Buffets upsizes; Oceania floats talk; TTM flex expected; NE Energy, Sanmina-SCI break

By Sara Rosenberg

New York, Oct. 19 - Buffets Inc. increased the size of its in-market first-lien term loan after downsizing its bond offering, and Oceania Cruises Inc. started floating price talk around on its proposed credit facility ahead of next week's bank meeting that will officially kick off syndication on the transaction.

In other primary news, TTM Technologies Inc.'s credit facility has been met with incredibly strong demand, leaving many to anticipate a flex down in pricing soon.

Meanwhile, in the secondary, NE Energy's credit facility freed for trading, with the first-lien bank debt trading in the upper-par's and the second-lien term loan trading in the 101's. Also breaking for trading was Sanmina-SCI Corp.'s unsecured term loan, with levels seen atop par.

Buffets upsized its seven-year term loan on Thursday to compensate for a downsizing to its bond offering, according to a market source.

The term loan is now sized at $530 million, up from $500 million, and the bond deal is now sized at $300 million, down from $330 million, the source said.

Pricing on the term loan remained at Libor plus 325 basis points, the source added.

Buffets' now $640 million credit facility (Ba3/B-), up from $610 million, also contains a $40 million five-year revolver and a $70 million seven-year synthetic letter-of-credit facility at Libor plus 325 bps.

Credit Suisse and UBS are joint bookrunners and lead arrangers on the deal, with Credit Suisse the left lead.

Financial covenants under the facility include maximum ratios of total debt to EBITDA and minimum interest coverage ratios.

The facility also includes mandatory prepayment provisions relating to excess cash flow, asset sales and debt issuances.

Proceeds from the facility and the bonds will be used to help fund the acquisition of Ryan's Restaurant Group, Inc. and refinance existing debt.

Under the acquisition agreement, Buffets, a Caxton-Iseman Capital, Inc. portfolio company, will buy Ryan's in a cash transaction valued at about $876 million, including debt that will be assumed or repaid at or prior to closing.

The combined company will have annual revenues of more than $1.7 billion.

Buffets is an Eagan, Minn., operator of buffet-style restaurants. Ryan's is a Greer, S.C., restaurant company.

Oceania price talk

Oceania Cruises began to circulate spread guidance on its proposed $400 million credit facility as the deal is gearing up to launch into syndication with a Tuesday bank meeting, according to a market source.

Both the $25 million five-year revolver (B1/B) and the $300 million six-year first-lien term loan B (B1/B) will be launched with opening price talk of Libor plus 300 bps, and the $75 million seven-year second-lien term loan (Caa1/CCC+) will be launched with opening price talk of Libor plus 700 bps, the source said.

UBS and Lehman are the lead banks on the Miami-based upscale cruise line's deal, with UBS the left lead.

Proceeds will be used to buy cruise ships that the company currently leases.

TTM likely to flex

TTM Technologies' $200 million six-year term loan B has been categorized as an absolute "blowout," creating the expectation that final pricing will end up lower than the current Libor plus 250 bps talk, according to a market source.

The company's $240 million credit facility (B1/BB-) also includes a $40 million five-year revolver that is being talked at Libor plus 250 bps as well.

UBS is the lead bank on the deal.

Proceeds from the credit facility, along with cash on hand, will be used to fund the acquisition of the Tyco Printed Circuit Group business unit from Tyco International Ltd. for $226 million.

TTM Technologies is a Santa Ana, Calif., supplier of time-critical and technologically advanced printed circuit boards to original equipment manufacturers and electronics manufacturing services companies. Tyco Printed Circuit Group is manufacturer of high-technology printed circuit boards for the military, aerospace and commercial markets.

National Processing firms spreads

National Processing Co. firmed up pricing on its first- and second-lien $580 million credit facility, with the $390 million first-lien term loan (B2/B) ending up at Libor plus 300 bps and the $140 million second-lien term loan (Caa2/CCC+) ending up at Libor plus 675 bps, according to a market source.

The first-lien term loan was originally launched with price talk of Libor plus 275 bps, then guidance was changed to Libor plus 300 to 325 bps before settling in at the low end of the new talk, the source said.

The second-lien term loan has been talked at Libor plus 675 bps since launch.

Call premiums on the second-lien loan are 102 in year one and 101 in year two, the source added.

National Processing's credit facility also includes a $50 million revolver (B2/B).

Merrill Lynch, Bank of America and Bear Stearns are the lead banks on the deal, with Merrill the left lead.

Proceeds will be used to fund the acquisition of the Louisville, Ky.-based Independent Sales Organization merchant processing businesses of BA Merchant Services by Iron Triangle Payment Systems, a GTCR Golder Rauner portfolio company.

Louisville, Ky.-based Iron Triangle Payment conducts its operations through its wholly owned subsidiary, Retriever Payment Systems, a leading merchant processor in the small- and medium-sized business market.

Based upon the number of merchant locations served, the consolidated business operations resulting from the acquisition will rank as the sixth largest provider of merchant processing services in the United States, supporting more than 260,000 merchant locations.

Included in the transaction is the National Processing Co. brand name and Best Payment Solution, Inc.

Beacon Roofing finalizes pricing

Beacon Roofing Supply Inc. determined final pricing on its $350 million seven-year term loan and is now hoping to give out allocations on Friday, according to a market source.

The term loan spread ended up at Libor plus 200 bps, the high end of original guidance of Libor plus 175 to 200 bps.

Beacon Roofing's $513.5 million credit facility also includes a $163.5 million asset-based revolver priced at Libor plus 100 bps.

The revolver is secured by a first lien on receivables, and the term loan is secured by a first lien on inventory and plant property and equipment.

General Electric Capital Corp. is the lead bank on the deal that will be used to refinance the company's existing credit facility.

Leverage will be around the mid-two times area.

Beacon is a Peabody, Mass., distributor of roofing materials and complementary building products.

NE Energy frees to trade

Switching over to trading news, NE Energy's credit facility allocated and hit the secondary, with the strip of $65 million synthetic letter-of-credit facility (B1/B+/BB-) and $550 million term loan B (B1/B+/BB-) debt quoted at par ½ bid, 101 offered by one trader and at par 5/8 bid, 101 offered by a second trader.

Meanwhile, the $170 million second-lien term loan (B3/B-/B-) was quoted at 101 bid, 101½ offered by the first trader and at 101½ bid, 102 offered by the second trader.

The first-lien term loan B and synthetic letter-of-credit facility are priced at Libor plus 250 bps. During syndication, pricing on these two tranches was reduced from original talk of Libor plus 275 bps and 101 soft call protection was eliminated from the credit agreements. In addition, the synthetic letter-of-credit facility was downsized from $100 million.

The second-lien term loan is priced at Libor plus 450 bps with call protection of 102 in year one and 101 in year two. During syndication, pricing on the second lien was reduced from original talk of Libor plus 500 bps.

NE Energy's $855 million credit facility also includes a $70 million revolver (B1/B+/BB-) priced at Libor plus 250 bps. During syndication, the revolver was upsized from $35 million when the synthetic letter-of-credit facility was downsized, and pricing was reverse flexed from original talk of Libor plus 275 bps.

Goldman Sachs and JPMorgan are the lead banks on the deal.

Proceeds will be used to help fund Energy Capital Partners' acquisition of Northeast Utilities' competitive generation assets in Connecticut and Massachusetts for $1.34 billion, including the assumption of $320 million in debt.

The sale includes 15 generating plants at 14 sites with a total output of 1,442 megawatts.

Sanmina-SCI breaks

Sanmina-SCI's $600 million senior unsecured term loan (Ba2/BB-/BB+) also freed for trading during the Thursday session, with levels of par 3/8 bid, par 7/8 offered seen consistently throughout the day, according to a trader.

The term loan, due Jan. 31, 2008, is priced at Libor plus 250 bps. During syndication, pricing on this paper was reverse flexed from Libor plus 300 bps on strong demand.

Bank of America, Citigroup and Deutsche Bank are the lead banks on the deal.

Proceeds from the loan, which already funded, were used to refinance the about $525 million of 3% convertible subordinated notes due 2007 issued by SCI Systems, Inc. and will be available for working capital and general corporate purposes.

Sanmina-SCI is a San Jose, Calif., provider of customized, integrated electronics manufacturing services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.