Thompson tweaks deal; Building Materials ups spread; Belfor cuts pricing; Gold Toe, TTM break

By Sara Rosenberg

New York, Oct. 27 - Thompson Creek Metals Co. reworked its credit facility structure resulting in an overall smaller deal size and higher pricing on all tranches, Building Materials Holding Corp. increased pricing on its term loan B and changed some terms in the credit agreement and Belfor USA Group reduced pricing on its institutional term loan.

In trading news, Gold Toe Investment Corp.'s credit facility hit the secondary with the first-lien trading around the mid-par area and the second-lien trading atop 101. Also breaking for trading was TTM Technologies Inc.'s credit facility, with the term loan B quoted in the upper pars.

Thompson Creek made a round of changes to its credit facility, including upsizing its first-lien term loan, downsizing its second-lien term loan, increasing pricing on all tranches, adding call premiums to the first-lien and revising second-lien call premiums, according to a market source.

Under the revised structure, the first-lien term loan (B2/B) is now sized at $340 million, up from an original size of $325 million, and pricing was flexed up to Libor plus 475 basis points from original talk at launch around the Libor plus 350 to 400 bps area, the source said.

In addition, the first-lien term loan now carries soft call protection of 102 in year one and 101 in year two, as opposed to no call protection at all. The addition of the soft call has been contemplated by the syndicate for a little while but it didn't become official until now, the source continued.

Meanwhile, the second-lien term loan (Caa2/CCC+) is now sized at $62 million, down from an original size of $125 million, and pricing was flexed up to Libor plus 1,000 bps from original talk at launch around the Libor plus 650 to 700 bps area.

Furthermore, call premiums on the second-lien loan were changed to 104 in year one, 103 in year two, 102 in year three and 101 in year four from the originally contemplated call protection of non-callable for two years, then at 103 in year three, 102 in year four and 101 in year five, the source remarked.

As for the $25 million revolver, the size was left unchanged but pricing was increased to Libor plus 475 bps from original talk at launch around the Libor plus 350 to 400 bps area.

As a result of the modifications to tranche sizes, the total deal size was reduced to $427 million from $475 million. The decision to downsize the loan funding was result of the company opting to use more equity financing, the source explained.

Proceeds are being used to fund Blue Pearl Mining Ltd.'s acquisition of Thompson Creek Metals Co., a privately owned, integrated North American molybdenum producer, for $575 million. The completion of the acquisition was announced on Thursday.

The company raised $204 million in a public equity offering and completed a $35 million equity sale to one of the vendors of Thompson Creek.

UBS is lead bank on the credit facility.

Blue Pearl is a Toronto-based resource company developing the Davidson Deposit, a high-grade underground molybdenum deposit near Smithers, B.C.

Building Materials flex

Building Materials flexed pricing higher on its $350 million seven-year term loan B, with the spread going to Libor plus 250 bps from original talk at launch of Libor plus 225 bps, according to a market source.

In addition, the total leverage covenant was reduced to 3.5 times from the originally proposed 4.5 times and the accordion feature was downsized, the source added.

Building Materials' $850 million credit facility (Ba2/BB) also includes a $500 million five-year revolver priced at Libor plus 125 bps.

Wells Fargo, JPMorgan, SunTrust and BNP Paribas are the lead banks on the deal that will be used to refinance existing debt.

Building Material Holding Corp. is a San Francisco-based provider of building products and construction services.

Belfor trims spread

Belfor reverse flexed pricing on its institutional term loan to Libor plus 225 bps from original talk at launch of Libor plus 250 bps, according to a market source.

The company's $225 million credit facility also includes a $75 million revolver.

JPMorgan is the lead bank on the deal that will be used to help fund a management buyout of the company.

Belfor is a damage restoration company

Gold Toe breaks

Switching to secondary happening, Gold Toe's credit facility freed up for trading, with the $225 million first-lien term loan (B1/B) quoted at par 3/8 bid, par 5/8 offered and the $105 million second-lien term loan (Caa1/CCC+) quoted at 101 bid, 102 offered, according to a market source.

The first-lien term loan is priced at Libor plus 275 bps with a step down to Libor plus 250 bps when total leverage is 4.5 times or lower. During syndication, pricing on this tranche was reverse flexed from original talk at launch of Libor plus 300 bps with the addition of the step.

The second-lien term loan is priced at Libor plus 600 bps. During syndication, pricing on this tranche was reverse flexed from original talk at launch of Libor plus 650 bps.

Gold Toe's $380 million credit facility also includes a $50 million revolver (B1/B) priced at Libor plus 275 bps. During syndication, pricing on this tranche was cut from original talk at launch of Libor plus 300 bps.

Bear Stearns is the lead bank on the deal that will be used to help fund the leveraged buyout of Gold Toe by The Blackstone Group and simultaneous merger with Moretz Inc.

The LBO/merger transaction is valued at about $400 million.

Total leverage will be around 6 times on an 8.3 times valuation. Adjusted EBITDA is around $55 million, and interest coverage is around 2 times.

In connection with the deal, the outstanding debt and preferred stock of Gold Toe's wholly owned subsidiary, Gold Toe Corp., will be refinanced, including its 10 1/8% senior subordinated notes due 2008 and 12½% senior exchangeable preferred stock due 2010.

As a result of its investment, Blackstone will be the majority owner of the company, John Moretz, chief executive officer, will be the second largest shareholder and an affiliate of Vestar Capital Partners, the current majority owner of Gold Toe, will retain a minority stake.

Gold Toe is a New York-based hosiery company. Moretz is a Newton, N.C.-based sock manufacturer and private labeler for the sporting goods market and retailers.

TTM frees to trade

TTM Technologies' credit facility broke for trading on Friday, with the $200 million six-year term loan B quoted at par 5/8 bid, par 7/8 offered, according to a market source.

The term loan B is priced at Libor plus 225 bps. During syndication, pricing on the tranche was reverse flexed from original talk at launch of Libor plus 250 bps due to strong oversubscription.

TTM's $240 million credit facility (B1/BB-) also includes a $40 million five-year revolver priced at Libor plus 225 bps. During syndication, pricing on this tranche was also reverse flexed from original talk at launch of Libor plus 250 bps.

UBS is the lead bank on the deal that will be used, along with cash on hand, will be used to fund the acquisition of the Tyco Printed Circuit Group business unit from Tyco International Ltd. for $226 million.

TTM Technologies is a Santa Ana, Calif., supplier of time-critical and technologically advanced printed circuit boards to original equipment manufacturers and electronics manufacturing services companies. Tyco Printed Circuit Group is manufacturer of high-technology printed circuit boards for the military, aerospace and commercial markets.

Willbros closes

Willbros Group Inc. closed on its new $100 million three-year synthetic letter-of-credit facility, according to a company news release. Calyon Securities acted as the lead bank on the deal.

The letter-of-credit facility is priced at Libor plus 500 bps.

Willbros is a Panama City, Panama-based independent contractor serving the oil, gas and power industries.

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