Advantage Sales, ASG break; Ikaria tweaks deal; U.S. Silica overfills; Del Taco nets interest

By Sara Rosenberg

New York, April 30 - Advantage Sales & Marketing and ASG Consolidated LLC (American Seafoods Group) saw their credit facilities free up for trading during Friday's market hours, with both companies' term loans quoted above their original issue discount prices.

Over in the primary market, Ikaria Holdings Inc. came out with a number of changes to its credit facility, including reducing the size of the term loan, sweetening pricing and widening the original issue discount.

Also in the primary, U.S. Silica Co.'s term loan has been met with strong demand, bringing the deal to oversubscription levels ahead of the commitment deadline, and Del Taco LLC's (Sagittarius Restaurants LLC) facility has been filling out nicely over the past week.

Furthermore, Aurora Diagnostics Inc. is getting ready to launch a new deal, and details on the structure of IMG Worldwide Inc.'s proposed credit facility emerged.

Advantage Sales frees up

Advantage Sales & Marketing's credit facility hit the secondary market on Friday, with the first- and second-lien term loans seen trading above par, according to traders.

The $655 million first-lien term loan was quoted by one trader at par bid, par ½ offered on the break and then at par ¼ bid, par ¾ offered in the afternoon, and by a second trader par bid, par ½ offered late day.

And, the $235 million second-lien term loan was quoted by the first trader at par bid, 101 offered on the break and at par ½ bid, 101½ offered in the afternoon, and by a second trader at par ¼ bid, par ¾ offered late day.

Pricing on the first-lien term loan is Libor plus 350 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 991/2, and pricing on the second-lien loan is Libor plus 700 bps with a 1.5% Libor floor, and it was sold at a discount of 99. Call protection on the second-lien loan is 103 in year one, 102 in year two and 101 in year three.

Advantage Sales getting revolver

Advantage Sales & Marketing's $965 million credit facility also includes a $75 million revolver that is priced at Libor plus 350 bps with a 1.5% Libor floor. At close, about $10 million of the revolver will be drawn.

During syndication, the first-lien term loan was upsized from $625 million while the second-lien term loan was downsized from $275 million.

Also, pricing on the first-lien term loan and the revolver was flexed down from Libor plus 375 bps, pricing on the second-lien term loan was reduced from Libor plus 750 bps, the original issue discount on the first-lien term loan was tightened from 99, the discount on the second-lien term loan was lowered from 981/2, and the Libor floor on all tranches was cut from 2%.

Credit Suisse, Bank of America and UBS are the lead banks on the deal that will be used to refinance debt and fund a dividend.

Advantage Sales is an Irvine, Calif., consumer packaged goods sales and marketing agency.

ASG breaks

Another deal to free up for trading was ASG Consolidated's credit facility, with the $390 million term loan quoted at par bid, par ½ offered, according to traders.

Pricing on the term loan is Libor plus 400 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99.

The company's $475 million credit facility (Ba3/BB-) also includes an $85 million revolver that is priced at Libor plus 400 bps with a 1.5% Libor floor as well.

During syndication, pricing on the term loan and the revolver was reduced from initial talk of Libor plus 450 bps, and the original issue discount on the term loan was lowered from 981/2.

ASG refinancing debt

Proceeds from ASG Consolidated's credit facility, along with $400 million of securities, will be used to refinance existing debt, including the company's existing credit facility and 11½% senior discount notes due 2011.

The securities are comprised of $275 million of 10¾% six-year senior subordinated notes that priced on Wednesday at 98.913 to yield 11%, and $125 million of units consisting of 15% seven-year senior PIK notes and penny warrants representing 15% indirect ownership of ASG Consolidated.

Bank of America, Wells Fargo and DNB are the lead banks on the credit facility.

ASG Consolidated is a Seattle-based harvester, processor, preparer and supplier of seafood.

Ikaria revises terms

Switching to the primary, Ikaria made a bunch of changes to its term loan, including downsizing the tranche to $270 million from $320 million and, as result, reducing its planned dividend payment, according to a market source.

Also, pricing on the term loan was flexed up to Libor plus 500 bps from Libor plus 400 bps and the original issue discount was increased to 98½ from 99, the source said.

The 2% Libor floor was left unchanged.

The company's now $310 million, down from $360 million, credit facility (B1/BB-) still includes a $40 million five-year revolver. The revolver has a 75 bps unused fee and a 2% Libor floor, and is being offered with a 200 bps upfront fee.

Credit Suisse is the lead bank on the Clinton, N.J.-based biotherapeutics company's deal that will be used to refinance existing debt in addition to funding the dividend.

U.S. Silica well received

Syndication of U.S. Silica's $160 million term loan (B1/BB-) has been going strong as the deal was oversubscribed before Friday's commitment deadline hit, according to a market source.

Price talk on the term loan is currently Libor plus 450 bps with a 1.75% Libor floor and an original issue discount of 99.

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

U.S. Silica is a Berkeley Springs, W.Va.-based producer of ground and unground silica sand, kaolin clay, aplite and related industrial minerals.

Del Taco gets orders

Del Taco's $160 million term loan has also been attracting attention, with enough commitments received since the April 23 bank meeting to account for about 75% of the deal, according to a market source.

Price talk on the term loan is Libor plus 450 bps with a 2% Libor floor and an original issue discount of 98 to 99, based on an expected mid-single B rating.

The $195 million five-year credit facility (B) also includes a $35 million revolver.

"Going fine. Waiting on Moody's rating, which is expected in the next day or so," the source added regarding syndication of the credit facility.

Del Taco lead banks

Wells Fargo is the left lead bank on Del Taco's credit facility, and GE Capital signed on as a co-lead.

Proceeds will be used to refinance existing debt.

Prior to launch, the facility was expected to be sized at $190 million, comprised of a $40 million revolver and a $150 million term loan. However, at the bank meeting, lenders were presented with the current structure.

Del Taco is a Lake Forest, Calif.-based operator and franchiser of restaurants.

Aurora Diagnostics sets launch

Aurora Diagnostics has scheduled a bank meeting for Tuesday to launch its proposed $340 million credit facility via lead banks Barclays, Morgan Stanley and UBS, sources told Prospect News.

The facility consists of a $110 million four-year revolver and a $230 million six-year term loan B, and, according to an S-1 filed with the Securities and Exchange Commission, the term loan is expected to be priced at Libor plus 425 bps with a 2% Libor floor.

Proceeds will be used to refinance existing bank debt, to redeem Aurora Holdings' class Z capital and for acquisitions, working capital and general corporate purposes.

Aurora Diagnostics plans IPO

Aurora Diagnostics also revealed on Friday that it will be doing an initial public offering of class A common stock.

Proceeds from the IPO will be used to acquire Aurora Holdings' units and to increase the company's capitalization and financial flexibility, fund its growth, and for working capital and general corporate purposes.

Closing on the credit facility is expected to occur before the company completes the IPO.

Of the total revolver amount, $50 million will be available at close of the facility and $60 million will be available when the IPO is done.

Aurora is a Palm Beach Gardens, Fla.-based diagnostics company.

IMG facility structure surfaces

IMG Worldwide's proposed bank deal, which is set to launch with a bank meeting on Tuesday at the St. Regis in New York at 3 p.m. ET, consists of a $300 million five-year term loan B, according to a market source.

JPMorgan and Deutsche Bank are the lead banks on the deal that will be used to refinance existing debt and for general corporate purposes.

Expected ratings on the loan are Ba2/B+.

IMG is a New York-based provider of sports, athletes, and event marketing and management services.

Atrium closes

In other news, Atrium Cos. Inc. completed its balance sheet restructuring and has emerged from chapter 11, according to a news release.

To help fund the exit, Atrium got a new $185 million six-year term loan (B3) priced at Libor plus 500 bps with a 2% Libor floor. It was sold at an original issue discount of 981/2.

UBS acted as the lead bank on the Dallas-based vinyl and aluminum window company's deal that is secured by a first-priority lien on all non-ABL assets.

As a result of the restructuring, the company reduced its outstanding debt by almost 60% to roughly $280 million at emergence from $680 million at the time of filing.

In addition, the company secured $170 million in new equity from Golden Gate Capital and Kenner and Co. in return for a 92.5 ownership stake. Former bondholders received the remaining 7.5% of the reorganized company's new common stock.

Lyondell closes

Also emerging from Chapter 11 bankruptcy protection on Friday was LyondellBasell, according to a news release.

To help fund the exit, Lyondell Chemical Co. got a new $2.25 billion credit facility, consisting of a $500 billion six-year senior secured term loan B (Ba3) priced at Libor plus 400 bps with a 1.5% Libor floor and an original issue discount of 99, and a $1.75 billion ABL revolver.

During syndication, the term loan B was downsized from $1 billion, pricing was reverse flexed from Libor plus 425 bps, the Libor floor was lowered from 2% and the financial covenants were eliminated.

UBS, Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, JPMorgan, Morgan Stanley and Wells Fargo acted as the joint bookrunners on the term loan B, with UBS the left lead. Citigroup was the left lead on the ABL revolver.

Lyondell is a U.S. subsidiary of LyondellBasell Industries AF SCA, a Netherlands-based polymer, petrochemicals and fuels company.

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