Pinnacle Foods frees up; 1-800 Contacts revises deadline; SolarWinds discloses price talk

By Sara Rosenberg

New York, Jan. 13 – Pinnacle Foods Inc.’s incremental term loan I began trading during Wednesday’s market hours, and levels were quoted above the debt’s original issue discount.

Meanwhile, in the primary market, 1-800 Contacts Inc. (CNT Holdings III Corp.) moved up the commitment deadline on its credit facility, SolarWinds released price talk with launch and Mattress Firm Holding Corp. is getting ready to bring its new deal to market.

Pinnacle Foods breaks

Pinnacle Foods’ $550 million incremental term loan I (Ba2/BB+) hit the secondary market on Wednesday, with levels seen by one trader at 99 7/8 bid, 100¼ offered, and by a second trader at 99 7/8 bid, 100 1/8 offered.

Pricing on the term loan is Libor plus 300 basis points with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Recently, pricing on the loan was reduced from the Libor plus 350 bps area, and the discount was tightened from 99.

Bank of America Merrill Lynch, Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used with $350 million of notes and cash on hand to fund the acquisition of Boulder Brands Inc. for $11.00 per share in a transaction valued at about $975 million, including around $265 million of net debt.

Closing is expected this quarter, subject to customary conditions.

Pinnacle Foods is a Parsippany, N.J.-based producer, marketer and distributor of branded food products. Boulder Brands is a Boulder, Colo.-based manufacturer of a portfolio of health and wellness brands.

1-800 shutting early

Moving to the primary market, 1-800 Contacts accelerated the commitment deadline on its $580 million credit facility (B1/B) to 5 p.m. ET on Thursday from 5 p.m. ET on Jan. 20, a market source said.

The facility consists of an $80 million five-year revolver and a $500 million seven-year first-lien term loan.

Talk on the term loan is Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund AEA Investors LP’s acquisition of a majority interest in the company from Thomas H. Lee Partners LP.

At closing, Thomas H. Lee Partners will remain a significant shareholder in the company.

1-800 Contacts is a Draper, Utah-based retailer of contact lenses.

SolarWinds sets guidance

SolarWinds held its New York bank meeting on Wednesday, launching its $1.5 billion equivalent U.S. dollar- and euro-denominated seven-year covenant-light first-lien term loan with talk of Libor/Euribor plus 500 bps to 525 bps with a 1% floor, an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

About $1.25 billion of the term loan is currently expected to be U.S. denominated, and about $250 million equivalent is expected to be euro denominated, the source said.

A bank meeting for European investors will take place on Thursday in London.

The company’s $1,625,000,000 senior secured credit facility (B1/B) also includes a $125 million revolver.

Commitments are due at 4 p.m. ET on Jan. 27, the source added.

SolarWinds lead bank

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are leading SolarWinds’ credit facility.

Proceeds will be used to help fund the buyout of the company by Silver Lake Partners and Thoma Bravo LLC for $60.10 per share, or about $4.5 billion in cash.

The company said in past filings with the Securities and Exchange Commission that it also plans to use $580 million of senior secured second-lien notes, $2.42 billion of equity and about $150 million in cash on hand for the transaction.

Closing is expected during the first week of February, subject to approval by SolarWinds stockholders, regulatory approvals and other customary conditions.

SolarWinds is an Austin, Texas-based provider of IT management software.

Mattress Firm on deck

Mattress Firm set a bank meeting for Thursday to launch a $730 million incremental first-lien term loan (Ba3/B+), according to a market source.

Along with the term loan, the company is seeking a $200 million amended and extended ABL revolver (BB), the source continued.

Commitments are due at noon ET on Jan. 28.

Barclays is leading the deal that will be used with cash on hand to fund the acquisition of HMK Mattress Holdings LLC, the holding company of Sleepy’s and related entities, for $780 million, subject to working capital and other customary adjustments.

Closing is expected on Feb. 3, subject to customary conditions, including regulatory approvals.

Mattress Firm is a Houston-based mattress retailer. Sleepy’s is a Hicksville, N.Y.-based mattress retailer.

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