Goodman Global first-lien term loan dips; second-lien rises in quiet secondary market

By Sara Rosenberg

New York, Aug. 30 - Goodman Global Group Inc.'s first-lien term loan softened a little, moving closer to par, in a very light trading session on Thursday, and the company's second-lien term loan was seen bid higher.

Meanwhile, a bunch of deals closed, including Genpact International Inc., Carriage Services Inc., Pinnacle Foods Finance LLC and SuperValu Inc.

Goodman moves around

Goodman Global's first-lien term loan slid to par 1/8 bid, par 5/8 offered, from par ¼ bid, par ¾ offered, while its second-lien term loan was bid at 1011/2, versus a 101¼ bid on Wednesday, according to a trader.

Earlier in the week, the company announced that it is being acquired by Daikin Industries Ltd. from Hellman & Friedman LLC for $3.7 billion.

Funds for the transaction will come from bank loans, straight bond issuances, internally generated funds and public policy financing.

Closing is expected in the fourth quarter, subject to regulatory approval.

Goodman Global is a Houston-based manufacturer of heating, ventilation and air conditioning products for residential and light commercial use. Daikin is a Japan-based company focused on commercial and industrial-use air conditioning systems and fluorochemicals.

Genpact closes

In other news, Genpact completed on Thursday its $925 million senior secured credit facility (Ba2/BB+) that consists of a $250 million five-year revolver and a $675 million seven-year term loan, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the term loan is Libor plus 325 basis points with a 1% 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, pricing on the term loan firmed at the tight end of the Libor plus 325 bps to 350 bps talk and the discount was revised from 99.

The revolver, meanwhile, is priced at Libor plus 325 bps with a 50 bps unused fee.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC led the deal.

Genpact recapitalizes

Proceeds from Genpact's credit facility were used to refinance existing debt and will fund a distribution to shareholders as well as general corporate purposes.

Bain Capital Partners is buying about 68 million of GenPact's common shares from General Atlantic and Oak Hill Capital Partners for $14.76 per share, or about $1 billion.

But, closing of the Bain transaction won't occur until a special dividend of $2.24 per share, or roughly $501 million, is paid to all shareholders, including General Atlantic and Oak Hill Capital.

The special cash dividend was declared on Thursday and will be paid on Sept. 24.

Genpact is a Hamilton, Bermuda-based provider of business process management services.

Carraige Services wraps

Carriage Services closed on its $235 million senior secured credit facility that is comprised of a $105 million revolver and a $130 million five-year term loan, according to a news release.

The revolver was upsized from $70 million during syndication as a result of oversubscription.

Bank of America Merrill Lynch acted as the lead bank on the deal that is being used to refinance an existing revolver, to redeem the company's 7 7/8% senior notes and for general corporate purposes.

Carriage Services is a Houston-based provider of death care services and products.

Pinnacle completes loan

Pinnacle Foods closed on its $450 million senior secured term loan F (Ba3/B+) due Oct. 17, 2018, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the F loan, which was upsized from $300 million, is Libor plus 350 bps with a step-down that would take effect upon an initial public offering and 5.0 times total leverage. There is a 1.25% Libor floor and 101 soft call protection until April 17, 2013, and it was sold at a discount of 991/4, after firming at the tight end of the 99 to 99¼ talk.

Barclays, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC led the deal that was used to repay some non-extended term loan B debt due 2014, and refinance some 9¼% senior notes due 2015.

The company amended its existing credit facility to allow for the new term loan.

Pinnacle Foods is a Mountain Lakes, N.J.-based packaged food company.

SuperValu gets facility

SuperValu announced that it completed its $2.5 billion credit facility that includes an $850 million six-year covenant-light term loan (B1/BB-) and a $1.65 billion five-year ABL revolver, according to a news release.

Pricing on the term loan is Libor plus 675 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 97. There is soft call protection of 102 in year one and 101 in year two.

During syndication, pricing on the term loan flexed up from Libor plus 625 bps, the discount widened to 96 from 98 and then tightened to its final level, the soft call protection was sweetened from just 101 in year one and the maturity was shortened from seven years.

The revolver has pricing ranging from Libor plus 175 bps to 225 bps.

SuperValu lead banks

Credit Suisse Securities (USA) LLC and Barclays Capital Inc. acted as the bookrunners on SuperValu's term loan.

Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., Barclays and Credit Suisse acted as the bookrunners on the revolver.

Proceeds were used to refinance a $1.5 billion revolver, a $574 million term loan B-2 and a $446 million term loan B-3.

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

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