Regency Gas upsizes, shifts funds; Spanish Peaks meets with good reception, early commitments

By Sara Rosenberg

New York, July 20 - Regency Gas Services LLC tweaked its credit facility structure, increasing the overall size and shuttling some funds into the first-lien term loan from the second-lien term loan.

Meanwhile, Spanish Peaks' newly launched deal sparked positive reactions from investors as the deal received a bunch of orders even before the bank meeting was through.

Regency Gas increased the size of its credit facility to $460 million from $400 million through an increase in the revolver tranche size. Furthermore, the syndicate decided to shift $12 million out of the second-lien term loan and into the first-lien term loan.

The revolver (B1) is now sized at $150 million compared to an initial size at launch of $90 million, according to a market source. Pricing on the tranche remained at Libor plus 275 basis points.

The first-lien term loan (B1) is now sized at $260 million compared to an initial size at launch of $248 million, the source continued. Pricing on this tranche also remained at Libor plus 275 basis points.

As for the second-lien term loan (B3), it is now sized at $50 million compared to an initial size at launch of $62 million, the source added. Pricing on the tranche remained at Libor plus 600 basis points.

UBS is the lead bank on the deal that will be used to help fund capital expenditures at Regency's Winnsboro Pipeline project.

Regency is a Dallas-based midstream gas gathering, processing, and transmission company.

Spanish Peaks filling up

Spanish Peaks' late afternoon Wednesday bank meeting saw good attendance, and investors were so enthused by the deal that the $80 million term loan was already half subscribed before meeting had even come to a close, according to a market source.

The term loan is talked at Libor plus 300 basis points and is being offered to investors at par.

The facility also contains a $20 million revolver that is talked at Libor plus 300 basis points as well.

Credit Suisse First Boston is the sole lead bank on the deal that will be used for return of capital and debt refinancing.

Spanish Peaks is a Big Sky, Mont., private residential and recreational development.

Norcross closes

Safety Products Holdings Inc., a new holding company formed by Odyssey Investment Partners LLC, completed its acquisition of Norcross Safety Products LLC, according to a company news release.

To help fund the transaction, Norcross got a new $138 million credit facility (B1/BB-) consisting of an $88 million seven-year term loan B with an interest rate of Libor plus 225 basis points and a $50 million five-year revolver with an interest rate of Libor plus 225 basis points and a 50 basis point commitment fee.

Proceeds from the financing were also be used to fund a consent solicitation for Norcross Safety Products and Norcross Capital Corp.'s 9 7/8% senior subordinated notes due 2011 and NSP Holdings LLC's 11¾% senior pay-in-kind notes; to repay $83.9 million of borrowings under the company's existing credit facility; to pay fees and expenses; and for other related transactions.

Credit Suisse First Boston was the sole lead bank on the deal.

Norcross is an Oak Brook, Ill., maker of personal protection equipment.

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