Gavilon prices $775 million term loan; TransDigm trending; Citadel trims price talk

By Paul A. Harris

St. Louis, Dec. 7 - Gavilon LLC priced its $775 million six-year term loan (Ba3/BB+) at Libor plus 425 basis points with an original issue discount of 981/2, a market source said on Tuesday.

The reoffer price came on top of the price talk.

Meanwhile, new deals continue to turn in robust performances in the secondary market, sources say.

The TransDigm Group Inc.'s $1.55 billion Libor plus 350 basis points six-year term loan, which priced earlier in the week at 99½ was par ¾ bid, 101 offered at the Tuesday close.

"As far as TransDigm, we're seeing a huge trend," remarked a bank loan trader from a mutual fund.

Investment-grade accounts, particularly insurance companies, are looking for that kind of paper because it is attractive in comparison to investment-grade credits, the trader said.

High-yield accounts are still buying loans because the coupon is attractive, relative to high yield, and there is downside protection.

"Deals like TransDigm make great sense. And as long as you still have that OID, you're going to see huge new issue demand for the paper," the trader added.

"But I don't expect the OID to last much longer."

In other news, Citadel Broadcasting Corp. trimmed price talk for its upsized $350 million six-year term loan to Libor plus 325 basis points from earlier talk of Libor plus 350 bps to 375 bps.

The deal, which was upsized from $250 million when the company downsized a concurrent junk bond offer by $100 million, comes with a 1% Libor floor.

Also, the LCDX 15 bank loan index gained ¼ of a point on the day to finish at 99 5/16 bid, according to a trader.

Gavilon prices $775 million

Gavilon's $775 million term loan comes with 101 soft call protection for one year.

BNP Paribas, Bank of America, JPMorgan and Morgan Stanley were the lead banks on the deal.

At the end of November, the company had reduced the term loan to the $750 million to $800 million range, decreased from $900 million.

Proceeds will be used to help fund the acquisition of DeBruce Cos.

The company also already noted that it is working on increasing its existing asset-based revolver to somewhere in the $2.25 billion to $2.5 billion range from the current size of $1.7 billion. Pricing on the revolver will remain unchanged at Libor plus 275 bps with a 50 bps unused fee.

Citadel term loan

Citadel Broadcasting's six-year term loan has an original issue discount of 991/2.

The $500 million credit facility (Baa3/BB+) also includes a $150 million three-year revolver.

JPMorgan is the left lead bank on the deal.

Proceeds from the facility, along with the notes, will be used to refinance existing bank debt.

NexTag pricing emerges

NexTag Inc. (B1/BB-) talked for its $200 million seven-year term loan B at Libor plus 475 bps to 500 bps.

The loan comes with a 1.5% Libor floor.

The company is offering to discount the loan at a price of 99.

Deutsche Bank, JPMorgan and Morgan Stanley are the lead arrangers on the deal, with Deutsche the left lead. Societe Generale and Bank of America are the co-managers.

The facility also includes a $50 million revolver.

Proceeds will be used to fund a distribution to shareholders and for general corporate purposes.

Presidio downsizes

Presidio Inc. (B1/B+) downsized its term loan B to $200 million from $300 million.

Meanwhile spread talk increased by 75 basis points to Libor plus 550 bps from Libor plus 475 bps.

In addition to the downsizing and the spread hike, discount talk deepened by half a point to 98 from 981/2.

J.P. Morgan Securities LLC is the lead bank on the deal.

Because of the downsizing, the shareholder dividend, which is being funded by the loan, is downsized by $50 million.

In addition to the dividend, proceeds will be used to refinance debt and for general corporate purposes.

CEVA hikes pricing

For a second time, CEVA Group plc increased pricing on an amendment and extension of its senior secured credit facility.

Pricing moved to Libor plus 500 basis points from Libor plus 450 bps.

Earlier pricing was Libor plus 300 basis points, as previously reported by Prospect News.

In addition to more spread, the deal now features a springing maturity. The extended loans would mature 91 days before CEVA's 8½% senior notes and its term loan maturing in 2015, if they are not refinanced prior to that time.

Credit Suisse is the lead bank on the amend and extend.

Lenders are being offered a 10 bps amendment fee.

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