Coinmach, Bolthouse set talk; WeightWatchers.com tweaks loan; Delphi, TRW break; Masonite dips

By Sara Rosenberg

New York, Nov. 17 - Coinmach Corp. and Bolthouse Farms came out with price talk on their credit facilities as both deals were launched with bank meetings on Thursday.

Also in the primary, WeightWatchers.com moved funds out of its second-lien term loan and into its first lien, while at the same time lowering pricing on the downsized second-lien tranche. And, Team Health Inc. and Accellent decided to decrease the size of their high-yield offerings while upsizing their credit facilities by the equivalent amount, and Accellent reduced pricing as well.

In secondary activity, Delphi Corp.'s debtor-in-possession financing facility freed for trading with the term loan quoted around 101 and TRW Automotive Holdings Corp.'s term loan add-on freed for trading right atop par.

Also in trading, Masonite International Corp. dropped as October housing numbers created concerns over the company's future operating performance, and Blockbuster Inc. and Movie Gallery Inc. weakened on general sector issues.

Coinmach announced price talk on its $645 million credit facility Thursday in tandem with its launch, with the opening spread on the $75 million revolver set at Libor plus 300 basis points and the opening spread on the $570 million term loan B set at Libor plus 275 basis points, according to a market source.

Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc. are joint lead arrangers on the deal, with Deutsche the left lead.

Proceeds from the term loan will be used to refinance about $230 million of existing term debt and to retire the company's 9% senior notes due 2010.

Coinmach is a Plainview, N.Y., provider of outsourced laundry equipment services for multifamily housing properties.

Bolthouse price talk

Bolthouse Farms came out with price talk on its $725 million credit facility, with the $75 million six-year revolver and the $500 million seven-year term loan B talked at Libor plus 225 basis points, and the $150 million eight-year second-lien term loan talked at Libor plus 500 basis points, according to a syndicate document.

Prior to launch, it was anticipated that the second-lien loan would be sized at $135 million, for a total deal size of $710 million.

Bank of America, Goldman Sachs and Credit Suisse First Boston are the lead banks on the deal that will be used to help fund the leveraged buyout of the company by Madison Dearborn Partners LLC.

Bolthouse is a San Joaquin Valley, Calif., farmer and distributor of fresh produce.

WeightWatchers.com shifts funds

WeightWatchers.com moved $20 million out of its second-lien term loan and into its first-lien term loan and reduced pricing on the second-lien term loan tranche.

The 51/2-year second-lien term loan (B1/B-) is now sized at $50 million, down from $70 million, and pricing was reverse flexed to Libor plus 475 basis points from Libor plus 500 basis points, according to a syndicate document.

Meanwhile, the five-year first-lien term B (Ba3/B+) is now sized at $170 million, up from $150 million. Pricing on this tranche was left unchanged at Libor plus 225 basis points, the document added.

Credit Suisse First Boston is the lead on the $220 million credit facility.

Proceeds will be used to help fund the purchase of all of the equity interest in WeightWatchers.com, including that owned by Artal Luxembourg, resulting in WeightWatchers.com becoming a 100% wholly owned subsidiary of Weight Watchers International Inc.

The cost to acquire and redeem all of the interest not currently owned by Weight Watchers International is $389 million in cash and is based on an enterprise valuation of $552 million for the WeightWatchers.com business.

Weight Watchers is a Woodbury, N.Y., provider of weight loss services.

Team Health upsizes

Team Health Inc. moved $50 million out of its proposed bond offering and into the term loan tranche of its in-market credit facility, according to a market source.

The term loan is now sized at $425 million, up from an original size of $375 million, and the senior subordinated notes offering is now sized at $215 million, down from an original size of $265 million, the source said.

Pricing on the term loan remained at Libor plus 250 basis points, the source added.

Team Health's now $550 million senior secured credit facility (B2/B+) also contains a $125 million revolver with an interest rate of Libor plus 250 basis points.

JPMorgan, Lehman and Merrill Lynch are the lead banks on the credit facility, with JPMorgan the left lead.

Proceeds from the credit facility, along with proceeds from the bond deal and a $365 million equity contribution, will be used to fund The Blackstone Group's leveraged buyout of the company.

As part of the transaction, Team Health will refinance its existing senior secured credit facilities and redeem its 9% senior subordinated notes due 2012. As of June 30, Team Health had $145.7 million of the notes and $202.3 million of bank debt outstanding.

The transaction is expected to be completed by mid-February 2006.

Team Health is a Knoxville, Tenn., provider of outsourced physician staffing and administrative services to health care providers.

Accellent upsizes, cuts spread

Accellent shifted $25 million out of its high-yield bond offering and into its term loan tranche, while at the same reverse flexing pricing on the enlarged institutional loan, according to a market source.

The seven-year term loan is now sized at $400 million, up from an original size of $375 million, and pricing on the tranche came down to Libor plus 200 basis points from original price talk at launch of Libor plus 225 basis points, the source said.

On the flip side, the company's proposed senior subordinated notes offering was downsized to $305 million from $325 million but was priced at a discount of 98.672.

Accellent's $75 million six-year revolver was left unchanged in terms of size and price talk - which is currently set at Libor plus 225 basis points, the source added.

JPMorgan and Credit Suisse First Boston are the lead banks on the $475 million credit facility (B2/BB-), with JPMorgan the left lead.

Proceeds will be used to help fund Kohlberg Kravis Roberts & Co.'s acquisition of Accellent, to refinance Accellent's existing senior secured credit facility and 10% senior subordinated notes due 2012, and for working capital purposes.

KKR is acquiring Accellent from KRG Capital Partners and DLJ Merchant Banking Partners in a transaction valued at about $1.27 billion.

The acquisition is expected to be completed before year-end and is subject to customary closing conditions.

Accellent is a Collegeville, Pa., provider of fully integrated contract manufacturing and design services to medical device manufacturers.

Delphi DIP breaks

Delphi's $2 billion 24-month debtor-in-possession financing facility (B1/BBB-/BB-) allocated and freed for trading on Thursday, with the term loan quoted at 101 bid, 101¼ offered and the revolver quoted at 99¼ bid, no offers, according to a trader.

"The revolver seems to be held tight," the trader said in explanation of why there were no offers for the paper.

Both the $250 million term loan and the $1.75 billion revolver are priced with an interest rate of Libor plus 250 basis points. Originally, the tranches were launched with price talk of Libor plus 275 basis points but were reverse flexed during syndication.

JPMorgan and Citigroup are the lead banks on the deal.

Proceeds from the DIP facility, along with cash generated from daily operations and cash on hand, will be used to fund post-bankruptcy operating expenses, including supplier obligations and employee wages, salaries and benefits.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, expects to complete its U.S.-based restructuring and emerge from Chapter 11 reorganization in early to mid-2007.

TRW trades atop par

TRW's $300 million term loan B add-on allocated and freed for trading on Thursday as well, with levels quoted at par ¼ bid, par ½ offered - essentially unchanged from where the existing term loan B was trading prior to the add-on's break, according to a trader.

The add-on is priced with an interest rate of Libor plus 150 basis points, in line with existing pricing. During syndication the size of the add-on was increased from $200 million.

JPMorgan is the lead bank on the deal.

Proceeds will be used to replenish liquidity at the company that was used to fund the acquisition of a majority share of Dalphi Metal Espana, SA, a Europe-based manufacturer of airbags and steering wheels, for about $134 million.

In addition, proceeds can also be used for the possible retirement or repurchase of certain of the company's existing debt securities or for other corporate purposes.

TRW is a Livonia, Mich.-based provider of advanced technology products and services for the automotive markets.

Masonite falls on market concerns

Masonite's bank debt dropped off by about half a point to 99 1/8 bid, 99 3/8 offered after October housing numbers came out, according to a trader.

"U.S. housing starts were lower-than-expected, so people expect real estate to cool down, which would make Masonite suffer," the trader explained.

According to the U.S. Department of Commerce, construction of new homes and apartments fell by 5.6% in October to 2.014 million and applications for new building permits dropped by 6.7% to 2.071 million.

Masonite International is a Mississauga, Ont.-based building products company.

Blockbuster, Movie Gallery lower

Blockbuster and Movie Gallery's term loan B's traded down on Thursday as general sector concerns continue to pressure the paper, according to a trader.

Blockbuster's B loan was quoted lower by about a quarter to a half a point at 96¾ bid, 97½ offered and Movie Gallery's B loan was quoted lower by about a half a point to a point at 95 bid, 96 offered, the trader said.

Blockbuster is a Dallas-based provider of in-home movie and game entertainment. Movie Gallery is a Dothan, Ala.-based video rental company

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.