Burlington rises; Vision, Gun Lake reveal talk; Radio One sets launch; Vertafore details emerge

By Sara Rosenberg

New York, June 17 - Burlington Coat Factory Warehouse Corp.'s term loan B headed higher during Thursday's trading session following the company's release of fiscal first-quarter numbers that showed improvements on a year-over-year basis.

Over in the primary, Vision Solutions Inc. came out with price talk on its proposed credit facility in connection with the ratings announcement and bank meeting. Guidance on Gun Lake Tribe and early talk on SonicWALL Inc. emerged as well.

Also, Radio One Inc. revealed timing on the launch of its proposed credit facility, and size and tranching on Vertafore Inc.'s deal surfaced as a bank meeting is targeted to take place early next month.

In addition, as expected, Michael Foods Inc. accelerated the commitment deadline for its term loan as a result of strong investor interest.

Burlington up with numbers

Burlington Coat Factory's term loan B gained some ground in trading after first-quarter earnings revealed an improvement in income, sales and adjusted EBITDA from the previous year, according to traders.

The Burlington, N.J.-based discount retailer's term loan B was quoted by one trader at 93 bid, 94 offered, up from 92 bid, 93 offered, and by a second trader at 92¾ bid, 93¼ offered, up from 92¼ bid, 93 offered.

For the first quarter of fiscal 2010, the company reported net income of $5.2 million, compared with a net loss of $36.9 million in the 2009 fiscal year.

Net sales for the quarter were $894.7 million, up 7.8% from $830 million from the comparable period last year.

And adjusted EBITDA for the quarter was $78.2 million, up 32.8% from $58.9 million in the prior year.

Vision Solutions pricing guidance

Moving to new deal happenings, Vision Solutions held a bank meeting on Thursday at 2:30 p.m. ET to kick off syndication on its proposed credit facility, and shortly before the event, ratings emerged and price talk was announced, according to a market source.

Both the $240 million six-year term loan and the $15 million five-year revolver are being talked at Libor plus 500 basis points with a 1.75% Libor floor and an original issue discount of 981/2, the source said.

Jefferies is the lead bank on the $255 million senior secured credit facility (B1/B+).

The rating from Standard & Poor's came out on Wednesday and the rating from Moody's Investors Service came out late Thursday morning. It was right after the Moody's release surfaced that price talk was disclosed.

Vision Solutions buying Double-Take

Proceeds from Vision Solutions' credit facility will be used to help fund the acquisition of Double-Take Software Inc. in a transaction with a net offer value of about $242 million and to refinance existing debt.

Under the purchase agreement, Double-Take stockholders will receive $10.55 in cash per share.

Closing is expected in the third quarter, subject to customary conditions, including the expiration of the Hart-Scott Rodino waiting period and the approval of Double-Take stockholders.

Vision Solutions, a portfolio company of Thoma Bravo LLC, is an Irvine, Calif.-based provider of high availability, disaster recovery and system management services for IBM Power Systems. Double-Take Software is a Southborough, Mass.-based provider of recovery services.

Gun Lake sets talk

Word surfaced that Gun Lake Tribe's $160 million first-lien term loan is being talked at Libor plus 900 bps with a 2.5% Libor floor and an original issue discount of 98, according to sources.

The loan is non-callable for two years, then at 102 in year three and 101 in year four, sources added.

Goldman Sachs is the lead bank on the deal that was launched with a bank meeting on Tuesday.

Proceeds will be used to refinance some of a construction loan for the Gun Lake Casino in Michigan that was provided by Station Casinos Inc., which is the manager of the casino.

SonicWALL whispers guidance

SonicWALL began circulating some early price talk on its proposed $260 million credit facility as the deal is expected to launch sometime this month, according to a market source.

The $155 million first-lien term loan is being whispered at Libor plus 500 bps with a 1.75% Libor floor and an original issue discount of 981/2, and the $105 million second-lien is being whispered at Libor plus 900 bps with a 1.75% Libor floor and a discount of 98, the source said.

Credit Suisse is the lead bank on the deal that will be used, along with $280 million of equity and cash on hand, to fund the buyout of the company by Thoma Bravo LLC and Ontario Teachers' Pension Plan for $11.50 per share in cash. The transaction is valued at about $717 million.

Closing is expected to take place in the company's fiscal quarter ending Sept. 30 or early in the fiscal quarter ending Dec. 31, subject to customary conditions, including requisite regulatory approvals and shareholder approval.

SonicWALL is a San Jose, Calif.-based provider of IT security and data backup and recovery services.

Radio One timing announced

Radio One has scheduled a bank meeting for early Monday afternoon to launch its $400 million senior secured credit facility (Ba3/BB-) to investors, according to a market source.

The facility consists of a $50 million revolver and a $350 million term loan B.

Deutsche Bank is the lead bank on the deal and has committed to provide the revolver and to use commercially reasonable efforts to syndicate the B loan.

According to a recent 8-K filing with the Securities and Exchange Commission, pricing on the revolver is expected at Libor plus 450 basis points, and pricing on the term loan B is expected at Libor plus 500 bps with a 2% Libor floor and an original issue discount of 99.

Pricing is subject to change during syndication, the filing said, but the revolver will be priced 50 bps below the term loan.

Financial covenants include a minimum interest coverage ratio and a maximum first-lien net leverage ratio.

Radio One refinancing debt

Proceeds from Radio One's credit facility will be used to refinance an existing credit facility and is part of the company's plan to refinance substantially all of its debt and establish funding for its purchase of an additional 19% of the outstanding equity interests in TV One LLC for about $82 million.

Another facet to the refinancing proposal is an exchange offer for the all of the company's 8 7/8% senior subordinated notes due 2011 and 6 3/8% senior subordinated notes due 2013 into new 11%/12% senior grid notes due 2017.

As for the acquisition funding, that would come from the company's offer of $100 million of new 8.5%/9.0% second-priority senior secured grid notes due 2016.

Completion of the credit facility is a condition to the completion of the exchange offer, which expires on July 15, and the subscription offer, which expires on June 30.

Radio One maturities

The final maturity date of Radio One's proposed term loan B is 91 days prior to the sixth anniversary of the initial closing of the offers, the 8-K filing said.

However, the final maturity date of the term loan B can be moved to the date occurring on the seventh anniversary of the closing of the offers if $15 million or less of the second-lien notes remains outstanding on the last day of the company's fiscal quarter ended nearest to the initial term loan maturity date.

The final maturity date of the revolver will be four years from the closing of the offers.

Radio One is a Lanham, Md.-based diversified media company that primarily targets African-American and urban consumers.

Vertafore discloses structure

The size and structure on Vertafore's proposed credit facility came out as the deal is hoped to launch with a bank meeting in early July, according to a market source.

The $625 million facility consists of a $75 million revolver and a $550 million term loan, the source said.

Previously, it was known that the company would be approaching the loan market with a new credit facility, but specifics on the transaction were unavailable.

Credit Suisse, Bank of America and Barclays are the lead banks on the deal, with Credit Suisse the left lead. RBC is a documentation agent.

Vertafore getting junior debt

In addition to the credit facility, Vertafore is planning $240 million of junior debt, and proceeds from these transactions will be used to help fund the buyout of the company by TPG Capital from Hellman & Friedman and JMI Equity for a total consideration of $1.4 billion.

The form of that junior debt is still to be determined, the source added.

The acquisition is expected to close in the third quarter, subject to customary regulatory approvals.

Leverage will be 4.5 times through the first-lien and 6.5 times total, and the equity contribution is 47%, the source said.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

Michael Foods books closing early

The books on Michael Foods' $790 million term loan are now shut down at noon ET on Friday, instead of on Monday, as a result of syndication going so well, according to a market source.

There was already chatter of this change the other day, with some accounts hearing that the deadline could go to either 2 p.m. ET or 5 p.m. ET on Friday.

Price talk on the term loan is Libor plus 450 bps to 475 bps with a 1.75% Libor floor and an original issue discount of 98. There is 101 soft call protection for one year.

The company's $865 million deal (B1/BB-) also includes a $75 million revolver.

Bank of America, Goldman Sachs and Barclays are the lead banks on the credit facility, with Bank of America the left lead.

Michael Foods being acquired

Proceeds from Michael Foods' credit facility will be used to help fund its buyout by GS Capital Partners from Thomas H. Lee Partners LP in a transaction valued at $1.7 billion.

Other funding for the transaction is expected to come from $430 million of eight-year senior unsecured notes.

The roadshow for the notes kicked off on Thursday and pricing is expected to take place on Tuesday.

The same banks leading the credit facility are leading the notes, but Goldman is the left lead on the bonds.

Michael Foods is a Minnetonka, Minn.-based producer and distributor of food products.

Styron closes

In other news, Bain Capital has completed its buyout of Styron, a diversified chemicals and plastics company, from Dow Chemical, according to a news release.

To help fund the transaction, Styron got a new $1.04 billion senior secured credit facility (B2/B+), consisting of a $240 million revolver and an $800 million first-lien term loan that is priced at Libor plus 575 bps with a 1.75% Libor floor. It was sold at an original issue discount of 98. The term loan has 101 soft call protection for one year.

During syndication, the term loan was upsized from $675 million as the company eliminated a $125 million second-lien term loan from its capital structure, pricing was flexed up from the Libor plus 550 bps area and, prior to that, from Libor plus 475 bps, the discount was revised from 98½ to 99 guidance and, prior to that, from just 99, and the call protection was added.

Deutsche Bank, Barclays and HSBC acted as the lead banks on the deal.

Telx wraps deal

Telx Group Inc. closed on its $175 million senior secured credit facility (B1/B-), according to a news release, consisting of a $25 million revolver and a $150 million term loan B.

Pricing on the term loan B is Libor plus 600 bps, which is the wide end of initial talk of Libor plus 550 bps to 600 bps, with a 2% Libor floor, and it was sold at an original issue discount of 98. There is call protection of 102 in year one and 101 in year two.

Goldman Sachs and Deutsche Bank acted as the lead arrangers and bookrunners on the deal, with RBC and SunTrust bookrunners as well.

Proceeds were used to refinance existing debt and for general corporate purposes.

Telx is a New York-based provider of network neutral, global interconnection and colocation services.

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