NES reworks deal; BCBG sets talk; American Safety Razor fills up; RedPrairie breaks; Mirant dips

By Sara Rosenberg

New York, July 13 - NES Rentals Holdings Inc. made some more changes to its in-market credit facility, carving a new asset-sale loan out of the second-lien term loan, sweetening pricing and call premiums on the second-lien loan, and upsizing the revolver.

In other primary news, BCBG Max Azria Group came out with price talk on its proposed third-lien term loan and American Safety Razor Co.'s recently launched credit facility has caught a lot of investor interest, enough so to overfill the books.

Meanwhile, in secondary happenings, RedPrairie Corp.'s credit facility freed for trading, with the first-lien term loan quoted in the low-par context. Also, Mirant Corp.'s term loan B softened as the debt was downgraded by Moody's Investors Service.

NES Rentals announced some new modifications to its credit facility, including downsizing the second-lien term loan, while increasing pricing and resetting call premiums, adding a new asset-sale loan to the capital structure and increasing the revolver tranche size, according to a market source.

The seven-year second-lien term loan (Caa1/B-) is now sized at $325 million, down from an original size of $430 million, and pricing on the tranche is now set at Libor plus 675 basis points, up from most recent price talk of Libor plus 600 basis points and original price talk at launch of Libor plus 550 basis points, the source said.

In addition, call protection on the second-lien term loan has been changed to 103 in year one, 102 in year two and 101 in year three from just 102 in year one and 101 in year two, the source continued.

To help compensate for the second-lien loan downsizing the company upsized its five-year ABL revolver to $480 million from an original size of $450 million, the source said. Pricing on the revolver remained unchanged at Libor plus 175 basis points with a 25 basis point undrawn fee.

As for the remaining lost second-lien funds, that was turned into a new $75 million asset-sale term loan with pricing of Libor plus 575 basis points for 12 months, stepping up to Libor plus 625 basis points in months 13 through 18 and Libor plus 675 basis points thereafter.

Lastly, the ABL revolver $100 million accordion feature was eliminated from the transaction, the source added.

Deutsche Bank and Bank of America are acting as joint leads on the revolver, with Deutsche on the left.

Deutsche Bank, Bank of America and Bear Stearns are acting as joint leads on the second-lien term loan, with Deutsche on the left.

Proceeds from the credit facility will be used to help fund the leveraged buyout of NES by Diamond Castle Holdings LLC for $18.75 per share in cash. The transaction is valued at about $850 million including the assumption of certain liabilities.

NES is a Chicago-based aerial and general equipment rental and traffic safety services provider.

BCBG price talk

BCBG announced price talk of Libor plus 650 basis points on its proposed $80 million third-lien term loan as the debt was launched to investors with a conference call on Thursday, according to a market source.

Goldman Sachs is the lead bank on the deal.

Proceeds will be used by the Vernon, Calif., clothing company for acquisition financing.

American Safety Razor nets orders

American Safety Razor's $435 million credit facility was oversubscribed on all tranches by Thursday afternoon, just two days after syndication on the deal officially kicked off, according to a market source.

The facility consists of a $35 million six-year revolver talked at Libor plus 250 to 275 basis points, a $225 million seven-year first-lien term loan B talked at Libor plus 250 to 275 basis points and a $175 million 71/2-year second-lien term loan talked at Libor plus 600 to 650 basis points.

Based on the reception that the deal has received so far, the assumption is that first-lien pricing will at the very least come at the low end of talk and second-lien pricing will at the very least come at the low to mid point of price talk, the source said.

In addition, the company's $35 million in holding company mezzanine loan facility is also oversubscribed, the source added. This holdco loan is being talked at 13% to 13.5 %, pay-in-kind for the first five years and cash pay thereafter.

UBS is the lead bank on the deal.

Proceeds from the facility, along with, will be used to help fund Lion Capital LLP's leveraged buyout of American Safety Razor from J.W. Childs Associates, LP in a transaction valued at $625 million.

The LBO is expected to be completed in late-July.

American Safety Razor is a Cedar Knolls, N.J., manufacturer of private label wet shaving razors and blades and industrial, specialty and medical blades.

Infor ups price talk

Infor Global Solutions increased price talk on its $2 billion seven-year term loan B to a range of Libor plus 350 to 375 basis points from original talk at launch of Libor plus 325 basis points, according to a market source.

JPMorgan, Credit Suisse and Merrill Lynch are joint bookrunners and co-lead arrangers on the deal, with JPMorgan the left lead.

Infor's $2.15 billion euro- and dollar-denominated credit facility (B2/B) also contains a $150 million six-year revolver with a 50 basis point commitment fee.

Proceeds from the new credit facility will be used to help fund the acquisitions of Systems Union Group and SSA Global, to finance the combination of Infor and Extensity - which are both currently Golden Gate Capital portfolio companies - and to refinance debt at all four companies.

Infor has also received a commitment for a $1.675 billion subordinated bridge facility, which is intended to be refinanced with high-yield notes.

Under the SSA acquisition agreement, Infor is paying $19.50 per share in cash to SSA Global's shareholders, and, under the Systems Union agreement, Extensity will pay 215p per share in cash to Systems Union stockholders.

Infor is an Alpharetta, Ga.-based software provider focused on the manufacturing and distribution industries. Extensity is an Atlanta-based financial performance management company. SSA Global is a Chicago-based provider of enterprise software applications for manufacturing, distribution, retail, services and public organizations. Systems Union is a U.K.-based financial management, reporting and performance management solutions company.

RedPrairie frees to trade

Switching to the secondary, RedPrairie's credit facility broke for trading with the $150 million six-year first-lien term loan (B2/B) quoted at par bid, par ½ offered, according to traders.

The first-lien term loan is priced with an interest rate of Libor plus 300 basis points.

RedPrairie's $215 million credit facility also contains a $20 million five-year revolver (B2/B) with an interest rate of Libor plus 300 basis points and a 50 basis point commitment fee, and a $45 million 61/2-year second-lien term loan (Caa1/CCC+) with an interest rate of Libor plus 650 basis points.

During syndication, pricing on the second-lien term loan was reverse flexed from original talk of Libor plus 675 basis points.

JPMorgan and Credit Suisse are the lead banks on the deal that will be used to back an acquisition.

RedPrairie is a Waukesha, Wis., provider of supply chain execution, logistics and warehouse management software.

Mirant falls on downgrade

In other trading news, Mirant's term loan B weakened by about half a point on Thursday as Moody's downgraded the debt to B1 from Ba3, according to a trader.

The term loan B closed the session quoted at 99 3/8 bid, 99 7/8 offered, down from 99 7/8 bid, par offered on Wednesday, the trader said.

Moody's said that the downgrade is a result of the company's plans to repurchase up to $1.25 billion of common stock, to pursue the sale of its international businesses and to continue to return cash to shareholders after it generates proceeds from the sale of the international assets.

On Tuesday, the Atlanta-based energy company announced that its Philippines business is planning on getting a new $700 million term loan to help fund a modified Dutch auction tender offer by Mirant for up to 43 million shares of its common stock and to pay off existing debt in the Philippines.

Mirant also announced that it is starting an auction process to sell the Philippines business, as well as its Caribbean business. The sales are expected to close by mid-2007.

U.S. Oncology closes

U.S. Oncology Inc. closed on its $100 million term loan add-on (Ba3/B+), according to a company news release.

The add-on is priced at Libor plus 225 basis points, in line with existing term loan pricing.

Proceeds were used to reduce revolver outstandings and will also be available for general corporate purposes.

JPMorgan acted as the lead bank on the deal.

U.S. Oncology is a Houston-based cancer-care services company.

Rent-A-Center closes

Rent-A-Center, Inc. closed on its $725 million senior credit facility (Ba2/BB+), according to a company news release. JPMorgan and Lehman acted as the lead banks on the deal, with JPMorgan the left lead.

The facility consists of a $325 million term loan and a $400 million revolver, with both tranches priced at Libor plus 150 basis points.

Proceeds from the term loan, along with $88 million of revolver borrowings were used to repay the company's existing senior term debt.

Rent-A-Center is a Plano, Texas, operator of company-owned stores in the rent-to-own industry.

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