EnergySolutions breaks; First Data slides; DirecTV rises; Pinnacle Foods deal emerges

By Sara Rosenberg

New York, Aug. 10 - EnergySolutions Inc.'s credit facility allocated and freed up for trading late in the day Tuesday, with the term loan B quoted above the original issue discount price at which it was sold during syndication.

Also in trading, First Data Corp.'s term loans weakened after the release of earnings as the market in general felt lower, and DirecTV Holdings LLC's term loan B was better now that the company is proposing to repay the debt with new notes.

Over in the primary market, Pinnacle Foods Finance LLC surfaced with a new term loan D, and while the official launch first took place on Tuesday, there were already commitments in from lenders ahead of the event.

Also launching during the session was Chemtura Corp.'s term loan, although price talk on the transaction was not released being that the banks are waiting on ratings.

EnergySolutions trading

EnergySolutions' credit facility hit the secondary market in the afternoon, with the $560 million term loan B quoted at 98 bid, 98½ offered on the open and then moving up to 98 3/8 bid, 98¾ offered, according to traders.

Pricing on the term loan B is Libor plus 450 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 971/2. There is 101 soft call protection for one year.

During syndication, the discount on the loan was increased from initial talk of 98 to 981/2.

The company's $685 million senior secured credit facility (Ba2/BB+) also includes a $125 million revolver.

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

EnergySolutions refinancing debt

Proceeds from EnergySolutions' credit facility, along with $300 million of senior notes, will be used to refinance an existing bank deal, which includes a revolver, a first-lien term loan and a synthetic letter-of-credit facility.

A portion of the proceeds from the term loan will be held in a restricted cash account to provide for cash-collateralized letters of credit.

The 10¾% notes priced last week at 98.69 to yield 11%. Pricing came at the high end of the 10¾% to 11% talk.

EnergySolutions is a Salt Lake City-based provider of nuclear services.

First Data trades down

First Data's term loans were a little softer on Tuesday despite the release of decent second-quarter numbers as the market in general felt heavier, according to traders.

One trader had the term loan B-1 quoted at 86½ bid, 87 offered, down from 86¾ bid, 87¼ offered, and the term loan B-2 and B-3 quoted at 86 3/8 bid, 86 7/8 offered, down from 86 5/8 bid, 87 1/8 offered.

A second trader had the term loan B-1 quoted at 86 5/8 bid, 87 offered, down from 86¾ bid, 87½ offered, and the term loan B-2 and B-3 quoted at 86½ bid, 86 7/8 offered, down from 86 5/8 bid, 87 3/8 offered.

For the second quarter, First Data reported a net loss of $171 million, compared to a net loss of $196 million in the previous year, revenues for the quarter were $2.6 billion, up 18% from $2.2 billion in the second quarter of 2009, and adjusted EBITDA for the quarter was $513 million, compared with $589 million in the prior year.

First Data amendment

In more First Data news, word surfaced that the company's amendment proposal received the required consents from a majority of lenders to pass ahead of the Tuesday commitment deadline, according to a market source.

Under the amendment, the company is gaining the ability to issue secured notes as long as all of the proceeds are used to repay term loans at par, and the amendment would only become effective if the company sells at least $500 million of notes within 90 days of execution.

The amendment also sets the cap of allowable junior debt at $3.5 billion, and proceeds from this financing would be used to redeem or repay senior or senior subordinated notes or other debt.

First Data allows for extensions

Another provision in First Data's amendment is that revolver or term loan commitments can be extended at a later date, with any extended debt able to have higher pricing or other modified terms compared to the non-extended debt.

Also, the amendment reduces the accordion feature under the credit agreement to $1 billion from $1.5 billion.

And, the amendment excludes certain junior debt from the calculation of consolidated senior secured debt.

Lenders were offered a 10 bps amendment fee.

Credit Suisse, Citigroup and KKR Capital Markets are the joint lead arrangers on the amendment.

First Data is a Greenwood Village, Colo.-based provider of electronic commerce and payment services.

DirecTV strengthens on paydown buzz

DirecTV's term loan B gained some ground as the company revealed in a 424B2 filed with the Securities and Exchange Commission that it is considering repaying the debt with new senior notes, according to a trader.

The term loan B was quoted at 99¾ bid, par¼ offered, up from 99½ bid, par offered, the trader said.

The company's term loan A, which might also be repaid in full with the notes proceeds, was unchanged on the day since it was already wrapped around par at 99¾ bid, par¼ offered, the trader explained.

In addition to possibly repaying the term loans, proceeds from the notes could also be used for a distribution to the parent company and other corporate purposes.

DirecTV is an El Segundo, Calif.-based provider of digital television entertainment.

Pinnacle Foods term D

Moving to the primary market, Pinnacle Foods held a conference call on Tuesday to officially kick off syndication on its proposed $442.3 million senior secured term loan D (Ba3/B+), but talk is that there was already a "good early order book" prior to the launch, according to a market source.

The term loan D is being talked at Libor plus 425 bps to 450 bps with a 1.75% Libor floor, and it is being offered at par, the source said.

Barclays, Bank of America and Credit Suisse are the lead banks on the deal, with Barclays the left lead.

Proceeds will be used to help refinance the company's existing $850 million term loan C due 2014 that was obtained in connection with the acquisition of Birds Eye Foods Inc. on Dec. 23, 2009.

Pricing on the term loan C is Libor plus 500 bps with a 2.5% Libor floor, and it was sold at an original issue discount of 98.

Pinnacle Foods sells notes

In connection with announcing the term loan D on Tuesday morning, Pinnacle Foods also revealed plans to sell $400 million of seven-year senior unsecured notes to assist in the term loan C refinancing.

The same banks leading the term loan D are the bookrunners on the notes.

An investor call for the notes was set for 11:30 a.m. ET, shortly after the company's earnings call, and pricing took place later in the day - at which time the notes priced at par to yield 8¼%.

Late Monday, the company released second quarter results including net earnings of $14.2 million, compared to $2.5 million in the second quarter of 2009, and net sales of $576.1 million, compared to $408.8 million last year.

For the first six months of the year, consolidated EBITDA was $243.4 million, compared to $231.7 million for the first six months of 2009.

Pinnacle Foods B loan trades up

In reaction to the refinancing news and the improvement in year-over-year numbers, Pinnacle Foods' term loan B headed higher, while the term loan C moved down to paydown levels, according to traders.

The term loan B was quoted by one trader at 94 7/8 bid, 95 3/8 offered, up from 94 bid, 95 offered, and by a second trader at 94 7/8 bid, 95¼ offered, up from 94 bid, 94¾ offered.

Meanwhile, the term loan C was quoted at 99¾ bid, no offers, down from par ¼ bid, 101¼ offered, the second trader added.

Pinnacle Foods is a Mountain Lakes, N.J.-based manufacturer and distributor of branded packaged foods.

Chemtura price talk still unknown

Back over to the primary, Chemtura held a bank meeting on Tuesday for its proposed $300 million six-year term loan B, at which time investors were told that they will have to wait for price talk until ratings come out, according to a market source.

Bank of America, Barclays and Citigroup are the lead banks on the deal, with Bank of America the left lead.

Other funds for the company's exit are expected to come from $450 million of unsecured notes due in 2018.

Previously, the company said that it would get $750 million of term loan and/or notes, with the sizes to be decided based on, among other things, market conditions.

The plan is to pre-fund the notes and term loan, but proceeds would not be available until after the company's plan of reorganization takes effect.

Chemtura getting revolver

Also in connection with its exit, Chemtura expects to get a new $275 million five-year senior secured asset-based revolver.

Pricing on the revolver is anticipated to range from Libor plus 275 bps to 325 bps based on availability.

Specifically, if availability is less than $100 million, pricing will be Libor plus 325 bps. If it is $100 million to $200 million, pricing will be Libor plus 300 bps, and if it is greater than $200 million, pricing will be Libor plus 275 bps.

Bank of America is the administrative agent the revolver.

Chemtura is a Middlebury, Conn.-based manufacturer and seller of specialty chemicals and polymer products.

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