Clearwire up on paydown; Realogy rises; JohnsonDiversey sets talk; Datatel, PODS guidance emerges

By Sara Rosenberg

New York, Nov. 10 - Clearwire Corp.'s term loan gained some ground during Tuesday's trading session following news that the bank debt will be repaid with proceeds from a new senior secured notes offering, and Realogy Corp.'s strip of institutional bank debt was better with earnings.

Meanwhile, over in the primary, JohnsonDiversey Inc. came out with guidance on its U.S. term loan B in connection with its launch, and PODS Enterprises Inc. and Datatel Inc. began circulating price talk on their credit facilities ahead of their upcoming bank meetings.

Clearwire strengthens

Clearwire's term loan moved higher in trading after the company announced that it will repay its $1.4 billion credit facility using proceeds from an at least $1.45 billion senior secured notes offering, according to a trader.

The term loan was quoted at 99 bid, par offered, up from 98½ bid, 99½ offered, the trader said.

Sprint Nextel Corp. and Comcast Corp., which are investors under Clearwire's existing credit facility, have agreed to receive replacement debt on the same terms as the new offering, basically allowing Clearwire to raise an additional $240 million in capital, assuming the new notes are fully subscribed.

In addition, Clearwire revealed on Tuesday that it has executed a definitive agreement to raise $1.564 billion in new investment capital from Sprint Nextel, Comcast, Time Warner Cable Inc., Intel Corp., Eagle River Holdings LLC and Bright House Networks LLC in exchange for newly issued shares priced at $7.33 per share.

Clearwire is a Kirkland, Wash.-based builder and operator of wireless broadband networks.

Realogy posts gains

Realogy's strip of institutional bank debt was higher on Tuesday as the company came out with third-quarter numbers, according to a trader.

The strip was quoted at 83 bid, 85 offered, up from 82½ bid. 84½ offered, the trader said.

For the third quarter, the company reported net income of $58 million, compared to a net loss of $50 million last year.

Net revenues for the quarter were $1.169 billion, compared to $1.341 billion in the third quarter of 2008.

EBITDA for the quarter was $253 million, compared to $129 million in the previous year.

As of Sept. 30, Realogy had $161 million of readily available cash and no outstanding balance on its $750 million revolving credit facility.

The company's senior secured leverage ratio was 4.94 to 1 at Sept. 30, which was in compliance with its credit agreement.

Realogy is a Parsippany, N.J.-based provider of real estate and relocation services.

JohnsonDiversey price talk

Switching to new deal happenings, JohnsonDiversey held a bank meeting on Tuesday morning to present its $450 million U.S. term loan B to lenders, and in connection with the launch, price talk was announced, according to a market source.

The U.S. term loan B is being talked at Libor plus 350 basis points to 375 bps with a 2% Libor floor and an original issue discount of 981/2, sources said.

JohnsonDiversey's proposed $1.25 billion senior secured credit facility (Ba2/BB-) also includes a $250 million multi-currency revolver, a $500 million euro equivalent term loan and a $50 million Canadian equivalent term loan; however, only the U.S term loan B is being marketed at this time.

Covenants include a leverage ratio and an interest expense coverage ratio.

Citigroup, GE Capital, Goldman Sachs and JPMorgan are the joint bookrunners on the deal that will be used to help fund a recapitalization transaction valued at $2.6 billion.

JohnsonDiversey also selling notes

To assist with the recapitalization, JohnsonDiversey is planning to sell up to $400 million of senior notes through a private placement.

The recapitalization plan includes repurchasing the company's outstanding senior subordinated notes and repaying outstanding borrowings under its existing senior secured credit facility.

As part of the recapitalization, Clayton Dubilier & Rice Inc. will invest $477 million for a 46% equity interest in the company, while the Johnson Family of Racine, Wis., will retain 50% ownership in the company and Unilever will retain a 4% ownership interest in the company.

JohnsonDiversey, which is changing its name to Diversey Inc., is a Sturtevant, Wis.-based provider of commercial cleaning, sanitation and hygiene products.

Datatel talk surfaces

Datatel released price talk on its proposed $305 million credit facility as the company is getting ready for its Nov. 19 bank meeting that will take place to launch the deal, according to a market source.

The $40 million five-year revolver and the $165 million six-year first-lien term loan are both being talked at Libor plus 450 bps with a 2% Libor floor, the source said, adding that the first-lien term loan has an original issue discount of 98.

And the $100 million seven-year second-lien term loan is being talked at Libor plus 900 bps with a 2% Libor floor and an original issue discount of 97.

Credit Suisse is the lead bank on the deal that will be used to help fund the buyout of the company by Hellman & Friedman LLC from Thoma Bravo.

Datatel is a Fairfax, Va.-based provider of higher education software, services and insight.

PODS floats talk

Pricing guidance on PODS Enterprises' proposed $145 million credit facility started making its way around the market ahead of the Thursday bank meeting that will officially kick the deal off into syndication, according to a market source.

Both the $25 million revolver and the $120 million term loan are being talked at Libor plus 550 bps with a 2% Libor floor.

In addition, both tranches are expected to be offered to lenders at an original issue discount of 98, the source said.

Barclays is the lead bank on the deal that will be used to refinance existing bank debt.

PODS is a Clearwater, Fla.-based provider of moving and storage services.

Pilot Travel readies deal

In more primary happenings, Pilot Travel Centers LLC is getting ready to hold a bank meeting on Thursday to launch its proposed $1.8 billion senior secured credit facility, according to a market source.

The facility is comprised of a $500 million revolver, a $500 million term loan A and an $800 million term loan B, the source said.

Bank of America and Wells Fargo are the lead banks on the deal that will be used to fund the acquisition of Flying J. Inc.'s travel plaza business.

Pilot Travel Centers is a Knoxville, Tenn.-based operator of travel centers.

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