EuroFresh prices second lien term loan at Libor plus 700 basis points, offered at 99

By Sara Rosenberg

New York, May 7 - EuroFresh Inc. priced its $100 million second-priority senior secured term loan due 2010 (B2/CCC+) on Friday at Libor plus 700 basis points with an original offer price of 99, according to a market source.

The deal itself actually launched on April 27 but the syndicate waited until now to officially price it since they have been taking the time to talk to accounts and get commitments together, the source explained, adding that it appears as if the second lien deal is filling up at the newly announced pricing levels.

Bank of America is the lead bank on the deal.

The $120 million credit facility also contains a $20 million first-priority senior secured revolver due 2009 (B1/B+).

Proceeds will be used to refinance the company's existing debt of about $63.4 million and to redeem about $33.6 million of the company's outstanding series A preferred stock.

EuroFresh is a Wilcox, Ariz., producer of hydroponically grown and pesticide-free tomatoes.

CACI holds firm

CACI International Inc.'s new term loan B was trading just over par on Friday following the Senate Armed Services Committee hearing on mistreatment of Iraqi soldiers in the Abu Ghraib prison, basically unchanged from the par 1/8 to par ¼ trading levels on Thursday, according to a trader.

"Most people know they're involved there but that it's not that much part of their business," the trader explained.

The paper has been moving around all week as the story developed, with it quoted lower on Tuesday at par bid, par ½ offered, higher on Wednesday after a positive public conference call at par ¼ bid, par ¾ offered and then slightly lower again on Thursday.

In the conference call, J.P. London, chairman, president and chief executive officer, basically said that CACI had not received any reports from the government of wrongdoing and that there has been no economic impact on the company as a result of the allegations.

CACI is an Arlington, Va., provider of IT and network solutions. The Defense and Intelligence Group is a Fairfax, Va., provider of business management solutions to the U.S. government.

PanAmSat likely for summer

PanAmSat Corp.'s proposed LBO-related credit facility is probably not going to hit the bank loan market until this summer and although details are still to be determined, the size of the facility is expected to be pretty large, according to a market source.

"I wouldn't look for Panamsat to hit the market real soon. There will be some upfront time on this one," the source said.

"I do not believe that sizing has been disclosed but it will be a whopper," the source added.

As was previously reported, Credit Suisse First Boston and Citigroup are the joint lead arrangers and joint bookrunners on the deal. Bear Stearns and Lehman Brothers have signed on to the deal as co-documentation agents.

Proceeds from the credit facility, combined with proceeds from a proposed bond offering, will be used to help fund the leveraged buyout of PanAmSat by affiliates of Kohlberg Kravis Roberts & Co. from The DirecTV Group Inc.

The acquisition, which was announced in April, is valued at about $4.3 billion, including the assumption of about $750 million of net debt. Completion is subject to regulatory approvals, including the Federal Communications Commission, and PanAmSat stockholders approvals. The boards of directors of both PanAmSat and DirecTV already voted unanimously in favor of the transaction.

Also as part of the transaction, DirecTV agreed to extend and enhance some agreements with PanAmSat, at market rates, in order to assure future revenue flows to PanAmSat and continuity of services.

The LBO is expected to be completed in the second half of 2004.

PanAmSat is a Wilton, Conn., satellite operator.

Iasis sparks speculation

Details on Iasis Healthcare Corp.'s proposed credit facility that will be obtained in connection with the company's leveraged buyout probably will not be available for a few weeks, however there is unconfirmed market speculation that all four financial advisers - Banc of America Securities LLC, Goldman, Sachs & Co., Lehman Brothers Inc. and Merrill Lynch & Co. - will be involved in the financing somehow. Some have even gone so far as to guess that Bank of America will be leading the bank financing, or if not leading, definitely involved, but this too is pure rumor at this point as members of the supposed syndicate have declined to comment.

On Wednesday, Iasis announced that it entered into a definitive agreement with an investor group led by Texas Pacific Group (TPG) under which TPG will acquire Iasis from JLL Partners in a transaction valued at about $1.4 billion. The transaction is subject to regulatory approvals, financing and other customary closing conditions and is expected to close by June 30.

In connection with the transaction, an affiliate of JLL Partners, management and certain other current investors in Iasis will make significant new investments in the company as part of the TPG-led group.

Lehman Brothers Inc. and Merrill Lynch & Co. are advising TPG in connection with the transaction. Goldman, Sachs & Co. and Banc of America Securities are advising Iasis.

In connection with the LBO, Iasis began a cash tender offer and consent solicitation on Friday for any and all of its $230 million principal amount of 13% senior subordinated notes due 2009 and its $100 million principal amount of 8½% senior subordinated notes due 2009. The offer is scheduled to expire at midnight ET on June 3.

The refinancing of Iasis' credit facility and the receipt of financing are all conditions to the company's newly announced tender offer, according to a company news release.

Iasis is a Franklin, Tenn., owner and operator of medium-sized acute care hospitals.

Polypore reverse flexes

Polypore Inc. recently reverse flexed its term loan B and carved out a euro tranche from the B loan, according to a market source.

A euro tranche equivalent to $50 million U.S. dollars was carved out of the term loan B, leaving $370 million of U.S. dollar paper. Both the euro and the U.S. term loans were reverse flexed to Libor plus 250 basis points from initial price talk of Libor plus 275 basis points, according to the source.

The credit facility (B1/B+) also contains a $75 million revolver due 2010 with an interest rate of Libor plus 250 basis points.

JPMorgan and Bear Stearns are the lead banks on the deal.

Proceeds from the credit facility, combined with proceeds from a recently priced high-yield bond offering, will be used to help support Warburg Pincus LLC's previously announced acquisition of Polypore from The InterTech Group Inc. and GTCR Golder Rauner LLC. The acquisition is expected to be completed in the second quarter of 2004.

Polypore is a North Charleston, S.C., developer, manufacturer, and marketer of specialized microporous filtration products.

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