Helix sets talk; Standard Pacific, Sports Authority reset deadlines; Dole, MultiPlan break, Lear trades up

By Sara Rosenberg

New York, April 11 - In primary happenings, Helix Energy Solutions Inc. (previously Cal Dive International Inc.) came out with price talk on its newly launched credit facility, and Standard Pacific Corp. and The Sports Authority Inc. have both decided to wrap up syndication ahead of schedule with the acceleration of their respective commitment deadlines.

Meanwhile, in the secondary, Dole Food Co. Inc. and MultiPlan Inc. freed up for trading, Lear Corp.'s revolver inched higher on positive financial guidance and US Airways Group Inc.'s term loan weakened as the market in general experienced some heaviness.

Helix Energy released price talk on its senior secured credit facility as the deal was presented to lenders with a bank meeting during the session, according to a market source.

The $835 million seven-year term loan B was launched with opening price talk of Libor plus 200 to 225 basis points, the source said.

Originally, the company had said that the term loan B commitment was for $813 million, but a new size of $835 million emerged at the meeting.

Bank of America is the lead bank on the $1.085 billion deal (BB) that also contains a $250 million revolver.

Proceeds will be used to help fund Helix's acquisition of Remington Oil and Gas Corp. in a transaction valued at approximately $1.4 billion. Remington stockholders will receive in the merger $27.00 in cash and 0.436 shares of Helix common stock for each Remington share they own.

Pro forma, as of Sept. 30, 2005 for all the debt, interest coverage would be 7.1x. Projected pro forma debt service coverage will be 9.6x. And, projected debt to EBITDA at close will be 2.00 to 1.00.

Helix is a Houston-based energy service company. Remington is a Dallas-based explorer, developer and producer of oil and gas reserves.

Standard Pacific shuts book

Standard Pacific decided to close the book down on its $200 million seven-year term loan B on Tuesday, one day earlier than the originally announced Wednesday commitment deadline, according to a buy-side source.

The term loan B is talked at Libor plus 150 basis points.

Standard Pacific's $300 million deal (NA/NA/BB) also includes a $100 million five-year term loan A.

Bank of America and JPMorgan are joint lead arrangers on the new term loans. Bank of America and JPMorgan are joint bookrunners on the term loan A, while Bank of America is sole bookrunner on the term loan B.

Proceeds from the term loans will be used to repay outstanding debt under the company's revolver and for other general corporate purposes. As of March 17, there was $686.6 million drawn under the revolver, not including $81.8 million of issued but undrawn letters of credit.

Standard Pacific is an Irvine, Calif., builder and seller of single-family attached and detached homes.

Sports Authority moves deadline

Also shortening its syndication timeframe was Sports Authority's credit facility, as the commitment deadline has been accelerated to this Thursday from the originally announced April 18 date, a buy-side source said.

Sports Authority's $975 million senior secured credit facility consists of a $225 million seven-year covenant-light term loan B (B1/B) talked at Libor plus 250 basis points, a $685 million five-year ABL revolver talked at Libor plus 150 basis points with a 25 basis point commitment fee and a $65 million five-year first-in, last-out ABL revolver talked at Libor plus 300 basis points.

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

Proceeds will be used to help fund the leveraged buyout of Sports Authority by Leonard Green & Partners LP and Sports Authority's senior management for $37.25 per share in cash. The total transaction value, including assumed debt, is approximately $1.3 billion.

Sports Authority is an Englewood, Colo., full-line sporting goods retailer.

Dole breaks atop par

Dole Food's credit facility freed up for trading during Tuesday's session, with the strip of term loan B and funded letter-of-credit facility debt quoted at par 1/8 bid, par ½ offered pretty consistently throughout the day, according to a trader.

The $975 million covenant-light term loan B (Ba3/B+) and the $100 million pre-funded letter-of-credit facility (Ba3/B+) are both priced with an interest rate of Libor plus 175 basis points. During syndication pricing on the two tranches was reverse flexed from Libor plus 200 basis points, and the term loan B was upsized from $875 million.

Dole's $1.4 billion credit facility also contains a $325 million asset-based revolver with an interest rate of Libor plus 150 basis points.

Deutsche Bank is the sole lead on the deal that will be used to refinance existing bank debt.

Dole is a Westlake Village, Calif., producer and marketer of fresh fruit, fresh vegetables and fresh-cut flowers.

MultiPlan trades in the 101's

Also freeing up for trading during market hours was MultiPlan's new credit facility, with the $425 million term loan B quoted at 101 bid, 101 ½ offered, according to a trader.

The term loan B is priced with an interest rate of Libor plus 200 basis points and contains a step down to Libor plus 175 basis points. During syndication, the tranche was upsized from $400 million as the company downsized its bond offering by $25 million to $225 million, and pricing was reverse flexed from Libor plus 225 basis points with the addition of the step down.

MultiPlan's $475 million credit facility (B2/B+) also contains a $50 million revolver.

Goldman Sachs, Bank of America and Morgan Stanley are the lead banks on the deal that will be used to help fund The Carlyle Group's leveraged buyout of MultiPlan, a New York-based independent Preferred Provider Organization network.

Lear revolver improves with guidance

Lear's revolving credit facility headed higher during Tuesday's market hours as the company released positive 2006 financial guidance, according to a trader.

The revolver closed out the day stronger by about a quarter of a point at 97 bid, 98 offered, the trader said.

However, the company's term loan was unchanged, wrapped around par, since Lear is currently in the process of trying to refinance the debt with a new $600 million first-lien term loan B talked at Libor plus 300 basis points and a $200 million second-lien term loan talked in the range of Libor plus 450 to 475 basis points.

On Tuesday morning, Lear announced that it expects record worldwide net sales in 2006 of approximately $17.7 billion, reflecting primarily the addition of new business globally, offset in part by unfavorable platform mix and the adverse impact of foreign exchange.

In addition, the Southfield, Mich., automotive parts supplier anticipates 2006 income before interest, other expense, income taxes, impairments, restructuring costs and other special items to be in the range of $400 to $440 million, compared to $325 million a year ago.

Lear also said that it expects free cash flow to be positive for the year, in the range of $50 to $100 million, compared with a negative $419 million a year ago.

And, capital spending in 2006 is estimated at approximately $400 million, down from last year's peak level due primarily to lower launch activity.

US Airways softens

In other trading news, US Airways' $1.25 billion five-year non-amortizing senior secured term loan (B2/B) fell off by about an eighth of a point in trading from levels that were seen when the paper first hit the secondary loan market late in the day Monday, according to a market source.

The Tempe, Ariz., airline company's term loan headed down to the 101¼ bid, 101½ offered context, compared to previous levels of 101 3/8 bid, 101 5/8 offered, the source said.

"The overall market felt a touch heavy today. There are just more sellers than buyers at the moment," a trader added.

Movie Gallery stronger

Movie Gallery Inc.'s term loan felt stronger on Tuesday with no apparent news pushing the paper up, according to a trader.

The term loan closed out the day quoted at 89¾ bid, 90½ offered, better by about a quarter to a half a point, the trader said.

Movie Gallery is a Dothan, Ala.-based owner and operator of video specialty stores.

GM revolver trades up

General Motors Corp.'s revolver felt firmer in trading as well, with a couple of trades going off at the 96 level and one trade going off as high as 961/4, according to a trader.

On Tuesday, GM announced that it is selling its 7.9% equity stake in Isuzu Motors Ltd. to Mitsubishi Corp., Itochu Corp. and Mizuho Corporate Bank.

The Detroit-based automotive company expects to realize cash proceeds of about $300 million, which will be used to support the North American turnaround plan, finance future growth initiatives, strengthen the balance sheet and fund other corporate priorities.

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