Aramark, Ravago tweak pricing; Evenflo, Cellnet float talk; Plastech sets relaunch; CGG, Navistar break

By Sara Rosenberg

New York, Jan. 17 - Aramark Corp. reverse flexed pricing on its institutional bank debt for the second time and settled on the leverage test needed for the step down to become effective, and Ravago SA announced an increase in pricing to its term loan.

Also in the primary, Evenflo Co. Inc. and Cellnet came out with price talk as both deals were launched with bank meetings Wednesday, and Plastech Engineered Products Inc. firmed up the new date for the relaunch of its refinancing credit facility after postponing it from Tuesday.

On the secondary side of things, Compagnie Generale de Geophysique (CGG) and Navistar International Corp. both saw their new deals free for trading, and Travelport Inc.'s strip of institutional bank debt softened a touch on news of a repricing.

Aramark lowered pricing on its synthetic letter-of-credit facility and term loan B tranches, which were massively oversubscribed, and determined the leverage test needed for a recently added step down to go into action, according to a market source.

The $4.15 billion seven-year term loan B and the $250 million seven-year synthetic letter-of-credit facility are now priced at Libor plus 212.5 basis points, down from most recent price talk of Libor plus 225 bps and original talk at launch of Libor plus 250 bps, the source said.

As for the step down in pricing to Libor plus 200 bps that both institutional tranches carry, that becomes effective when senior secured leverage is less than 3½ times, the source continued. This step down was added to the term loan B and synthetic letter-of-credit facility last Friday when the initial reverse flex in pricing was announced; however, at that time, it was said that the specific leverage test for the step down was still to be determined.

Recommitments were due from lenders Wednesday.

Other changes that have been made to the deal during the syndication process include an upsizing of the term loan B tranche, which was also announced last Friday, to $4.15 billion from $3.66 billion. This upsizing was done in connection with the downsizing of the company's bond offering to $1.78 billion from $2.27 billion.

When the deal was first announced, the term loan B was anticipated to carry a size of $3.755 billion; but, prior to launch, the tranche was downsized by $95 million as the company decided to keep more of its existing debt in place.

Furthermore, the bond offering was originally expected to be sized at $2.47 billion, but it was scaled back prior to launch as the sponsors decided to contribute an additional $200 million of equity.

Aramark's $5 billion credit facility (Ba3/B+/BB-) also includes a $600 million six-year revolver that is priced at Libor plus 200 bps. No changes have been made to the revolver tranche throughout syndication.

Goldman Sachs and JPMorgan are joint bookrunners, joint lead arrangers and co-syndication agents on the facility that will be used to help fund the buyout of Aramark by chairman and chief executive officer Joseph Neubauer and a group of investors.

Under the acquisition agreement, Neubauer and investment funds managed by GS Capital Partners, CCMP Capital Advisors and J.P. Morgan Partners, Thomas H. Lee Partners and Warburg Pincus LLC will acquire Aramark in a transaction valued at $8.3 billion, including the assumption or repayment of about $2 billion of debt.

The transaction is expected to be completed at the end of January.

Aramark is a Philadelphia-based professional services company that provides food, hospitality, facility management services as well as uniform and work apparel.

Ravago ups term loan spread

Ravago flexed pricing higher on its $160 million seven-year term loan B during Wednesday's market hours, changing the spread to Libor plus 275 bps from original talk at launch of Libor plus 200 bps, according to a market source.

Pricing on the company's $340 million five-year asset-based revolver was left unchanged at Libor plus 150 bps, the source added. The revolver spread is tied to a grid that is based on total excess availability.

Citigroup is the lead bank on the $500 million deal that will be used to help fund Ravago's equity investment in Muehlstein Holding Corp. as the two companies have agreed to create a global polymer distribution partnership.

Leverage is 3 times through the bank debt and 5 times total.

Ravago is a provider of distribution, compounding and recycling services for plastic and elastomeric raw materials.

Evenflo price talk

Evenflo released price talk on its $205 million first- and second-lien credit facilities as syndication officially kicked off with a bank meeting on Wednesday, according to a market source.

The $40 million five-year revolver and the $120 million six-year term loan B were both launched with talk of Libor plus 250 bps, and the $45 million seven-year second-lien term loan was launched with talk of Libor plus 650 bps, the source said.

Credit Suisse is the lead bank on the deal that will be used to fund the leveraged buyout of the company by Weston Presidio from Harvest Partners.

Evenflo is a Vandalia, Ohio, manufacturer and marketer of a full line of juvenile products.

Cellnet spread guidance

Also on the price talk front, Cellnet announced at its bank meeting Wednesday opening guidance in the Libor plus 225 bps area on its $300 million 41/2-year term loan B, and guidance of Libor plus 250 bps on its $40 million 41/2-year revolver and $60 million two-year delayed-draw with 41/2-year final maturity term loan, according to a market source.

The company's $510 million credit facility also includes a $110 million 43/4-year second-lien term loan, with price talk still to be determined, the source said.

RBC is the lead bank on the deal that will be used to help fund Bayard Group's acquisition of Cellnet.

Early feedback from the market has been positive toward this deal as the company has an existing lender group in place that already likes the credit, sources have previously told Prospect News.

Cellnet is an Alpharetta, Ga., provider of intelligent communication and automation solutions to energy and water businesses.

Plastech firms relaunch timing

Plastech Engineered Products has scheduled a conference call for Jan. 24 to update the market on its credit facility, present lenders with revised terms, report new news and restart the syndication process, according to a market source.

Previously, the relaunch was expected to kick off with a conference call this past Tuesday; however, the call was postponed by a week so that the company could have more time to finish processing 2006 numbers.

Sources have previously said that the restructured deal might be somewhere along the lines of a $615 million credit facility consisting of a $225 million ABL revolver at Libor plus 200 bps, a $265 million first-lien term loan B at Libor plus 550 bps with call protection of 102 in year one and 101 in year two, and a $125 million second-lien term loan at Libor plus 900 bps with a grid.

The original deal was launched in November as a $600 million credit facility consisting of a $200 million ABL revolver (B1/BB) talked at Libor plus 200 bps, a $250 million first-lien term loan B (B2/B+) talked at Libor plus 450 to 500 bps and a $150 million second-lien term loan (Caa2/B-) talked at Libor plus 750 to 800 bps.

The term loan B was launched with 101 soft call protection for one year, and the second-lien term loan was launched with call protection of 102 in year one and 101 in year two.

As syndication progressed, pricing guidance on the first-lien term loan B narrowed to Libor plus 475 to 500 bps, and then expectations emerged that final pricing would end up at the high end of talk at Libor plus 500 bps.

In addition, the market was anticipating that pricing on the ABL revolver would end up in line with initial talk since the tranche was oversubscribed.

As for the second-lien term loan, talk around mid-December was that the tranche would undergo some significant changes, with pricing expected to come wider than the original guidance and additional call premiums expected to be layered into the deal.

No official word on second-lien changes or final pricing on the first-lien term loan B and ABL revolver ever emerged before the end of 2006.

Goldman Sachs is the lead bank on the deal that will be used to refinance existing debt.

Plastech is a Dearborn, Mich., maker of blow-molded and injection-molded plastic products, primarily for the automotive industry.

CGG frees to trade

Moving to the secondary market, CGG's credit facility broke for trading, with the $1 billion seven-year term loan B quoted at par ¾ bid, 101 offered, according to a market source.

The term loan B is priced at Libor plus 200 bps with a step down to Libor plus 175 bps upon achievement and maintenance of Ba1/BB ratings.

During syndication, the term loan B was upsized from $800 million as the company's bond deal was downsized by $200 million and pricing on the loan was reverse flexed from original talk of Libor plus 225 bps with the addition of the step.

CGG's $1.3 billion credit facility (Ba2/BB-) also includes a $300 million equivalent revolver priced at Libor plus 225 bps.

Of the total revolver amount, $100 million is in dollars and $200 million equivalent is in euros.

Credit Suisse and RBC Capital acted as the lead banks on the deal, with Credit Suisse the left lead.

Proceeds from the facility were used to help fund the recently completed acquisition of Veritas DGC Inc. for $3.1 billion.

CGG is a Massy, France-based provider of seismic data acquisition, processing and reservoir services to clients in the oil and gas exploration and production business. Veritas is a Houston-based provider of integrated geophysical information and services to the petroleum industry.

Navistar trades atop 101

Navistar's credit facility also hit the secondary on Wednesday, with the strip of term loan and synthetic revolver debt quoted at 101 1/8 bid, 101½ offered, according to a trader.

The $400 million five-year synthetic revolver and the $1.1 billion five-year senior unsecured term loan are both priced at Libor plus 325 bps and are non-callable for one year and then callable at 101 in year two and par thereafter.

During syndication, the synthetic revolver was upsized from $200 million, and pricing on both the term loan and the revolver firmed up the wide end of revised price talk of Libor plus 300 to 325 bps, but tighter than original talk at launch of Libor plus 350 bps.

JPMorgan, Credit Suisse, Bank of America and Citigroup are the lead banks on the $1.5 billion credit facility (NA/NA/BB-) that is expected to close this week, with JPMorgan the left lead.

Proceeds will be used to replace the company's existing senior unsecured $1.5 billion credit facility, which expires in March 2009.

Navistar is a Warrenville, Ill., producer of commercial truck, school bus and mid-range diesel engines.

Travelport dips on repricing

Travelport's strip of term loan B and synthetic letter-of-credit facility debt came in a touch during market hours after the company launched a repricing that would take spreads down by 50 bps, according to a trader.

The term loan B and synthetic letter-of-credit facility strip ended the session at par 3/8 bid, par ¾ offered, down from earlier levels of par ½ bid, 101 offered, the trader said.

Under the proposal, the company is looking to reduce pricing on its term loan B and synthetic letter-of-credit facility to Libor plus 250 bps from Libor plus 300 bps.

UBS is the lead bank on the repricing.

Travelport is a Parsippany, N.J.-based travel distribution services company.

Visteon trades up

Visteon Corp.'s term loan B traded higher Wednesday, with the debt ending the session at 101 1/8 bid, 101½ offered, compared to previous levels of par ¾ bid, 101 1/8 offered, according to a trader.

It was not clear what the impetus was behind the momentum; however, there was increased speculation about Valeo SA potentially making a bid for some or all of the company.

In addition, the company got preliminary court approval of a $7.6 million settlement to compensate about 10,000 employees for losses in their 401(K)s.

Visteon is a Van Buren Township, Mich., automotive parts supplier.

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