General Nutrition, Gentiva, Savers free up; JMC, NDS, CB Richard, Global Tel tweak deals

By Sara Rosenberg

New York, March 3 - General Nutrition Centers Inc.'s credit facility made its way into the secondary market on Thursday, with term loan B levels quoted above par, and Gentiva Health Services Inc. and Savers Inc. broke for trading, too.

Moving to the primary, JMC Steel Group came out with changes to its term loan, including lowering the spread and the original issue discount, and NDS Finance reduced pricing and Libor floor on its B loan.

Also making changes was CB Richard Ellis Group Inc., as it moved some funds between its term loans, and Global Tel*Link Corp. announced a downsizing to its deal as well as an update on discount price.

Additionally, in the primary, Fresenius SE and Swift Transportation Co LLC surfaced with quick-to-market deals, Presidio Inc. revealed that it is getting ready to launch a new buyout financing facility, and ConvaTec Healthcare and MetroPCS Wireless Inc. lined up refinancings for this week.

Furthermore, Warner Chilcott plc released the structure and price talk on its credit facility, Vision Solutions Inc. guidance surfaced, and Isle of Capri Casinos Inc. and Grocery Outlet Inc. disclosed their loan offer prices as all of these deals were presented to lenders during the session.

GNC starts trading

General Nutrition Centers' credit facility hit the secondary market on Thursday, with levels on the $1.2 billion seven-year term loan B quoted at par 3/8 bid, par 5/8 offered, according to a trader.

Pricing on the term loan B is Libor plus 300 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 993/4. There is 101 soft call protection for one year.

During syndication, the B loan was upsized from $1.1 billion, pricing was flexed down from Libor plus 350 bps, the discount came in from 99½ and call protection was added.

The company's $1.28 billion refinancing credit facility (B1/B+), led by J.P. Morgan and Goldman Sachs, also includes an $80 million five-year revolver.

General Nutrition Centers is a Pittsburgh-based specialty retailer of nutritional products, including vitamin, mineral, herbal and other specialty supplements and sports nutrition, diet and energy products.

Gentiva breaks

Gentiva's credit facility also broke for trading, with the $547 million term loan B due Aug. 17, 2016 quoted by one trader at par 1/8 bid, par ½ offered on the open and a second trader was quoting it at par ¼ bid.

Pricing on the term loan B is Libor plus 350 bps with a 1.25% Libor floor, and it was sold to investors at par. There is 101 soft call protection for six months.

The company's $852 million senior credit facility also includes a $125 million revolver due Aug. 17, 2015 priced at Libor plus 500 bps with a leverage grid and a $180 million term loan A due Aug. 17, 2015 priced at Libor plus 325 bps with a 1.25% Libor floor.

Bank of America Merrill Lynch, GE Capital, Barclays Bank and SunTrust are the lead banks on the deal.

Gentiva repricing debt

Proceeds from Gentiva's credit facility will be used to refinance/reprice an existing bank deal that was obtained in August 2010 for the acquisition of Odyssey HealthCare Inc.

At close, the existing revolver and term loan A were priced at Libor plus 500 bps, with the term loan A having a 1.5% Libor floor and issued at an original issue discount of 98. Pricing on these tranches can vary from Libor plus 400 bps to 500 bps based on leverage.

As for the existing term loan B, pricing at close was Libor plus 500 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 96. The loan includes soft call protection of 102 in year one and 101 in year two, so with this refinancing, existing lenders are getting paid down at 102.

Gentiva is an Atlanta-based home health care provider.

Savers tops par

Another deal to start trading was Savers, with its $460 million six-year term loan B quoted at par ½ bid, par ¾ offered, according to a trader.

Pricing on the term loan B is Libor plus 300 bps with a step-down to Libor plus 275 bps at less than 2.75 times leverage and a 1.25% Libor floor. The loan was sold at par.

During syndication, pricing was lowered from Libor plus 325 bps, the step-down was added, the Libor floor was cut from 1.5% and the initially proposed discount of 99½ was removed.

J.P. Morgan is the lead bank on the deal $500 million credit facility (Ba3/B+) that also includes a $40 million revolver, and will be used to refinance existing debt and fund the acquisition of 18 stores from Apogee, a thrift store operator owned by Golden Gate Capital.

At close, Savers, a Bellevue, Wash.-based thrift store chain, will have leverage of 3.8 times all senior.

PEP holds steady

In more trading happenings, Precision Engineered Products LLC's (PEP) $160 million six-year term loan B held firm at par bid, par ½ offered after breaking at that level on Wednesday night, according to a market source.

Pricing on the term loan B is Libor plus 400 bps with a step-down to Libor plus 375 bps at less than 2.75 times leverage and a 1.5% Libor floor. It was sold at an original issue discount of 991/2.

The company's $190 million credit facility (B1/BB-) also includes a $30 million five-year revolver priced at Libor plus 400 bps with a 1.5% floor and a discount of 99½ as well.

During syndication, pricing on the facility was reduced from Libor plus 450 bps and the discount tightened from 99.

PEP being acquired

Proceeds from Precision Engineered Products' credit facility are being used to fund the buyout of the company by the Jordan Co. and Nautic Partners.

KeyBanc Capital Markets is the lead arranger, bookrunner and administrative agent on the deal.

Senior and total leverage at close will be around 3.3 times and the resulting capitalization is comprised of roughly 50% equity.

Precision Engineered Products is an Attleboro, Mass.-based manufacturer of highly engineered precision metal and plastic components, materials and surface finishing technologies for use in medical, energy control & distribution and other demanding technical applications.

JMC reworks pricing

Switching to the primary, JMC Steel Group reverse flexed pricing on its $400 million six-year term loan (B1/BB-) to Libor plus 325 bps from Libor plus 375 bps and tightened the original issue discount to 99½ from 99, while leaving the 1.5% Libor floor intact, according to sources. The tranche includes 101 soft call protection for one year.

J.P. Morgan is the lead bank on the deal that will be used to help refinance existing debt and fund the acquisition of the company by the Zekelman family from the Carlyle Group.

The company also plans on getting a $400 million ABL revolver and issuing $725 million of notes in connection with the buyout.

The transaction, which is subject to financing, is expected to close by March 31.

JMC Steel is a Beachwood, Ohio-based manufacturer of steel pipe and tubes that was formed through the combination of John Maneely Co. and Atlas Tube in December 2006.

NDS flexes

NDS Finance cut pricing on its $800 million seven-year term loan B to Libor plus 300 bps from Libor plus 325 bps, reduced the Libor floor to 1% from 1.25% and added 101 soft call protection for six months, according to a market source. Pricing can step down to Libor plus 275 bps at less than 3.0 times leverage and the debt is still being offered at an original issue discount of 991/2.

The company's $1.125 billion credit facility (Ba2/BB-) also includes a $75 million revolver and a $250 million euro-equivalent six-year term loan A.

J.P. Morgan, Morgan Stanley, BNP Paribas, Goldman Sachs, Lloyds and UBS are the lead banks on the deal that will be used to refinance existing debt.

NDS is a U.K.-based supplier of open end-to-end digital technology and services to digital pay-television platform operators and content providers.

CB Richard retranches

CB Richard downsized its delayed-draw seven-year term loan C to $400 million from $500 million and upsized its delayed-draw 81/2-year term loan D to $400 million from $300 million, while leaving pricing unchanged, according to a market source,

Pricing on the term loan C is Libor plus 325 bps and pricing on the term loan D is Libor plus 350 bps, with no Libor floor on either, and an original issue discount of 99½ on both.

Credit Suisse Securities and Bank of America Merrill Lynch are the lead banks on the $800 million senior secured deal (BB) that will be used to help fund the roughly $940 million - or $1.2 billion all-in - acquisition of the real estate investment management business of ING Group NV.

CB Richard seeks amendment

In connection with the new loans, CB Richard is looking to amend its existing credit facility to allow its wholly owned subsidiaries to be borrowers of the debt, to maintain the availability of the credit agreement's accordion feature at $800 million and to add an exception to the investment covenant relating to the acquisition.

Under the agreement, CB Richard is purchasing substantially all of the ING REIM operations in Europe and Asia, as well as Clarion Real Estate Securities, its U.S.-based global real estate listed securities business. The company is also acquiring about $55 million of CRES co-investments from ING and potentially interests in other funds managed by ING REIM Europe and ING REIM Asia.

Closing on the acquisition is expected in the second half of this year, subject to approval by certain stakeholders, including regulatory agencies in the United States., Europe and Asia.

CB Richard is a Los Angeles-based commercial real estate services firm.

Global Tel trims size

Global Tel*Link downsized its first-lien term loan to $455 million (B1/B) from $485 million, and the tranche now includes a $30 million deposit letter-of-credit facility, reduced from $40 million, according to a market source.

Pricing on the entire first-lien term loan is Libor plus 400 bps with a 1% Libor floor, and it is being offered at an original issue discount of 991/2. Previously, it was only the new money that was being offered at that discount, while the repricing funds were being offered at par. There is still 101 soft call protection for one year.

The company is refinancing/repricing its existing $395 million first-lien term loan and $40 million deposit letter-of-credit facility from Libor plus 550 bps with a 1.75% Libor floor. This debt was sold at a discount of 98 in 2010 when it was obtained for a dividend recapitalization, and it is being repaid at 101.

Credit Suisse is the lead bank on the deal and has asked for recommitments by noon ET on Friday.

Global Tel*Link is a Mobile, Ala.-based correctional communications technology company.

Fresenius launches refi

Fresenius held a conference call on Thursday to launch a new term loan D, comprised of a $983.5 million tranche and a €162.5 million tranche, that will be used to refinance an existing term loan C, according to a market source.

Price talk on the term loan D is Libor/Euribor plus 250 bps with a 1% Libor floor and an offer price of 99¾ to par, the source said.

By comparison, the term loan C, which was completed in March 2010 as part of a refinancing, is priced at Libor/Euribor plus 300 bps with a step-down to Libor plus 275 bps after March 31, 2011 if leverage is 3.5 times or less. There is a 1.5% Libor floor and 101 soft call protection for one year.

At close the term loan C consisted of an approximately $996 million tranche and a roughly €165 million tranche.

Fresenius maturity unchanged

Fresenius' proposed term loan D will mature in September 2014, which is when the term loan C is set to expire, the source continued.

Additionally, covenants under the term loan D are the same as the covenants under the term loan C.

Deutsche Bank is the lead bank on the deal and is seeking commitments towards the new loan by March 9.

Fresenius is a Bad Homburg, Germany-based provider of products and services for individuals undergoing dialysis.

Swift holds call

Swift Transportation also held a lender call on Thursday to launch a refinancing/repricing transaction, according to a market source.

The company launched a $1.07 billion term loan with price talk of Libor plus 350 bps with a 1.25% Libor floor and a par offer price. It replaces its $1.07 billion term loan that is priced at Libor plus 450 bps with a 1.5% Libor floor and was sold at an original issue discount of 99 back in December when the company undertook a refinancing initiative.

The new loan, like the existing loan, includes 101 soft call protection for one year. Lenders under the existing deal are getting paid down at the call protection level.

Bank of America Merrill Lynch, Morgan Stanley and Wells Fargo are the lead banks on the deal.

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

Presidio deal emerges

Presidio has scheduled a bank meeting for Friday at 12:30 p.m. ET at the Four Seasons in New York to launch a $360 million credit facility that will be used to help fund its buyout by American Securities, according to a market source.

The facility consists of a $35 million revolver and a $325 million term loan B, the source said. Price talk on the deal is expected to surface with the launch, a second source added.

Barclays and Morgan Stanley are the joint lead arrangers and bookrunners on the deal, and GE Capital Markets is a bookrunner as well.

Last December, the company did a dividend recapitalization deal, under which it got a $200 million term loan B priced at Libor plus 575 bps with a 1.75% Libor floor. The loan was sold at an original issue discount of 97½ and includes 101 soft call protection for one year.

Presidio is a Greenbelt, Md.-based provider of advanced technology infrastructure services.

ConvaTec coming soon

ConvaTec Healthcare has set a conference call for Friday to launch a refinancing/repricing of its $500 million term loan B and €550 million term loan B, according to a market source, who said that price talk is not yet available.

In December, as part of a refinancing transaction, the company priced its existing term loan B debt at Libor/Euribor plus 425 bps with a 1.5% Libor floor, and sold it at an original issue discount of 991/2.

J.P. Morgan and Goldman Sachs are the lead banks on the deal.

ConvaTec is a Skillman, N.J.-based developer, manufacturer and marketer of medical technologies for community and hospital care.

MetroPCS readies loan

MetroPCS Wireless is scheduled to hold a conference call on Friday to launch a new $1.5 billion term loan (BB) that is being led by J.P. Morgan and Wells Fargo, according to sources.

Proceeds will be used to repay a $500 million term loan maturing in 2013 and for general corporate purposes, including opportunistic spectrum acquisitions.

The new deal is being with an amendment and restatement of the company's existing $1.6 billion senior secured credit facility that would modify certain terms and conditions, subject to approval from a majority of lenders.

Closing is expected to occur this month.

MetroPCS is a Dallas-based provider of unlimited wireless communications service for a flat-rate with no annual contract.

Warner Chilcott structure

Details on Warner Chilcott's proposed $3.25 billion credit facility were disclosed as the deal was launched with a lender call on Thursday, according to a market source.

The facility consists of a $250 million five-year revolver talked at Libor plus 300 bps with no Libor floor, a $750 million five-year term loan A talked at Libor plus 300 bps with a 1% Libor floor and a $2.25 billion seven-year term loan B talked at Libor plus 325 bps with a 1% Libor floor and a par offer price, the source said. The term loan B includes 101 soft call protection for six months.

J.P. Morgan, Bank of America Merrill Lynch, Goldman Sachs and Morgan Stanley are the lead banks on the deal.

Closing is expected to occur in mid-March.

Warner repaying loans

Proceeds from Warner Chilcott's credit facility will be used to refinance existing bank debt, which as of Dec. 31, had $3.419 billion in term loans outstanding and no revolver borrowings.

In August 2010, the company got a $1.02 billion 51/2-year term loan B priced at Libor plus 425 bps with a 2.25% Libor floor that was sold at an original issue discount of 99 and includes 101 soft call protection for one year. It also obtained a $480 million four-year term loan A priced at Libor plus 425 bps.

Also in August, the company amended its credit facility, increasing pricing on an existing term loan A to Libor plus 375 bps and on an existing term loan B to Libor plus 400 bps, with both having a 2.25% Libor floor.

Warner Chilcott is an Ireland-based specialty pharmaceutical company.

Vision price talk

Vision Solutions held a bank meeting on Thursday afternoon to kick off syndication on its proposed credit facility, and in connection with the event, price talk was announced, according to a market source.

The $240 million first-lien term loan is being talked at Libor plus 425 bps to 450 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2, and the $130 million second-lien term loan is being talked at Libor plus 775 bps to 800 bps with a 1.5% Libor floor and an original issue discount of 99, the source said. The second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Jefferies is the lead bank on the $385 million credit facility, which also includes a $15 million revolver.

Vision dividend recap

Proceeds from Vision Solutions' credit facility will be used to repay $223 million of existing bank loans, redeem $33 million of preferred stock and fund a $118 million dividend to stockholders.

In 2010, in connection with the acquisition of Double-Take Software Inc., the company got a $255 million senior secured credit facility comprised of a $15 million revolver and a $240 million term loan, with both tranches priced at Libor plus 600 bps with a 1.75% Libor floor and sold at an original issue discount of 96. The term loan includes 101 soft call protection for one year.

Following completion of this transaction, leverage through the first-lien will be 3.6 times and leverage through the second-lien will be 5.6 times.

Vision Solutions is an Irvine, Calif.-based provider of high availability, disaster recovery and system management services for IBM Power Systems.

Isle of Capri offer price

Isle of Capri announced that its $500 million six-year term loan B is being offered to investors at a price of par as the deal was launched with a bank meeting on Thursday morning, according to a market source. Prior to the launch, the offer price was labeled as to be determined.

Also coming out with the meeting was word that the B loan includes 101 soft call protection for one year, the source said.

As was previously reported, price talk on the term loan B is Libor plus 350 bps with a 1.25% Libor floor.

The company's $825 million credit facility (Ba3/BB-) also includes a $325 million five-year revolver talked at Libor plus 350 bps, subject to a grid.

Prior to the official launch, sources told Prospect News that the revolver was already moving well among relationship banks and that a number of existing institutional lenders were rolling over into the new term loan B.

Isle of Capri refinancing

Proceeds from Isle of Capri's credit facility, along with $300 million of senior notes, will be used to refinance existing bank debt.

The notes priced on Wednesday at 99.264 to yield 7 7/8%. Price talk on the offering had been for a yield in the 7¾% area.

Wells Fargo, Credit Suisse and Deutsche Bank are the lead banks on the credit facility.

The company expects to close on the new facility shortly after completing the notes offering and prior to the end of the fourth quarter of fiscal 2011.

Isle of Capri is a St Louis-based owner and operator of gaming, lodging and entertainment facilities.

Grocery sets OID talk

Grocery Outlet launched its $168 million senior secured credit facility with a bank meeting on Thursday, at which time lenders were told that the entire deal is being offered at an original issue discount of 99, according to a market source.

The facility consists of a $25 million revolver and a $143 million term loan, with both tranches talked at Libor plus 400 bps with a 1.5% Libor floor.

Societe Generale is the administrative agent and sole bookrunner on the deal, and a joint lead arranger with Bank of Ireland and Union Bank, who are both also co-syndication agents.

Proceeds will be used to refinance an existing facility priced at Libor plus 575 bps with a 2.5% Libor floor that was obtained in 2009 in connection with an equity investment by Berkshire Partners LLC.

Commitments are due on March 17.

Grocery Outlet, a Berkeley, Calif.-based value grocery retailer, will have leverage of 2.1 times senior and 2.9 times total.

Delta allocating soon

In other news, Delta Air Lines Inc. is expecting to allocate its $250 million term loan (Ba2/BB-) on Friday now that the noon ET Thursday recommitment deadline has passed, according to a market source.

The term loan is priced at Libor plus 300 bps with a 1.25% Libor floor and an original issue discount of 99½ and includes 101 soft call protection for one year. Recently, pricing had been flexed from Libor plus 325 bps and the call protection was added.

Citigroup and Deutsche Bank are the lead banks on the deal that will be used to refinance/reprice an existing $246.8 million term loan.

Pricing on the existing loan is Libor plus 675 bps with a 2% Libor floor, and it was sold at an original issue discount of 98 when it was obtained in 2009 to repay bank debt.

Delta Air Lines is an Atlanta-based airline company.

Rite Aid closes

Rite Aid Corp. completed its $343 million seven-year tranche 5 term loan that is priced at Libor plus 325 bps with a 1.25% Libor floor, according to a news release, and was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the Libor floor was tightened from 1.5%, and the call protection was extended from an initially proposed term of six months.

Proceeds were used to refinance a tranche 3 term loan priced at Libor plus 300 bps with a 3% Libor floor. This debt was sold at an original issue discount of 90 when it was done in July 2008. The loan was sized at $350 million at close, but has since been paid down.

Citigroup, Bank of America Merrill Lynch, Credit Suisse, GE Capital and Wells Fargo acted as the lead banks on the deal for the Camp Hill, Pa.-based drugstore chain.

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