Green Valley upsizes, breaks; Neiman up on numbers; Virtual Radiologic reworks amendment

By Sara Rosenberg

New York, May 27 - Green Valley Ranch Resorts Spa Casinos came out with a slight change to the size of its second-lien term loan during Friday's session, and then the credit facility proceeded to free up for trading.

In more loan happenings, Neiman Marcus Inc.'s term loan was better bid as the company released results for its third fiscal quarter that showed a year-over-year improvement in earnings, revenues and EBITDA.

Also, Virtual Radiologic reworked its amendment, leaving the term loan add-on request in place but eliminating a pricing change on the existing facility. And, with the changes, the add-on was about two times oversubscribed ahead of allocations going out on Friday.

Furthermore, Cellular One removed its credit facility from market as pricing wasn't as attractive as the company had hoped, and word emerged that BCBG Max Azria Group widened the original issue discount on its term loan.

Green Valley ups second-lien

Green Valley Ranch Resorts Spa Casinos lifted its six-year second-lien term loan (Caa2) to $90 million from $85 million, while leaving pricing at Libor plus 850 basis points with a 1.5% floor and an original issue discount of 98, according to a market source.

As before, the second-lien loan is non-callable for two years, then at 101 in year three.

The company's now $315 million credit facility, up from $310 million, also includes a $215 million five-year first-lien term loan (B2) and a $10 million revolver (B2).

Pricing on the first-lien loan firmed in line with talk at Libor plus 475 bps with a 1.5% Libor floor and an original issue discount of 99, and the tranche has 101 soft call protection for one year.

Green Valley starts trading

After making the small adjustment to the credit facility, Green Valley saw its first-lien term loan emerge in the secondary market at 99½ bid, par ½ offered, and then levels came in a bit to 99 3/8 bid, par 3/8 offered, according to a trader.

The second-lien term loan, meanwhile, was quoted at 98½ bid, par ½ offered, the trader said.

Proceeds from the credit facility will be used to help fund the acquisition of Green Valley Ranch by Station Casinos LLC.

Other funds will come from equity, the amount of which was reduced by $5 million as a result of the second-lien loan upsizing.

Jefferies & Co. Inc. and Goldman Sachs & Co. Inc. are the joint bookrunners on the deal.

Green Valley Ranch is a Henderson, Nev.-based lodging and entertainment company.

Neiman bid rises

Neiman Marcus' term loan moved to 99 1/8 bid, 99½ offered, from 98¾ bid, 99¾ offered on Thursday after the company came out with positive quarterly earnings numbers, according to traders.

For the third quarter of fiscal year 2011, the Dallas-based high-end specialty retailer reported net earnings of $46.2 million, compared to net earnings of $18.5 million in the prior year.

Total revenues for the quarter were $983.8 million, compared to $895.2 million in the third quarter of fiscal 2010.

And, EBITDA for the quarter was $169.9 million, versus $138.3 million in the previous year.

Virtual Radiologic allocates

Virtual Radiologic allocated its $42.5 million add-on term loan after making some changes to the amendment proposal that permitted the company to get the incremental borrowings, according to a market source.

The add-on, which will be used to fund a dividend, is priced at Libor plus 550 bps with a 1.75% Libor floor. Initial talk had been Libor plus 500 bps with a 1.5% Libor floor.

In December 2010, the company completed a $253 million senior secured credit facility for its acquisition of NightHawk Radiology Holdings Inc. that consisted of a $40 million revolver and a $213 million term loan B priced at Libor plus 550 bps with a 1.75% Libor floor and sold at a discount of 981/2.

This existing bank debt was going to be repriced at Libor plus 500 bps with a 1.5% Libor floor, but, given everything going on in the market recently, that pricing change request was removed from the amendment proposal, the source explained.

Virtual Radiologic call

As part of the amendment, Virtual Radiologic offered lenders 101 soft call protection for one year on the add-on term loan, as well as on the existing term loan.

Lenders were also offered a 25 bps amendment fee.

In order to get the amendment for the add-on approved, the company needed a majority vote, while to get the repricing done, 100% approval was needed. In the end, the company ended up with 100% approval from lenders for its revised proposal.

GE Capital Markets is the lead bank on the amendment.

Virtual Radiologic is an Eden Prairie, Minn.-based radiology practice and developer of radiologist workflow technology.

Cellular One pulls deal

Cellular One withdrew its $180 million senior secured facility (B2/B) from the market because the pricing was unattractive for a transaction that was meant to be opportunistic, according to a market source.

Proceeds from the Barclays Capital Inc.-led deal were going to be used by the Wayne, Pa.-based provider of wireless phone services to refinance existing debt, redeem preferred equity and fund a dividend.

The facility consisted of a $5 million five-year revolver and a $175 million six-year term loan B that was talked at Libor plus 700 bps with a 1.5% Libor floor and an original issue discount of 99. The B loan had hard call protection of 102 in year one and 101 in year two.

Earlier in syndication, pricing on the term B was increased from Libor plus 500 bps and the call protection was beefed up from just 101 soft call for one year.

Following completion of the transaction, senior secured leverage would have been 3.4 times and net total leverage would have been 3.2 times.

BCBG revises OID

BCBG moved the original issue discount on its $230 million term loan to 95 from initial talk of 96, according to a market source.

As was previously reported, pricing on the loan was flexed up to Libor plus 950 bps from Libor plus 875 bps, while the plans for no Libor floor and call protection of 102 in year one and 101 in year two remained intact.

Goldman Sachs, Bank of America Merrill Lynch, UBS Securities LLC and Guggenheim are leading the deal that will be used to refinance existing debt.

BCBG is a Vernon, Calif.-based designer, retailer and distributor of women's apparel and accessories.

Rock-Tenn closes

Rock-Tenn Co., a Norcross, Ga.-based manufacturer of paperboard, containerboard and consumer and corrugated packaging, closed on its $3.7 billion senior credit facility consisting of a $1.475 billion five-year revolver, a $1.475 billion five-year term loan A and a $750 million seven-year term loan B, according to a news release.

The revolver and term loan A are priced at Libor plus 200 bps with no Libor floor, and the term loan B is priced at Libor plus 275 bps with a 0.75% Libor floor and was sold at par.

During syndication, the term loan B was downsized from $1.25 billion, the revolver was upsized from $1.2 billion and the term loan A was upsized from $1.25 billion.

Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., Rabobank, Bank of America Merrill Lynch and J.P. Morgan Securities LLC led the deal that was used to fund the acquisition of Smurfit-Stone Container Corp., a Chicago-based containerboard and corrugated packaging producer, and a paper recycler.

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