Sidera, Earthbound Farm free up; Harron, Vision Solutions, Western Refining tweak deals

By Sara Rosenberg

New York, March 22 - Sidera Networks Inc. and Earthbound Farm both saw their term loans make their way into the secondary market on Tuesday, with levels quoted above par, and Dollar General Corp.'s bank debt was steady after the company reported solid earnings.

Moving to the primary, Harron Communications LP has decided to move forward with its refinancing deal at higher pricing after putting things on unofficial hold following a bank meeting last week.

Also, Vision Solutions Inc. downsized its credit facility and set pricing at the high end of initial talk, Western Refining Inc. increased the spread on its term loan B while firming the original issue discount at the wide side of talk, and Quintiles and GenOn Energy Inc. removed their refinancing/repricing deals from market.

Additionally, Sprouts Farmers Market released pricing guidance on its credit facility as the deal was presented to lenders during the session, and Tank Intermediate released some guidance on its upcoming transaction.

Sidera Networks breaks

Sidera Networks' $310 million term loan allocated and started trading on Tuesday, with levels quoted at par 1/8 bid, par 3/8 offered, according to a market source.

Pricing on the term loan is Libor plus 400 basis points, after flexing up from Libor plus 375 bps, with a 1.5% Libor floor. The loan was sold at par and includes 101 soft call protection for one year.

SunTrust is the lead bank on the deal that is being used to reprice existing term loan borrowings, which carry an interest rate of Libor plus 450 bps with a 2% Libor floor.

The company got a $240 million term loan in August 2010 to help fund its buyout by ABRY Partners, a $45 million term loan add-on in November for acquisition financing and a $25 million term loan add-on in December for the purchase of Long Island Fiber Exchange Inc.

Sidera is a New York-based provider of fiber optic-based network services.

Earthbound tops par

Earthbound Farm's $225 million term loan B also broke for trading, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 400 bps, after firming up at the low end of the Libor plus 400 bps to 425 bps talk, with a 1.5% Libor floor. The tranche was sold at par and includes 101 soft call protection for one year.

RBC is the lead bank on the deal that is being used to reprice an existing term loan B obtained late last year as part of a dividend recapitalization at pricing of Libor plus 500 bps with a 1.75% Libor floor. The debt had been sold at an original issue discount of 981/2.

Earthbound Farm is a San Juan Bautista, Calif.-based organic food company.

Dollar General holds firm

Dollar General's term loan B-1 and B-2 were quoted by traders at par bid, par ¼ offered, unchanged on the day after positive fourth-quarter numbers were released.

For the fiscal 2010 quarter ended Jan. 28, the company reported net income of $223 million, or $0.64 per diluted share, compared to net income of $87 million, or $0.26 per diluted share, in the previous year.

Net sales for the quarter were $3.49 billion, up 9.4% from $3.19 billion in the fourth quarter of 2009.

And, adjusted EBITDA for the quarter was $479 million versus $410 million in the prior year.

Dollar General gives outlook

Also on Tuesday, Dollar General released guidance for fiscal year 2011 ending Feb. 3, 2012, including the expectation for diluted earnings per share of $2.20 to $2.30.

Total sales for the year are expected to increase 11% to 13%, and same-store sales are anticipated to increase 3% to 5%.

Also, operating profit for the 2011 fiscal year is expected to increase 14% to 16% over the 2010 fiscal year.

Dollar General is a Goodlettsville, Tenn.-based discount retailer.

Harron raises pricing

Over in the primary, Harron Communications has taken its credit facility off unofficial hold and revised talk on its $300 million term loan B due 2017 to Libor plus 375 bps to 400 bps with a 1.5% Libor floor and an original issue discount of 991/2, according to a market source.

Previous talk had been Libor plus 325 bps with a 1.25% Libor floor and a discount of 991/2.

There is still 101 soft call protection for one year.

As was previously reported, the facility was launched with a bank meeting on March 15, but it was then put on unofficial hold so that price discovery could be done and the company could decide whether it wanted to move forward or terminate its new deal plans.

The reevaluation of the company's game plan was a result of the turbulence in the primary market and ratings on the credit facility coming out lower than expected at B2/B.

Harron getting pro rata

Harron Communications' $600 million credit facility (B2/B) also includes a $100 million revolver due 2016 and a $200 million term loan A due 2016.

Investors are now being given more time to commit to the deal, with commitments due on April 1 as a result of the recent market turmoil, the source added.

SunTrust, Wells Fargo and Credit Agricole are the lead banks on the deal that will be used to refinance an all pro rata bank deal and redeem about $54 million in preferred equity.

Harron Communications is a Frazer, Pa.-based provider of digital television, high speed internet, digital phone and business services.

Vision reworks deal

Vision Solutions reduced its second-lien term loan to $90 million from $130 million since it "did not want to pay up for the larger deal," and pricing on the now oversubscribed credit facility firmed up, a market source told Prospect News.

The downsized second-lien loan is priced at Libor plus 800 bps, the wide end of the initial Libor plus 775 bps to 800 bps talk, with a 1.5% Libor floor and an original issue discount of 99, and still includes call protection of 103 in year one, 102 in year two and 101 in year three, the source remarked.

As for the company's $240 million first-lien term loan, pricing firmed at Libor plus 450 bps, compared to talk of Libor plus 425 bps to 450 bps, with a 1.5% Libor floor and an original issue discount of 99 versus earlier guidance of 99 to 991/2, the source continued.

The company's now $345 million credit facility, down from $385 million, also provides for a $15 million revolver.

Vision reduces dividend

Proceeds from Vision Solutions' credit facility will be used to fund a dividend to stockholders -lowered due to the second-lien loan downsizing - repay existing bank debt and redeem preferred stock.

The company's existing bank deal, obtained last summer to help fund the acquisition of Double-Take Software Inc., provided for a $15 million revolver and a $240 million term loan. Both tranches priced at Libor plus 600 bps with a 1.75% Libor floor and sold at an original issue discount of 96. The term loan includes 101 soft call protection for one year.

Jefferies is the lead bank on the new credit facility, which had ratings of B1/BB- on the revolver and first-lien term loan and Caa1/B- on the second-lien term loan prior to the changes.

Vision Solutions is an Irvine, Calif.-based provider of high availability, disaster recovery and system management services for IBM Power Systems.

Western Refining flexes

Also revising its deal was Western Refining, as pricing was raised on its $325 million covenant-light term loan B (B3/B) due March 15, 2017 to Libor plus 600 bps from Libor plus 550 bps, and the original issue discount firmed at 99, the high end of the initial 99 to 99½ talk, according to a market source.

Left intact was the 1.5% Libor floor and hard call protection of 102 in year one and 101 in year two with par prepayment for select asset sales.

Bank of America Merrill Lynch is the lead arranger on the deal that will be used to refinance an existing term loan due May 30, 2014 that is priced at Libor plus 750 bps with a 3.25% Libor floor. At Dec. 31, the fair value of the term loan was $346.9 million.

Western Refining is an El Paso, Texas-based independent refining and marketing company.

Quintiles cancels refi

Quintiles removed its $2.425 billion credit facility (B1) from market as a result of market volatility and, therefore, its plans to refinance $1.695 billion of existing debt, including $525 million of 9½% senior notes due December 2014, were terminated, according to a news release,.

The facility consisted of a $2.2 billion term loan B due in 2018 talked at Libor plus 300 bps to 325 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months as well as a $225 million revolver due in 2016.

J.P. Morgan, Morgan Stanley, Barclays and Citigroup were the lead banks on the deal.

Quintiles is a Durham, N.C.-based biopharmaceutical services company offering clinical, commercial, consulting and capital services.

GenOn pulls deal

Another company to withdraw from market was GenOn Energy, as it removed a roughly $698 million term loan B due to unfavorable conditions, according to a market source, who said that the deal had been talked at Libor plus 325 bps to 350 bps with a 1.25% Libor floor and a par offer price.

Proceeds were going to be used to reprice a term loan B that was obtained late last year to help fund the merger of Mirant Corp. with RRI Energy Inc. at pricing of Libor plus 425 bps with a 1.75% Libor floor. The loan had been sold at an original issue discount of 99 and includes 101 soft call protection for one year.

J.P. Morgan and Goldman Sachs were acting as the lead banks on the Houston-based power producer's deal.

Sprouts sets talk

In more primary happenings, Sprouts Farmers Market held a bank meeting on Tuesday to morning to kick off syndication on its proposed $370 million senior secured credit facility, and in connection with the launch, price talk was announced, according to a market source.

Both the $60 million five-year revolver and the $310 million seven-year term loan are being talked at Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 99, the source said, adding that commitments are due on April 4.

Jefferies and BMO are leading the deal that will be used to help fund the buyout of the company by Apollo Management LP and merger with Henry's Farmers Market, an Irvine, Calif.-based grocer.

The transaction is expected to close early in the second quarter.

Sprouts Farmers Market is a Phoenix-based grocer that operates in the farmers market specialty segment of the retail food industry.

Tank floats guidance

Tank Intermediate disclosed that it is talking its $285 million credit facility at Libor plus 350 bps to 400 bps with a 1.25% to 1.5% Libor floor and an original issue discount that is still to be determined, according to a market source.

The facility, which consists of a $20 million revolver and a $265 million term loan B, is set to launch with a bank meeting on Wednesday.

GE Capital Markets is the lead bank on the deal that will be used to refinance existing debt.

Tank Intermediate is a manufacturer of polyethylene and steel tanks.

Drew Marine fills out

Drew Marine's $90 million credit facility is oversubscribed and allocations are expected to go out next week, according to a market source.

The facility consists of a $15 million revolver and a $75 million term loan, with both tranches priced at Libor plus 475 bps with a 1.5% Libor floor.

The debt is being sold at a discount that ranges "depending on if it's old money or new money," the source said.

BNP Paribas is the lead bank on the deal that will be used to refinance existing debt and fund a dividend payment.

Drew Marine is a Whippany, N.J.-based provider of technical solutions and services to the marine industry.

Waste Industries closes

Waste Industries USA Inc. closed on its $750 million credit facility (B1/B+), consisting of a $425 million term loan due 2017 and a $325 million revolver due 2016, according to a news release.

Pricing on the revolver is Libor plus 350 bps, and pricing on the term loan is Libor plus 350 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 993/4. There is 101 soft call protection for one year on the term loan.

During syndication, the term loan was downsized from $475 million, the revolver was upsized from $225 million, the Libor floor on the term loan was cut from 1.5% and the offer price on the term loan tightened from 991/2.

Bank of America Merrill Lynch, Macquarie Capital and Wells Fargo acted as the lead banks on the refinancing deal for Raleigh, N.C.-based solid waste services company.

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