NBTY, AccentCare free to trade; Nexeo, Leslie's trim spreads; Petco finalizes pricing

By Sara Rosenberg

New York, Feb. 24 - NBTY Inc. and AccentCare Inc. both saw their credit facilities break for trading on Thursday, and Huntsman International LLC's term loans continued to hold relatively steady after details emerged regarding the purpose of its lender call.

Over in the primary, Nexeo Solutions LLC reduced spread and eliminated the original issue discount on its term loan B, Leslie's Poolmart Inc. tightened pricing but increased the Libor floor on its B loan, and Petco Animal Supplies Inc. firmed its repricing deal at the low end of guidance.

Also, Rock-Tenn Co., CDW LLC and iStar Financial Inc. released price talk as the deals were presented to lenders during the session, and Ntelos Holding Corp. announced plans to bring a repricing deal to market this week.

NBTY starts trading

NBTY's credit facility made its way into the secondary market on Thursday, with the $1.75 billion covenant-light term loan due Oct. 1, 2017 quoted by one trader at par ¼ bid, par ¾ offered. A second trader said that the loan broke at par 1/8 bid, par 5/8 offered, moved to par ¼ bid, par 5/8 offered and then settled back in at par 1/8 bid, par 5/8 offered.

Pricing on the term loan is Libor plus 325 basis points with a 1% Libor floor, and it was sold at par. There is 101 soft call protection for one year.

The company's $1.9 billion credit facility (BB-) also includes a $150 million revolver due Oct. 1, 2015 priced at Libor plus 325 bps with a 1% Libor floor as well. Upfront fees were 50 bps for commitments of $20 million or more and 37.5 bps for commitments of less than $20 million.

During syndication, the Libor floor on the entire deal was reduced from 1.5%, and the call protection on the term loan was extended from six months.

NBTY lead banks

Barclays, Bank of America Merrill Lynch and Credit Suisse are the lead banks on NBTY's credit facility that is being used to replace an existing $250 million revolver, a $250 million term loan A and a $1.5 billion term loan B.

Pricing on the existing revolver and term loan A is Libor plus 425 bps with a 1.75% Libor floor, and pricing on the existing B loan, which is not covenant-light, is Libor plus 450 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 99. The B loan includes a step-down to Libor plus 425 bps upon a leverage test being met.

The existing facility was obtained in October to help fund the company's buyout by the Carlyle Group.

NBTY is a Ronkonkoma, N.Y.-based manufacturer and marketer of nutritional supplements.

AccentCare breaks

AccentCare's credit facility also freed up for trading, with the $180 million funded term loan indicated by traders in the par ¼ bid, par ¾ offered context.

Pricing on the term loan, as well as on a $15 million delayed-draw term loan and a $30 million revolver, is Libor plus 425 bps with a 1.5% Libor floor, and the tranches were sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

During syndication, the revolver was upsized from $25 million, the delayed-draw term loan was added to the capital structure, pricing on the facility was revised from initial talk of Libor plus 500 bps with a discount of 981/2, call protection was added and some minor covenant tweaks were made.

AccentCare funding buyout

Proceeds from the credit facility will be used to help fund AccentCare's acquisition by Oak Hill Capital Partners, and the delayed-draw term loan will be available for acquisition financing.

Following the buyout, the company will be merged with Guardian Home Care Holdings Inc., a Brentwood, Tenn.-based provider of homecare and hospice services that was recently acquired by Oak Hill from Friedman Fleischer & Lowe.

GE Capital, Bank of Ireland and CIT are the joint lead arrangers on the $225 million senior secured credit facility.

AccentCare is an Irvine, Calif.-based provider of home health care services.

Huntsman holds firm

In more trading happenings, Huntsman's term loans remained relatively flat, even after it was revealed that the company's Thursday afternoon lender call was held to launch an amendment and extension proposal that is being led by J.P. Morgan and Citigroup, according to a trader.

The term loan B was quoted at 99 3/8 bid, 99 7/8 offered, compared to previous levels of 99 3/8 bid, 99¾ offered, and the term loan C was quoted unchanged on the day at 99¾ bid, par ¼ offered, the trader said.

Under the proposal, the company is looking to extend up to 50% of its roughly $1.3 billion term loan B to 2017 from 2014 at pricing of Libor plus 250 bps, compared to non-extended pricing of Libor plus 150 bps.

In addition, lenders are being offered a 10 bps amendment fee.

Huntsman is a Salt Lake City-based manufacturer and marketer of differentiated chemicals.

Nexeo revises pricing

Moving to the primary market, Nexeo Solutions lowered pricing on its $325 million 61/2-year covenant-light term loan B (B1/B) to Libor plus 350 bps from Libor plus 375 bps, and the paper is now being sold at par instead of at a discount of 991/2, according to a market source, who said the 1.5% Libor floor and 101 soft call protection for one year were left unchanged.

Earlier this week, the term loan B had been upsized from $300 million as the company downsized its bond offering to $175 million from $200 million. The notes priced at par to yield 8 3/8%.

Bank of America Merrill Lynch, Citigroup and Barclays are the lead banks on the $865 million credit facility, which also includes a $540 million ABL revolver talked at Libor plus 250 bps, and is being used, along with the notes, to help fund TPG Capital's acquisition of Ashland Inc.'s chemical distribution business for $930 million.

The transaction is expected to close prior to the end of the March quarter, subject to the receipt of certain regulatory approvals and other standard closing conditions.

Leslie's reworks deal

Leslie's Poolmart decided to cut pricing on its $310 million covenant-light term loan B to Libor plus 300 bps from Libor plus 325 bps, while increasing the Libor floor to 1.5% from 1.25% and adding 101 soft call protection for one year, according to a market source. The par offer price was left unchanged.

Allocations on the company's $380 million credit facility, which also includes a $70 million revolver, are expected to go out on Friday, the source said.

Bank of America Merrill Lynch and Wells Fargo are the lead banks on the deal that will be used by the Phoenix-based retailer of swimming pool supplies to refinance/reprice an existing credit facility. The facility was obtained late last year to repay bonds and an revolver and to pay off a shareholder that was exiting the investor group.

Pricing on the existing term loan is Libor plus 450 bps, with a step-down to Libor plus 425 bps at less than 4.5 times leverage and a 1.5% Libor floor. The debt was sold at a discount of 99 and includes 101 soft call protection for one year.

Petco sets spread

Petco Animal Supplies finalized pricing on its $1.225 billion 61/2-year covenant-light term loan at Libor plus 325 bps, the tight end of the Libor plus 325 bps to 350 bps talk, while leaving the 1.25% Libor floor, par offer price and 101 soft call protection for six months intact, according to a market source.

The deal is refinancing the company's existing covenant-light term loan that is priced at Libor plus 450 bps with a 1.5% Libor floor and was sold at an original issue discount of 99.

Credit Suisse, JPMorgan and Bank of America Merrill Lynch are leading the repricing deal.

Lenders are getting paid down at 101 since the existing loan provides for one year of 101 soft call protection.

Petco, a San Diego-based specialty retailer of pet food, supplies and services, obtained the existing loan late last year to fund a dividend recapitalization.

Rock Tenn reveals talk

Rock-Tenn held a bank meeting on Thursday to kick off syndication on its $1.25 billion six-year term loan B, at which time price talk was announced at Libor plus 275 bps with a 0.75% Libor floor and a par offer price, according to a market source.

Previously, the only indication on guidance for the term loan B was that all in pricing was expected to come in the sub-4% area.

The company's $3.7 billion senior credit facility also includes a 1.2 billion five-year revolver and $1.25 billion five-year term loan A, and, as was previously reported, these tranches are being talked at Libor plus 200 bps.

Of the total revolver amount, $632 million is expected to be drawn at close.

Wells Fargo, SunTrust, Rabobank, Bank of America Merrill Lynch and J.P. Morgan are the lead banks on the deal, with Wells Fargo the left lead.

Rock-Tenn buying Smurfit

Proceeds from Rock-Tenn's credit facility will be used to help fund the acquisition of Smurfit-Stone Container Corp. in a transaction valued at $3.5 billion, consisting of $1.8 billion of cash and the issuance of 30.9 million shares of common stock, and to refinance Smurfit-Stone and some Rock-Tenn debt.

Pro forma leverage will be 2.76 times.

Closing is expected in the second quarter, subject to customary conditions, regulatory approvals and approval by both Rock-Tenn and Smurfit-Stone stockholders.

Rock-Tenn is a Norcross, Ga.-based manufacturer of paperboard, containerboard and consumer and corrugated packaging. Smurfit-Stone is a Chicago-based containerboard and corrugated packaging producer, and a paper recycler.

CDW releases guidance

CDW disclosed that it is talking its $1.1 billion senior secured term loan B-2 due 2017 at Libor plus 325 bps with a 1.25% Libor floor and a par offer price as a lender call was held to launch the deal to investors, according to a market source. There is 101 soft call protection for six months.

J.P. Morgan and Morgan Stanley are the lead banks on the deal that will be used to reprice an existing term loan that was done late last year in an amend and extend transaction.

When the term loan B-2 was first completed, it was priced at Libor plus 500 bps, with step-downs to Libor plus 475 bps at 4.0 times senior secured leverage and to Libor plus 450 bps at 3.5 senior secured leverage.

CDW is a Vernon Hills, Ill.-based provider of technology products and services to business, government and education customers.

iStar details emerge

iStar Financial revealed structure on its proposed $3 billion senior secured credit facility ahead of the 2:30 p.m. ET bank meeting that took place on Thursday and, with the launch, price talk was announced, according to a market source.

The facility includes a $1.5 billion term loan A-1 (B1/NA/BB-) due June 2013 talked at Libor plus 325 bps with a 1.25% Libor floor and an original issue discount of 991/2, the source said.

There is also a $1.5 billion term loan A-2 (B2/NA/B+) due June 2014 that is talked at Libor plus 475 bps with a 1.25% Libor floor and a discount of 981/2, the source continued.

Amortization payments will be applied first to the A-1 tranche and then to the A-2 tranche.

iStar refinancing debt

Proceeds from iStar's term loans, which are being led by J.P. Morgan, will be used to refinance secured loan facilities due in June 2011 and 2012 and to repay some unsecured debt maturing in 2011.

Security is a first lien on a diversified $3.75 billion collateral pool, comprised primarily of performing loans and corporate tenant lease assets.

"Having retired $2.5 billion of secured debt over the past year, we are now well positioned to put in place a new senior credit facility," said David DiStaso, chief financial officer, in a news release.

"Once completed, we plan to continue to reduce outstanding indebtedness and further enhance our balance sheet strength."

iStar announces earnings

Also on Thursday, iStar released financial results for the fourth quarter ended Dec. 31, with net loss coming out at $67.1 million, or $0.73 per diluted common share, compared to a net loss of $159.2 million, or $1.65 per diluted common share, last year.

Net investment income for the quarter was $66.3 million, compared to $78.6 million in the fourth quarter of 2009.

During the quarter, the company used available cash to reduce debt obligations by a total of $1.17 billion, including the prepayment of a $1 billion first priority credit facility due June 2012, the repayment of 6% senior unsecured notes due December 2010 and the repurchase of $50.6 million par value of senior unsecured notes.

iStar is a New York-based finance and investment company focused on the commercial real estate industry.

Ntelos readies repricing

Ntelos, a Waynesboro, Va.-based provider of wireless and wireline communications services, has set a conference call for Friday to launch a repricing of its existing $751 million first-lien term loan that is being done via joint lead arrangers J.P. Morgan and UBS, according to a market source.

Current pricing on the first-lien term loan debt is Libor plus 375 bps with a 2% Libor floor. The debt includes an originally sized $125 million incremental term loan obtained in 2010 and an originally sized $635 million term loan obtained in 2009.

The incremental loan had been sold at an original issue discount of 99¾ and was used for the acquisition of FiberNet, while the 2009 loan was sold at an original issue discount of 99 and was used to refinance debt.

Following the repricing news, the existing term loan debt was quoted at par bid, par ¾ offered in the secondary market, down from par 1/8 bid, par 7/8 offered, a trader added.

TeleGuam call protection

In other news, GTA TeleGuam's $29 million second-lien term loan includes call protection of 102 in year one and 101 in year two, according to a market source.

As was previously reported, the loan was launched on Wednesday with price talk of Libor plus 800 bps with a 1.75% Libor floor and an original issue discount of 99.

The company's $146 million credit facility also provides for a $10 million revolver and a $107 million first-lien term loan, which is talked at Libor plus 400 bps to 425 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2.

Regarding the first-lien term loan, lenders were told that pricing would likely end up at the tight end of talk.

TeleGuam being acquired

Proceeds from GTA TeleGuam's credit facility will be used to help fund its buyout by Advantage Partners from Shamrock Capital Advisors.

BNP Paribas is the lead bank on the deal.

GTA TeleGuam is a Tamuning, Guam-based provider of communications services on Guam, including local and long-distance telephone service, 3G wireless, DSL internet access and advanced digital television, or IPTV.

Capital Automotive interest

Meanwhile, Capital Automotive's $1.7 billion senior secured credit facility (Ba3/B+) is heard to be "going well" ahead of Tuesday's commitment deadline - not surprising given the state of the market these days, according to a market source.

The facility consists of a $200 million five-year revolver and a $1.5 billion six-year term loan B, with both tranches talked at Libor plus 350 bps with a 1.5% Libor floor. The revolver is being offered with a 100 bps upfront fee, and the term loan has an original issue discount of 99.

Barclays is the lead bank on the deal that will be used to refinance existing debt.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

Burlington closes

Burlington Coat Factory Warehouse Corp. closed on its $1 billion term loan (B3/B-/B-) on Thursday, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the term loan is Libor plus 475 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Proceeds are being used to repay a term loan that had about $853 million outstanding at Oct. 30, to repurchase $305 million of 11 1/8% senior notes and roughly $99 million of 14½% senior discount notes, to fund a dividend and for general corporate purposes.

J. P. Morgan, Goldman Sachs, Bank of America Merrill Lynch and Wells Fargo acted as the lead banks on the deal.

Burlington Coat Factory is a Burlington, N.J.-based discount retailer.

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