Bombardier sets price talk; Reynolds cuts term loan spread, adds step down; Professional Paint breaks

By Sara Rosenberg

New York, May 24 - Bombardier Recreational Products Inc. came out with opening price talk on its credit facility as the deal was launched to investors through a bank meeting Wednesday that saw strong attendance.

Also in the primary, Reynolds American Inc. lowered pricing on its term loan B, although not by as much as was previously rumored unless the addition of the step down is taken into account.

And, in the secondary, Professional Paint Inc.'s credit facility freed for trading during Wednesday's session, with bids on the first-lien term loan seen atop par and bids on the second-lien term loan seen in the 101 area.

Bombardier Recreational released price talk on its proposed credit facility as the deal was presented to lenders in New York during Wednesday's market hours, according to a market source.

The $790 million seven-year term loan B (B1) that will contain incurrence covenants (as opposed to maintenance covenants) was launched with opening price talk of Libor plus 250 basis points, the source said.

As for the C$250 million five-year revolver (Ba2), that was launched with opening price talk of Libor plus 225 basis points, the source added.

The company is scheduled to hold a bank meeting in Toronto on Thursday to launch the deal to Canadian investors.

Merrill Lynch is the global transaction coordinator on the entire deal. Merrill Lynch and RBC Capital are joint lead arrangers on the term loan B, with Merrill Lynch, RBC and UBS joint bookrunners. BMO Nesbitt Burns and Merrill Lynch are joint lead arrangers on the revolver, with BMO, Merrill Lynch and RBC joint bookrunners.

Proceeds will be used to help fund a recapitalization that will include tendering for the company's $200 million 8 3/8% senior subordinated notes due 2013.

The tender offer expires on June 16.

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