Nielsen A loan rise progresses; Post Holdings releases guidance; Taminco Group firms timing

By Sara Rosenberg

New York, Jan. 6 - Nielsen Co.'s term loan A continued to trend higher during Friday's trading session as investors were still reacting to the company's recent refinancing announcement.

Switching to the primary, Post Holdings Inc. zeroed in on timing for the launch of its credit facility and began circulating opening price talk in preparation for the event, and Taminco Group Holdings set a bank meeting date for its buyout deal.

Nielsen inches up

Nielsen's non-extended term loan A due in 2013 was stronger in the secondary market on Friday on the back of plans surfacing for the replacement of the debt, marking its second day in an upswing on the news, according to a trader.

The term loan A was quoted at 99¾ bid, par offered, up from 99 5/8 bid, 99 7/8 offered, the trader said. By comparison, prior to the refinancing announcement, the trader was seeing the loan at 99 1/8 bid, 99 5/8 offered.

As was previously reported, the New York-based information and media company has set a bank meeting for Monday to launch a new $1.25 billion term loan A to pay down the existing non-extended loan.

As of Sept. 30, the non-extended term loan A had a carrying amount of $1.395 billion under the U.S. tranche and $247 million under the euro tranche.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the lead banks on the new deal that was first announced on Thursday.

Post talk emerges

Over on the new deal front, Post Holdings went out with price talk of Libor plus 200 basis points on its proposed $350 million five-year senior secured credit facility as a bank meeting has been set for Tuesday at 1 p.m. ET in St. Louis to launch the transaction, according to a market source.

The St. Louis-based ready-to-eat cereal manufacturer's facility consists of a $175 million revolver, which is expected to be undrawn at close, and a $175 million term loan A.

The tranches will include a leverage-based pricing grid, the source remarked.

Barclays Capital Inc. is the lead arranger on the deal and a bookrunner with PNC Capital Markets LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC.

Post plans notes

In addition to the credit facility, Post expects to sell $775 million of 10-year senior notes that could come to market as early as late-January, the source remarked, adding that timing on the bond deal is still very fluid.

Barclays Capital Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are thebookrunners on the bonds, with Barclays the left lead.

The new debt is being obtained in connection with the company's spin-off from Ralcorp Holdings Inc. and will be used to finance a distribution to Ralcorp, who will use the funds to pay down debt, pursue private brand acquisitions and purchase additional shares.

The separation will be done through a pro rata distribution of at least 80% of the outstanding shares of Post common stock to holders of Ralcorp common stock.

Taminco timing emerges

Also launching next week is Taminco Group's senior secured credit facility, for which a bank meeting will be held on Wednesday at 2 p.m. ET, according to sources. Previously, the transaction was simply labeled as January business.

The deal will include a revolver and a term loan, but official sizes are not yet available. There is talk, however, that the credit facility, plus a proposed bond offering will total €720 million, sources remarked.

Lead banks, Citigroup Global Markets Inc., Nomura, Credit Suisse Securities (USA) LLC, UBS Securities LLC, Deutsche Bank Securities Inc. and Goldman Sachs & Co., committed to the debt in euros but will issue it in dollars.

Taminco being acquired

Proceeds from Taminco's credit facility, bonds and about 40% equity, will be used to fund the purchase of the company by Apollo Global Management LLC from CVC Capital Partners for about €1.1 billion.

Closing is expected in the first half of this year, subject to customary conditions.

For the year ended Dec. 31, 2010, the company had EBITDA of €159 million.

Taminco is a Belgium-based producer of alkylamines and their derivatives.

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