Petco Animal Supplies, Pinnacle Foods, 1-800 Contacts join this week’s new issue calendar

By Sara Rosenberg

New York, Jan. 4 – In the primary market on Monday, Petco Animal Supplies Inc. and Pinnacle Foods Inc. firmed timing on the launch of their new loans, and 1-800 Contacts Inc. (CNT Holdings III Corp.) set a bank meeting date and outlined the structure on its credit facility.

Petco sets timing

Petco nailed down timing on the launch of its proposed credit facility, scheduling a bank meeting for 11 a.m. ET in New York on Tuesday, according to a market source.

Previously, a source told Prospect News that the company would be seeking roughly $2.5 billion of loans sometime in early January, with Tuesday being the targeted launch date.

Citigroup Global Markets Inc., Barclays, RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Nomura and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by CVC Capital Partners and Canada Pension Plan Investment Board from TPG and Leonard Green & Partners for roughly $4.6 billion.

Closing is expected early this year, subject to customary conditions.

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

Pinnacle Foods on deck

Pinnacle Foods set a lender call for 10 a.m. ET on Wednesday to launch its up to $900 million incremental term loan, a market source remarked.

Bank of America Merrill Lynch, Barclays and Credit Suisse Securities (USA) LLC are leading the loan that will be used with cash on hand to fund the purchase of Boulder Brands Inc. for $11.00 per share, in a transaction valued at about $975 million, including around $265 million of net debt.

Net leverage will be about 5 times.

Closing is expected this quarter, subject to customary conditions.

Pinnacle Foods is a Parsippany, N.J.-based producer, marketer and distributor of branded food products. Boulder Brands is a Boulder, Colo.-based manufacturer of a portfolio of health and wellness brands.

1-800 details emerge

1-800 Contacts surfaced with plans to hold a bank meeting at 10:30 a.m. ET in New York on Wednesday to launch a $580 million credit facility, a market source said.

The facility consists of an $80 million five-year revolver and a $500 million seven-year first-lien term loan with a 1% Libor floor, the source continued.

Spread and original issue discount talk on the term loan are still to be determined.

Commitments are due at 5 p.m. ET on Jan. 20, the source added.

Credit Suisse Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund AEA Investors LP’s acquisition of a majority interest in the company from Thomas H. Lee Partners LP, who will remain a significant shareholder in the company.

The company had previously disclosed that new debt financing would be used for the transaction, but details were not available.

1-800 Contacts is a Draper, Utah-based retailer of contact lenses.

TaxACT closes

In other news, TaxACT Holdings Inc. completed its acquisition of HD Vest Financial Services for about $580 million, according to a news release.

To help fund the transaction, TaxACT got a new $425 million credit facility (B1/BB-) consisting of a $25 million five-year revolver and a $400 million seven-year first-lien term loan B.

Pricing on the B loan is Libor plus 600 basis points with a 1% Libor floor, and it was sold at an original issue discount of 97. The debt has 101 soft call protection for one year.

During syndication, the spread on the term loan was raised from Libor plus 500 bps, and the discount was revised from 99.

BMO Capital Markets Corp. led the deal.

TaxAct, a subsidiary of Blucora Inc., is a Cedar Rapids, Iowa-based provider of digital and download tax preparation solutions. HD Vest is an Irving, Texas-based broker-dealer providing wealth management and advisory solutions specifically for tax professionals.

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