24 Hour breaks; Atrium, IESI, Live Nation, Universal City, Reynolds, Aspect, ViaWest float talk

By Sara Rosenberg

New York, April 20 - 24 Hour Fitness Worldwide Inc.'s credit facility freed up for trading during Tuesday's market hours, with the term loan quoted a little above its original issue discount price, and Supervalu Inc.'s term loans were quoted all over the place after the company announced quarterly results that showed an improvement in earnings but a decline in sales.

Over in the primary market, Atrium Cos. Inc., IESI-BFC Ltd., Live Nation Entertainment Inc., Universal City Development Partners Ltd., Reynolds Group Holdings Ltd. and Aspect Software Inc. all came out with price talk on their new bank deals as each company launched their transactions to investors, and ViaWest Inc. released talk on its upcoming deal.

Also, Intersil Corp. announced some revisions to its credit facility as a result of strong demand, including lower pricing and a tighter original issue discount on the term loan, and United States Infrastructure Corp. (USIC) released timing and structure on its soon to be launched facility.

24 Hour Fitness frees to trade

24 Hour Fitness' credit facility hit the secondary market on Tuesday with the $600 million six-year term loan quoted at 98 ¼ bid, 99 offered, according to a trader.

Pricing on the term loan is Libor plus 475 bps with a step down to Libor plus 450 bps when leverage is less than 2.5 times. There is a 2% Libor floor, 101 soft call protection for one year, and the paper was sold at an original issue discount of 98.

During syndication, pricing was flexed up from Libor plus 400 bps, the soft call was added and the discount widened from 981/2.

The company's $675 million credit facility also includes a $75 million five-year revolver.

JPMorgan, Deutsche Bank and Wells Fargo are the lead banks on the deal that will be used to refinance existing debt.

24 Hour Fitness is a San Ramon, Calif., fitness center company.

Supervalu bounces with numbers

Supervalu's term loan B-1 headed lower in trading, while the term loan B-2 was seen as unchanged to softer, depending on which trader was asked, following the release of fourth quarter earnings.

The term loan B-1 was quoted by one trader at 98½ bid, 99 offered, down from 99 1/8 bid, 99 5/8 offered, and by a second trader at 98¾ bid, 99¼ offered, down from 99 1/8 bid, 99 5/8 offered

The term loan B-2 was quoted by the first trader at 99½ bid, par offered, down from 99¾ bid, par 1/8 offered, and by the second trader at 99 5/8 bid, par 1/8 offered, flat on the day.

And, the term loan A was quoted by the second trader at 98¾ bid, 99¼ offered, versus 98 7/8 bid, 99¼ offered.

"[News is] inconsequential to the term loans. Still reducing debt," another trader added.

Supervalu earnings results

For the fiscal 2010 fourth quarter, Supervalu reported net earnings of $97 million, or $0.46 per diluted share, compared to a loss of $201 million, or $0.95 per share, in the previous year.

Net sales for the quarter were $9.2 billion, compared to $10.8 billion in the fourth quarter of fiscal 2009.

"We finished fiscal 2010 meeting our earnings guidance and exceeding our annual debt reduction target," said Craig Herkert, chief executive officer and president, in a news release.

Supervalu provides guidance

Also on Tuesday, Supervalu revealed fiscal 2011 guidance that includes expected earnings per diluted share on a GAAP basis within a range of $1.65 to $1.85.

"I am looking forward to fiscal 2011. My team is in place, we know what needs to get done, and we will execute," Herkert added in the release.

"Yes, there will be challenges to overcome, but fiscal 2011 will deliver solid earnings, meaningful debt reduction and the necessary platform from which to execute our vision of becoming America's Neighborhood Grocer."

The guidance is based on certain assumptions, such as full year net sales being about $39 billion, capital spending being around $700 million and debt reduction being about $600 million.

Supervalu is an Eden Prairie, Minn.-based supermarket operator.

Atrium talked at Libor plus 500 bps

Switching to the primary, Atrium held a bank meeting at the Four Seasons Hotel in New York with a 10:30 a.m. ET start time on Tuesday to kick off syndication on its proposed $185 million six-year term loan, and in connection with the launch, price talk was announced, according to a market source.

The term loan is being talked at Libor plus 500 bps with a 2% Libor floor and an original issue discount of 981/2, the source said.

Security on the loan is a first-priority lien on all non-ABL assets.

Proceeds will be used to refinance existing debt in connection with the company's exit from Chapter 11.

Atrium is a Dallas-based vinyl and aluminum window company.

IESI guidance revealed

Also coming out with price talk was IESI as it, too, launched its credit facility to investors on Tuesday morning, according to a market source.

The company's $345 million term loan due 2016 is being talked at Libor plus 325 bps with a 1.5% Libor floor, 101 soft call protection for one year and an original issue discount of 99, the source said.

And, the company's $588.5 million revolver due 2014 is being talked at Libor plus 300 bps with a 50 bps unused fee, the source continued.

Bank of America is the lead bank on the deal that is in connection with the company's acquisition of Waste Services Inc. and will be used to refinance existing debt. The revolver is essentially an amend and extend of IESI's existing $588.5 million revolver that matures in 2012.

IESI is a full-service waste management company. Waste Services is a solid waste services company. The combined company will be based in Toronto.

Live Nation price talk

And, yet another company to hold a bank meeting on Tuesday and see price talk surface was Live Nation, as it launched a $1.2 billion senior secured credit facility, according to a market source.

The $300 million revolver and $100 million 51/2-year term loan A were presented to lenders with talk of Libor plus 300 bps, the source said. The revolver has a 50 bps commitment fee.

And, the $800 million 61/2-year term loan B was presented with talk of Libor plus 325 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2, the source added.

JPMorgan, Goldman Sachs and Deutsche Bank are the lead banks on the deal, with JPMorgan the left lead.

Live Nation refinancing debt

Proceeds from Live Nation's credit facility will be used to repay its existing credit facility and the credit facility of its wholly owned subsidiary, Ticketmaster Entertainment LLC.

Other funding for the refinancing will come from the sale of $250 million of senior notes.

The completion of the notes offering is conditioned on the entry into the new credit facility.

Covenants under the credit facility include a maximum leverage ratio and a minimum interest coverage ratio.

Live Nation is a Beverly Hills, Calif.-based producer of live music concerts.

Universal City sets talk

Continuing on the price talk theme, Universal City launched its $900 million 41/2-year term loan B on Tuesday at Libor plus 375 bps with a 1.75% Libor floor and an original issue discount of 991/2, according to a market source.

JPMorgan is the lead bank on the deal that will be used to refinance existing debt.

Universal City is an Orlando, Fla.-based owner and operator of theme parks.

Reynolds talked at Libor plus 425 bps

Also, Reynolds Group launched its $750 million term loan (B1) on Tuesday, telling lenders that price talk is Libor plus 425 bps with a 1.5% Libor floor and an original issue discount of 991/2, according to a market source.

Credit Suisse is the lead bank on the deal that will be used, along with $1 billion of unsecured notes, to fund the acquisitions of the Evergreen Packaging group of companies and the Whakatane Mill from Carter Holt Harvey Ltd.

Closing on the acquisitions is expected to take place in May.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

Aspect talk emerges

Additionally, Aspect Software launched its $500 million six-year term loan B on Tuesday with price talk of Libor plus 450 bps with a 1.75% Libor floor and an original issue discount of 981/2, according to a market source.

JPMorgan is the lead bank on the deal $530 million, which also includes a $30 million four-year revolver.

Proceeds will be used to refinance existing debt.

Aspect Software is a Chelmsford, Mass.-based software and IT services firm.

ViaWest floats guidance

ViaWest began circulating price talk on its proposed $140 million credit facility as the deal is gearing up to launch with a bank meeting on Wednesday via sole lead bank RBC, according to a market source.

The $10 million revolver, $110 million first-lien term loan and $20 million delayed-draw term loan are all being talked at Libor plus 450 bps with a 2% Libor floor and an original issue discount that is still to be determined, the source said.

Proceeds will be used to help fund the buyout of the company by Oak Hill Capital Partners from Trinity Equity Investors, Goldman Sachs & Co. and Quilvest.

Other funding for the acquisition will come from a $60 million "silent" second-lien term loan that Oak Hill has already put in place with Barclays Structured Principal Investing Fund LP and Solar Capital Ltd, the source added.

ViaWest is a Denver-based data center and managed services company.

Intersil flexes

In more primary happenings, Intersil reduced pricing on its well oversubscribed $465 million facility (Ba2/BB+) and lowered the original issue discount guidance on the term loan, according to a market source.

The $390 million six-year senior secured term loan is now being talked at Libor plus 325 bps, down from the Libor plus 350 bps area, with an original issue discount of 99½ to par, down from 99, the source said. The Libor floor is still being guided at 1.5% to 1.75% Libor floor.

Prior to the launch, filings with the Securities and Exchange Commission outlined pricing on the term loan at Libor plus 375 bps if the rating is Ba3/BB- or better and Libor plus 400 bps if the rating is B1/B+ or lower. The filings also said that the term loan would carry a 1.75% Libor floor and would be offered with an original issue discount of 99.

And, the $75 million 31/2-year revolver is now being talked at Libor plus 300 bps, down from the Libor plus 325 bps area, subject to a leverage based grid. The revolver still includes a 50 bps undrawn fee, a 1.5% to 1.75% Libor floor, and is being offered at an original issue discount of 981/2.

Intersil lead banks

Morgan Stanley and Bank of America are acting as the lead banks on Intersil's credit facility, with Morgan Stanley the left lead.

Commitments are due on Wednesday afternoon.

Proceeds will be used to help fund the acquisition of Techwell Inc. for $18.50 per share. Net of Techwell's cash and equivalents, the transaction values Techwell at about $370 million.

Closing on the acquisition is expected to occur during Intersil's second quarter, subject to customary regulatory approvals and the satisfaction of other transaction conditions, including the tender of at least 50% of Techwell's outstanding shares.

Intersil is a Milpitas, Calif.-based designer and manufacturer of high-performance analog and mixed-signal semiconductors. Techwell is a San Jose, Calif.-based fabless semiconductor company.

USIC details surface

Timing and structure on USIC's credit facility came out, with the $158.5 million five-year credit facility set to launch with a bank meeting on Wednesday, according to a market source.

Tranching on the deal is comprised of a $45 million revolver and a $113.5 million term loan, the source said, adding that price talk will come out with the launch.

GE Capital and BNP Paribas are the lead banks on the facility that will be used to help fund the buyout of the company by OMERS from Kohlberg & Co.

USIC is a Carmel, Ind.-based provider of utility infrastructure locating services.

CKE ready to end THL agreement

CKE Restaurants Inc. said on Tuesday that the alternative buyout proposal it received a short while ago is superior to the one it had previously entered into with Thomas H. Lee Partners LP and, therefore, is ready to terminate the Thomas H. Lee agreement.

The proposal from Western Acquisition Holdings Inc., which is rumored to be Apollo Management, provides for a purchase price of $12.55 per share in cash, whereas the Thomas H. Lee proposal provides for $11.05 in cash per share.

Thomas H. Lee now has four business days to negotiate a revised acquisition agreement with CKE.

Under the initial Thomas H. Lee plan, CKE would have obtained a $450 million senior secured facility, consisting of a $75 million revolver and a $375 million term loan led by Bank of America and Barclays to fund the acquisition, as well as $150 million of senior unsecured notes and $440 million in equity.

CKE Restaurants is a Carpinteria, Calif.-based owner of Carl's Jr. and Hardee's quick-service restaurant chains.

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