MEG Energy, PODS, Advanced Disposal Services free to trade; Ford better with Volvo update

By Sara Rosenberg

New York, Dec. 23 - MEG Energy Corp.'s new credit facility and amended and extended deal hit the secondary market on Wednesday, with the new term loan wrapped around its discount price and the extended term loan trading slightly higher than the new debt.

Also breaking for trading was PODS Enterprises Inc.'s credit facility, with its term loan quoted right around the original issue discount price at which it was sold during syndication, and Advanced Disposal Services Inc.'s credit facility, with its term loan B bid above its discount price without any offers.

In other secondary happenings, Ford Motor Co.'s old term loan headed higher during market hours after the company revealed that it expects to make progress on its sale of Volvo Car Corp. early next year.

MEG starts trading

MEG Energy's new credit facility broke for trading, with the term loan seen bid below its original issue discount price, and the company's amended and extended bank debt started trading as well, according to a trader.

The $300 million new term loan due in April 2016 was quoted at 98 bid, 98¾ offered, while the extended term loan was quoted at 98¾ bid, 99½ offered, the trader said.

The new term loan is priced at Libor plus 400 basis points with a 2% Libor floor, and it was sold at an original issue discount of 981/2.

Meanwhile, the extended term loan due in April 2016 is priced at Libor plus 400 bps with a 2% Libor floor and it was offered with 75 bps of fees, comprised of a 60 bps extension fee and a 15 bps amendment fee.

Maturities on the extended term loan were pushed out primarily from 2013 and pricing before the extension was Libor plus 200 bps.

MEG getting revolver, too

MEG Energy's $450 million new money credit facility (B2/BB+) also includes a $150 million revolver due in January 2013.

Pricing on the revolver is Libor plus 400 bps with no Libor floor, and it was sold at an original issue discount of 98.

Proceeds from the new credit facility will be used for future expenditures and continued development.

Barclays and Credit Suisse are the joint bookrunners on the deal.

MEG Energy is a Calgary, Alta.-based oil sands development company.

PODS breaks

Also freeing up for trading was PODS Enterprises' credit facility, and term loan levels were hovering around the tranche's original issue discount price, according to a market source.

Specifically, the $120 million five-year term loan was quoted at 98 bid, 99 offered, the source remarked.

Pricing on the term loan is Libor plus 550 bps with a 2% floor, and the paper was sold to investors at an original issue discount of 98.

In addition to the term loan, the company is also getting a $25 million four-year revolver that is also priced at Libor plus 550 bps with a 2% Libor floor and was sold at original issue discount of 98.

Barclays Capital is the left lead bank on PODS Enterprises' $145 million credit facility that will be used to refinance existing bank debt. GE Capital and Golub Capital joined on as bookrunners early in the syndication process.

Secured leverage is 2.9 times and total leverage is 4.4 times.

PODS, a Clearwater, Fla.-based provider of moving and storage services, expects to close on this new deal before year-end.

Advanced Disposal frees up

Advanced Disposal Services' was another deal to break for trading during Wednesday's market hours, with its $150 million term loan B quoted at 98¾ bid for $2 million, with no offers, according to a trader.

The term loan B is priced at Libor plus 400 bps with a 2% Libor floor, and it was sold at an original issue discount of 98.

The company's $375 million senior secured credit facility (Ba3/B+) also includes a $225 million revolver that has pricing that can range from Libor plus 275 bps to 400 bps based on leverage.

Bank of America is the lead bank on the deal that is being used to refinance existing debt.

Advanced Disposal Services is a Jacksonville, Fla.-based non-hazardous and solid waste disposal company.

Ford inches up

Ford's old term loan was a little stronger as the company announced that it expects to sign a definitive agreement to sell Volvo Car Corp. to Zhejiang Geely Holding Group Co. Ltd. in the first quarter of 2010, according to a trader.

The company said that there is still work to regarding final documentation, financing and government approvals before an agreement can be signed.

Subject to regulatory approvals, completion of the sale would likely occur in the second quarter of 2010.

Once the transaction is complete, Ford does not intend to retain a shareholding in the Volvo business.

Following the news, the company's old term loan was quoted at 91 bid, 93 offered, up from 90½ bid, 92½ offered on Tuesday, the trader said.

Ford is a Dearborn, Mich.-based automotive company.

Pinnacle Foods closes

In other news, Pinnacle Foods Group LLC closed on its $850 million incremental term loan C (B2), according to a news release.

Pricing on the term loan C is Libor plus 500 bps with a 2.5% Libor floor, and it was issued at a discount of 99.

During syndication, the discount was tightened from 98.

Also, the term loan C was initially expected to be sized at $875 million and the company's senior unsecured bond offering was expected to be sized at $275 million, based on the company's commitment letter. The term loan was then revised to $750 million and the bonds to $400 million, and then the term loan was changed to $850 million and the bonds to $300 million.

Proceeds from the term loan C, the bonds and equity were used to fund the acquisition of Birds Eye Foods Inc. from Vestar Capital Partners, Pro-Fac Cooperative and management in a transaction valued at $1.3 billion.

Pinnacle Foods lead banks

Barclays, Bank of America and Credit Suisse acted as the joint lead arrangers and bookrunners on Pinnacle Foods' credit facility, with Barclays the left lead. HSBC and Macquarie Capital acted as bookrunners as well.

In addition to the term loan C, the company got a $20 million incremental revolver (B2), which was not syndicated and will be used for general corporate purposes and working capital.

The revolver add-on is priced in line with the existing revolver.

Pinnacle Foods is a Cherry Hill, N.J.-based manufacturer and distributor of branded packaged foods. Birds Eye is a Rochester, N.Y.-based packaged food company with more than $930 million of total sales.

AMN closes

AMN Healthcare Services Inc. closed on its $150 million credit facility (Ba1/BB) on Wednesday, according to an 8-K filed wit the Securities and Exchange Commission.

The facility consists of a $110 million four-year term loan priced at Libor plus 400 bps with a 2.25% Libor floor and an original issue discount of 96, and a $40 million three-year revolver priced at Libor plus 400 bps.

The unused fee on the revolver can range from 50 bps to 75 bps based on leverage.

During syndication, the revolver was downsized from $75 million.

Bank of America and SunTrust acted as the lead banks on the deal that was used to refinance the company's existing credit facility, with Bank of America the left lead.

AMN is a San Diego-based health care staffing company.

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