EquiPower, CRC Health break; Styron, SunGard, IWCO tweak deals; Del Monte moves deadline

By Sara Rosenberg

New York, Jan. 26 - EquiPower Resources Holdings' credit facility hit the secondary market on Wednesday, with levels on the term loan quoted above its original issue discount price, and CRC Health Corp.'s extended term loan freed up as well.

In more trading news, US Airways Group Inc. saw its term loan move higher after quarterly results were announced, Reynolds Group Holdings Ltd.'s term loan D softened on paydown news, and Cinram International Income Fund's term loan strengthened on the back of its recapitalization plan.

Over in the primary market, Styron LLC upsized its term loan while cutting pricing and the original issue discount, SunGard cut pricing and eliminated discount plans, IWCO Direct Inc. widened the original issue discount on the sell-down of its deal, and Del Monte Foods Co. accelerated its commitment deadline.

Also, J. Crew Group Inc., Insight Pharmaceuticals Corp. and inVentiv Health Inc. came out with price talk on their loans in connection with holding bank meetings, and Weather Channel launched its term loan B in line with previous expectations.

Additionally, CPG International Inc. started circulating guidance on its upcoming facility, Acosta Sales & Marketing released details on size and tranching of its loan, and Summit Entertainment LLC and AccentCare Inc. nailed down timing on their deals.

EquiPower frees up

EquiPower's credit facility allocated and broke for trading on Wednesday, with the $425 million seven-year term loan quoted at par bid on the open and then it moved up to par 1/4, according to sources.

Pricing on the term loan is Libor plus 425 basis points with a 1.5% Libor floor and an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was reduced from talk of Libor plus 450 bps to 475 bps and the discount on tightened from 981/2.

The company's $525 million secured credit facility (Ba3/BB-) also includes a $100 million revolver priced at Libor plus 425 bps, after flexing from Libor plus 450 bps to 475 bps, with no Libor floor.

EquiPower buying Milford

Proceeds from EquiPower's credit facility will be used to fund the acquisition of Milford Power, the owner of a 548 megawatt combined cycle gas turbine power plant located in Milford, Conn., and to fund a distribution to the sponsor.

Barclays, Credit Agricole and Union Bank are the lead banks on the deal, with Barclays the left lead.

Security is four combined cycle gas turbine power plants located in New England.

The transaction is expected to close early in the first quarter following receipt of all necessary approvals.

EquiPower is a Hartford, Conn.-based competitive power generation company that is owned by Energy Capital Partners LLC.

CRC extended breaks

Also making its way into the secondary market was CRC Health's extended term loan, with levels seen at 99½ bid, par offered, according to a trader.

Meanwhile, the non-extended term loan was quoted at 98½ bid, 99½ offered, down from 99 3/8 bid, 99 7/8 offered on Tuesday, the trader said.

The company extended about $309 million of its $399 million term loan to November 2015 at a price of Libor plus 450 bps, after flexing up from initial talk of Libor plus 375 bps during the negotiation process. The loan includes 101 soft call protection for one year, which was added after launch.

The non-extended term loan due February 2013 is priced at Libor plus 225 bps.

Citigroup acted as the lead bank on the transaction for the Cupertino, Calif.-based provider of substance abuse treatment and adolescent youth services.

US Airways rises

Also in trading, US Airways' term loan moved up following the company's release of quarterly numbers, with one trader quoting it at 93 bid, 93¾ offered, up from 92¾ bid, 93¼ offered, and a second trader quoting it at 92½ bid, 93¼ offered, up from 92¼ bid, 93 offered.

For the fourth quarter, the Tempe Ariz.-based airline company reported a net profit of $28 million, or $0.17 per diluted share, compared to a net loss of $79 million, or $0.49 per share, in the prior year. This was the company's first profitable fourth quarter since 2006.

Total operating revenues for the quarter were $2.9 billion, up 10.7% from $2.6 billion in the fourth quarter of 2009.

And, as of Dec. 31, the company had about $2.3 billion in total cash and investments, of which $364 million was restricted, up from $2 billion, of which $480 million was restricted on Dec. 31, 2009.

Reynolds dips with paydown

Reynolds Group's term loan D traded down to par bid, par ¾ offered from 101¾ bid, 102 offered after word surfaced that the company would be paying down the debt with proceeds from a $1 billion notes offering, according to a trader.

The notes will be split between a $500 million senior secured offering and a $500 million senior unsecured offering.

Pricing is expected to take place on Thursday.

Reynolds is a Chicago-based food packaging company.

Cinram bid up

Cinram's term loan was 85½ bid on Wednesday, up from 78 bid, 80 offered, as investors reacted to the company's late Tuesday announcement that it will be moving forward with a proposed refinancing and recapitalization transaction with its current lenders, according to a trader.

Under the proposal, the company would, among other things, amend and extend its senior secured credit facility to Dec. 31, 2013, the amount of term loan debt outstanding would be reduced to $247 million from $367 million, and the revolver commitments would be reduced to $35 million from $100 million

The term loan reduction would be done through a $30 million cash paydown and an exchange of $90 million of the debt for $90 million second-lien secured debt that is mandatorily exchangeable into equity on Dec. 31, 2011 if not earlier repaid from equity proceeds.

Cinram is a Toronto-based provider of pre-recorded multimedia products and related logistics services.

Styron reworks loan

Moving to the primary, Styron lifted its 61/2-year term loan (B1/B+) to $1.4 billion from $1.3 billion, revised price talk and accelerated the commitment deadline to end of day Thursday from Feb. 1 as the deal is well oversubscribed, according to a market source.

Price talk on the loan is now Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 99¾ to par, compared to initial talk of Libor plus 500 bps with a 1.5% floor and a discount of 99, the source said. The tranche still includes 101 soft call protection for one year.

Deutsche Bank, HSBC, Barclays and BMO are the lead banks on the deal that will be used to refinance an existing term loan, repay revolver borrowings, take out seller notes and fund a dividend.

Styron is a Midland, Mich.-based diversified chemical manufacturer of emulsion polymers and plastics.

SunGard flexes

SunGard lowered pricing on its $479.22 million incremental term loan B due Feb. 28, 2014 to Libor plus 350 bps from Libor plus 362.5 bps, and it is selling the paper at par, compared to previous talk of a discount of 99½ to 993/4, according to a market source. As before, there is no Libor floor and 101 soft call protection for one year.

JPMorgan is the lead bank on the deal and is asking for recommitments by Thursday.

Proceeds will be used to replace an existing $479.22 million incremental term loan B due Feb. 28, 2014 that is priced at Libor plus 375 bps with a 3% Libor floor.

SunGard is a Wayne, Pa.-based software and technology services company.

IWCO raises OID

IWCO Direct moved the original issue discount on the sell-down of its $250 million term loan to 85 from previous guidance in the high 80s to low 90s area, according to a market source.

The term loan, which was obtained in 2007 to help fund Avista Capital Partners' buyout of the company from Court Square Capital Partners, is priced at Libor plus 337.5 bps.

Deutsche Bank is the lead bank on the deal.

IWCO is a Chanhassen, Minn., provider of direct marketing services.

Del Monte accelerates

Del Monte Foods revised the commitment deadline on its credit facility to 5 p.m. ET on Tuesday from Feb. 3 to coincide with the pricing of its proposed $1.5 billion notes offering, according to a market source.

The company's $2.5 billion term loan (Ba3/B+/BB) had a lot of momentum before it launched on Jan. 20, and that trend has continued over the past few days with one source remarking that syndication is "going very well" and another saying that the tranche is already oversubscribed.

The term loan is being talked at Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 99.

Proceeds from the credit facility, notes and $1.6 billion of equity will be used to help fund the acquisition of the company by Kohlberg Kravis Roberts & Co. LP, Vestar Capital Partners and Centerview Partners for $19.00 per share in cash. The transaction is valued at $5.3 billion, including the assumption of $1.3 billion in net debt.

Del Monte getting revolver

Del Monte's $3.25 billion credit facility, which is being led by JPMorgan, Barclays, Morgan Stanley, Bank of America and KKR Capital Markets, also includes a $750 million ABL revolver (NA/NA/BB).

The size of the credit facility is a bit larger than previously expected, as the company's filings with the Securities and Exchange Commission had the revolver amount at $500 million, and the notes are coming in slightly smaller than the $1.6 billion amount that was outlined in those filings.

Completion of the transaction is anticipated by the end of March, subject to customary closing conditions, including receipt of shareholder and regulatory approvals.

Del Monte is a San Francisco-based branded pet and consumer products company.

J. Crew reveals talk

J. Crew held a bank meeting on Wednesday afternoon to officially kick off syndication on its proposed credit facility, and with the launch, price talk on the $1 billion seven-year term loan was announced, according to sources.

The term loan is being talked at Libor plus 375 bps with a 1.5% Libor floor and an original issue discount of 991/2, sources said.

By comparison, according to filings with the SEC, pricing on the term loan was expected at Libor plus 450 bps with a 1.5% Libor floor.

The company's $1.25 billion senior secured credit facility also includes a $250 million five-year asset-based revolver, which, according to the filings is expected to be priced at Libor plus 250 bps.

Bank of America and Goldman Sachs are the joint lead arrangers and joint bookrunners on the deal.

J. Crew being acquired

Proceeds from J. Crew's credit facility, $600 million of senior unsecured notes and roughly $1.1 billion in equity, will be used to fund the buyout of the company by TPG Capital and Leonard Green & Partners LP for $43.50 per share in cash, or a total of about $3 billion.

The notes are backed by a commitment for a $600 million senior unsecured bridge loan priced at Libor plus 800 bps with a 1.5% Libor floor. Pricing on this loan would step-up over time to a specified cap.

There is a go shop period until Feb. 15. This was extended from Jan. 15 in connection with the settlement of a lawsuit regarding the buyout.

A special shareholders meeting to vote on the acquisition is scheduled for March 1. The company has already been granted early termination of the waiting period under Hart-Scott-Rodino.

J. Crew Group is a New York-based retailer of women's, men's and children's apparel, shoes and accessories.

Insight guidance surfaces

Insight Pharmaceuticals released price talk of Libor plus 500 bps with a 1.5% Libor floor and an original issue discount of 98½ on its $81 million six-year senior credit facility as it, too, launched with a bank meeting on Wednesday, according to a market source.

GE Capital is the lead bank on the deal that consists of a $10 million revolver and a $71 million term loan, and is asking for commitments in two weeks.

Proceeds will be used to refinance existing bank debt and finance a tack-on acquisition.

Insight is a Langhorne, Pa.-based marketer and distributor of branded over the counter pharmaceutical products and is majority owned by Swander Pace Capital.

inVentiv price talk

inVentiv Health launched itsa $300 million incremental term loan on Wednesday with price talk of Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 991/2, according to a market source.

Citigroup, Bank of America, Credit Suisse, Deutsche Bank and Wells Fargo are the lead banks on the deal that will be used to help fund the acquisitions of Campbell Alliance, a management consulting firm specializing in serving the pharmaceutical and biotech industries, and the i3 clinical development businesses from Ingenix.

In addition, the company is looking to amend its existing credit facility to allow for the new debt and permit an increase to its revolver to $100 million from $75 million, the source said.

inVentiv is a Somerset. N.J.-based provider of outsourced clinical development, launch and commercialization services to the healthcare industry.

Weather Channel launches

Also hitting the primary on Wednesday was Weather Channel's $1.625 billion six-year term loan B, which is being talked at Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 991/2. There is 101 soft call protection for one year.

Deutsche Bank is the lead arranger on the deal that was launched with a conference call and is a joint bookrunner with Credit Suisse, Goldman Sachs and JPMorgan.

Proceeds will be used to replace the company's existing $1.3 billion term loan B that is priced at Libor plus 350 bps with a 1.5% Libor floor, to refinance some junior debt and for general corporate purposes.

Weather Channel is an Atlanta-based media company devoted to bringing weather news via television, internet and mobile devices.

CPG floats talk

CPG International began sharing price talk on its proposed $350 million senior secured credit facility as the deal is getting ready to launch with a bank meeting at 10 a.m. ET on Friday at the Parker Meridien in New York, according to a market source.

The $65 million five-year ABL revolver is being talked with grid pricing that can range from Libor plus 225 bps to 275 bps, the $235 million six-year first-lien term loan (B) is being talked at Libor plus 475 bps with a 1.5% Libor floor and an original issue discount of 99, and the $50 million 61/2-year second-lien term loan (CCC+) is being talked at Libor plus 850 bps with a 1.5% Libor floor and a discount of 981/2, the source said.

The second-lien loan includes call protection of 103 in year one, 102 in year two and 101 in year three.

CPG refinancing debt

Proceeds from CPG's credit facility will be used to refinance all of its existing debt, to fund working capital requirements and for general corporate purposes.

Credit Suisse, UBS and Wells Fargo are the joint bookrunners on the deal.

At close, which is targeted for the first quarter, approximately $40 million is expected to be drawn under the revolver.

Leverage will be 3.7 times through the first-lien and 4.4 times total.

CPG is a Scranton, Pa.-based manufacturer of low maintenance building products for residential, commercial and industrial markets.

Acosta structure emerges

Acosta Sales & Marketing revealed that its upcoming credit facility will have a total size of $990 million, comprised of a $900 million term loan and a $90 million revolver, according to a market source.

Price talk on the facility is expected to be announced with the Thursday bank meeting that will be held to launch the transaction, the source said.

Goldman Sachs and Barclays are the lead banks on the deal that will be used, along with $610 million of unsecured debt that is not being marketed, to help fund the buyout of the company by Thomas H. Lee Partners from AEA Investors.

Acosta is a Jacksonville, Fla.-based sales and marketing agency in the consumer packaged goods industry.

Summit sets launch

Summit Entertainment zeroed in on timing for the launch of its proposed $800 million senior secured credit facility (B1/B) with the scheduling of a bank meeting for 10 a.m. ET on Tuesday at the New York Barclay InterContinental Hotel, according to a market source.

The facility consists of a $200 million five-year revolver and a $600 million seven-year term loan. Price talk is not yet available, the source said.

JPMorgan and UBS are the co-lead arrangers on the deal that will be used to repay existing debt, for working capital needs and general corporate purposes and to fund a dividend.

Summit Entertainment is a Santa Monica, Calif.-based independent film studio.

AccentCare timing firms

AccentCare set a bank meeting for Feb. 2 to launch its proposed $205 million credit facility that consists of a $25 million revolver and a $180 million term loan, according to a market source.

Previously, it was known that the deal would likely launch during the week of Jan. 31 and that the size was approximately $200 million, split between revolver and term loan debt, but specifics had been unavailable.

GE Capital, Bank of Ireland and CIT are the joint lead arrangers on the facility that will be used to help fund the buyout of the company by Oak Hill Capital Partners and subsequent merger with Guardian Home Care Holdings Inc., a Brentwood, Tenn.-based provider of homecare and hospice services that was recently acquired from Friedman Fleischer & Lowe.

AccentCare is an Irvine, Calif.-based provider of home health care services.

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