Samsonite, Munder set talk; Grosvenor firms pricing; Oshkosh, Reliant Energy, Intergraph break

By Sara Rosenberg

New York, Nov. 30 - Samsonite Corp. and Munder Capital Management came out with price talk on their credit facilities as both deals were launched with bank meetings on Thursday.

In other primary news, Grosvenor firmed up pricing on its term loan at the high end of original guidance while adding a step down provision to the tranche.

Meanwhile, in the secondary, Oshkosh Truck Corp., Reliant Energy Inc. and Intergraph Corp. all freed for trading, and all three deals saw their first-lien institutional levels quoted atop par.

Samsonite held a bank meeting on Thursday morning to launch its proposed $530 million senior secured credit facility, and in conjunction with the launch, price talk emerged on the transaction, according to a market source.

Both the $450 million seven-year term loan B and the $80 million six-year revolver were presented to lenders with opening talk set at Libor plus 225 basis points, the source said.

Merrill Lynch, Goldman Sachs and Deutsche Bank are the lead banks on the deal that is secured by substantially all of the company's domestic assets.

Proceeds will be used to help fund tender offers for the company's $164.97 million of 8 7/8% senior subordinated notes due 2011 and €100 million floating-rate senior notes due 2010, and a $175 million special dividend to stockholders.

The tender offers expire on Dec. 20.

The company may restructure and/or reduce the amount of borrowings under the credit facility depending on the amount of the special dividend declared by its board of directors or if the board decides not to declare the dividend.

Samsonite is a Denver-based designer, manufacturer and distributor of luggage and travel-related consumer products.

Munder price talk

Munder Capital Management announced opening price talk of Libor plus 225 bps on both tranches under its $120 million credit facility (Ba2/BB+) as the transaction was presented to lenders with a bank meeting during the Thursday session, according to a market source.

Tranching on the facility is comprised of a $10 million five-year revolver and a $110 million six-year term loan B.

Credit Suisse is the lead bank on the deal.

Proceeds will be used to fund the acquisition of Munder by Crestview Partners, LP and management from Comerica Inc.

Munder is a Birmingham, Mich., provider of investment advice and asset management services.

Grosvenor finalizes spread

Grosvenor set pricing on its $315 million term loan at Libor plus 225 bps, the wide end of original guidance at launch of Libor plus 200 to 225 bps, according to a market source.

However, the syndicate did add a step down provision to the term loan under which pricing can drop to Libor plus 200 bps based on a leverage test, the source said.

Grosvenor's $330 million credit facility also includes a $15 million revolver.

Allocations on the transaction are expected to go out next week, the source added.

Goldman Sachs is the lead bank on the deal that will be used to affect a recapitalization and for general corporate purposes.

Grosvenor is a high-quality asset manager.

Momentive upsizes, cuts pricing

Momentive Performance Materials Inc. increased the overall size of its credit facility by $60 million by retranching the deal and lowered institutional loan pricing by 25 bps, according to a market source.

Under the changes, the six-year revolver is now sized at $300 million, up from an original size of $250 million, the seven-year term loan B is now sized at $1.05 billion, down from an original size of $1.075 billion, and a new $35 million synthetic letter-of-credit facility was added to the capital structure, the source said.

In addition, pricing on the term loan B was reverse flexed to Libor plus 225 bps from original talk at launch of Libor plus 250 bps, the source added.

JPMorgan, General Electric Capital Corp. and UBS are the lead banks on the $1.385 billion (up from $1.325 billion) credit facility (Ba3/B+) that will be used to fund Apollo Management, LP's leveraged buyout of General Electric Co.'s Advanced Materials business for $3.8 billion in cash and securities.

The company has also issued $1.925 billion equivalent in high-yield notes, downsized from $1.95 billion, for acquisition financing.

The bonds, which priced Wednesday, are comprised of a $765 million tranche of cash-pay notes priced to yield 9¾%, a $300 million tranche of senior toggle notes priced to yield 10 1/8%, a €275 million tranche priced to yield 9%, and a $500 million tranche of 11½% senior subordinated notes at 98.555 to yield 11¾%. The subordinated note offering was downsized from $595 million equivalent, with a proposed euro-denominated tranche being withdrawn.

Momentive is a Wilton, Conn.-based $2.5 billion supplier of silicone-based products, silanes, sealants, urethane additives and adhesives, and high-purity fused quartz and ceramics materials.

Energy Transfer trims spread

Energy Transfer Equity LP reverse flexed pricing on its $1.3 billion term loan B (Ba2/NA/BB) to Libor plus 175 bps from original talk at launch of Libor plus 200 bps, according to a market source.

UBS and Wachovia are the lead banks on the deal, with UBS the left lead.

Proceeds from the term loan B, which was already funded but not yet syndicated, were used to fund the acquisition of about 26.1 million new class G units of Energy Transfer Partners, LP for $1.2 billion.

Energy Transfer Equity is the Dallas-based owner of all the general partner interests in Energy Transfer Partners, an owner and operator of energy assets.

Oshkosh frees to trade

Moving over to the secondary, Oshkosh Trucks' credit facility broke for trading, with the $2.6 billion seven-year term loan B quoted at par 3/8 bid, par 5/8 offered, according to a trader.

The term loan B is priced at Libor plus 200 bps, in line with original price talk at launch.

Oshkosh's $3.65 billion senior credit facility (Ba3/BB) also includes a $550 million five-year revolver and a $500 million five-year term loan A, with both tranches priced at Libor plus 175 bps.

During syndication, the revolver was upsized from $500 million and the term loan A was upsized from $400 million so as to provide additional working capital.

Bank of America and JPMorgan are the lead banks on the deal that will be used to fund the acquisition of JLG Industries, Inc. for $28.00 per share. Total consideration, including transaction costs and assumed debt, is $3.2 billion in cash on a fully diluted basis.

The company expects to pay down $300 million or more annually by fiscal 2008, bringing the debt to EBITDA ratio down to around 3 times by Sept. 30, 2008 from the upper-4s at closing of this transaction.

Despite the increase to the credit facility size through the revolver and term loan A upsizings, leverage is remaining at the previously outlined level because the company increased EBITDA.

Oshkosh Truck is an Oshkosh, Wis., designer, manufacturer and marketer of specialty commercial, fire and emergency and military vehicles and bodies. JLG is a McConnellsburg, Pa., manufacturer of access equipment, including aerial work platforms and telehandlers.

Reliant trades atop par

Reliant Energy's credit facility also hit the secondary on Thursday, with its strip of $400 million institutional term loan and $300 million prefunded synthetic letter-of-credit facility debt quoted at par 3/8 bid, par 5/8 offered, according to a trader.

The term loan and letter-of-credit facility are both priced at Libor plus 237.5 bps with a step down to Libor plus 212.5 bps if corporate credit ratings of B1/B+ are achieved, or if leverage is less than 4.0 times and corporate credit ratings are either B/B2 or B1/B+.

During syndication, pricing on these institutional tranches was reverse flexed from original talk at launch of Libor plus 250 bps with the addition of the step.

Reliant's $1.4 billion senior secured credit facility (NA/B/BB-) also includes a $700 million revolver priced at Libor plus 250 bps.

Deutsche Bank, Bank of America and JPMorgan are the lead banks on the deal, with Deutsche the left lead on the term loan and letter-of-credit facility and Bank of America the left lead on the revolver.

Proceeds will be used to refinance the company's $1.7 billion revolver, $531 million of term loan debt and $450 million receivables securitization facility.

Reliant Energy is a Houston-based provider of electricity and energy services.

Intergraph breaks

And yet another deal to free for trading during market hours was Intergraph's credit facility, with the $420 million first-lien term loan (B1/B) quoted at par 5/8 bid, par 7/8 offered and the $200 million second-lien term loan (Caa1/CCC+) quoted at 101¾ bid, 102 1/8 offered, according to a trader.

The first-lien term loan is priced at Libor plus 250 bps and the second-lien term loan is priced at Libor plus 600 bps with call premiums of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $390 million and reverse flexed from original talk of Libor plus 275 bps, and the second-lien loan was downsized from $275 million with pricing reduced from original talk of Libor plus 675 bps.

The $45 million that was lost from the credit facility with the second-lien downsizing and not quite equivalent first-lien upsizing was a result of the company opting for a $45 million CMBS transaction.

Intergraph's $695 million credit facility also includes a $75 million revolver (B1/B) priced at Libor plus 250 bps.

Pricing on the revolver was lowered from original talk at launch of Libor plus 275 bps during the syndication process as well.

Morgan Stanley and Wachovia acted as the lead banks on the deal, with Morgan Stanley the left lead on the first-lien debt and Wachovia the left lead on the second-lien loan.

Proceeds from the credit facility were used to help fund the leveraged buyout of Intergraph by Hellman & Friedman LLC and Texas Pacific Group for about $1.3 billion. The completion of the LBO was announced on Wednesday.

Intergraph, a Huntsville, Ala., provider of spatial information management software, also got a $60 million pay-in-kind loan for LBO financing.

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