Ozburn-Hessey sets talk; Wyle overfills; Buffets readies launch; Aramark amendment passes

By Sara Rosenberg

New York, March 19 - Ozburn-Hessey Holding Co. LLC came out with price talk on what ended up being a first- and second-lien credit facility - not an all first-lien deal as was initially expected - in connection with the deal being presented to lenders during the session.

In more loan happenings, Wyle Services Corp.'s credit facility has been very well received by investors since launching a little over a week ago, so much so that the book has already been fully subscribed, plus some.

Also, Buffets Holdings Inc. is gearing up to launch a new term loan and has begun circulating price talk on the transaction, and Aramark Corp.'s amend and extend proposal was approved on the back of the addition of a consent fee.

Furthermore, N.E.W. Customer Service Cos. Inc.'s credit facility is now expected to allocate and free up for trading on Monday as commitments were due from investors at the end of the day on Friday.

Ozburn-Hessey price talk

Ozburn-Hessey held a bank meeting on Friday to kick off syndication on its proposed $385 million credit facility, and in conjunction with the launch, price talk was announced, according to a market source.

The company's $35 million revolver (Ba3) is being talked at Libor plus 525 basis points, the source said.

As for the $275 million first-lien term loan (Ba3), that is being talked at Libor plus 550 bps with a 2% Libor floor and an original issue discount of 98, the source continued.

And, the $75 million second-lien term loan (B3) is being talked at Libor plus 850 bps with a 2% Libor floor and an original issue discount of 97, the source remarked.

Ozburn-Hessey call premiums

Ozburn-Hessey's proposed first-lien term loan carries 101 soft call protection for one year and its second-lien term loan carries call protection of 103 in year one, 102 in year two and 101 in year three, the source added.

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

When news of the deal first emerged, it was rumored that the facility would be an all first-lien structure comprised of a $35 million revolver and a $345 million term loan B.

However, that structure was always fluid, the source explained.

That $380 million first-lien proposal had received a B rating from Standard & Poor's.

Ozburn-Hessey is a Brentwood, Tenn.-based third party logistics provider.

Wyle catches interest

Wyle Services' $115 million credit facility (Ba2/BB) has been seeing a strong reception from the market since launching on March 11 and is already "well oversubscribed," a market source told Prospect News on Friday.

The deal consists of a $25 million revolver and a $90 million term loan, with both tranches talked at Libor plus 425 bps with a 2% Libor floor.

Pricing on the facility is on a grid that can range from Libor plus 425 bps to 525 bps based on leverage.

The term loan is being offered with an original issue discount in the 98½ area.

Barclays and JPMorgan are the lead banks on the deal that will be used to refinance existing debt.

Wyle is an engineering firm specializing in high-tech testing, life sciences and technical-support services to federal government agencies, including the Department of Defense and NASA.

Buffets launching Monday

Buffets Holdings has scheduled a conference call for Monday afternoon to launch a new $250 million five-year first-lien term loan, according to a market source.

Price talk on the term loan is Libor plus 800 bps cash and 200 bps PIK, with a 2% Libor floor and an original issue discount of 97, the source said.

The loan carries call protection of 102 in year one and 101 in year two.

Credit Suisse is the lead bank on the deal that will be used to refinance the company's existing first-and second-lien exit facility.

Buffets is an Eagan, Minn.-based steak-buffet restaurant company.

Aramark gets OK

Aramark's credit facility amendment and extension proposal was approved by lenders on Friday, and a "big number" of the debt was committed for extension, but it's not yet clear as to how much the company will decide to accept, according to a market source.

Under the amendment, the company is extending its strip of term loan B and synthetic letter-of-credit facility debt by two years to July 2016 and pricing on the extended debt will be Libor plus 325 bps, up from current pricing of Libor plus 187.5 bps.

Lenders were offered a 5 bps fee for their consents. This fee was added to the proposal on Thursday and, with that change, the consent deadline was pushed off to noon ET on Friday from 5 p.m. ET on Thursday.

JPMorgan and Goldman Sachs are the lead banks on the deal.

Aramark is a Philadelphia-based professional services company that provides food, hospitality, facility management services as well as uniform and work apparel.

N.E.W. Customer breaking Monday

In other news, N.E.W. Customer Service's credit facility is now anticipated to hit the secondary market on Monday, according to a market source.

The facility includes a $700 million six-year first-lien term loan priced at Libor plus 425 bps with a 1.75% Libor floor and an original issue discount of 99.

There's also a $300 million seven-year unsecured term loan priced at Libor plus 750 bps with a 2% Libor floor and an original issue discount of 98.

The unsecured loan is non-callable for three years, then at 103 in year four and 101 in year five.

And, rounding out the $1.02 billion deal is a $20 million five-year revolver.

N.E.W. Customer lead banks

Bank of America, Barclays and Deutsche Bank are the lead banks on N.E.W. Customer Service's credit facility.

During syndication, the unsecured term loan was downsized from $400 million, pricing was increased from Libor plus 725 bps, and the original issue discount firmed at the wide end of initial talk of 98 to 981/2.

Also, during syndication, the call protection on the unsecured term loan was modified from non-callable for two years, then at 103 in year three, and 101 in year four.

Proceeds from the credit facility will be used to fund a dividend payment, which was reduced as a result of the unsecured loan downsizing, and to refinance existing debt.

N.E.W. Customer Service is a Sterling, Va.-based provider of extended service plans and product protection programs for consumer products.

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