John Maneely, Angiotech, Caribe, Captain D's set talk; Easton-Bell seen at tight end; Sunny D trades up

By Sara Rosenberg

New York, March 2 - John Maneely Co., Angiotech Pharmaceuticals Inc., Caribe Information Investment Inc. and Captain D's Inc. released price talk on their deals as these four names, among a handful of others, kicked off syndication via Thursday bank meetings.

Also in the primary, Easton-Bell Sports Inc. was said to have launched its term loan on Thursday more at the tight-end of the pricing guidance that surfaced last week as strong investor demand for the paper is already apparent.

Switching over to the secondary, Sunny Delight Beverages Co.'s term loan and revolver both headed higher in trading as the company held a private call to update lenders on its financials.

John Maneely announced opening price talk on its $490 million credit facility when it presented its deal to lenders, which apparently was met with a good reception as market talk is that some early orders had already been placed by midday, according to market sources.

The $200 million five-year asset-based revolver (Ba3/BB-) was launched with price talk of Libor plus 150 basis points and the $290 million seven-year term loan (B2/B) was launched with price talk of Libor plus 350 basis points, one source said.

Goldman Sachs and Citigroup are the lead banks on the deal, with Goldman on the left.

Proceeds will be used to help fund The Carlyle Group's acquisition of Collingswood, N.J.-based John Maneely, parent company of Wheatland Tube Co., a manufacturer of steel pipe and tubular products, and Seminole Tubular Products Co., a manufacturer of plumbing and electrical fittings.

Angiotech talk falls below 200

Angiotech Pharmaceuticals launched its credit facility Thursday with opening price talk of Libor plus 175 basis points on both the $300 million term loan and the $75 million revolver, according to a market source.

And, the deal is looking to be in good shape with the bank meeting described as "packed with standing room only," and early orders were heard to have been placed already, the source said.

Credit Suisse and Merrill Lynch are the lead banks on the $375 million credit facility (Ba3), with Credit Suisse on the left.

Proceeds from the credit facility will be used to help fund the purchase of American Medical Instruments Holdings Inc.

Under the acquisition agreement, Angiotech has agreed to purchase American Medical for about $785 million in cash, split into about $676 million to American Medical shareholders and $109 million to refinance existing American Medical debt.

Following the acquisition, total debt to EBITDA will be 3.6x, EBITDA to interest will be 4.0x, debt to equity will be 130%, debt to total capitalization will be 56% and net debt to total capitalization will be 41%.

The transaction is expected to close early in the second quarter, subject to customary closing conditions.

Angiotech Pharmaceuticals is a Vancouver, B.C.-based specialty pharmaceutical company. American Medical Instruments is a Lake Forest, Ill.-based manufacturer of a variety of single-use medical device products for specialty areas.

Caribe sets mid-200 talk

Also on the pricing front, Caribe Information Investment decided to launch its credit facility with opening price talk of Libor plus 250 basis points on both the $155 million seven-year term loan and $10 million revolver tranches, according to a market source.

And, although there was a mess of new deal activity, investor turnout for the launch was just fine, with the deal even attracting a couple of early commitments, the source said.

Lehman and Bank of America are joint lead arrangers and joint bookrunners on the deal, with Lehman the left lead. Wachovia is documentation agent.

Proceeds from the $165 million credit facility (B1/B) will be used to help fund Welsh, Carson, Anderson & Stowe's buyout of Caribe from Verizon and Puerto Rico Telephone Co.

Caribe owns interests in directories in Puerto Rico and the Dominican Republic.

Captain D's price guidance

Continuing along, Captain D's Inc. came out with opening price talk of Libor plus 250 to 275 basis points on both its $60 million revolver and $270 million term loan, as this deal was also launched with a bank meeting on Thursday, according to a market source.

JPMorgan is the lead bank on the $330 million credit facility that will be used to help fund the acquisition of Del Taco Inc.

Private equity investors in the acquisition are Grotech Capital Group, Charlesbank Capital Partners, Leonard Green & Partners LP and Stockwell Capital LLC.

Captain D's is a Nashville, Tenn., seafood quick-service restaurant chain. Del Taco is a Lake Forest, Calif., Mexican quick-serve chain.

Easton-Bell seen at low end

Easton-Bell's $335 million term loan B is being marketed primarily at the tight end of original guidance that was announced late last week as commitments had already been received on the deal prior to Thursday's official bank meeting, creating an expectation that syndication will essentially be a breeze, according to a buyside source.

"Expect an extremely difficult allocation," the buyside source added about the term loan.

Price talk on the term loan is currently said to be at Libor plus 200 basis points, compared with previous pricing guidance in the Libor plus 200 to 225 basis point area.

Easton-Bell's approximately $415 million senior credit facility also contains a $70 million revolver and a C$12 million revolver.

Expected ratings on the deal are B1/B+.

Wachovia and Goldman Sachs are joint lead arrangers and joint bookrunners on the deal, with Wachovia the left lead.

Proceeds from the facility will be used to help fund the merger of Riddell Bell Holdings with Easton Sports, forming the newly named branded sports company Easton-Bell, to refinance existing debt, and for working capital and other general corporate requirements.

York Street Capital Partners, a U.S.-based mezzanine debt fund principally sponsored by Teachers' Private Capital, will increase its existing equity investment in Riddell Bell as part of the transaction.

Riddell, a portfolio company of Fenway Partners and Teachers' Private Capital, is a Dallas-based designer, developer and marketer of head protection equipment and related accessories for numerous athletic and recreational activities. Easton is a Van Nuys, Calif.-based developer, manufacturer, marketer and distributor of baseball, softball, hockey and cycling equipment.

More new deals

In addition to the five new deals mentioned above, Stratus Technologies Inc. and MR Processing held bank meetings during Thursday's session as well.

Stratus Technologies launched a $330 million credit facility consisting of a $175 million first-lien term loan (B1/B-) talked at Libor plus 275 to 300 basis points, a $30 million revolver (B1/B-) and a $125 million second-lien term loan (Caa1/CCC) talked at Libor plus 700 to 750 basis points.

Goldman Sachs and Deutsche Bank are the lead banks on the deal, with Goldman the left lead.

Proceeds from the credit facility will be used to a tender offer for all of the company's outstanding 10.375% senior notes due 2008.

Stratus Technologies is a Maynard, Mass., solutions provider to customers in telecommunications, financial services, banking, manufacturing, life sciences, public safety, transportation & logistics and other industries.

And, MR Processing launched an $80 million credit facility consisting of a $10 million five-year revolver and a $70 million six-year term loan, with both tranches talked at Libor plus 350 basis points.

Royal Bank of Scotland is the lead bank on the deal that will be used, along with $39 million of subordinated mezzanine debt, to fund Great Hill Partners leveraged buyout of the company.

The transaction will be levered at 3.5x on a senior secured basis.

MR Processing, a Roswell, Ga., provider of outsourced foreclosure and bankruptcy processing services, generated about $75 million of revenue in 2005.

Mattamy expects to wrap at original terms

In follow-up news, Mattamy Homes is anticipating wrapping up its $200 million term loan by Friday at the original Libor plus 225 basis point price talk that the deal was launched with earlier this month, according to a market source.

The deal is fully subscribed at this point and will likely end up being oversubscribed as some last minute orders will probably fly in, but the expected demand is not anticipated to warrant a change in terms, the source added.

RBC Capital Markets is the lead bank on the deal that will be used to refinance some existing debt and provide growth capital.

Mattamy is the largest residential homebuilder in Canada.

Sunny Delight stronger on numbers

In trading, Sunny Delight's bank debt headed to higher ground as the company privately updated lenders on earnings during the session, and those numbers must have been good given the reaction seen in the loans, according to a trader.

The term loan closed the day quoted at 99 3/8 bid, 99 7/8 offered, up from previous levels of 99 bid, 99½ offered, the trader said.

And, the company's revolver closed the day quoted at 96 bid, 97 offered, up from previous levels of 93 bid, 95 offered, the trader added.

Sunny Delight is a Cincinnati juice-based drinks company.

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