Berkline/BenchCraft second-lien could see price change; Centennial active at stronger levels

By Sara Rosenberg

New York, Oct. 15 - Berkline/BenchCraft Holdings LLC's second-lien term loan is anticipated by some to see a flex up in pricing soon and pricing on the first-lien is expected to come at the high end of talk. Meanwhile, Centennial Communications Corp. (Centennial Cellular) bank debt traded actively in Friday's market at higher levels on follow-through feel-good attitude from last week's raised 2005 outlook.

Berkline/BenchCraft's $215 million facility is currently structured as a $110 million first-lien term loan (B1/B+) talked at Libor plus 275 to 300 basis points, a $70 million second-lien term loan (B2/B-) talked at Libor plus 650 to 700 basis points and a $35 million revolver (B1/B+).

Pricing on the second-lien is anticipated to be moving above the Libor plus 700 basis points mark, although by how much is unknown at this time.

"Last I had heard pricing was going to be around Libor plus 300 for the first-lien and was going to increase on the second-lien but it wasn't clear where it was going to," a fund manager told Prospect News.

"The deal was supposed to close on Oct. 20 so allocations should be today or Monday but given the changes to the second-lien it probably won't allocate until the end of next week," the fund manager added.

Goldman Sachs is the lead bank on the refinancing deal for the Morristown, Tenn., manufacturer of residential stationary and motion upholstery furniture.

Centennial up

Centennial's bank debt "popped" around an eighth to a quarter of a point during Friday's relatively busy session, according to traders, with the paper quoted at 101¼ bid, 101 3/8 offered.

The strong activity and better trading levels were explained as follow-through from last week's good news that the company raised its consolidated adjusted operating income (AOI) guidance for fiscal 2005 to 7% to 12% growth over 2004's AOI of $315.5 million, from previous growth guidance of 5% to 10%.

The company also reported positive first quarter numbers that included earnings per diluted share from continuing operations of $0.10, compared to a loss of $0.04 in the prior-year quarter, AOI from continuing operations of $91.6 million, up 19% year over year from $76.7 million, and consolidated revenue from continuing operations of $216.8 million, up 13% year over year from $191.3 million.

Centennial is a Wall, N.J., provider of wireless and integrated communications services.

American Skiing shuffles sizes

American Skiing Co. moved some debt from its second-lien tranche to its first-lien term loan and raised pricing on the second-lien by 50 basis points, according to a syndicate document.

The six-year first-lien term loan is now sized at $85 million, compared to $75 million. Pricing on the tranche remained at Libor plus 450 basis points.

The seven-year second-lien term loan is now sized at $105 million, compared to an initial size of $115 million, and is priced at Libor plus 800 basis points, compared to initial pricing of Libor plus 750 basis points, the document said.

The $230 million senior secured credit facility also contains a $40 million six-year revolver that was left unchanged with an interest rate of Libor plus 450 basis points and a 50 basis point commitment fee.

Credit Suisse First Boston and GE Capital are the joint lead arrangers on the deal, with CSFB listed on the left.

Proceeds will be used by the Park City, Utah, operator of alpine ski and snowboard resorts to refinance its existing senior credit facility and its senior subordinated notes due 2006.

Cooper moving nicely

The Cooper Cos. Inc.'s $750 million credit facility (Ba3/BB), which launched Oct. 7, has gotten a "very strong reception [as] the B has received strong subscription and the bank loan [term loan A] is tracking well," according to a market source.

The $150 million seven-year term loan B and the $325 million five-year term loan A are both talked at Libor plus 200 basis points, and so is the $275 million five-year revolver.

Commitments are due on Oct. 29.

Key Banc Capital Markets and JPMorgan Chase Bank are the lead banks on the deal, with Key Banc listed on the left.

Security will be substantially all assets of the combined Cooper-Ocular entity.

Proceeds will be used to help fund the acquisition of Ocular Sciences Inc. in a merger for stock and cash at a cost of about $1.2 billion, to refinance existing bank debt, and to provide for working capital and general corporate needs.

Under the acquisition agreement, Cooper will pay about $600 million in cash and issue about 10.3 million shares of its common stock to Ocular Sciences stockholders and option holders. The transaction is expected to close in the first quarter of Cooper's 2005 fiscal year, which begins on Nov. 1, 2004.

Cooper Cos. is a Pleasanton, Calif., healthcare products company. Ocular Sciences is a Concord, Calif., manufacturer and marketer of soft contact lenses.

Bally closes

Bally Total Fitness Holding Corp. closed on its $175 million five-year term loan B (B2/B) with an interest rate of Libor plus 475 basis points and soft call protection of 102 in year one and 101 in year two that only applies in the context of a refinancing.

Originally, the term loan was launched with pricing of Libor plus 450 basis points but was flexed up with the addition of the soft call toward the end of last week.

At that time, the syndicate also added a grid to the existing revolver that provides for pricing of Libor plus 400 basis points as long as leverage is greater than 5.25x and revolver lenders were paid a 10 basis point amendment fee for approving the transaction.

In addition, the new combined $275 million term loan and revolver removes the Nov. 1, 2004 deadline for providing lenders with financial statements filed with the Securities and Exchange Commission.

J.P. Morgan Securities Inc. was the lead arranger on the term loan that was used to repay the company's $100 million accounts receivable securitization facility and to provide about $75 million of additional liquidity for general corporate purposes.

"The successful completion of this financing is another step in our turnaround process," said Paul Toback, president, chief executive officer and chairman, in a company news release. "This transaction helps stabilize our capital structure by extending the maturity of the borrowings to five years from today, well beyond the securitization facility it replaces. We continue to work diligently towards resolving our outstanding accounting matters and issuing financial statements as soon as possible."

Bally Total Fitness is a Chicago-based commercial operator of fitness centers.

Huntsman closes

Huntsman LLC closed on its $1.065 billion senior secured credit facility consisting of a $715 million term loan B (B2/B) due 2010 with an interest rate of Libor plus 350 basis points and soft call protection of 101 in year one against a refinancing, and a $350 million asset-based revolver (B1/BB-) due 2009 with an interest rate of Libor plus 225 basis points. Originally the term loan was launched with price talk of Libor plus 350 to 375 basis points.

At closing, on Oct. 14, the company drew down $105 million under the revolver.

Deutsche Bank was the lead bank on the Salt Lake City chemical company's deal.

Proceeds were used to repay in full outstanding borrowings under the company's previous senior secured credit facilities that consisted of a $275 million revolver with an interest rate of Libor plus 350 basis points, a $606.3 million term loan A with an interest rate of Libor plus 400 basis points and a $96.1 million term loan B with an interest rate of Libor plus 975 basis points, according to an 8-K filed with the SEC Thursday.

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