Supervalu up on amendment; Aquilex, RadNet set talk; Skilled Healthcare, Aveta ready launches

By Sara Rosenberg

New York, March 16 - Supervalu Inc.'s bank debt was stronger in Tuesday's trading market following news that the company will be launching an amendment that would extend maturities in return for increased pricing.

Over in the primary market, Aquilex Holdings LLC and RadNet Inc. came out with price talk on their credit facilities as both transactions were officially presented to lenders during the session, and Skilled Healthcare Group Inc. and Aveta Inc. are gearing up to launch new loans.

Also on the new deal front, Willbros Group Inc. revealed who will be leading its proposed acquisition financing credit facility, which is expected to come to market in a couple of weeks, and Lyondell Chemical Co.'s recently launched term loan B is heard to be going very well.

Supervalu up with amend/extend

Supervalu's term loans headed higher after word hit that the company will be talking to lenders on Wednesday morning about an amend and extend transaction that is being led by RBS and Credit Suisse, according to a trader.

The term loan B was quoted at 99 1/8 bid, 99 7/8 offered, up from 98 7/8 bid, 99 3/8 offered, and the term loan A was quoted at 99¼ bid, par offered, up from 99 1/8 bid, 99½ offered, the trader said.

Under the amendment proposal, the company will ask to extend $500 million of its term loan B to October 2015 from June 2012, and pricing on the extended loan would be Libor plus 275 basis points, up from Libor plus 125 bps on the non-extended.

Also, the company wants to extend $1.5 billion of its revolver to April 2015 from June 2011 and pricing on the extended revolver would be Libor plus 225 bps, compared to pricing of Libor plus 100 bps on the non-extended.

No extension is being sought for the Eden Prairie, Minn.-based supermarket operator's term loan A.

Aquilex price talk

Moving to the primary, Aquilex held a bank meeting on Tuesday to kick off syndication on its proposed $235 million senior secured credit facility (BB-), and in conjunction with the launch, price talk surfaced, according to a market source.

Both the $50 million revolver and the $185 million term loan are being talked at Libor plus 400 bps with a 2% Libor floor, the source said.

The revolver is being offered at an original issue discount of 99, while the term loan is being offered at a discount of 981/2, the source continued.

Morgan Stanley and RBC are the lead banks on the deal that will be used to refinance the company's existing credit facility, with Morgan Stanley the left lead.

Closing on the refinancing is expected to take place in April.

Aquilex releases results

Also on Tuesday, in connection with the launch of the refinancing transaction, Aquilex announced preliminary unaudited results for the fiscal year ended 2009.

Revenue for the fiscal year ended 2009 was about $480 million, compared to approximately $579 million for the prior fiscal year, the company revealed in a news release.

And, consolidated adjusted EBITDA for the fiscal year was roughly $88 million, compared to approximately $101 million for the fiscal year ended 2008.

The company said that it came out with the preliminary results so that holders of its outstanding high-yield bonds would have access to key preliminary results information that was being provided to potential lenders in the refinancing.

Aquilex is an Atlanta-based provider of maintenance, repair and industrial cleaning services for the energy industry.

RadNet guidance surfaces

Another company to hold a bank meeting on Tuesday was RadNet, and it, too, came out with price talk on its credit facility with the launch, according to a market source, who said that the meeting was "very well attended" and the deal has already "got some momentum."

The $275 million six-year term loan was launched with talk of Libor plus 375 bps to 400 bps with a 2% Libor floor and an original issue discount in the 99 area, the source said.

And, the $100 million five-year revolver was launched with talk of Libor plus 375 bps with a 2% Libor floor and an upfront fee of two points, the source continued.

Barclays Capital, GE Capital Markets, Deutsche Bank, RBC Capital Markets and Jefferies are the lead banks on the$375 million deal (Ba3/B+).

Security is a first-priority interest in all of the company's tangible and intangible assets, including, but not limited to, a stock pledge of all of its current and future wholly owned domestic subsidiaries.

RadNet refinancing debt

Proceeds from RadNet's new credit facility will be used to help refinance its existing revolver due 2011, term loan B due 2012 and second-lien loan due 2013. The revolver is expected to be undrawn at close.

Other funding for the refinancing will come from a $210 million senior unsecured notes offering, and completion of the credit facility is contingent on completion of the notes.

The refinancing transaction, upon completion, would extend the maturity of the company's debt, increase the size of its revolver by about $45 million and further enhance its liquidity by adding about $25 million of cash to its balance sheet.

Closing on the refinancing is expected to take place in early April.

RadNet is a Los Angeles-based provider of diagnostic imaging services.

Skilled Healthcare sets launch

Skilled Healthcare has scheduled a bank meeting in New York with a 9:30 a.m. ET registration and a 10 a.m. ET start to launch a proposed $430 million credit facility, according to sources.

The facility consists of a $100 million revolver and a $330 million term loan, sources said.

One source remarked that he heard rumors of price talk of Libor plus 375 bps with a 1.5% Libor floor on the new loan, but nothing official was announced.

Credit Suisse, Barclays, JPMorgan and Bank of America are the lead banks on the deal that will be used to refinance the company's existing senior secured credit facility comprised a $260 million term loan and a $135 million revolver.

Secured leverage is 3.1 times and total leverage is 4.2 times.

Skilled Healthcare is a Foothill Ranch, Calif.-based health care services company.

Aveta readies deal

Aveta is set to hold a bank meeting on Thursday in New York at 9:30 a.m. ET to launch a proposed $360 million credit facility that consists of a $60 million five-year revolver and a $300 million five-year term loan B, according to a market source.

The term loan B is talked at Libor plus 600 basis points with a 2% Libor floor and an original issue discount of 97, and includes call protection of 102 in year one and 101 in year two, the source said.

Bank of America, Citigroup and Jefferies are the lead banks on the deal that will be used to refinance existing debt and fund a dividend, with Bank of America the left lead.

Aveta is a Fort Lee, N.J.-based medical management company caring for 232,000 Medicare beneficiaries and 300,000 commercial members in Puerto Rico, California, Arizona and Illinois.

Willbros lead banks

Willbros disclosed in an 8-K filed with the Securities and Exchange Commission on Tuesday that Crédit Agricole Corporate and Investment Bank (formerly Calyon) and UBS Securities will be acting as the lead banks on its proposed $475 million senior credit facility.

A bank meeting to launch the credit facility, which consists of a $175 million three-year revolver and a $300 million four-year term loan, is still a couple of weeks away and closing is expected to take place in late April, a market source said.

Proceeds will be used to help fund the acquisition of InfrastruX Group Inc. for $360 million and 7.9 million of new Willbros shares. In addition, InfrastruX stockholders will be eligible for contingent earn-out payments of up to $125 million.

Willbros is a Houston-based independent contractor for the oil, gas, power, refining and petrochemical industries. InfrastruX is a Seattle, Wash.-based provider of electric power and natural gas transmission and distribution infrastructure services.

Lyondell nets attention

Chatter is that Lyondell Chemical's $1 billion six-year senior secured term loan B (Ba3) is already seeing "big demand" with a "whole lot" of orders in since launching to investors this past Monday, according to a market source.

The term loan B is being talked in the Libor plus 425 bps area with a 2% Libor floor and an original issue discount that is still to be determined. Rumor is that the discount will come out sometime next week.

Covenants under the term loan B include a maximum first-lien leverage ratio and a minimum interest coverage ratio.

UBS, Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, JPMorgan, Morgan Stanley and Wells Fargo are the joint bookrunners on the term loan B, and they are asking for commitments by late in the week of March 22.

Lyondell getting revolver

Lyondell's $2.75 billion credit facility also includes a $1.75 billion ABL revolver that is being talked at Libor plus 375 bps with a 2% Libor floor.

Citigroup is the left lead on the ABL revolver.

Proceeds from the credit facility, $2.25 billion of 71/2-year senior secured notes, a new European securitization facility and a $2.8 billion rights offering will be used to repay and replace existing debt, including the company's debtor-in-possession facilities and an existing European securitization facility and to make related payments, when the company exits bankruptcy.

The hearing to confirm the company's plan of reorganization will begin on April 23.

Lyondell is a U.S. subsidiary of LyondellBasell Industries AF SCA, a Netherlands-based polymer, petrochemicals and fuels 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.