Prism, ClientLogic, Totes float talk ahead of launch; CHG firms spreads, breaks; Intelsat, PanAmSat dip

By Sara Rosenberg

New York, Jan. 8 - Prism Business Media Holdings, Inc., ClientLogic Corp. and Totes Isotoner Corp. came out with opening pricing guidance on their credit facilities as all three transactions are nearing their official launch into syndication.

In other news, CHG Healthcare Services, Inc. finalized pricing on its facility at the tight end of original guidance, allocated the deal and saw its institutional debt quoted atop par, Intelsat Ltd. and PanAmSat Holding Corp. saw their term loan debt weaken on news of repricings, and the auto sector got a bit of a trading pop.

Prism Business Media price talk started making its way around the marketplace as the $953.5 million senior secured credit facility is gearing up to launch with a Thursday bank meeting, according to a market source.

The $80 million six-year revolver (B1) and $583.5 million six-year first-lien term loan B (B1) are being talked at Libor plus 225 basis points, and the $290 million seven-year second-lien term loan (Caa1) is being talked at Libor plus 600 bps with call protection of 102 in year one and 101 in year two, the source said.

UBS, JPMorgan and General Electric Capital Corp. are the lead banks on the deal, with UBS the left lead.

Proceeds will be used to help fund the acquisition of Penton Media, Inc. for about $530 million, including the assumption or repayment of the expected debt at closing and the payment to Penton's stockholders of $194.2 million.

Closing is expected to occur in the first half of 2007.

Prism is an Overland Park, Kan.-based business-to-business media company. Penton is a Cleveland-based business-to-business media company.

ClientLogic sets guidance

ClientLogic announced opening price talk of Libor plus 275 bps on both tranches under its proposed $760 million senior secured credit facility (B2/B+), which is scheduled to launch in London on Tuesday and in New York on Wednesday, according to a market source.

Tranching on the deal is comprised of a $675 million term loan B and an $85 million revolver.

Goldman Sachs and General Electric Capital Corp. are the lead banks on the facility, with Goldman the left lead.

Proceeds will be used to help fund the acquisition of Sitel Corp.

Originally, the company was planning on getting a $745 million credit facility consisting of a $660 million term loan and an $85 million revolver, but the size of the term loan was increased upon an amendment to the acquisition agreement that called for a higher purchase price.

Under the revised agreement, ClientLogic will pay Sitel stockholders $4.25 in cash per share, up from the originally agreed upon price of $4.05 per share.

In addition to funding the acquisition, the new credit facility will refinance $321.9 million of existing ClientLogic debt.

The transaction is expected to be completed in the first quarter of 2007 and remains subject to customary closing conditions, including the approval of Sitel's stockholders. A Sitel stockholder meeting has been scheduled for Jan. 12.

ClientLogic, a portfolio company of Onex Corp., is a Nashville, Tenn., global business process outsourcing provider in the customer care and back office processing industries. Sitel is an Omaha, Neb., provider of outsourced customer support services.

Totes price talk

Totes Isotoner also began floating spread talk around on its $275 million credit facility as this deal is getting ready to launch with a Tuesday bank meeting, according to a market source.

The $85 million five-year ABL revolver is being talked at Libor plus 175 bps, the $125 million six-year first-lien term loan B (B2) is being talked at Libor plus 275 bps and the $65 million seven-year second-lien term loan is being talked at Libor plus 650 bps (Caa1), the source said.

Credit Suisse is the lead bank on the deal.

Proceeds from the deal will be used to fund a recapitalization of Totes, which includes the acquisition of a majority stake in the company by MidOcean Partners.

Bruckmann, Rosser, Sherrill & Co., LLC, an existing investor, and the current Totes senior management team will continue to maintain a significant ownership position in the company.

Totes Isotoner is a Cincinnati marketer of branded umbrellas, gloves, slippers and other weather-related accessories.

Brickman focusing on tight end

Brickman Group Holdings Inc.'s $350 million term loan B is expected by some market sources to come at the low end of price talk as the deal was already well-subscribed within two days of launching into syndication.

The term loan B was presented to lenders last Thursday with opening price talk in the Libor plus 225 to 250 bps area.

In addition to the term loan B, the $400 million credit facility also includes a $50 million revolver tranche.

Lehman is the lead bank on the deal that will be used, along with $225 million of mezzanine senior subordinated notes committed by TCW/Crescent Mezzanine Management IV, LLC and $272 million of equity, to fund Leonard Green & Partners LP's acquisition of a controlling interest in the company.

In connection with the acquisition, the company plans to redeem all of its 11¾% senior subordinated notes due 2009.

Brickman is a Gaithersburg, Md., provider of landscape design and maintenance services.

CHG sets spreads; frees to trade

CHG Healthcare released final pricing on its credit facility on Monday morning before allocating and freeing the deal for trading by afternoon, according to a market source.

The $50 million revolver, $160 million term loan B and $40 million synthetic letter-of-credit facility all ended up at Libor plus 250 bps, the tight end of original talk of Libor plus 250 to 275 bps, the source said.

Meanwhile, the $40 million second-lien term loan C ended up at Libor plus 600 bps, in line with original talk at launch, the source remarked. This tranche carries call premiums of 102 in year one and 101 in year two.

After allocations went out, the strip of first-lien term loan B and synthetic letter-of-credit facility debt was quoted at par ½ bid, par 7/8 offered and was seen there consistently throughout the day, a trader added.

Citigroup and Goldman Sachs are the lead banks on the $290 million deal, with Citi the left lead.

Proceeds will be used to fund the acquisition of the company by J.W. Childs Associates, LP and by senior management.

CHG is a Salt Lake City-based health care staffing firm.

Intelsat, PanAmSat fall on repricings

Both Intelsat and PanAmSat experienced softening in their term loan debt during Monday's trading session as investors reacted to the news that they should expect lower spreads soon, according to a trader.

Intelsat's term loan B closed the day at par ½ bid, 101 offered, PanAmSat's term loan B closed the day at par 5/8 bid, 101 offered and PanAmSat's term loan A closed the day at par ½ bid, 101 offered, the trader said, adding that all three tranches were lower by about a half a point on the day.

Under the repricing proposal that was launched with a conference call in the afternoon, Intelsat is looking to reprice its term loan B at Libor plus 200 bps from current pricing of Libor plus 225 bps, PanAmSat is looking to reprice its term loan B at Libor plus 200 bps from Libor plus 250 bps and PanAmSat is looking to reprice its term loan A at Libor plus 200 bps from Libor plus 212.5 bps.

Citigroup is the lead bank on the repricings.

Intelsat is a Pembroke, Bermuda, satellite company. PanAmSat is a Wilton, Conn., satellite company. The two companies merged in 2006.

Autos trade up

The auto sector in general was up by about an eighth of a point on Monday as a lot of buyers were present in the market, according to a trader.

Some such eighth-of-a-point risers included Visteon Corp., General Motors Corp., Ford Motor Co. and Lear Corp.

Visteon, a Van Buren Township, Mich., automotive parts supplier, saw its term loan B close the day at par ½ bid, 101 offered, the trader said.

General Motors, a Detroit-based automaker, saw its term loan B close the day at par 3/8 bid, par ¾ offered, the trader continued.

Ford, a Dearborn, Mich.-based automaker, saw its term loan B close the day at par 5/8 bid, par 7/8 offered, up a quarter of a point, the trader remarked.

And, Lear, a Southfield, Mich.-based supplier of automotive interior systems and components, saw its term loan B close the day at par 1/8 bid, par 5/8 offered, the trader added.

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