Pantry breaks; Dunkin' weakens; RedPrairie revises deadline; Van Wagner, Booz tweak deals

By Sara Rosenberg

New York, July 26 - Pantry Inc.'s credit facility freed up for trading on Thursday, Dunkin' Brands Group Inc.'s term loan B was softer as the company announced plans for incremental bank debt, and Dex West, Dex East and R.H. Donnelley Inc. continued to rise on the back of earnings.

Over in the primary, RedPrairie Corp. accelerated the commitment deadline on its deal, and Van Wagner Communications LLC made a number of changes to its term loan B, including increasing the coupon, sweetening call protection, shortening the maturity and beefing up amortization.

Furthermore, Booz Allen Hamilton Inc. moved funds between its term loans and cut pricing on the institutional debt, and Liberty Cablevision of Puerto Rico LLC finalized the original issue discount on its term loan at the tight end of guidance.

Additionally, Peninsula Gaming LLC, Presidio Inc., General Nutrition Centers Inc. and Freedom Group Inc. came out with price talk as the deals were presented to investors during the session, and Genesis HealthCare disclosed timing and structure on its credit facility.

Pantry starts trading

Pantry's credit facility hit the secondary market on Thursday, with the $255 million term loan B quoted at 99 ¾ bid, par 3/8 offered on the break, according to a market source.

Pricing on the B loan is Libor plus 450 basis points with a step-down to Libor plus 425 bps at less than 4.0 times leverage. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 99.

On Wednesday, pricing on the loan was reverse flexed from Libor plus 475 bps and the step-down was added.

The company's $480 million senior secured credit facility (B1/BB) also provides for a $225 million revolver that is priced at Libor plus 425 bps.

Pantry lead banks

Wells Fargo Securities LLC and Bank of America Merrill Lynch are the lead banks on Pantry's credit facility.

Proceeds will be used to help repay outstanding term loans and senior subordinated notes, of which the aggregate outstanding amount is about $598 million.

Other funds for the transaction will come from $250 million of senior notes that priced on Wednesday at par to yield 8 3/8% and available cash.

Pantry is a Cary, N.C.-based operator of a chain of convenience stores.

Dunkin' dips

Dunkin' Brands' term loan B dropped to 99 bid, 99½ offered, from 99½ bid, par offered, as news emerged that the company will be getting a $400 million incremental term loan and amending its existing credit facility, according to a trader.

The add-on senior secured term loan B-2 due Nov. 23, 2017, which will launch with a call at 11 a.m. ET on Monday, is being talked at Libor plus 300 bps with a 1% Libor floor, in line with existing term loan B pricing, and an original issue discount that is still to be determined, a source said.

Barclays Capital Inc., J.P. Morgan Securities LLC and Morgan Stanley Funding Inc. are leading the new deal that will be used to return capital to shareholders and for general corporate purposes.

The company has declared a third quarter cash dividend of $0.15 per share, payable on Aug. 24 to shareholders, and the board of directors has authorized a program to repurchase up to $500 million of its outstanding common stock over a period of two years.

Dunkin' releases numbers

For the second quarter, Dunkin' Brands reported net income of $18.5 million, compared to net income of $17.2 million last year.

And revenues for the quarter were $172.4 million, up from $157 million in the second quarter of 2011.

Also, the company increased its range for full-year adjusted earnings per share to $1.22 to $1.25 from $1.21 to $1.24. Adjusted earnings per share for 2011 were $0.94.

Furthermore, full-year revenue growth estimates were reaffirmed at between 7% and 8%.

Dunkin' Brands is a Canton, Mass.-based franchisor of quick service restaurants serving hot and cold coffee and baked goods, as well as hard-serve ice cream.

Dex debt gains

Dex One Corp.'s subsidiaries once again saw their bank debt move higher in trading, with the two day momentum prompted by the release of quarterly results, according to a trader.

Dex West's term loan was quoted at 59½ bid, 61 offered, versus 59 bid, 61 offered on Wednesday and 58 bid, 60 offered prior to the earnings news, Dex East's term loan was quoted at 52 bid, 54 offered, up from 51 bid, 53 offered in the prior session and from 50 bid, 52 offered before earnings, and R.H. Donnelley's term loan was quoted at 44½ bid, 46 offered, versus 44 bid, 46 offered on Wednesday and 43 bid, 45 offered pre-earnings, the trader said.

For the quarter, Dex One reported net income of $52.9 million, or $1.05 per share, compared to a net loss of $602.1 million, or $12.01 per share, in the previous year, net revenue was $334.5 million, versus $377.3 million, and adjusted EBITDA was $141.2 million, compared to $157.1 million last year.

Dex One is a Cary, N.C.-based marketing services provider.

RedPrairie accelerated

Switching to the primary, RedPrairie moved up the commitment deadline on its $380 million credit facility to 5 p.m. ET on Friday from Wednesday, according to a market source.

The facility consists of a $40 million five-year revolver and a $340 million six-year first-lien term loan, both talked at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 99.

Included in the term loan is 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC are leading the deal that will refinance existing bank debt and fund a dividend.

Leverage is 4.2 times.

RedPrairie is an Alpharetta, Ga.-based provider of supply chain software solutions.

Van Wagner reworks loan

Van Wagner Communications revised its $175 million term loan B, increasing pricing to Libor plus 700 bps from guidance of Libor plus 600 bps to 625 bps and making the 101 call protection for one year a hard call instead of a soft call, a market source said.

Also, the tenor was cut to six years from seven years and amortization was set at 2% per annum, as opposed to at 1%,

As before, the term loan B has a 1.25% Libor floor and is being offered at an original issue discount of 98.

The company's $200 million senior secured credit facility also includes a $25 million five-year revolver.

Van Wagner deadline

With the changes, Van Wagner told investors that they have until 5 p.m. ET on Friday to submit their recommitments, the source remarked.

Barclays Capital Inc. and GE Capital Markets are leading the deal that will be used to refinance existing debt, to fund an upfront cash payment for an acquisition and for general corporate purposes.

Net senior secured leverage is 5.2 times.

Van Wagner is an out-of-home advertising company.

Booz Allen restructures

Booz Allen was another company to make changes to its credit facility, as it upsized the term loan A to $725 million from $500 million, downsized the term loan B to $1.025 billion from $1.25 billion, and lowered B loan pricing to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps, according to a market source.

The term loan B still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and pricing on the term loan A, as well as on a $500 million revolver, was left at Libor plus 275 bps.

Recommitments are due at 10 a.m. ET on Friday, with the plan being to allocate that same day, the source concluded.

Booz Allen refi/dividend

Proceeds from Booz Allen's $2.25 billion senior secured credit facility (Ba3/BB) will be used to help refinance about $959 million of senior secured credit facility debt and fund a special dividend to stockholders of up to $1 billion.

Other funds for the transaction will come from around $260 million of cash on hand.

Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are the joint lead arrangers on the credit facility and bookrunners with Credit Suisse Securities (USA) LLC, Barclays Capital Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and SMBC.

Booz Allen Hamilton is a McLean, Va.-based provider of management and technology consulting services to the U.S. government in the defense, intelligence and civil markets.

Liberty firms discount

Liberty Cablevision of Puerto Rico set the original issue discount on its $175 million term loan at 99, the tight end of the 98½ to 99 talk, and left pricing unchanged at Libor plus 450 bps with a 1.5% Libor floor, according to a market source.

The oversubscribed $185 million five-year credit facility (B1/B+) also includes a $10 million revolver.

Allocations are expected to go out early next week, the source added.

Scotia Capital (USA) Inc. is leading the deal that will help fund the company's merger with San Juan Cable LLC (OneLink Communications), upon San Juan Cable's purchase by Liberty Cablevision's parent company, Liberty Global Inc., and Searchlight Capital Partners LP for about $585 million.

Closing is expected in the fourth quarter, subject to regulatory approval.

Liberty Global is an Englewood, Colo.-based cable company.

Peninsula reveals talk

Also on the new deal front, Peninsula Gaming held a bank meeting on Thursday to kick off syndication on its credit facility, and with the event, talk on the $825 million term loan B (B1/B+) was released as Libor plus 450 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

The loan has a ticking fee of 50 bps that starts after 30 days and is in effect until 60 days. The fee then steps up to half the spread from days 61 through 105 and to the full spread thereafter, the source said.

The company's $875 million five-year credit facility also includes a $50 million revolver (Ba2/BB-).

Lead banks, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and UBS Securities LLC, are seeking commitments by 12 p.m. ET on Aug. 2, the source continued.

Peninsula being acquired

Proceeds from Peninsula Gaming's credit facility will be used to help fund its purchase by Boyd Gaming Corp. for $1.45 billion and to refinance about $700 million of its existing debt.

Other funds for the transaction are expected to come from $350 million of senior notes backed by a senior unsecured bridge loan commitment, $200 million in cash from Boyd and a roughly $144 million six-year PIK seller note that will have a coupon of 0% in year one, 6% in year two, 8% in year three and 10% thereafter.

In addition, Boyd has received a commitment for a $150 million incremental revolver and or term loan due Dec. 17, 2015 that has pricing ranging from Libor plus 250 bps to 350 bps and an unused fee of 25 bps to 50 bps based on leverage.

Peninsula is Dubuque, Iowa-based owner and operator of casinos and off-track betting parlors. Boyd is a Las Vegas-based owner and operator of gaming entertainment properties.

Presidio guidance emerges

Presidio also launched its deal, at which time it was revealed that the facility consists of a $52.5 million revolver and a $400 million term loan due March 2017, according to a market source.

In addition, price talk on the term loan was announced as Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 991/2, and the debt includes 101 soft call protection for one year, the source said.

Commitments are due on Aug. 2, the source continued.

Barclays Capital Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC are the lead banks on the $452.5 million facility that will be used to refinance existing debt.

Presidio is a Greenbelt, Md.-based provider of advanced technology infrastructure services.

GNC comes to market

General Nutrition Centers launched on Thursday afternoon a $200 million incremental term loan B due 2018 that is being talked at Libor plus 300 bps with a 1.25% Libor floor and an original issue discount of 991/2, according to market sources.

The coupon and floor match that of the existing term loan.

J.P. Morgan Securities LLC is the left lead on the deal that will be used with $100 million of cash to fund a share buyback.

General Nutrition is a Pittsburgh-based specialty retailer of health and wellness products.

Freedom add-on pricing

Freedom Group held a call in the afternoon, presenting lenders with a $75 million add-on term loan B that is talked at Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 991/2, a source remarked.

The add-on is fungible with the existing term loan that has the same coupon and floor, but was sold at a discount of 99 earlier this year.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used for general corporate purposes, to repay ABL loan borrowings and to redeem preferred equity.

Freedom Group is a Madison, N.C.-based designer, manufacturer and marketers of firearms, ammunition and related products for the hunting, shooting sports, law enforcement and military markets.

WaveDivison launches

WaveDivision Holdings LLC held a bank meeting Thursday as well, and lenders are being given until Aug. 9 to place their orders for the $520 million credit facility (Ba3), according to a market source.

The deal is comprised of a $50 million revolver and a $470 million term loan B.

Talk on the B loan is in the 6% to 6½% area, including coupon, Libor floor and original issue discount, and there is 101 soft call protection for one year.

Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are leading the deal that will be used to help fund the buyout of the company by Oak Hill Capital Partners, GI Partners and management from Sandler Capital Management.

The transaction is expected to close in the fourth quarter, subject to regulatory approvals.

WaveDivision is a Kirkland, Wash.-based owner and operator of broadband cable systems.

Genesis sets meeting

In more primary happenings, Genesis HealthCare disclosed that it will be holding a bank meeting at 2 p.m. ET on Monday to launch its $750 million credit facility that consists of a $425 million ABL revolver and a $325 million term loan, according to a market source.

Barclays Capital Inc. and GE Capital Markets Inc. are leading the deal, with Barclays left lead on the term loan and GE left lead on the revolver.

Proceeds will be used to help fund the acquisition of Sun Healthcare Group Inc. for $8.50 per share. The transaction is valued at about $275 million net of cash and debt acquired.

Closing is expected in the fall, subject to approval by Sun stockholders, expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and regulatory approvals.

Genesis is a Kennett Square, Pa.-based skilled nursing care provider. Sun is an Irvine, Calif.-based health care services company.

Connolly closes

Connolly Inc. completed on Thursday its $400 million credit facility that consists of a $30 million revolver (Ba3), a $240 million first-lien term loan (Ba3) and a $130 million second-lien term loan (Caa1), according to a market source.

Pricing on the first-lien term loan is Libor plus 525 bps, after flexing during syndication from Libor plus 550 bps. There is a 1.25% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 99.

The second-lien term loan is priced at Libor plus 925 bps with a 1.25% Libor floor and was sold at a discount of 98. There is call protection of 103 in year one, 102 in year two and 101 in year three.

RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. led the deal that is being used to fund the buyout of the Atlanta-based provider of technology-enabled recovery audit services by Advent International.

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