Advanced Medical Optics, Swett, Attachmate, Exco, Cebridge tweak deals; Eddie moves deadline

By Sara Rosenberg

New York, March 28 - Advanced Medical Optics Inc. made some changes to its credit facility, including increasing the size of its term loan while reducing pricing and adding a step down, and Swett & Crawford Group Inc. upsized its first-lien term loan B while lowering pricing on the tranche as well as on its second-lien term loan.

Also in the primary, Attachmate Corp. downsized its first- and second-lien term loans and Exco Resources Inc. eliminated its term loan Bs and upsized its revolvers by the equivalent amounts.

In addition, Cebridge Connections Inc. added an original issue discount and soft call protection to its add-on/repricing deal, and Eddie Bauer Holdings Inc. extended the commitment deadline by one day for its term loan B.

Furthermore, Maguire Properties Inc. released price talk on its credit facility as the deal was launched with a bank meeting during Wednesday's market hours, and H3C Holdings Ltd. came out with talk on its term loan ahead of its Thursday launch.

Advanced Medical Optics announced on Wednesday that it was upsizing, lowering pricing and adding a step to its term loan due to heavy oversubscription, according to a market source.

The seven-year term loan is now sized at $450 million, up from $400 million, pricing was reverse flexed to Libor plus 175 basis points from original talk at launch of Libor plus 200 bps, and the spread can now step down to Libor plus 150 bps based on the company meeting a leverage test, the source said.

The company's $300 million six-year revolver was left unchanged in terms of size and pricing, which is set at Libor plus 175 bps, the source added.

UBS Investment Bank, Bank of America and Goldman Sachs are the lead banks on the now $750 million (up from $700 million) senior secured credit facility (Ba1/BB), with UBS the left lead.

Proceeds will be used to help fund the acquisition of IntraLase Corp. for about $808 million in cash.

When the acquisition was announced, the company revealed in filings with the Securities and Exchange Commission that it had actually received a commitment for a $900 million credit facility consisting of a $300 million revolver and a $600 million term loan.

However, the company had also said that it planned to cut the term loan size by $200 million to $300 million and issue $200 million to $300 million of bonds.

On Tuesday, the company priced $250 million (upsized from $200 million) 10-year senior subordinated notes at par to yield 7½%. Price talk on the bonds had been 7½% to 7¾%.

Advanced Medical is a Santa Ana, Calif., developer, manufacturer and marketer of medical devices for the eyes. IntraLase is an Irvine, Calif., designer, developer and manufacturer of ultra-fast laser products for vision correction.

Swett & Crawford upsizes, trims spreads

Another deal to come out with revisions was Swett & Crawford, who increased the size and reduced pricing on its first-lien term loan B and lowered second-lien term loan pricing, according to a market source.

The first-lien term loan B (B2) is now sized at $285 million, up from $265 million, and pricing was reduced to Libor plus 225 bps from original talk at launch of Libor plus 250 bps, the source said.

As for the $110 million second-lien term loan (B3), pricing was reverse flexed to Libor plus 550 bps from original talk at launch of Libor plus 575 bps to 600 bps, the source continued. This tranche carries call protection of 102 in year one and 101 in year two.

Swett & Crawford's now $415 million (up from $395 million) credit facility also includes a $20 million revolver (B2).

Proceeds will be used to fund a recapitalization that will include paying a dividend to sponsors. The dividend payment is being increased by $17 million with the additional funds being raised from the first-lien term loan B upsizing, the source added.

Deutsche Bank and Credit Suisse are the lead banks on the deal.

Swett & Crawford is an Atlanta-based insurance broker.

Attachmate downsizes

Attachmate decreased the size of its credit facility by $70 million as the decision was made to downsize the amount of the dividend payment that is being made with some of the loan proceeds by the equivalent amount, according to a market source.

With the changes, the first-lien term loan (B1/B) is now sized at $430 million, down from $480 million, and the second-lien term loan (Caa2/CCC+) is now sized at $255 million, down from $275 million, the source said.

Price talk on the first-lien term loan was left at Libor plus 275 bps and price talk on the second-lien term loan was left at Libor plus 625 bps, the source added.

Attachmate's now $705 million (down from $775 million) credit facility also includes a $20 million revolver (B1/B) talked at Libor plus 275 bps.

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

In addition to funding a dividend, proceeds will be used to refinance existing debt.

Attachmate is a Seattle-based provider of access and integration software for legacy systems.

Exco drops B loans

The term loan Bs under the Exco Resources and Exco Operating credit facilities were eliminated from the capital structures and the funds were moved into the companies' revolving credit facilities, according to a market source.

Exco Resources will now be getting a $1 billion revolver priced at Libor plus 125 bps, instead of a $750 million revolver at Libor plus 125 bps and a $250 million term loan B at Libor plus 150 bps, the source said.

And, Exco Operating will now be getting a $1.35 billion revolver priced at Libor plus 150 bps, instead of a $1 billion revolver and a $350 million term loan B, which were both talked at Libor plus 150 bps.

JPMorgan is the lead bank on the deal.

Proceeds from the $2.35 billion credit facilities will be used to refinance existing debt and to help fund the acquisitions of oil and gas properties, acreage and other assets.

Exco is Dallas-based independent energy company.

Cebridge adds OID, soft call

Cebridge Connections also made some modifications on Wednesday as it added an original issue discount and soft call protection to its $225 million first-lien term loan B add-on/repricing (B1/B+) transaction, according to a market source.

The original issue discount is set 99¾ and the soft call protection is 101 for 18 months, the source remarked.

The add-on is still talked at Libor plus 200 bps, and under the repricing, the spread on the existing term loan B is still going down to Libor plus 200 bps from Libor plus 225 bps.

Goldman Sachs is the lead bank on the deal.

Proceeds from the add-on will be used to fund the acquisition of assets.

Cebridge is a St. Louis-based provider of cable television and Internet access.

Eddie Bauer resets deadline

Eddie Bauer extended the commitment deadline on its $225 million term loan B (B2/B-) to Thursday at 5 p.m. ET from Wednesday at 5 p.m. ET, according to a fund manager.

The reason for the extension is the company is supposed to be filing its 10-K report and some investors wanted to get a look at the filing before committing to the deal, the fund manager explained.

Price talk on the term loan B is in the Libor plus 350 bps area.

JPMorgan and Goldman Sachs are the lead banks on the deal.

Eddie Bauer is a Seattle-based retailer that sells casual sportswear and accessories.

Maguire price talk

Maguire Properties held a bank meeting on Wednesday to officially kick off syndication on its credit facility, and with the launch, price talk of Libor plus 200 bps emerged on both tranches under the transaction, according to a buyside source.

The $825 million credit facility (Ba3/BB-) consists of a $625 million five-year term loan B and a $200 million four-year revolver.

The revolver carries a 50 bps commitment fee.

Credit Suisse, Lehman Brothers and Merrill Lynch are joint bookrunners on the deal, with Credit Suisse acting as lead arranger.

Proceeds from the facility, along with a $2.5 billion CMBS bridge facility, will be used to fund the acquisition from the Blackstone Group of all the properties in Orange County and downtown Los Angeles that were part of the former Equity Office Properties portfolio.

Maguire is a Los Angeles-based real estate investment trust.

H3C Holdings guidance surfaces

Also on the price talk front, H3C Holdings announced official guidance of Libor plus 225 bps to 250 bps on its $430 million 51/2-year senior secured term loan as the deal is getting ready to launch with a bank meeting on Thursday, according to a market source.

Previously, it was said in a filing with the SEC that the loan was expected to carry an initial interest rate of Libor plus 200 bps and that the spread could range from Libor plus 150 basis points to 225 basis points, based on the company's leverage ratio.

Goldman Sachs is the lead arranger, bookrunner, administrative agent and syndication agent on the deal.

Proceeds will be used to finance a portion of the purchase price for 3Com Corp.'s acquisition of 49% of its China-based joint venture, Huawei-3Com Co., Ltd. from an affiliate of Huawei Technologies.

H3C is an indirect wholly owned subsidiary of 3Com, a Marlborough, Mass.-based provider of secure and converged networking solutions.

International Aluminum adding covenants

International Aluminum Corp. is talking about adding financial covenants to its credit facility (as opposed to having no financial covenants), and with this potential addition, it is expected that the original March 27 commitment deadline will end up being extended, according to a market source.

The company's $145 million credit facility consists of a $20 million six-year revolver and a $125 million six-year term loan, with both tranches talked at Libor plus 275 bps, the source said.

CIBC and Jefferies are the lead banks on the deal, with CIBC the left lead.

Proceeds will be used to help fund the acquisition of International Aluminum by Genstar Capital, LLC for $53.00 per share in cash in a transaction with a total implied equity value of about $228 million.

International Aluminum is a Monterey Park, Calif., manufacturer of diversified lines of aluminum and vinyl products.

Carestream flexes

Carestream Health Inc. reverse flexed pricing on its $1.5 billion first-lien term loan B (Ba2/B+) to Libor plus 200 bps from original talk of Libor plus 225 bps and on its $440 million second-lien term loan (B3/B) to Libor plus 525 bps from original talk of Libor plus 550 bps to 600 bps, according to a market source.

In addition, call premiums on the second-lien term loan were changed to just 101 in year one, from the originally proposed 102 in year one and 101 in year two, the source said.

The company's $2.09 billion credit facility also includes a $150 million revolver (Ba2/B+) with a 50 bps commitment fee.

Credit Suisse and Goldman Sachs are the joint lead arrangers on the deal.

Proceeds will be used to help fund Onex Healthcare Holdings Inc.'s acquisition of Eastman Kodak Co.'s health group business, which consists of Kodak's medical, dental and molecular imaging systems businesses.

Under the transaction agreement, Onex Healthcare, a subsidiary of Onex Corp., is buying the Rochester, N.Y.-based health care business for up to $2.55 billion, consisting of an initial payment of $2.35 billion in cash plus up to $200 million more if Onex achieves certain returns with respect to its investment.

Penton Media pulls deal

Penton Media Inc. pulled its $150 million holdco pay-in-kind loan from market due to market conditions, according to an informed source.

The PIK loan was being talked at Libor plus 625 bps to 650 bps, with call protection of 102 in year one and 101 in year two.

UBS Investment Bank was acting as the lead bank on the deal, which was going to be used to fund a dividend to shareholders.

Penton Media, a portfolio company of Wasserstein & Co. and MidOcean Partners, is a New York-based business-to-business publisher.

Sorenson fine tunes add-on/repricing terms

Sorenson Communications tweaked its add-on/repricing deal by adding a step up provision, adding 101 soft call protection for one year and putting a financial covenant back into the agreement, according to a market source.

As was originally proposed, the $198 million first-lien term loan add-on is priced at Libor plus 250 bps, and the existing first-lien debt is being repriced to Libor plus 250 bps from Libor plus 300 bps, the source said.

However, now pricing on both the add-on and the existing first-lien loan will be able to step up to Libor plus 275 bps under certain conditions, the source added.

Goldman Sachs is the lead bank on the deal.

Proceeds from the add-on will be used to repay the company's holdco PIK loan and a portion of its second-lien term loan.

Sorenson Communications is a Salt Lake City-based provider of video relay services and equipment for the deaf and hard-of-hearing community.

Allied Waste closes

Allied Waste Industries Inc. closed on its $3.17 billion credit facility (Ba3/BB/BB), according to a company news release.

The facility consists of a $1.575 billion revolver due 2012, a $1.105 billion term loan B due 2014 and a $490 million synthetic letter-of-credit facility due 2014, with all three tranches priced at Libor plus 175 bps.

The term loan B and synthetic letter-of-credit facility carry a step down to Libor plus 150 bps at 4.5 times leverage.

The revolver has an undrawn fee of 37.5 bps.

JPMorgan and Citigroup acted as the lead banks on the deal, which was used to refinance existing debt, with JPMorgan the left lead.

Allied Waste is a Phoenix nonhazardous solid waste management company.

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