Jarden, Wynn and Universal City top 101 on the break; Gate Gourmet recouping some losses

By Sara Rosenberg

New York, Dec. 14 - After weeks of anticipation Jarden Corp.'s $1.05 billion credit facility (B1/B+) allocated and broke for trading on Tuesday morning, with the institutional paper quoted around the 101 context. Also, hitting the secondary in the 101s was Wynn Las Vegas LLC/Wynn Resorts Ltd. and Universal City Development Partners Ltd.

Jarden's $850 million seven-year term loan B was quoted at par 7/8 bid, 101 1/8 offered on the break, went as high as 101¼ bid, 101 3/8 offered, and then settled down to 101 bid, 101¼ offered by day's end, according to traders. The debt was seen trading actively throughout the session.

As for allocations on the B loan, they "were fair given the large oversubscription," a fund manager added.

The term loan is priced with an interest rate of Libor plus 200 basis points after reverse flexing from Libor plus 250 basis points during syndication. The tranche was originally issued to investors at par.

Jarden's facility also contains a $200 million five-year revolver with an initial interest rate of Libor plus 250 basis points. Revolver pricing is grid based, determined by leverage. A commitment of $15 million on the revolver received an upfront fee of 50 basis points.

Citigroup Global Markets and CIBC World Markets are joint lead arrangers and bookrunners on the deal, with Citigroup listed on the left. Citigroup is syndication agent, CIBC is administrative agent, and Bank of America signed on to the revolver as a co-documentation agent.

Proceeds from the credit facility will be used to refinance existing debt and help finance the acquisition of American Household Inc. for $745.6 million, including the assumption of debt. The company will also receive a $350 million equity contribution from Warburg Pincus to help fund the acquisition.

The acquisition is expected to close during the first quarter of 2005, subject to Hart-Scott-Rodino approval and other customary closing conditions.

Upon closing, total debt to adjusted EBITDA is anticipated to be around 3.75x.

Jarden is a Rye, N.Y., provider of niche consumer products. American Household is a Boca Raton, Fla., consumer products company that produces such brand names as BRK, Campingaz, Coleman, First Alert, Health o meter, Mr. Coffee, Oster and Sunbeam.

Wynn 101 plus

Wynn's $400 million term loan B opened for trading in a flurry of activity on Tuesday with the paper quoted at 101¼ bid, 101¾ offered, according to a trader.

The term loan is priced with an interest rate of Libor plus 212.5 basis points. Initially the tranche was sized as a $100 million term loan with price talk of Libor plus 250 basis points but was reworked during syndication.

The $1 billion credit facility (B2/B+), which just closed, also contains a $600 million revolver with an interest rate of Libor plus 225 basis points. The revolver was also reworked during syndication, downsized from $1 billion and reverse flexed from Libor plus 250 basis points.

Proceeds, along with proceeds from a first mortgage note offering, are being used to refinance outstanding debt and fund construction of the La Reve property and Encore - the recently announced expansion of Wynn Las Vegas.

Deutsche Bank, Bank of America, Bear Stearns & Co., JP Morgan and Societe Generale were the lead banks on the credit facility.

"In over 30 years of experience in Las Vegas and the financial markets, today's financial developments for our company mark a most significant moment. As a result of our recent equity and debt financings, Wynn Resorts has now reached a new plateau of financial stability. It has been our strategic goal to have each of our subsidiaries stand on its own, each of them with appropriate equity and debt levels, at favorable rates. To our grand delight, we have reached that goal today, years ahead of schedule," said Stephen A. Wynn, chairman and chief executive officer, in a company news release.

Wynn is a Las Vegas-based gaming, lodging and entertainment company.

Universal City breaks

Universal City's $550 million term loan due 2011 was seen trading in the 101s on its first day in the secondary as well, with the paper quoted at 101 3/8 bid, 101 5/8 offered by the end of the day, according to a trader.

The tranche is priced with an interest rate of Libor plus 200 basis points, after reverse flexing from Libor plus 225 basis points during syndication.

The Orlando, Fla., theme park operator's amended $650 million credit facility (Ba3) also contains a $100 million revolver due 2010.

JPMorgan and Bank of America are the lead banks on the refinancing deal, with JPMorgan the left lead.

Gate Gourmet regains some ground

Gate Gourmet Inc.'s term loan B has inched up this week after a significant drop on Friday that came on the heels of a lender call regarding liquidity concerns and amendment requests.

On Tuesday, the paper was seen trading in the 97 context, compared to 96 bid, 97 offered on Monday and 95½ bid on Friday immediately following the call, according to market sources. Prior to the call, the paper was quoted around 102.

The initial drop was so large because investors were completely caught off guard by how serious Gate Gourmet's liquidity situation is at this time. In fact, the company is so concerned with its present and future liquidity that it asked bank lenders to defer loan amortization payments due Dec. 31 until April 1, 2005 and it asked mezzanine lenders to defer interest payments. And, the company is also asking for a waiver of financial covenants for Dec. 31.

However, now that investors have had a few days to digest the information, the paper has moved up a bit although is still way off from its pre-call levels, one source explained.

Gate Gourmet is a Zurich, Switzerland-based airline catering company.

Portfolio auction Thursday

Talk is that Citibank is selling a $103 million portfolio of premium names that are quoted in the 101 area in the secondary, according to a market source.

"It's something like 50 names averaging $2 million a name," a trader said.

Bids are due on the portfolio on Thursday, the source added.

Landry's upsizes revolver

Landry's Restaurants Inc. upsized its five-year revolver to $300 million from $250 million but left pricing unchanged at Libor plus 175 basis points, according to a syndicate document.

The $150 million six-year term loan B talked at Libor plus 200 basis points was also left unchanged, the document said.

Wachovia Capital Markets LLC, Banc of America Securities LLC and Deutsche Bank Securities Inc. are the lead banks on the deal.

The now $450 million credit facility (Ba2), along with proceeds from a bond deal, will be used to refinance substantially all outstanding debt, pay related transaction fees and expenses, and for general corporate purposes, which may include acquisitions, investments and repurchases of its common stock.

Landry's is a Houston-based owner and operator of full-service, casual dining restaurants.

Goodman Global oversubscribed

Goodman Global Holdings Inc.'s $500 million credit facility (B2/B+) was oversubscribed ahead of Tuesday's commitment deadline, according to a market source. JPMorgan, UBS Securities and Credit Suisse First Boston are the lead banks on the deal, with JPMorgan the left lead.

The facility consists of a $350 million seven-year term loan B talked at Libor plus 225 basis points and a $150 million six-year revolver talked at Libor plus 225 basis points.

Proceeds from the credit facility, along with a $650 million two-part bond offering, will be used to help fund Apollo Management LP's leveraged buyout of the company.

Price talk of Libor plus 300 to 325 basis points on the floating rate notes and the 8% area on the fixed-rate notes surfaced on Tuesday, with the bonds expected to price on Thursday.

Under the agreement, Apollo will acquire Goodman for about $1.43 billion. Members of the Goodman family will retain a significant investment in the company. Also acquiring an interest in the new company are members of Goodman's senior management team.

Closing of the acquisition, which is expected to occur in the first quarter of 2005, is subject to obtaining approvals under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions for transactions of this nature.

Goodman is a Houston-based heating and air conditioning manufacturer.

Fresenius closes

Fresenius Medical Care AG closed on its new $1.2 billion credit facility consisting of a $750 million 51/4-year revolver with an interest rate of Libor plus 87.5 basis points and a 25 basis point commitment fee, and a $450 million 51/4-year term loan A with an interest rate of Libor plus 87.5 basis points.

The facilities were substantially oversubscribed due to strong support of the bank group with 37 commitments in total, according to a company news release.

Bank of America, Credit Suisse First Boston and Deutsche Bank acted as joint lead arrangers and joint bookrunners on the deal.

Proceeds were used by the Bad Homburg, Germany, kidney dialysis company to refinance the company's previous $1.4 billion facility.

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