Targa pulls loan; Woodstream, Schneller, Bushnell tweak deals; LCDX, cash soften with equities

By Sara Rosenberg

New York, Aug. 9 - Targa Resources Inc. decided to remove its multi-billion credit facility from the primary due to market conditions.

In other primary news, Woodstream Corp. made its credit facility changes official, downsizing the term loan, adding an original issue discount and increasing price talk, Schneller Inc. raised spreads on its credit facility and also added a discount, and Bushnell Outdoor Products lifted pricing on its first-lien bank debt and is considering adding a discount.

Over in the secondary, LCDX and the cash loan market felt a bit weaker as stocks tumbled lower.

Targa Resources pulled its $2.475 billion senior secured credit facility from market because the "financing is not currently available on acceptable terms", according to a company news release.

The credit facility consisted of a $300 million six-year revolver (Ba3/B+) talked at Libor plus 225 basis points, a $300 million seven-year synthetic letter-of-credit facility (Ba3/B+) talked at Libor plus 250 bps, a $1.525 billion seven-year first-lien term loan (Ba3/B+) talked at Libor plus 250 bps and a $350 million 71/2-year second-lien term loan (B3/CCC+) talked at Libor plus 575 bps.

The revolver had a 50 bps commitment fee.

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

Credit Suisse, Merrill Lynch, Lehman Brothers and Deutsche Bank were acting as the lead banks on the deal.

Proceeds were going to be used to refinance existing bank debt and to fund a tender offer for the company's $250 million 8½% senior notes due 2013.

As a result of the credit facility being pulled, the company terminated the note cash tender offer and related solicitation of consents. The tender offer was scheduled to expire on Aug. 15.

Targa is a Houston-based midstream energy company.

Woodstream reworks deal

Woodstream came out with official revisions to its credit facility that were in line with what sources had expected as the term loan was downsized, pricing was raised on all tranches and an original issue discount was added, according to a market source.

The seven-year term loan is now sized at $143.75 million, down from $200 million, pricing was flexed up to Libor plus 350 bps to 400 bps from previous guidance of Libor plus 275 bps to 300 bps, and the paper is now being offered to investors at a discount of 99, the source said.

In addition, the $65 million six-year revolver, size unchanged, saw its price talk go up to Libor plus 350 bps to 400 bps from previous talk of Libor plus 275 bps to 300 bps, the source continued.

GE Capital is the lead bank on the now $208.75 million (down from $265 million) credit facility.

Proceeds will be used to refinance debt and to help fund the sale of a minority interest in the company.

To compensate for the term loan downsizing, the subordinated debt was raised to $90 million from $67.5 million and the equity was revised as well.

Woodstream is a Lititz, Pa., pest control and bird feeding company.

Schneller ups pricing

Schneller flexed pricing higher on both tranches under its credit facility and added an original issue discount to the term loan, according to a market source.

The $15 million revolver and the $103 million term loan are now both priced at Libor plus 350 bps, up from original talk at launch of Libor plus 275 bps to 300 bps, the source said.

In addition, the term loan is now being sold to investors at a discount of 99, the source added.

GE Capital is the lead bank on the $118 million deal.

Proceeds will be used to help fund the already completed buyout of the company by Graham Partners, Inc.

Schneller is a Kent, Ohio, designer and manufacturer of engineered decorative laminates, thermoplastic sheet and non-textile flooring for the aviation, rail and architectural markets.

Bushnell first-lien flexes

Bushnell Outdoor Products raised pricing on its revolver and first-lien term loan and is contemplating adding an original issue discount to the first-lien term loan tranche, according to a market source.

The $40 million six-year revolver and the $278 million six-year first-lien term loan are now both being talked at Libor plus 350 bps, up from original talk at launch of Libor plus 300 bps, the source said.

Bushnell's $509 million credit facility also includes a $191 million 61/2-year second-lien term loan that is being talked at Libor plus 650 bps, in line with initial talk.

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

GE Capital is the lead bank on the deal.

Proceeds will be used to help fund the buyout of the company by MidOcean Partners from Wind Point Partners. Bushnell's senior management team will have a significant ownership stake in the company.

Leverage is 4.0 times through the first-lien debt and 6.75 times through the second-lien debt.

Bushnell is an Overland Park, Kan., manufacturer and marketer of sports optics, eyewear and outdoor accessories.

Eimskip firms spreads at high end

Eimskip Holdings, Inc. firmed up pricing on its credit facility at the wide end of original guidance, with the deal expected to get "well over the finish line" by Friday's commitment deadline, according to a market source.

"It has a lot of real estate value so people like it," the source remarked.

The C$50 million revolver (B1/BB-) and the C$510 million first-lien term loan (B1/BB-) are now both priced at Libor plus 300 bps, compared with original talk at launch of Libor plus 275 bps to 300 bps, the source said.

And, the C$140 million second-lien term loan (Caa1/B) is now priced at Libor plus 550 bps, compared with original talk of Libor plus 525 bps to 550 bps, the source added.

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

RBC is the lead bank on the C$700 million credit facility.

Eimskip is a subsidiary established by Hf. Eimskipafelag Islands to acquire Versacold Income Fund for C$12.25 in cash per trust unit.

Versacold is a Vancouver, B.C., refrigerated warehousing company.

LCDX, cash weaker

LCDX and the cash market in general were softer on Thursday in sympathy with equities, according to traders.

LCDX was quoted at 94.60 bid, 94.90 offered, down from Wednesday's levels of 95.85 bid, 96.10 offered, traders said.

As for the cash market, that was down by a quarter to three-quarters of a point, depending on the name.

"There was not as much volume today as there was yesterday. People just watching the stock market tank. Too scared to do anything or at least that's what I'm seeing," one trader remarked.

On Thursday, Nasdaq ended down 56.49 points, or 2.16%, Dow Jones Industrial Average ended down 387.18 points, or 2.83%, S&P 500 ended down 44.40 points, or 2.96%, and NYSE ended down 296.89 points, or 3.05%.

Prospect Medical closes

Prospect Medical Holdings, Inc. closed on its new $155 million credit facility, according to a news release.

Bank of America acted as the lead bank on the deal.

The facility consists of a $10 million revolver (B2/BB), a $95 million seven-year first-lien term loan B (B2/BB) priced at Libor plus 400 bps and a $50 million 71/2-year second-lien term loan (Caa2/B-) priced at Libor plus 825 bps.

During syndication, the revolver was downsized from $15 million, the first-lien term loan B was downsized from $145 million as the second-lien term loan was added to the capital structure, and pricing on the first-lien term loan B was increased from original talk of Libor plus 300 bps.

Proceeds were used to help fund the acquisition of Alta Healthcare System, Inc., to refinance approximately $41 million of existing Alta debt and to refinance roughly $47 million of existing Prospect Medical debt.

Prospect Medical is a Culver City, Calif., manager of the medical care of individuals enrolled in HMO plans. Alta is a for-profit hospital management company.

Horizon Lines closes

Horizon Lines, Inc. closed on its new $375 million credit facility (Ba1/BB+), according to a news release.

Wachovia, Bank of America and Goldman Sachs acted as the lead banks on the deal.

The facility consists of a $125 million term loan and a $250 million revolver, with both tranches priced at Libor plus 150 bps.

During syndication, the revolver was upsized from $200 million.

Proceeds were used to repay the $193.1 million balance, interest and fees on its previous Libor plus 225 bps credit facility and to repay the $314.3 million balance, call premiums and interest on its 9% senior notes and 11% senior discount notes.

Horizon Lines is a Charlotte, N.C., container shipping and logistics company.

Nursefinders closes

Goldman Sachs Urban Investment Group completed its acquisition of Nursefinders Inc. from Gryphon Investors, according to a news release.

To help fund the buyout, Nursefinders got a new $158 million credit facility consisting of a $20 million revolver priced at Libor plus 325 bps, a $93 million first-lien term loan B priced at Libor plus 325 bps and a $45 million second-lien priced at Libor plus 650 bps.

During syndication, pricing on the revolver and first-lien term loan was increased from original talk of Libor plus 300 bps, and pricing on the second-lien was increased from original talk of Libor plus 600 bps.

Call protection on the second-lien is 102 in year one and 101 in year two.

GE Capital acted as the lead bank on the deal.

Nursefinders is an Arlington, Texas, provider of health care staffing services.

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