David's Bridal, Global Tel*Link, FilmCo set talk; Affirmative Insurance ups pricing; Metaldyne breaks

By Sara Rosenberg

New York, Jan. 9 - David's Bridal Inc. saw price talk emerge on its term loan B as the deal was launched during Tuesday's market hours, and Global Tel*Link Corp. and FilmCo released price talk on their proposed credit facilities as both transactions are getting ready to officially kick off syndication with Wednesday bank meetings.

In other primary happenings, Affirmative Insurance Holdings Inc. increased spreads on its credit facility and added call protection to the term loan tranche.

Meanwhile, in the secondary market, Metaldyne Corp.'s credit facility freed for trading with the strip of institutional bank debt quoted atop par.

David's Bridal held a bank meeting on Tuesday to present its $425 million credit facility to potential lenders, and in conjunction with the launch, price talk on the term loan B tranche surfaced, according to a market source.

The company's $315 million seven-year term loan B (B) was launched with talk set at Libor plus 275 basis points, the source said.

The facility also includes a $110 million six-year asset-based revolver.

Bank of America, Credit Suisse and JPMorgan are the lead banks on the deal, with Bank of America the left lead.

Proceeds will be used to fund Leonard Green & Partners, LP's acquisition of the 269-store David's Bridal and 10-store Priscilla of Boston businesses from Federated Department Stores, Inc. for about $750 million.

The acquisition is expected to close in the first quarter, pending regulatory approvals.

David's Bridal is a Conshohocken, Pa., retail chain specializing in bridal gowns.

Global Tel*Link floats guidance

Global Tel*Link announced opening price talk of Libor plus 375 bps on all tranches under its $220 million credit facility (B+) ahead of its Wednesday bank meeting that will launch the deal into syndication, according to a market source.

Tranching on the facility is comprised of a $20 million revolver, a $10 million funded synthetic letter-of-credit facility, a $40 million delayed-draw for six months synthetic letter-of-credit facility, a $100 million funded first-lien term loan and a $50 million delayed-draw for six months first-lien term loan.

The revolver has a 50 bps commitment fee.

The delayed-draw synthetic letter-of-credit facility and delayed-draw term loan will both carry a delayed-draw fee of 100 bps in the first three months and 125 bps in months four to six, the source said.

Credit Suisse is the lead bank on the deal.

Proceeds from the funded institutional debt will be used to refinance about $75 million of existing debt and repurchase redeemable preferred stock held by The Gores Group, while proceeds from the delayed-draw tranches will be used to fund the acquisition of the former MCI's division serving corrections facilities.

The former MCI corrections division provides managed telecommunications services to state and county departments of correction, including customer service, call equipment management, billing and IT capabilities.

Global Tel*Link is a Mobile, Ala., specialized telecommunications company.

FilmCo price talk

FilmCo released spread guidance of Libor plus 175 bps area on its proposed $134 million multi-draw term loan in preparation of the deal's Wednesday launch in Santa Monica, Calif., according to a market source.

Proceeds from the loan, along with $35 million of six-year second-lien mezzanine notes and $35 million of equity, will be used to finance 50% of Lionsgate Entertainment's next 23 films.

The second-lien mezzanine notes are being guided in the Libor plus 600 bps area, the source added.

Goldman Sachs is the lead arranger and bookrunner on the deal.

The borrower is a joint venture with Lionsgate.

Affirmative Insurance flexes up

Affirmative Insurance increased pricing on both tranches under its $220 million credit facility (B1/B) and added one year of 101 call protection to the term loan piece, leading to oversubscription of the deal, according to a market source.

Under the changes, the company's $20 million revolver and $200 million term loan are now both priced at Libor plus 350 bps, up from most recent talk of Libor plus 325 bps and original talk at launch of Libor plus 300 to 325 bps, the source said.

Allocations on the transaction are expected to go out around Thursday or Friday.

Credit Suisse is the lead bank on the deal that will be used to finance the acquisition of USAgencies, LLC in an all-cash transaction valued at about $200 million.

Affirmative Insurance is an Addison, Texas, producer and provider of personal non-standard automobile insurance policies to individual consumers. USAgencies is a Baton Rouge, La., non-standard automobile insurance provider.

Tube City fills up

Tube City IMS Corp.'s $140 million seven-year term loan B (Ba3/BB-) is said to already be fully subscribed as orders poured in quickly after the deal's Jan. 4 bank meeting, according to a market source.

The term loan B is being talked at Libor plus 275 bps.

The company's $325 million credit facility also includes a $150 million six-year last-in, first-out ABL revolver talked at Libor plus 150 bps, a $15 million first-in, last-out ABL revolver talked at Libor plus 250 bps and a $20 million seven-year synthetic letter-of-credit facility talked at Libor plus 275 bps.

Both ABL revolver tranches carry a commitment fee of 25 bps.

Credit Suisse and UBS are joint lead arrangers on the deal, with Credit Suisse the left lead.

Proceeds will be used to fund Onex Corp.'s acquisition of the company in a transaction valued at about $720 million.

Tube City is a Glassport, Pa., provider of outsourced services to steel mills.

Metaldyne frees to trade

Moving to the secondary, Metaldyne's credit facility broke for trading, with the strip of term loan and synthetic letter-of-credit facility debt quoted at par ½ bid, par 7/8 offered, according to a trader.

The $435 million seven-year term loan (B2/B), $25 million seven-year final maturity delayed-draw term loan (B2/B) and $60 million five-year deposit-linked synthetic supplemental letter-of-credit facility (B2/B) are all priced at Libor plus 375 bps.

During syndication, the funded term loan was upsized from $420 million and pricing on all three institutional tranches firmed up at the low end of original guidance of Libor plus 375 to 400 bps.

The delayed-draw term loan will be available for drawing for 59 days after the closing date for the purpose of funding the purchase of senior notes in a tender offer.

Metaldyne's $670 million credit facility also includes a $150 million five-year asset-based revolver (Ba3/BB-) priced at Libor plus 200 bps with unused fees that can range from 25 to 50 bps.

The upsizing of the funded term loan was done so as to reduce the amount that will be drawn under the asset-based revolver at close.

JPMorgan and Citigroup are the joint lead arrangers on the deal, and JPMorgan, Citigroup and Deutsche Bank are the bookrunners. JPMorgan is administrative agent, Citigroup is syndication agent and Deutsche is documentation agent.

Proceeds from the credit facility will be used to help back Asahi Tec Corp.'s $1.13 billion acquisition of the company and to replace Metaldyne's existing revolver, letter-of-credit facility, term loan debt and off-balance sheet accounts receivable securitization facility.

The financing is structured so that Asahi Tec and Metaldyne do not guarantee each other's debt and will not be subject to restrictions on each other's debt.

Pro forma for the transaction, Metaldyne's total leverage will decrease to 4.6 times from 5.1 times and interest coverage will increase to 2.2 times from 1.8 times.

Asahi Tec, a Shizuoka, Japan-based chassis and powertrain component supplier, is buying Metaldyne from Heartland Industrial Partners LP and CSFB Private Equity.

Metaldyne is a Plymouth, Mich., supplier of powertrain and chassis systems and components.

Indus closes

Vista Equity Partners completed its acquisition of Indus International Inc. for about $240 million, according to a company news release. As part of the transaction, Indus us being merged with MDSI Mobile Data Solutions Inc., a Vista portfolio company.

To help fund the buyout, Indus got a new $125 million credit facility consisting of a $5 million revolver priced at Libor plus 350 bps, a $75 million first-lien term loan priced at Libor plus 350 bps and a $45 million second-lien term loan priced at Libor plus 725 bps.

Wells Fargo Foothill, Inc. acted as the lead bank on the deal.

Indus is an Atlanta-based Service Delivery Management solution provider. MDSI is a provider of enterprise mobile workforce management software.

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