Coffeyville, Greatwide Logistics, Meridian set price talk; Forest Alaska tweaks deal

By Sara Rosenberg

New York, Dec. 5 - Coffeyville Resources LLC, Greatwide Logistics Services and Meridian Automotive Systems, Inc. all came out with price talk on their credit facilities as all three deals were launched with bank meetings during Tuesday's market hours.

In other primary news, Forest Alaska Operating LLC made some changes to its credit facility, including shifting funds between the first- and second-lien term loans and revising pricing on the two tranches.

Coffeyville Resources launched its proposed $1.075 billion credit facility (B2/B+) on Tuesday morning with a meeting that was heard to have gone "very well" as management delivered a good presentation, according to a market source.

And, it was at this launch that opening price talk of Libor plus 275 basis points was announced for all three tranches under the credit facility, the source said.

Tranching on the transaction is broken down into a $150 million six-year revolver, a $150 million four-year synthetic letter-of-credit facility and a $775 million seven-year term loan B.

The revolver carries a 50 bps unused fee.

Goldman Sachs and Credit Suisse are the lead banks, with Goldman the left lead, on the deal that has already received some rollover commitments from existing lenders and interest from new accounts as well, the source added.

Proceeds will be used for a recapitalization that will include refinancing the company's existing first- and second-lien credit facility and funding a dividend to owners GS Capital Partners and Kelso & Co.

Since GS and Kelso acquired Coffeyville in June 2005, the company has invested around $250 million in plant improvements that have led to increased refinery throughput and improved liquid yields. The company also expanded crude sourcing such that in the first half of 2006, the cost of crude discount compared to WTI has increased by $2 per barrel.

Total leverage is expected in the low 2 times area.

Coffeyville Resources is a Kansas City, Kan., supplier of petroleum and nitrogen fertilizer products.

Greatwide price talk

Greatwide Logistics came out with price talk on its proposed $487 million credit facility as syndication on this transaction also officially kicked off with a bank meeting during Tuesday's session, with this launch held in the afternoon hours, according to a market source.

The company's $70 million revolver and $290 million first-lien term loan were presented to lenders with price talk of Libor plus 250 to 275 bps, while the $127 million second-lien term loan was presented with price talk of Libor plus 600 to 625 bps, the source said.

Greatwide is also getting an $80 million senior unsecured mezzanine note at the holding company talked in the 13% to 13½% range.

As was previously reported, both the second-lien loan and the mezzanine financing are done in terms of syndication, with commitments rolling in before the launch even took place.

UBS and Bear Stearns are joint lead arrangers and joint bookrunners on the financing, with UBS the left lead.

Proceeds from the new debt will be used to fund Investcorp's leveraged buyout of Greatwide Logistics from Fenway Partners.

Greatwide Logistics is an Irving, Texas, transportation and logistics provider.

Meridian spread guidance

Continuing on the price talk front, Meridian Automotive Systems launched its $80 million six-year term loan and $25 million six-year synthetic letter-of-credit facility with price talk of Libor plus 550 bps on Tuesday, according to a market source.

Previously, it was expected that the two institutional tranches would carry pricing of Libor plus 400 bps based on various court documents that Meridian had filed.

The company's $175 million exit financing credit facility also includes a $70 million five-year asset-based revolver.

Deutsche Bank is the lead bank on the deal.

Meridian is a Dearborn, Mich., supplier of lighting, exterior composites, console modules, instrument panels and other interior systems to automobile and truck manufacturers.

Forest Alaska reworks deal

In other primary happenings, Forest Alaska modified its $375 million of term loan debt by moving some funds from the second-lien term loan into the first-lien term loan, lowering pricing on the first lien and increasing pricing on the second lien, according to a market source.

With the changes, the four-year first-lien term loan B is now sized at $250 million, up from an original size of $225 million, and pricing was reverse flexed to Libor plus 350 bps from original talk at launch of Libor plus 375 bps, the source said.

Meanwhile, the five-year second-lien term loan is now sized at $125 million, down from an original size of $150 million, and pricing was flexed up to Libor plus 650 bps from original talk at launch of Libor plus 625 bps, the source added.

Call premiums on the two tranches were unchanged with the first-lien term loan B carrying call protection of 101 for one year and the second-lien term loan carrying call protection of 102 in year one and 101 in year two.

Accounts are to confirm their commitments by noon on Wednesday, with allocations expected on Wednesday as well and closing aimed for Friday.

Credit Suisse and JPMorgan are joint lead arrangers and joint bookrunners on the deal that will be used to fund a $350 million distribution to Forest Oil Corp. and provide initial working capital for operations.

Forest Oil plans to use the proceeds from the distribution to reduce its outstanding borrowings under its U.S. credit facility.

The term loans will be secured by Forest Alaska's assets and will be non-recourse to Forest Oil.

Forest Alaska is a new subsidiary of Forest Oil that was formed to hold oil and gas interests in the Cook Inlet region of Alaska.

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