MACH Gen breaks; Georgia-Pacific, Emdeon dip on repricings; NSG, GNC, American Cellular set talk

By Sara Rosenberg

New York, Feb. 22 - MACH Gen's credit facility allocated and freed up for trading on Thursday, with the strip of institutional bank debt ending the day in the upper pars, and Georgia-Pacific Corp. and Emdeon Business Services both seeing their bank debt weaken a little following the emergence of repricings.

In primary happening, NSG Holdings LLC and GNC Parent Corp. came out with price talk on their new deals as syndication kicked off with bank meetings Thursday, American Cellular Corp. released price talk on its in-market credit facility and Domtar Corp. lowered pricing on its term loan.

MACH Gen's credit facility broke for trading during Thursday's market hours, with the strip of synthetic letter-of-credit facility and term loan B quoted at 101 bid, 101¼ offered immediately on the open and then inching down to par 5/8 bid, par 7/8 offered, where it closed out the session, according to a trader.

The $60 million synthetic letter-of-credit facility and $580 million term loan B are both priced at Libor plus 200 basis points. During syndication, pricing on these two tranches was reverse flexed from original talk of Libor plus 225 bps.

MACH Gen's $740 million credit facility (B2/B) also includes a $100 million revolver that is priced at Libor plus 225 bps, in line with original guidance.

Morgan Stanley, Bear Stearns and Deutsche Bank are the lead banks on the deal that will be used to refinance existing debt.

MACH Gen is a portfolio of power-generation assets.

Georgia-Pacific softens with repricings

Georgia-Pacific's term loan debt came in by about an eight of a point in trading after the company launched an amendment that would, among other things, reprice the paper, according to a trader.

The company's term loan A, term loan B-1 and term loan B-2 all ended the session at par 7/8 bid, 101 1/8 offered, down from previous levels of 101 bid, 101¼ offered, the trader said.

Under the amendment, the company is looking to reprice both its term loan A and its term loan B-1 at Libor plus 175 bps from Libor plus 200 bps. The term loan B-2 will remain at its current pricing of Libor plus 175 bps.

In addition, the pricing grids on the term loan A and the term loan B-1 are being revised to bring the rates down by 25 bps and change the conditions under which pricing will step down, and a pricing grid is being added to the term loan B-2.

Under the grids, pricing on the term loan A, the term loan B-1 and the term loan B-2 would now be able to drop to Libor plus 150 bps when total leverage is under 4.6 times.

However, the new pricing grids don't take affect until the company delivers second quarter 2007 financial statements.

As for the company's revolver, the amendment would lower the commitment fee to 37.5 bps from 50 bps.

Citigroup, Bank of America and JPMorgan are the lead banks on the deal, which was launched with a conference call on Thursday morning, with Citi the left lead.

Georgia-Pacific is an Atlanta-based manufacturer and marketer of tissue, packaging, paper, building products and related chemicals.

Emdeon also lower with repricing

Emdeon Business Services' term loan B also came under a bit of pressure on Thursday as it too launched a repricing proposal to investors during market hours, according to a trader.

The term loan B ended the day at par ¾ bid, 101¼ offered, down from 101 bid, 101½ offered, the trader said.

Under the repricing, the company is looking to take the spread down on its term loan B and revolver to Libor plus 200 bps from Libor plus 250 bps.

The term loan B will have 101 soft call protection for one year.

Citigroup is the left lead bank on the deal.

Emdeon Business Services is a Nashville provider of healthcare transaction services.

NSG guidance

Moving to the primary market, NSG Holdings launched its $318.5 million senior secured credit facility (Ba2) on Thursday with price talk of Libor plus 175 to 200 bps on both tranches contained in the deal, according to a market source.

The facility is comprised of a $286 million term loan and a $32.5 million synthetic letter-of-credit facility.

Lehman Brothers and BNP Paribas are the lead banks on the deal, with Lehman the left lead.

Proceeds will be used to refinance existing debt and fund a sponsor equity distribution.

NSG is a subsidiary of Northern Star Generation LLC, a Houston-based power generation company that is jointly owned by AIG Highstar Capital II LP and The Ontario Teachers Pension Plan Board.

GNC sets talk

GNC also launched its new $735 million credit facility during market hours, at which time it was revealed that both tranches under the facility are being talked at Libor plus 250 bps, according to a market source.

Tranching on the deal consists of a $50 million revolver and a $685 million term loan B.

JPMorgan and Goldman Sachs are the lead banks, with JPMorgan the left lead.

Proceeds will be used to help fund the leveraged buyout of the company by Ares Management LLC and Ontario Teachers' Pension Plan from Apollo Management, LP in a transaction valued at around $1.65 billion, subject to certain adjustments.

GNC is a Pittsburgh-based retailer of nutritional products, vitamin, mineral, herbal and other specialty supplements and sports nutrition, diet and energy products.

American Cellular price talk

American Cellular announced price talk of Libor plus 225 bps on all tranches under its $850 million senior secured credit facility on Thursday, according to a market source.

Tranching on the deal is comprised of a $75 million revolver, a $700 million term loan B and a $75 million delayed-draw term loan.

The term loan B and the delayed-draw term loan will have leverage-based step downs in pricing, but the actual grid is still to be determined, the source said. There is currently no anticipated ticking fee for the delayed-draw loan.

Revolver pricing will also be tied to a grid, although it will be different than the grid on the two term loans.

The facility was actually launched to lenders with a bank meeting this past Tuesday, but no price talk was given at that time since it was hoped that ratings would emerge later on in the week and then the price talk could be tied to the ratings. Now, however, ratings aren't expected to be announced until early next week, so the decision was made to go out with the price talk without them, the source explained.

Lehman and Morgan Stanley are the joint lead arrangers on the deal, with Lehman the left lead.

Proceeds from the credit facility, along with $425 million of senior notes, will be used to refinance existing debt, including the company's existing senior secured credit facility, $18.1 million 9½% senior subordinated notes due 2009 and $900 million 10% senior notes due 2011.

The tender offer for the 10% notes will expire on March 15.

American Cellular is a subsidiary of Dobson Communications Corp., an Oklahoma City-based provider of wireless phone services to rural markets.

Domtar reduces pricing

Domtar lowered pricing on its $800 million term loan B to Libor plus 137.5 bps from original talk at launch of Libor plus 175 bps, according to a market source.

Pricing on the company's $750 million revolver was said to be left unchanged at Libor plus 175 bps, the source added.

JPMorgan and Morgan Stanley are the lead banks on the $1.55 billion credit facility (Ba1/BB), with JPMorgan the left lead.

Proceeds will be used to help fund the combination of Weyerhaeuser Co.'s fine paper business with Domtar Inc. to form Domtar Corp.

Under the transaction, Weyerhaeuser shareholders will get a 55% ownership in the new company and former Domtar shareholders will own 45% of the new company.

The newly combined company will make a $1.35 billion cash payment to Weyerhaeuser as partial consideration for the assets being contributed.

Domtar is a Montreal, Quebec-based paper company.

Valley National upsizes

Valley National Gases Inc. increased the size of its 71/2-year second-lien term loan (B3/CCC+) to $90 million from $75 million and reduced the equity component that will be used to help back the buyout of the company, according to a market source.

Pricing on the second-lien was left unchanged at Libor plus 600 bps.

Valley National's now $305 million senior secured credit facility (up from $290 million) also includes a $165 million seven-year first-lien term loan (Ba3/B) with no maintenance covenants at Libor plus 225 bps and a $50 million six-year revolver (Ba3/B) at Libor plus 225 bps with a 50 bps unused fee.

During syndication, the maintenance covenants under the first-lien term loan were eliminated from the deal.

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

Proceeds will be used to help fund Caxton-Iseman Capital's leveraged buyout of the company in a transaction valued at about $312 million, including about $249 million to purchase outstanding shares and the assumption of debt.

Valley National is a Washington, Pa., packager and distributor of industrial, medical and specialty gases, welding equipment and supplies, propane and fire protection equipment.

GateHouse cuts spread

Gatehouse Media, Inc. reduced pricing on its $670 million term loan B and $250 million delayed-draw term loan to Libor plus 175 bps from original talk of Libor plus 225 bps, and added 101 soft call protection for one year, according to a market source.

In addition, the company is contemplating upsizing the delayed-draw tranche to up to $400 million, the source said.

In terms of the upsizing, the syndicate is still waiting to get confirmation from the market that it will go through, the source explained.

Pricing on the company's $40 million revolver was left unchanged at Libor plus 200 bps, the source added.

Wachovia Securities and Goldman Sachs are the lead banks on the $960 million credit facility (B1/B+), that could end up sized at $1.11 billion.

Proceeds will be used to refinance existing debt, to finance the acquisition of SureWest Directories, subject to government approvals and customary closing conditions, and to finance future acquisitions.

Gatehouse Media is a Fairport, N.Y., publisher of locally based print and online media.

SCA shift funds, cuts spreads

SCA Packaging North America moved some funds out of its second-lien term loan and into its first-lien term loan and lowered pricing on the two tranches, according to a market source.

The first-lien term loan is now sized at $215 million, up from $205 million, and pricing was reduced to Libor plus 225 bps from original talk of Libor plus 250 bps, the source said.

Meanwhile, the second-lien term loan is now sized at $75 million, down from $85 million, and pricing was lowered to Libor plus 550 bps from original guidance of Libor plus 600 to 625 bps, the source added.

SCA's $340 million credit facility also includes a $50 million revolver.

JPMorgan and Bank of America are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of the company by Metalmark Capital from Sweden-based Svenska Cellulosa for about $400 million.

SCA is a New Brighton, Pa., producer of protective packaging and material-handling products.

Electrical Components trims pricing

Electrical Components International Holdings Co. reverse flexed pricing on its $90 million first-lien term loan add-on (Ba3/B) to Libor plus 225 bps from Libor plus 250 bps, according to a market source.

In addition, the company will now reprice its existing $155 million of first-lien term loan debt to Libor plus 225 bps from Libor plus 250 bps, the source said.

UBS is the lead arranger on the deal.

Proceeds from the add-on will be used to fund the acquisition of GenTek Inc.'s Noma Wire and Cable Assembly Business for $75 million cash.

The company's existing $35 million revolver and $60 million second-lien term loan will remain in place as is.

Electrical Components is a St. Louis-based manufacturer and marketer of wire harnesses and a provider of value-added assembly services.

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