AL Gulf Coast tweaks deal; Hearthside Food extends deadline; Exopack floats term loan talk

By Sara Rosenberg

New York, June 18 - In the primary market on Friday, AL Gulf Coast Terminals LLC came out with a slew of investor friendly changes to its holdco term loan, and Hearthside Food Solutions pushed out the commitment deadline on its bank deal.

Also, price talk on Exopack Holding Corp.'s term loan surfaced and SonicWALL Inc.'s credit facility is anticipated to launch in the next few days, and Jack in the Box Inc. expects to able to fill out its recently proposed term loan without any issues.

In other news, details were released on Precision Drilling Corp.'s amendment proposal that would reduce pricing on the company's term loan B debt and lower the Libor floor.

AL Gulf reworks pricing

AL Gulf Coast made a number of revisions to its $305 million six-year senior secured holdco term loan (Ba2/BBB-), including increasing the spread and the Libor floor, modifying original issue discount talk and adding call protection, according to a market source.

Under the changes, the term loan is being talked at Libor plus 500 basis points, up from the Libor plus 375 bps to 400 bps area, the source said.

The Libor floor on the term loan is now set at 1.75%, as opposed to at 1.5%, the source remarked.

Also, the original issue discount that is being offered to lenders is guided at 98, compared to previous guidance in the 98 to 98½ context.

And, the term loan now includes 101 soft call protection for one year, the source continued.

AL Gulf sweetens cash flow recapture

On top of the pricing changes, AL Gulf Coast also increased the excess cash flow recapture under the term loan to 75% in the first two years and 100% in all other years, the source remarked. Previously, the excess cash flow recapture provided for 50% in the first three years, 75% in year four and 100% in years five and six.

Commitments towards the loan are now due from lenders on Monday, after being extended from Friday as a result of the changes.

Barclays is the lead bank on the deal that will be used to refinance existing holdco debt, fund a debt service reserve account and pay a dividend to the company's sponsor, ArcLight Capital Holdings LLC.

Channelview, Texas-based AL Gulf Coast owns a 100% interest in the Houston Fuel Oil Terminal Co. LLC, a provider of crude and residual fuel oil storage in the Gulf of Mexico.

Hearthside Food changes deadline

Hearthside Food Solutions extended the commitment deadline on its $280 million senior secured credit facility to June 25 from Friday, a market source told Prospect News.

The facility, which, according to the source, has received a few commitments so far, consists of a $35 million five-year revolver and a $245 million six-year term loan.

Price talk on the revolver and the term loan is Libor plus 550 bps with a 1.75% Libor floor, and the term loan is being offered at an original issue discount of 98.

Prior to launch, price talk on both tranches was being whispered at Libor plus 500 bps with a 1.75% floor, but at the bank meeting, lenders were presented with the current guidance.

Rabobank International and GE Capital are the bookrunners and lead arrangers on the deal, with Bank of America also a lead arranger. GE is the syndication agent, and Bank of America and Fifth Third are co-documentation agents.

Hearthside Food funding acquisitions

Proceeds from Hearthside Food's credit facility will be used to help fund the acquisition of Consolidated Biscuit Co., a McComb, Ohio-based producer of cookies, crackers, toaster pastries, fruit and cereal bars, ice cream cones, nuts and candies.

In addition, proceeds will be used to fund the acquisition of the cereal division of Golden Temple of Oregon, a Eugene, Ore.-based manufacturer and marketer of all-natural ready-to-eat cereals, bulk granola and granola snacks.

Senior secured leverage is 3.2 times and total leverage is 4.2 times.

Hearthside, a Wind Point Partners portfolio company, is a Downers Grove, Ill.-based manufacturer of specialty food products such as granola bars, croutons, cereals, popcorn and snack mixes.

Exopack talk emerges

Price talk on Exopack's $95 million unsecured term loan came out at Libor plus 925 bps with a 2% Libor floor and an original issue discount that is still to be determined, according to a market source.

Goldman Sachs is the lead bank on the deal that was launched to investors this past Wednesday.

Proceeds will be used to fund the acquisition of Bemis Co. Inc.'s Menasha, Wis., and Catoosa, Okla., facilities that focus on the production of plastic packaging for retail natural cheeses and shrink bags for fresh red meat.

In connection with the new loan, the company is seeking an amendment to its existing senior secured credit facility to increase the maximum amount that it can borrow to $130 million and extend the maturity date for up to four years from the amendment date.

Exopack is a Spartanburg, S.C.-based full-service paper and plastic flexible packaging products manufacturer.

SonicWALL expected soon

Chatter is that the bank meeting for SonicWALL's proposed $260 million credit facility may take place towards the end of the June 21 week, with Thursday being the targeted date, according to a market source.

The facility consists of a $155 million first-lien term loan and a $105 million second-lien term loan.

Early guidance on the first-lien term loan is Libor plus 500 bps with a 1.75% Libor floor and an original issue discount of 981/2, and on the second-lien, it is Libor plus 900 bps with a 1.75% Libor floor and a discount of 98.

SonicWALL being acquired

Proceeds from SonicWALL's credit facility will be used to help fund the buyout of the company by Thoma Bravo LLC and Ontario Teachers' Pension Plan for $11.50 per share in cash. The transaction is valued at about $717 million.

Other funding will come from $280 million of equity and cash on hand.

Credit Suisse is the lead bank on the credit facility.

Closing is expected to take place in the company's fiscal quarter ending Sept. 30 or early in the fiscal quarter ending Dec. 31, subject to regulatory and shareholder approvals.

SonicWALL is a San Jose, Calif.-based provider of IT security and data backup and recovery services.

Jack in the Box nets interest

Jack in the Box added a $200 million term loan to its proposed credit facility and anticipates being able to get the tranche syndicated with no problems and closed before month's end, according to a market source.

Price talk on the term loan is Libor plus 250 bps, the source said.

The term loan joins the company's $400 million revolver that was launched in May and is being talked at Libor plus 250 bps as well.

Wells Fargo is the lead bank on the $600 million deal (Ba3/BB+) that will be used to refinance existing debt.

Jack in the Box is a San Diego-based restaurant company that operates and franchises Jack in the Box and Qdoba Mexican Grill restaurants.

Precision Drilling amendment terms surface

Details on Precision Drilling's proposed amendment came out, including that the company is looking to reduce pricing on its term loan B-1 and term loan B-2 to Libor plus 500 bps with a 1.75% Libor floor, according to a market source.

By comparison, the term loan B-1 is priced at Libor plus 600 bps, and the term loan B-2 is priced at Libor plus 800 bps, and both tranches include a 3.25% Libor floor.

The amendment was launched on Thursday to existing term loan B lenders, at which time it was known that the company was looking to reduce spread and floor, but specifics had not been available.

Consents are due on June 25 and consenting lenders will get a 50 bps fee.

RBC is the administrative agent on the deal for the Calgary, Alberta-based provider of energy services to the oil and gas industry.

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