markets are the lead banks on the deal, with Macquarie the left lead.

Proceeds will be used to refinance existing debt and fund a dividend payment.

Centerplate is a Stamford, Conn.-based provider of food and beverage concessions, high-end catering and merchandise services in sports facilities, convention centers and other entertainment facilities.

Bourland & Leverich closes

In other news, Bourland & Leverich Supply Co. LLC closed on its $200 million senior secured credit facility, according to a market source.

The facility consists of a $125 million five-year term loan (B+) priced at Libor plus 900 bps with a 2% Libor floor that was sold at an original issue discount of 95, and a $75 million four-year ABL revolver with pricing that can range from Libor plus 300 bps to 350 bps.

The term loan is non-callable for two years, then at 105½ in year three, 102¾ in year four and par in year five.

During syndication, pricing on the term loan firmed at the wide end of the initial Libor plus 850 bps to 900 bps talk, the discount was increased from the 97 to 98 area, and the call protection was sweetened from non-callable for one year, then at 102 in year two and 101 in year three.

Bourland acquired by Jefferies

Proceeds from Bourland & Leverich's credit facility are being used to help fund the acquisition of the company by Jefferies Capital Partners.

Jefferies Finance acted as the lead arranger on the deal, which closed on Thursday.

Pro forma leverage is 2.9 times and equity will comprise 42% of capitalization.

Bourland & Leverich is a Pampa, Texas-based distributor of oil country tubular goods for U.S. onshore oil and gas producing regions.

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