Green Mountain, ClubCorp, Petco, Atlantic Broadband, Excelitas break; Dynegy trades lower

By Sara Rosenberg

New York, Nov. 23 - Green Mountain Coffee Roasters Inc. firmed pricing and the discount on its well-received term loan B at the tight end of talk while reducing the Libor floor and then freed the deal up for trading.

ClubCorp was another deal to determine the term loan spread and then break for trading, and Petco Animal Supplies Inc., Atlantic Broadband Finance LLC and Excelitas Technologies Corp. (Illumination and Detection Solutions) hit the secondary market as well.

In more trading happenings, Dynegy Inc.'s strip of institutional bank debt headed lower following the company's announcement that its buyout by the Blackstone Group would likely be voted down at the special shareholder meeting and, therefore, terminated - which ended up happening.

Back over in the primary, Gavilon LLC downsized its term loan, and Amscan Holdings Inc. made the previously whispered changes to its term loan official, increasing the spread and adding call protection.

Also, Pelican Products Inc. set pricing on its facility, Mirion Technologies Inc. outlined call protection on its second-lien term loan as the deal is now in market, and price talk on Metro-Goldwyn-Mayer Inc.'s exit financing term loan emerged.

Furthermore, Earthbound Farm, iHealth Technologies Inc., Flexera Software Inc., TARGUSinfo and UTEX Industries Inc. surfaced with plans to come to market with new deals, and Sunquest Information Systems and Swift Holdings Corp. revealed structure and timing on their proposed credit facilities.

Green Mountain pricing firms

Green Mountain finalized pricing on its $550 million six-year term loan B, with the spread and the original issue discount coming at the low end of guidance, and the Libor floor being reduced, according to a market source.

Pricing on the term loan B is Libor plus 400 basis points with a 1.5% Libor floor and an original issue discount of 99, compared to initial talk of Libor plus 400 bps to 425 bps with a 1.75% Libor floor and a discount of 98½ to 99, the source said. The 101 soft call protection for one year was left unchanged.

The company's $1.45 billion senior secured credit facility (Ba3/B+) also includes a $650 million five-year revolver and a $250 million five-year term loan A, with both tranches priced at Libor plus 350 bps.

Prior to launch, the term loan B was upsized from $350 million, and the revolver was downsized from $750 million, resulting in a $100 million increase to the overall deal size.

Green Mountain frees up

After determining pricing, Green Mountain's credit facility allocated and began trading, with the term loan B quoted at par ½ bid, par ¾ offered, according to a trader.

Bank of America and SunTrust are the lead banks on the credit facility that will be used to refinance existing debt and help fund the acquisition of LJVH Holdings Inc. (Van Houtte), a Montreal-based gourmet coffee brand, from Littlejohn & Co. LLC for about $890 million.

The transaction is expected to close by the end of the year, subject to customary conditions, including certain regulatory approvals.

Green Mountain is a Waterbury, Vt.-based specialty coffee company.

ClubCorp sets spread, breaks

Also finalizing pricing was ClubCorp, with its $310 million six-year term loan ending up at Libor plus 450 bps, the wide end of the Libor plus 425 bps to 450 bps talk. Then it, too, freed up for trading, with levels quoted at par bid, 101 offered, according to sources.

As was proposed from the start, the loan has a 1.5% Libor floor and was sold at an original issue discount of 99. Also, there is 101 soft call protection for one year.

Citigroup is the lead bank on the $360 million credit facility (Ba2/BB) that also includes a $50 million five-year revolver.

Proceeds, along with $415 million of notes, will be used to repay existing debt.

ClubCorp is a Dallas-based owner and operator of golf courses, country clubs, private business and sports clubs, and resorts.

Petco starts trading

Another deal to start trading on Tuesday was Petco's $1.225 billion term loan (B1/B), with one trader seeing the loan at par bid, par ½ offered on the break and then moving up to par 1/8 bid, par 3/8 offered, and a second trader seeing it at par 1/8 bid, par 3/8 offered on the break and then moving up to par ¼ bid, par ¾ offered.

Pricing on the term loan is Libor plus 450 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $1.1 billion as the company's bond offering was reduced to $500 million from $625 million, the spread was reduced from talk of Libor plus 475 bps to 500 bps, and the discount was moved from 981/2.

Petco revolver details

Petco's $1.475 billion facility also provides for a $250 million ABL revolver that has pricing that can range from Libor plus 225 bps to 275 bps and an unused fee can that can range from 37.5 bps to 62.5 bps, based on availability.

The company offered lenders 50 bps upfront for commitments of $35 million or more toward the revolver and 37.5 bps upfront for commitments of less than $35 million.

Credit Suisse, JPMorgan, Bank of America, Wells Fargo, Morgan Stanley and Goldman Sachs are the lead banks on the credit facility.

Proceeds from the facility and the notes will be used to refinance existing debt and to fund a dividend.

Petco is a San Diego-based specialty retailer of pet food, supplies and services.

Atlantic Broadband breaks

Atlantic Broadband's credit facility also hit the secondary market on Tuesday, with the $575 million five-year term loan B quoted at par ¼ bid, par ¾ offered.

Pricing on the B loan is Libor plus 350 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 991/2.

During syndication, the spread on the term loan B was cut from Libor plus 400 bps and the discount tightened from 99.

Atlantic Broadband revolver

Atlantic Broadband's $600 million senior secured credit facility (Ba3/B+) also includes a $25 million four-year revolver.

Credit Suisse and SunTrust are the lead banks on the deal, with Credit Suisse the left lead.

Proceeds will be used to replace an existing $40 million revolver due in 2012 and a $436.5 million term loan due in 2013, to fund a $110 million cash dividend payment and to pay $39 million to redeem preferred stock.

Atlantic Broadband is a Quincy, Mass.-based cable provider.

Excelitas tops par

Excelitas Technologies (previously known as Illumination and Detection Solutions) broke for trading too, with levels on its $200 million term loan quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the term loan, and on the company's $15 million revolver, is Libor plus 575 bps with a step-down to Libor plus 500 bps upon receipt of a rating from Moody's Investors Service, which is expected to occur in the first quarter of 2011. The facility has a 1.5% Libor floor and the term loan was sold at an original issue discount of 99.

During syndication, pricing on the facility was reduced from Libor plus 650 bps, the floor was trimmed from 1.75% and the discount on the term loan tightened from 98.

Excelitas being acquired

Proceeds from Excelitas' credit facility will be used to help fund Veritas Capital's purchase of PerkinElmer Inc.'s Illumination and Detection Solutions business for about $500 million in cash.

Prior to launch, the term loan was upsized from $178 million as a result of a growth in EBITDA.

Closing is expected by the end of the year, subject to customary conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

UBS and Credit Suisse are the lead banks on the deal.

Illumination and Detection Solutions is a provider of specialty lighting and sensor components, subsystems and integrated products to OEMs for health, environmental and security segments.

Dynegy dips on buyout news

In more trading news, Dynegy's strip of institutional bank debt was weaker after the company said that it expects to cancel its buyout agreement with Blackstone since investors were to likely vote down the transaction, which was indeed the case, according to traders.

The strip was quoted by one trader at 97¾ bid, 98¼ offered, down from 98¼ bid, 98¾ offered, and by a second trader at 97¼ bid, 98¾ offered, down from 98½ bid, 98¾ offered.

Blackstone was offering to purchase Dynegy, a Houston-based producer and seller of electric energy, capacity and ancillary services, for $5 per share, after increasing the offer from $4.50 per share.

The company also said that it plans to immediately begin an open strategic alternatives process to solicit proposals from potentially interested parties and review its standalone restructuring alternatives.

An independent financial restructuring advisor will be retained by the company to review individual asset sales, debt restructuring and cost cutting opportunities.

Gavilon cuts size

Switching back to the primary, Gavilon downsized its term loan (Ba3/BB+) to somewhere in the range of $750 million to $800 million from $900 million, while leaving pricing at Libor plus 425 bps with a 1.75% Libor floor and an original issue discount on 981/2, according to a market source.

The term loan still provides for 101 soft call protection for one year.

BNP Paribas, Bank of America, JPMorgan and Morgan Stanley are the lead banks on the deal that will be used to help fund the acquisition of DeBruce Cos.

The company is also working on increasing its existing asset-based revolver to the $2.25 billion to $2.5 billion range from the current size of $1.7 billion, and because of strong interest, the size is expected to firm up close to the higher end of that range, the source added.

Pricing on the revolver will remain unchanged at Libor plus 275 bps with a 50 bps unused fee.

Gavilon is an Omaha-based commodity management firm. DeBruce is a Kansas City, Mo.-based agricultural firm.

Amscan revises loan

Amscan flexed pricing on its $675 million seven-year senior secured covenant-light term loan (B2/B) to Libor plus 525 bps from talk of Libor plus 450 bps to 475 bps and added 101 soft call protection for one year, according to a market source.

These changes were being floated around the market previously, but the official word did not come out until Tuesday.

As before, the loan includes a 1.5% Libor floor and original issue discount of 99.

Allocations are expected to go out next week.

Amscan lead banks

Credit Suisse and Goldman Sachs are the joint lead arrangers on Amscan's term loan, and they are bookrunners with Wells Fargo, Deutsche Bank and Barclays.

Proceeds will be used to refinance an existing senior secured term loan due in 2013 and to fund a cash dividend of about $310 million.

In connection with the transaction, the company is amending its existing senior secured revolving credit facility to allow for the new debt.

Amscan is an Elmsford, N.Y.-based designer, manufacturer and distributor of decorated party goods and party accessories.

Pelican finalizes pricing

Pelican Products firmed pricing on its $435 million credit facility at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, while leaving the 1.5% Libor floor and an original issue discount of 99 intact, according to a market source.

The facility consists of a $30 million revolver and a $405 million term loan.

Credit Suisse and GE Capital are the lead banks on the deal that will be used to refinance existing debt.

Pelican Products is a Torrance, Calif.-based designer and manufacturer of advanced lighting systems and virtually indestructible cases.

Mirion reveals call protection

Mirion Technologies' $60 million second-lien term loan is being offered with call protection of 103 in year one, 102 in year two and 101 in year three, according to a market source.

As was previously reported, price talk on the second-lien loan is Libor plus 900 bps with a 1.75% Libor floor and an original issue discount of 98.

The company's $235 million credit facility also includes a $30 million revolver and a $145 million first-lien term loan.

The first-lien term loan is being talked at Libor plus 475 bps with a 1.75% Libor floor and an original issue discount of 981/2.

Credit Suisse is the sole lead bank on the deal that launched with a bank meeting on Monday.

Mirion refinancing debt

Proceeds from Mirion's credit facility will be used to refinance existing debt and is not connected to an initial public offering of common stock.

The company, however, did file an S-1/A with the Securities and Exchange Commission on Monday in case it does decide to complete an IPO, and that filing described entirely different facility plans.

In the filing, the company said that it expects to get a $100 million four-year senior secured credit facility led by JPMorgan, comprised of a $30 million revolver, a $35 million domestic term loan and a $35 million euro-equivalent French term loan, with all tranches priced at Libor plus 450 bps.

"My understanding is that they refiled it just so that they can update their financial information," the source remarked regarding the S-1/A.

Mirion is a San Ramon, Calif.-based provider of products to detect, monitor and identify radiation.

MGM talk surfaces

Metro-Goldwyn-Mayer revealed that it is talking its in market $250 million six-year term loan at Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

The company's $500 million exit financing credit facility also includes a $250 million five-year revolver.

JPMorgan is the lead bank on the deal and is asking for commitments by Dec. 7.

Metro-Goldwyn-Mayer is a Los Angeles-based motion picture, television, home video and theatrical production and distribution company.

Earthbound Farm readies

Earthbound Farm has scheduled a bank meeting for Nov. 30 to launch its proposed $250 million credit facility that is being led by RBC, according to a market source.

The facility consists of a $25 million five-year revolver and a $225 million six-year term loan, the source said, adding that price talk is not yet available.

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

Earthbound Farm is a San Juan Bautista, Calif.-based organic food company.

iHealth launching soon

iHealth Technologies also set a bank meeting for Nov. 30 to launch a proposed credit facility that will be used to refinance existing debt and fund a dividend payment, according to market sources.

The $300 million deal includes a $50 million five-year revolver and a $250 million six-year term loan, sources said.

Goldman Sachs and SunTrust are the lead banks on the facility that is expected to be priced in the Libor plus 500 bps range, one source added.

Ratings are anticipated to be mid-to-high single B

iHealth Technologies is an Atlanta-based provider of payment policy services to health care payers.

Flexera joins calendar

Yet another refinancing/dividend deal slated for Nov. 30 is Flexera Software's $215 million credit facility, according to a market source.

Barclays and RBC are the lead banks on the deal that consists of a $15 million revolver and a $200 million term loan B, the source said.

Flexera is a Schaumburg, Ill.-based provider of software that helps simplify the business relationship between software producers and enterprises.

TARGUSinfo deal emerges

Last of the dividend recapitalization deals to be announced on Tuesday was TARGUSinfo's $245 million credit facility that is also set to launch with a bank meeting on Nov. 30, according to a market source.

Wells Fargo is the lead bank on the deal that consists of a $15 million revolver and a $230 million term loan B, the source said.

Price talk is still to be determined as ratings have not yet come out, the source added.

TARGUSinfo is a Vienna, Va.-based provider of On-Demand Insight.

UTEX coming to market

Also getting ready to launch a new deal is UTEX Industries, as a bank meeting has been scheduled for Dec. 1 for its proposed $190 million credit facility, according to a market source.

The facility consists of a $20 million revolver, a $140 million term loan and a $30 million delayed-draw term loan, the source said.

Societe Generale is the lead bank on the deal that will be used to help fund the buyout of the company by Rhone Capital LLC from Audax Private Equity.

UTEX Industries is a Houston-based designer and manufacturer of sealing products.

Sunquest structure, talk

Sunquest Information Systems revealed structure and price talk on its proposed $655 million credit facility as a bank meeting has been scheduled for Monday afternoon to launch the deal, according to a market source.

The facility consists of a $25 million revolver, a $385 million first-lien term loan and a $245 million second-lien term loan, the source said.

Price talk on the first-lien term loan is Libor plus 425 bps to 450 bps with a 1.75% Libor floor and an original issue discount of 981/2, while talk on the second-lien term loan is Libor plus 850 bps with a 1.25% Libor floor and an original issue discount of 98, the source continued.

In addition, the first-lien term loan has 101 soft call protection for one year and the second-lien is non-callable for two years, then at 104 in year three.

Sunquest being acquired

Sunquest's credit facility is being done simultaneously with the purchase of a 51% interest in the company by a group of investors led by Huntsman Gay Global Capital, and including Credit Suisse and Neuberger Berman, from Vista Equity Partners.

Proceeds form the facility will be used to refinance existing debt, fund a dividend payment and purchase equity.

Jefferies is the lead bank on the deal.

Initially, talk was that the company would be launching its deal around mid-November and that it would be a roughly $600 million first- and second-lien credit facility.

Sunquest is a Tucson, Ariz.-based provider of health care diagnostic information technology and outreach services.

Swift sets launch, structure

Swift Holdings has set a bank meeting for Nov. 30 to launch its proposed $1.45 billion senior secured credit facility, which consists of a $400 million five-year revolver and a $1.05 billion six-year term loan, according to a market source.

Bank of America, Morgan Stanley and Wells Fargo are the joint lead arrangers and bookrunners on the deal that is being done in conjunction with and is conditioned on the company's initial public offering of common stock.

Proceeds from the facility, along with senior secured second-lien notes and stock proceeds, will be used to refinance the company's existing bank debt, senior secured floating-rate notes and senior secured fixed-rate notes.

Swift is a Phoenix, Ariz.-based transportation services company and truckload carrier.

SI Organization closes

In other news, Veritas Capital completed its buyout of SI Organization Inc., a Valley Forge, Pa.-based provider of mission-critical systems engineering and integration services and modeling, simulation, analysis and risk mitigation services to the U.S. intelligence community, from Lockheed Martin Corp., according to a news release.

To help fund the transaction, SI Organization got a new $340 million credit facility (Ba3/B+), consisting of a $40 million five-year revolver and a $300 million six-year term loan.

Pricing on the term loan is Libor plus 400 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was reduced from Libor plus 450 bps, the original issue discount was tightened from 98½ and the soft call protection was added.

JPMorgan, Bank of America and Credit Suisse acted as the lead banks on the deal.

Gymboree buyout wraps

Bain Capital Partners LLC completed its acquisition of Gymboree Corp., for which Gymboree got a new $1.045 million senior secured credit facility, consisting of a $225 million five-year asset-based revolver and an $820 million seven-year term loan B (B1/B+).

Pricing on the San Francisco-based specialty retailer's term loan B is Libor plus 400 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the B loan was upsized from $720 million as bonds were downsized to $400 million, the spread flexed down from Libor plus 450 bps, the floor was reduced from 1.75%, the discount was cut from 98½ and then from 99, and the call protection was added.

Credit Suisse and Morgan Stanley acted as the leads on the B loan and Bank of America acted as the lead on the revolver.

Armstrong dividend recap

Armstrong World Industries Inc. closed on its $1.05 billion senior secured credit facility (B1/BB-) that was used to help fund a special cash dividend of $13.74 per share to common shareholders, or about $800 million in the aggregate, and refinance an existing $430 million credit facility, according to a news release.

The facility consists of a $250 million five-year revolver and a $250 million five-year term loan A, with both of these tranches priced at Libor plus 300 bps, and a $550 million 61/2-year term loan B priced at Libor plus 350 bps with a 1.5% Libor floor and an original issue discount of 991/2. There is 101 soft call protection for one year on the B loan.

At launch, the term loan B had been talked at Libor plus 350 bps to 375 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2.

Bank of America, Barclays and JPMorgan acted as the lead banks on the deal for the Lancaster, Pa.-based designer and manufacturer of floors, ceilings and cabinets.

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