CB Richard Ellis, Aleris free to trade; Tropicana upsizes; Samsonite, PRC wrap syndication

By Sara Rosenberg

New York, Dec. 14 - CB Richard Ellis Group, Inc. and Aleris International Inc. both broke for trading on Thursday, with CB Richard Ellis' term loan B closing the day in the low pars and Aleris' U.S. dollar term loan B closing the day in the mid pars.

In primary happenings, Tropicana Entertainment LLC increased the size of its opco term loan, and Samsonite Corp. and PRC LLC closed down the books on their credit facilities.

CB Richard Ellis' credit facility allocated and hit the secondary market during Thursday's market hours, with the $1.1 billion seven-year term loan B opening at par bid, par ¼ offered, weakening to 99 7/8 bid, par 1/8 offered and then returning to par bid, par ¼ offered, where it closed the session, according to a trader.

The term loan B is priced with an interest rate of Libor plus 150 basis points. During syndication, the tranche was upsized from $1 billion and pricing was reverse flexed from original talk at launch of Libor plus 175 bps.

CB Richard Ellis' $2.2 billion in senior secured term loan debt also includes a $1.1 billion five-year term loan A priced at Libor plus 150 bps. During syndication, this tranche was downsized from $1.2 billion when the term loan B was upsized.

Credit Suisse is the lead bank on the deal.

Financial covenants will include a maximum leverage ratio of 3.75 to 1.00 and a minimum interest coverage ratio of 2.25 to 1.00.

Proceeds from the two term loans will be used to fund the acquisition of Trammell Crow Co. for $49.51 per common share in cash. The transaction is valued at $2.2 billion, including the assumption of Trammell's corporate debt as well as transaction and integration costs.

The acquisition is expected to increase the company's net debt/EBITDA ratio to 2.4 times, with an interest coverage ratio of 6.0 times on a pro forma 2006 basis.

Upon completion of the transaction, the company will have combined pro forma 2006 revenues of $4.4 billion and 21,000 employees.

CB Richard Ellis is leaving its $600 million revolving credit facility in place but is amending it to allow for the acquisition and to raise pricing to Libor plus 150 bps to reflect the increased debt levels.

CB Richard Ellis is a Los Angeles-based commercial real estate services firm. Trammell is a Dallas-based provider of commercial real estate services.

Aleris breaks

Also freeing for trading on Thursday was Aleris' credit facility, with the $825 million seven-year U.S. term loan B facility (B2/B+) quoted at par 3/8 bid, par 5/8 offered consistently throughout the day, according to a trader.

The U.S. term loan B is priced at Libor plus 237.5 bps with a step down to Libor plus 212.5 bps when leverage is less than 4.0 times. During syndication, this tranche was upsized from $700 million and pricing was lowered from original talk at launch of Libor plus 275 bps with the addition of the step.

Aleris' $1.975 billion credit facility also includes a $400 million dollar equivalent seven-year Euro term loan B (B2/B+) priced at Euribor plus 250 bps with a step down to Euribor plus 225 bps when leverage is less than 4.0 times, and a $750 million five-year asset-based revolver priced at Libor plus 150 bps. During syndication, pricing on the Euro term loan B was lowered from original talk at launch of Euribor plus 275 bps with the addition of the step.

The additional $125 million of term loan debt that was raised is a result of the company's decision to reduce its senior subordinated note offering by $100 million to $400 million and to raise $25 million of extra capital.

Because of the loan upsizing, senior secured leverage is increasing to 2.9 times from 2.6 times.

Deutsche Bank is the lead bank on the deal that will be used to help fund Texas Pacific Group's leveraged buyout of Aleris for $1.7 billion, plus the assumption or repayment of $1.6 billion of debt.

In addition, to the credit facility and the senior subordinated bonds, the company got $600 million of senior payment-in-kind toggle notes for LBO financing.

Aleris is a Beachwood, Ohio, manufacturer of aluminum rolled products and extrusions, an aluminum recycler and a producer of specification alloy.

Georgia-Pacific softens

Georgia-Pacific Corp.'s existing term loan B was a touch lower in active trading on market technicals, according to a trader.

The existing term loan B debt closed the session at par 3/8 plus bid, par ½ plus offered, down from Wednesday's levels of par ½ bid, par 5/8 plus offered, the trader said.

Georgia-Pacific is an Atlanta-based manufacturer and marketer of tissue, packaging, paper, building products and related chemicals.

Autos active

Auto names continued to see good flow in the secondary loan market, with General Motors Corp. and Ford Motor Co. seen as the most active, according to a trader.

General Motors' term loan closed the day unchanged at par bid, par ¼ offered and Ford's term loan B closed the unchanged at par 1/8 bid, par ¼ offered, the trader said.

"There's a lot of paper out there and a lot of paper to trade," the trader added.

General Motors is a Detroit-based automaker. Ford is a Dearborn, Mich.-based automaker.

Tropicana opco loan upsized

On the primary side of things, Tropicana Entertainment (Columbia Entertainment) decided to increase the size of its five-year opco senior secured term loan (Ba3/B+) to $1.53 billion from an original size of $1.49 billion, according to a market source.

Price talk on the opco term loan was left unchanged at Libor plus 275 bps.

Tropicana's now $2.15 billion (up from $2.11 billion) in credit facilities also includes a $180 million opco senior secured revolver (Ba3/B+) talked at Libor plus 275 bps and a $440 million 18-month senior secured loan (B2/B+) to be borrowed by LV Tropicana talked at Libor plus 300 bps.

Credit Suisse is the lead bank on the deal that will be used to fund Columbia Entertainment's acquisition of Aztar Corp. for $54.00 per share in cash.

The $440 million 18-month senior secured loan borrowed by LV Tropicana, which will indirectly hold Aztar's 34-acre parcel situated on the Las Vegas "Strip," will have two six-month extension options. It is expected that the loan will be refinanced with permanent financing for the redevelopment of the property.

In addition to the credit facility, the company is also getting $960 million in senior subordinated notes. The bond deal, which priced Thursday at par to yield 9 5/8%, was upsized from $925 million.

The extra proceeds being raised in the loan and the bond offering will be used to reduce the amount of equity used for the transaction, the source added.

Commitments on the credit facility are due Dec. 19.

Columbia is a Fort Mitchell, Ky., owner, developer and operator of hotel properties and casinos. Aztar is a Phoenix-based gaming company.

Samsonite shuts books

Samsonite's $530 million senior secured credit facility (Ba3/BB-) is expected to wrap at initial terms, and now that the Thursday commitment deadline has passed, the hope is to allocate the transaction early next week, according to a market source.

The facility is comprised of a $450 million seven-year term loan B and an $80 million six-year revolver, with pricing set at Libor plus 225 bps on both tranches.

Merrill Lynch, Goldman Sachs and Deutsche Bank are the lead banks on the deal that is secured by substantially all of the company's domestic assets.

Proceeds will be used to help fund tender offers for the company's $164.97 million of 8 7/8% senior subordinated notes due 2011 and €100 million floating-rate senior notes due 2010 and to help fund a $175 million special dividend to stockholders.

The tender offers expire on Dec. 20.

Samsonite is a Denver-based designer, manufacturer and distributor of luggage and travel-related consumer products.

PRC oversubscribed

PRC's first- and second-lien term loans were at least two times oversubscribed by the time the books were closed on the deal on Thursday, according to a market source.

The $105 million seven-year first-lien term loan B (Ba3/BB-) is being talked at Libor plus 300 bps and the $55 million eight-year second-lien term loan (B3/B-) is being talked at Libor plus 650 bps with call protection of 102 in year one and 101 in year two.

PRC's $205 million credit facility also includes a $20 million six-year revolver (Ba3/BB-) and a $25 million capital expenditures facility (Ba3/BB-), with both of these tranches talked at Libor plus 300 bps.

RBS Securities is the lead bank on the deal that will be used to help fund the acquisition of PRC by Diamond Castle Holdings, LLC and management.

PRC is a Plantation, Fla., provider of customer relationship management services.

Best Brands closes

Best Brands Corp. closed on its new $275 million credit facility consisting of a $30 million revolver (B1/B), a $170 million first-lien term loan (B1/B) and a $75 million second-lien term loan (Caa1/CCC+), according to a news release.

The revolver and first-lien term loan are priced at Libor plus 275 bps, and the second-lien term loan is priced at Libor plus 650 bps.

GE Capital Markets and RBS Securities Corp. served as joint lead arrangers and joint bookrunners on the deal.

Proceeds were used to fund the acquisition of Telco Food Products Inc. and to recapitalize certain existing debt as well as to fund its ongoing working capital needs.

Best Brands is a Minnetonka, Minn., maker of baking products and provider of baking equipment.

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