R.J. O'Brien, Bombardier, Clearwire, CanWest, Dynea, Nelson set talk; Jacobson, Algoma tweak deals

By Sara Rosenberg

New York, June 14 - R.J. O'Brien & Associates, Inc., Bombardier Recreational Products Inc., Clearwire Corp., CanWest MediaWorks and Dynea North America came out with price talk on their credit facilities as all of these deals were launched to investors during Thursday's session, and Nelson Canada released guidance on its in-market deal as ratings emerged.

In other primary happenings, Jacobson Cos. shifted some funds between its term loans while lowering pricing on the second-lien tranche, and Algoma Steel Inc. reduced pricing on its term loan B.

Moving to the secondary market, Intelsat Ltd. and PanAmSat Holding Corp. both saw their term loans slide a little on buyout bid news.

R.J. O'Brien & Associates held a bank meeting on Thursday to launch its proposed $585 million senior secured credit facility, and in connection with the launch, price talk on the transaction was announced, according to a market source.

The $50 million six-year revolver (B2) and the $385 million seven-year first-lien term loan (B2) are both being talked at Libor plus 250 basis points, and the $150 million eight-year second-lien term loan (B3) is being talked at Libor plus 600 bps, the source said.

The second-lien term loan carries call protection of 102 in year one and 101 in year two, the source added.

Lehman Brothers and Deutsche Bank are the joint lead arrangers on the deal.

Proceeds will be used to help fund the acquisition of the company by Spectrum Equity Investors and Technology Crossover Ventures.

The O'Brien family will retain a substantial minority ownership in the company.

R.J. O'Brien is a Chicago-based futures brokerage firm.

Bombardier releases talk

Price talk on Bombardier Recreational Products' proposed credit facility emerged as well, as it held a conference call on Thursday afternoon to kick start the syndication process, according to a market source.

The $1.15 billion covenant-light term loan B (Ba2) was launched with talk of Libor plus 250 bps, in line with current term loan pricing, and the C$250 million revolver (B1) was launched with talk of Libor plus 225 bps, in line with existing revolver pricing, the source said.

The term loan B will carry 101 soft call protection for one year, the source added.

Merrill Lynch, RBC Capital, BMO and UBS are the lead banks on the deal, which will be used to refinance existing debt and to pay a dividend to shareholders.

Bombardier is a Valcourt, Quebec, motorized recreational vehicles company.

Clearwire sets talk

Clearwire came out with price talk of Libor plus 600 bps on its proposed $1 billion term loan, which includes a delayed-draw component, according to a market source.

Morgan Stanley, Merrill Lynch, JPMorgan and Citigroup are the lead banks on the deal that also launched with a bank meeting on Thursday, with Morgan Stanley the left lead.

Proceeds will be used to refinance debt.

Clearwire is a Kirkland, Wash., provider of wireless broadband services and equipment.

CanWest guidance emerges

CanWest MediaWorks released guidance on its proposed C$950 million credit facility in conjunction with the bank meeting that took place on Thursday morning to launch the deal to lenders, according to a market source.

The C$450 million term loan B in U.S. dollar equivalent is being talked at Libor plus 175 bps to 200 bps, and both the C$250 million revolver and the C$250 million term loan A are being talked at Libor plus 200 bps, the source said.

The term loan B price talk is based on expected ratings of low four-B. Ratings are currently anticipated to be announced on the deal on June 22, the source added.

The revolver carries a 52.5 bps undrawn fee.

Scotia Capital is the sole lead bank on the revolver and the term loan A, which are being sold in Canada, and Scotia and Citigroup are joint leads on the term loan B, with Scotia the left lead.

Proceeds will be used to help fund a privatization agreement between CanWest MediaWorks Income Fund and CanWest MediaWorks LP, under which the fund's outstanding units will be redeemed for C$9.00 in cash.

Closing of the acquisition is expected to occur on or about July 10.

CanWest MediaWorks is a Don Mills, Ont.-based media company.

Dynea price talk

Also coming out with price talk on Thursday was Dynea, as it launched its $250 million senior secured credit facility with a bank meeting in New York, according to a market source.

The $20 million five-year revolver and the $200 million seven-year first-lien term loan were both presented with talk of Libor plus 275 bps, and the $30 million eight-year second-lien term loan was presented with talk of Libor plus 600 bps, the source said.

The second-lien term loan carries call protection of 102 in year one and 101 in year two.

UBS is the lead bank on the deal.

Proceeds will be used to help fund Teachers' Private Capital's acquisition of Dynea North America from Dynea Chemicals Oy of Finland.

Late last year, Dynea was in market with the financing for this buyout but the transaction had to be postponed due to recalculations of certain financials of the company.

The credit facility that had been tabled in 2006 was sized at $245 million, consisting of a $225 million seven-year first-lien term loan and a $20 million five-year revolver, with both tranches talked at Libor plus 225 bps.

Dynea North America is a Mississauga, Ont., manufacturer of adhesive resins and overlay products used in high-performance adhesion and surfacing applications.

Nelson reveals talk with ratings

Nelson Canada was yet another deal to release price talk on Thursday, however, this transaction has been in market for a week and has just been waiting on ratings before going out with the guidance, according to a market source.

The C$50 million U.S. dollar equivalent revolver (Ba3/BB-) and the C$330 million U.S. dollar equivalent first-lien term loan (Ba3/B+) are both being talked at Libor plus 225 bps, and the C$181.5 million U.S. dollar equivalent second-lien term loan (Caa1/CCC+) is being talked at Libor plus 525 bps, the source said.

Call protection on the second-lien term loan is 102 in year one and 101 in year two, the source added.

RBC Capital is the lead bank on the C$561.5 million deal.

Proceeds will be used to help fund the acquisition of Nelson Canada by Omers Capital Partners and Apax Partners from the Thomson Corp.

Nelson Canada is a Scarborough, Ont., provider of books and online resources for the educational market in Canada.

Jacobson reworks deal

In more primary news, Jacobson came out with some changes to its credit facility, including moving some funds out of its second-lien term loan and into its first-lien term loan and reverse flexing pricing on the downsized second-lien tranche, according to a market source.

The first-lien term loan (Ba3/B) is now sized at $295 million, up from $280 million, while pricing was left unchanged at Libor plus 250 bps, the source said.

On the flip side, the second-lien term loan (Caa1/CCC+) is now sized at $135 million, down from $150 million, and pricing was reduced to Libor plus 550 bps from original talk at launch of Libor plus 575 bps, the source continued.

Jacobson's $460 million credit facility also includes a $30 million revolver (Ba3/B).

Bear Stearns, CIBC and Wells Fargo are the lead banks on the deal, with Bear Stearns the left lead.

Proceeds will be used to help fund the acquisition of the company by Oak Hill Capital Partners.

Jacobson is a Des Moines, Iowa, third-party logistics and warehousing company.

Algoma reverse flexes

Algoma Steel reduced pricing on its $450 million term loan B (B3/BB-) to Libor plus 250 bps from original talk at launch of Libor plus 300 bps, according to a market source.

The company's $850 million senior secured credit facility also includes a $400 million ABL revolver.

UBS is the lead bank on the deal, which will be used to help fund Essar Steel Holdings Ltd.'s acquisition of the company for C$1.85 billion.

Of the total revolver amount, $200 million will be funded at close.

Algoma Steel is a Sault Ste. Marie, Ont.-based steel producer. Essar Steel is a Mumbai, India-based steel company.

WideOpenWest ups second-lien spread

WideOpenWest Holdings LLC increased pricing on its $285 million eight-year second-lien PIK toggle term loan (Caa2/CCC) to Libor plus 575 bps cash from original talk at launch of Libor plus 525 bps, according to a syndicate document.

Pricing on the second-lien loan steps up by 75 bps if PIK is elected.

WideOpenWest's $1.31 billion credit facility also includes a $925 million seven-year term loan B (B2/B-) priced at Libor plus 250 bps and a $100 million six-year revolver (B2/B-) priced at Libor plus 250 bps, with a 50 bps commitment fee.

Credit Suisse and Deutsche Bank are the joint lead arrangers on the deal, which will be used for a recapitalization.

WideOpenWest is an Englewood, Colo., provider of cable television, high-speed internet and telephone services.

Intelsat, PanAmSat dip on buyout buzz

Over in the secondary market, Intelsat and PanAmSat both saw their term loan Bs drop in trading on more buyout speculation, according to a trader.

Both the Intelsat and the PanAmSat term loan Bs ended the session at par 3/8 bid, par ¾ offered, down from previous levels of par 5/8 bid, par 7/8 offered, the trader said.

According to the Wall Street Journal, Liberty Media Corp. and EchoStar Communications Corp. are putting in a joint bid for Intelsat in an auction that supposedly ended Thursday.

Talk is that Intelsat will draw bids in the range of $4.5 billion to $5.5 billion.

Intelsat is a Pembroke, Bermuda, satellite company. PanAmSat is a Wilton, Conn., satellite company.

The companies are currently owned by Apax Partners, Apollo Management, Madison Dearborn Partners and Permira.

LCDX lower

LCDX was a touch lower on Thursday, with levels going out at 100.20 bid, 100.25 offered compared with 100.28 bid, 100.33 offered on Wednesday, according to a trader.

"Our market was kind of soft versus the strength of equities today," the trader said. "I wouldn't say we were down across the board but some things were lower by about an eighth of a point.

"We're pretty much softer to sideways," the trader added.

Golden Nugget closes

Golden Nugget Inc. closed on its new $545 million credit facility, according to a company news release.

The facility consists of a $50 million revolver (B1/BB-), $210 million first-lien term loan (B1/BB-), $120 million delayed-draw term loan (B1/BB-) and a $165 million second-lien term loan (Caa1/B+).

Wachovia Capital Markets acted as the lead bank on the deal.

Proceeds were used to refinance substantially all of the company's outstanding debt, including the previously announced tender for its 8¾% senior secured notes due 2011.

Golden Nugget is a Las Vegas-based resort.

OSI closes

An investor group comprised of Bain Capital Partners, LLC, Catterton Partners and company founders Chris T. Sullivan, Robert D. Basham and J. Timothy Gannon completed its acquisition of OSI Restaurant Partners Inc. for $41.15 per share in cash, according to a company news release.

To help fund the transaction, OSI got a new $1.56 billion senior secured credit facility (B1/BB-) consisting of a $150 million six-year revolver priced at Libor plus 250 bps, a $100 million six-year pre-funded revolver priced at Libor plus 225 bps, with a step down to Libor plus 200 bps at B1 corporate rating, and a $1.31 billion seven-year term loan priced at Libor plus 225 basis points, with a step down to Libor plus 200 bps at B1 corporate rating.

During syndication, pricing on the pre-funded revolver and the term loan was lowered from original talk at launch of Libor plus 250 bps to Libor plus 212.5 bps to 225 bps with a 25 bps step down, before firming up at the wide end of that revised guidance.

Also, the term loan was upsized first to $1.23 billion from $1.08 billion after the company downsized its bond offering, and then after the deal freed up for trading, an $80 million add-on to the term loan was syndicated because of an increase in the purchase price from $40.00 per share.

Deutsche Bank and Bank of America acted as the lead banks on the deal.

OSI is a Tampa, Fla., casual dining restaurant company with a portfolio of brands, including Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse & Wine Bar, Roy's, Lee Roy Selmon's, Blue Coral Seafood & Spirits and Cheeseburger in Paradise.

American Axle closes

American Axle & Manufacturing Holdings, Inc. closed on its $250 million unsecured term loan due 2012 (Ba3/BB/BB) on Thursday, according to an 8-K filed with the Securities and Exchange Commission.

JPMorgan and Bank of America acted as the joint lead arrangers and joint bookrunners on the deal.

The term loan is priced at Libor plus 250 bps.

Any prepayment of the term loan as a result of a change of control will be subject to a 101 prepayment premium.

Proceeds are being used for general corporate purposes, including the prepayment of the company's existing $250 million term loan.

American Axle is a Detroit-based manufacturer of driveline systems and related powertrain components and chassis modules.

© 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.