Huntsman, Coach America, Maguire break; Ford, GM trade down; Iasis PIK stronger; Huish tweaks deal

By Sara Rosenberg

New York, April 23 - Huntsman International LLC, Coach America and Maguire Properties Inc. all freed up for trading on Monday, Ford Motor Co. and General Motors Corp. both saw their term loans come in a little in trading, and Iasis Healthcare Corp.'s holdco PIK loan headed higher.

Meanwhile, in primary happenings, Huish Detergents Inc. shifted some funds between its first- and second-lien term loans and lowered pricing on the two tranches.

Huntsman's $1.64 billion covenant-light seven-year term loan B due April 2014 (BB) broke for trading on Monday, with levels quoted at par 3/8 bid, par 5/8 offered, according to a trader.

The term loan is priced at Libor plus 175 basis points.

Deutsche Bank and Credit Suisse acted as the lead banks on the deal, which was used to refinance the company's existing term loan B.

With this refinancing, the company was able to change the term loan B into a covenant-light deal, extend the maturity, improve pricing, increase the restricted payments basket for certain types of payments and increase the capacity for additional term loan borrowings.

Huntsman is a Salt Lake City-based manufacturer and marketer of commodity and differentiated chemicals.

Coach America frees to trade

Another deal to break for trading during Monday's market hours was Coach America, with its strip of funded first-lien term loan, delayed-draw term loan and synthetic letter-of-credit facility debt quoted at par ½ bid, par ¾ offered on the open and then moving up to par ¾ bid, 101¼ offered, where it closed out the day, according to a trader.

The company's second-lien term loan was seen quoted at par ¼ bid, 101¼ offered, the trader added.

Coach America's $195 million funded first-lien term loan (B1/B), $50 million delayed-draw for one year first-lien term loan (B1/B) and $50 million synthetic letter-of-credit facility (B1/B) are all priced at Libor plus 275 bps.

The delayed-draw loan carries a 125 bps undrawn fee.

During syndication, a leverage covenant was added to the two term loans and the synthetic letter-of-credit facility.

The company's $55 million second-lien term loan (Caa1/CCC+) is priced at Libor plus 650 bps with call protection of 102 in year one and 101 in year two.

During syndication, pricing on the second-lien term loan was increased from original talk at launch of Libor plus 600 bps.

Coach America's $380 million credit facility also includes a $30 million revolver (B1/B) that is priced at Libor plus 275 bps.

Bear Stearns and RBS Securities are the joint lead arrangers on the deal, with Bear Stearns acting as bookrunner.

Proceeds will be used to fund Fenway Partners' acquisition of the company from Kohlberg & Co.

Coach America is a tour and charter bus operator and a motorcoach services provider.

Maguire breaks

Also hitting the secondary was Maguire Properties' credit facility, with its $400 million five-year term loan B quoted at par ½ bid, par ¾ offered, according to a trader.

The term loan B is priced at Libor plus 200 bps.

During syndication, the term loan B was downsized from $625 million as the company completed a new $550 million 10-year fixed-rate, interest-only financing at a rate of 5.68% on its Wells Fargo Tower property. The refinancing resulted in about $290 million of net proceeds to Maguire, of which $225 million was used to reduce the amount of term loan B funds needed.

Maguire's $530 million credit facility (Ba3/BB-) also includes a $130 million four-year revolver priced at Libor plus 200 bps with a 50 bps commitment fee.

During syndication, the revolver was downsized from $200 million.

Credit Suisse, Lehman Brothers and Merrill Lynch are joint bookrunners on the deal, with Credit Suisse acting as lead arranger.

Proceeds from the facility, along with a $2.5 billion CMBS bridge facility and the refinancing proceeds, will be used to fund the acquisition from the Blackstone Group of all the properties in Orange County and downtown Los Angeles that were part of the former Equity Office Properties portfolio.

Maguire is a Los Angeles-based real estate investment trust.

Ford, GM soften

Also in trading, Ford and General Motors' term loans both came in by about an eighth of a point during Monday's trading session, with traders attributing the descent to possible profit taking or investor cautiousness as Ford is getting ready to release financials later this week, according to a trader.

Ford, a Dearborn, Mich.-based automaker, saw its term loan close the day at par ½ bid, par ¾ offered, down from Friday's levels of par 5/8 bid, par 7/8 offered, the trader said.

General Motors, a Detroit-based automaker, saw its term loan end the session at par ¾ bid, 101 offered, down from par 7/8 bid, 101 1/8 offered, the trader added.

"People could be taking profits from Friday's run up. Or, Ford numbers are Thursday so people may be getting out ahead of that," the trader added.

Iasis PIK loan trades up

Iasis' holdco senior PIK loan was stronger on Monday in active trading, with no specific reason seen behind the momentum, according to a trader.

The PIK loan ended the day at par ¼ bid, par ¾ offered, up about a quarter to a half a point from Friday's levels, the trader said.

Iasis is a Franklin, Tenn.-based owner and operator of medium-sized acute care hospitals

Huish moves funds, trims spreads

Moving to the primary market, Huish Detergents came out with some changes to its credit facility, including moving $50 million out of its second-lien term loan and into its first-lien term loan B, reverse flexing pricing on both term loans and adding a step down to the first-lien term loan B, according to a market source.

With the revisions, the seven-year covenant-light first-lien term loan B (B1/B) is now sized at $650 million, up from $600 million, pricing was reduced to Libor plus 200 bps from original talk at launch of Libor plus 225 bps and the spread can now step down to Libor plus 175 bps when the company meets a senior secured leverage test, the source said.

On the flip side, the 71/2-year covenant-light second-lien term loan (Caa1/CCC+) is now sized at $225 million, down from $275 million, and pricing was reverse flexed to Libor plus 425 bps from original talk at launch of Libor plus 450 bps, the source continued.

The second-lien term loan is non-callable for one year, then at 102 in year two and 101 in year three.

Huish Detergents' $975 million credit facility also includes a $100 million six-year revolver (B1/B) that is priced at Libor plus 225 bps - in line with original talk.

JPMorgan is the lead bank on the deal, which will be used to help fund Vestar Capital Partners' acquisition of the company.

Huish Detergents is a Salt Lake City-based manufacturer of private label laundry detergent and fabric softeners.

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