David's Bridal bid softens; Goodman Global loan rises; Tallgrass Energy tranching revealed

By Sara Rosenberg

New York, Aug. 28 - David's Bridal Inc.'s term loan was bid lower in trading on Tuesday following news that the company is being acquired by Clayton, Dubilier & Rice, and Goodman Global Inc.'s term loan rose on buyout chatter.

Over in the primary, some additional details emerged on Tallgrass Energy Partners LP's upcoming credit facility, including the size of the term loan and an expected timeframe for launch.

David's Bridal retreats

David's Bridal's term loan was weaker on the bid side as the company announced that it is being acquired by Clayton, Dubilier & Rice from Leonard Green & Partners, according to a trader.

The term loan was quoted at 99 1/8 bid, par 1/8 offered, versus prior levels of 99¾ bid, par 1/8 offered, the trader said.

Funding for the purchase will come from new debt led by Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc.

Closing on the roughly $1.05 billion buyout is expected to take place in the fourth quarter, and following completion of the transaction, Leonard Green will retain a minority interest in the company.

David's Bridal is a Conshohocken, Pa.-based specialty retailer of bridal gown and wedding-related apparel and accessories.

Goodman gains

Goodman Global's first-lien term loan headed up to par ¼ bid, 101 offered, from par bid, par ¾ offered with news reports that the company is being acquired by Daikin Industries Ltd., according to a trader.

Talk is that Goodman Global is being bought for about 300 billion yen, the trader said.

Goodman Global is a Houston-based manufacturer of heating, ventilation and air conditioning products for residential and light commercial use. Daikin is a company focused on commercial and industrial-use air conditioning systems and fluorochemicals.

Tallgrass structure surfaces

Switching to the primary, Tallgrass Energy's $1,025,000,000 billion debt commitment is anticipated to include an $875 million term loan, in addition to the previously disclosed $150 million revolver, according to a market source.

A bank meeting for the transaction is expected to take place in late September, the source said.

Barclays is leading the deal that will be used with $1 billion of equity to fund the purchase of Kinder Morgan Interstate Gas Transmission, Trailblazer Pipeline Co., the Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming and a 50% interest in the Rockies Express Pipelinefrom Kinder Morgan Energy Partners LP for about $1.8 billion.

Closing is expected in the fourth quarter, subject to Federal Trade Commission approval.

Tallgrass is owned by the management team of Tallgrass, Kelso & Co. and a limited group of investors led by the Energy & Minerals Group, including Magnetar Capital. Kinder Morgan is a Houston-based pipeline transportation and energy storage company.

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