Coffeyville ups spreads, adds step; Greatwide flexes first-lien pricing; Metrologic breaks

By Sara Rosenberg

New York, Dec. 20 - Coffeyville Resources LLC increased pricing across the board on its credit facility while adding a step down to the institutional loan tranches, and Greatwide Logistics Services increased spreads on its first-lien bank debt while firming up pricing on its second-lien and mezzanine debt at the high end of guidance.

On the secondary front, Metrologic Instruments Inc.'s credit facility freed for trading, with the first- and second-lien term loan trading in the upper pars.

Coffeyville Resources flexed pricing higher on all tranches under its $1.075 billion credit facility (B2/B+) by 25 basis points while at the same time adding a step down provision to the synthetic letter-of-credit facility and term loan B, according to a market source.

With the changes, the $150 million six-year revolver, $150 million four-year synthetic letter-of-credit facility and $775 million seven-year term loan B are now all priced at Libor plus 300 bps, up from original talk at launch of Libor plus 275 bps, the source said.

However, pricing on the synthetic letter-of-credit facility and term loan B can now drop to Libor plus 275 bps based on the company's planned initial public offering of common stock and ratings confirmation, the source continued.

The revolver carries a 50 bps unused fee.

Recommitments from lenders were due at the close of business on Wednesday, and allocations are expected to go out on Thursday.

Goldman Sachs and Credit Suisse are the lead banks, with Goldman the left lead, on the deal that attracted a "good solid base of investors," the source added.

Proceeds will be used for a recapitalization that will include refinancing the company's existing first- and second-lien credit facility and funding a dividend to owners GS Capital Partners and Kelso & Co.

Since GS and Kelso acquired Coffeyville in June 2005, the company has invested around $250 million in plant improvements that have led to increased refinery throughput and improved liquid yields. The company also expanded crude sourcing such that in the first half of 2006, the cost of crude discount compared to WTI has increased by $2 per barrel.

Total leverage is expected in the low 2 times area.

Coffeyville Resources is a Kansas City, Kan., supplier of petroleum and nitrogen fertilizer products.

Greatwide flexes first lien

Greatwide Logistics moved pricing higher on its revolver and first-lien term loan, firmed up pricing on its second-lien term loan and mezzanine financing at the high end of talk, and increased the size of its mezzanine tranche, according to a buyside source.

The company's $70 million revolver (B1) and $290 million first-lien term loan (B1) are now priced at Libor plus 325 bps, up from most recent talk of Libor plus 275 to 300 bps and from original talk at launch of Libor plus 250 to 275 bps, the source said.

Meanwhile, the $127 million second-lien term loan (Caa1) saw pricing firm up at Libor plus 625 bps, the wide end of original talk of Libor plus 600 bps to 625 bps, the source continued.

And, the senior unsecured mezzanine note at the holding company was upsized to $95 million from $80 million and pricing was firmed up at 13.5%, the high end of the original 13% to 13½% talk, the buyside source added.

The upsizing to the mezzanine tranche was a result of the sponsors deciding to reduce their equity contribution by $15 million.

UBS and Bear Stearns are joint lead arrangers and joint bookrunners on the $487 million credit facility and mezzanine financing, with UBS the left lead.

Proceeds from the new debt will be used to fund Investcorp's leveraged buyout of Greatwide Logistics from Fenway Partners.

Greatwide Logistics is an Irving, Texas, transportation and logistics provider.

Metrologic frees to trade

Switching to secondary news, Metrologic's credit facility broke for trading with the $125 million seven-year first-lien term loan B (B1/B+) quoted at par 3/8 bid, par 7/8 offered and the $75 million eight-year second-lien term loan (Caa1/B-) quoted at par ½ bid, 101 offered, according to a trader.

The first-lien term loan B is priced at Libor plus 275 bps with a step down to Libor plus 250 bps once the company's total leverage falls below 3.0 times, and the second-lien term loan is priced at Libor plus 650 bps with call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan B was reduced from original talk at launch of Libor plus 300 bps with the addition of the step and pricing on the second lien was reduced from original talk at launch of Libor plus 700 bps.

Metrologic's $235 million credit facility also includes a $35 million five-year revolver (B1/B+) with a 50 bps undrawn fee.

Morgan Stanley is the lead bank on the deal that will be used to help fund the leveraged buyout of Metrologic by an investor group led by Francisco Partners, C. Harry Knowles, founder and chief executive officer of Metrologic, and Elliott Associates, LP for $18.50 in cash for each share of Metrologic common stock.

Equity financing for the buyout is $190.6 million, consisting of $128 million from Francisco Partners Investor and $62.6 million in rollover equity financing.

Metrologic is a Blackwood, N.J., supplier for data capture and collection hardware, optical products and image processing software.

CB Richard Ellis closes

CB Richard Ellis Group, Inc. closed on its $2.2 billion of term debt, consisting of a $1.1 billion five-year term loan and a $1.1 billion seven-year term loan B, according to a company news release.

Both the term loan A and the term loan B are priced at Libor plus 150 bps. During syndication, the term loan B was upsized from $1 billion and the term loan A was downsized from $1.2 billion, and pricing on the term loan B was reverse flexed from original talk at launch of Libor plus 175 bps.

Credit Suisse and Bank of America acted as the lead banks on the deal.

Financial covenants 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 were 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 increased 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.

CB Richard Ellis left its $600 million revolving credit facility in place but amended it to allow for the acquisition and 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.

Revlon closes

Revlon Consumer Products Corp. closed on its new $1 billion credit facility, according to a company news release, consisting of an amended $160 million multi-currency revolver (B1) priced at Libor plus 200 bps and an $840 million five-year term loan (B3/CCC+) priced at Libor plus 400 bps with call premiums of 103 in year one, 102 in year two and 101 in year three.

During syndication, pricing on the term loan was flexed up from original talk at launch of Libor plus 350 bps.

The revolver was amended to, among other things, extend its maturity through the same five-year period as the new term loan and lower pricing from Libor plus 250 bps.

Citigroup acted as the lead arranger and bookrunner on the deal. JPMorgan acted as the syndication agent on the term loan.

Proceeds from the new term loan were used to refinance the company's existing $800 million term loan that is priced at Libor plus 600 bps.

Revlon is a New York-based cosmetics, skin care, fragrance and personal care products company.

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