Intergraph, Talecris rework deals; Motorsport cuts spread; Plastech narrows guidance; NRG breaks

By Sara Rosenberg

New York, Nov. 20 - Intergraph Corp. made a round of changes to its credit facility, including upsizing its first-lien term loan, downsizing its second-lien term loan and reducing pricing on the tranches.

Talecris Biotherapeutics also played around with its in-market credit facility, creating a new second-lien term loan tranche while downsizing the first-lien term loan, and Motorsport Aftermarket Group Inc. lowered pricing on its term loan.

In other primary happenings, Plastech Engineered Products Inc. has narrowed the unofficial pricing range on its first-lien term loan B that investors are being guided toward, and the commitment deadline for the deal is being extended to account for the upcoming holiday.

As for trading news, NRG Energy Inc.'s senior secured synthetic letter-of-credit facility add-on hit the secondary on Monday afternoon with levels quoted atop par.

Intergraph reworked its credit facility structure, resulting in the downsizing of the overall deal to $695 million from $740 million as the company is now planning on a $45 million CMBS transaction, and pricing on the loan tranches was lowered, according to a market source.

With the changes, the first-lien term loan (B1/B) is now sized at $420 million, up from an original size of $390 million, and pricing on the paper was reverse flexed to Libor plus 250 basis points from original talk at launch of Libor plus 275 bps, the source said.

The $75 million revolver (B1/B) was left unchanged in terms of size, but pricing was lowered to Libor plus 250 bps from Libor plus 275 bps as well, the source continued.

Meanwhile, the second-lien term loan (Caa1/CCC+) is now sized at $200 million, down from an original size of $275 million, and pricing on the loan was reduced to Libor plus 600 bps from original talk at launch of Libor plus 675 bps, the source added.

Morgan Stanley and Wachovia are 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, along with a $60 million pay-in-kind loan, will be used to help fund the leveraged buyout of Intergraph by an investor group led by Hellman & Friedman LLC and Texas Pacific Group for $44.00 in cash for each share of common stock. The transaction is valued at $1.3 billion.

Originally, Intergraph was planning on getting a $464.5 million credit facility, consisting of a $389.5 million term loan and a $75 million revolver, and issuing $276.5 million of senior subordinated notes.

However, the company revised its credit facility commitment letter to add the second-lien term loan to the capital structure and eliminate the bond offering.

In the revised commitment letter it was said that the second-lien term loan would be reduced on a dollar-for-dollar basis for the amount of any securitization transaction, sale leaseback transaction, non-recourse loan financing or other similar transaction involving specified real property of the company that is completed by the closing date.

Intergraph is a Huntsville, Ala., provider of spatial information management software.

Talecris tweaks structure

Talecris Biotherapeutics added a second-lien term loan to its capital structure and downsized its first-lien term loan, according to a market source.

The first-lien term loan B (B2/BB-) is now sized at $700 million, down from a most recent size of $1.2 billion and from an original size at launch of $1.05 billion, the source said.

Pricing on the term loan B is currently talked at Libor plus 350 bps. Earlier on in the syndication process, the price talk had been revised upwards from Libor plus 300 to 325 bps.

In addition, the credit facility now contains a $330 million second-lien term loan (B+), the source continued. Price talk on this tranche was unavailable prior to press time.

The company's $1.355 billion credit facility also includes a $325 million asset-based revolver that is unrated. Originally, the revolver was launched with a size of $400 million, and then it was heard to be sized at $250 million before being changed again to its current size.

Morgan Stanley and Goldman Sachs are the lead banks on the deal that will be used to fund a dividend payment, refinance existing debt and fund an acquisition.

Talecris is a Research Triangle Park, N.C., provider of lifesaving and life-enhancing plasma-derived therapeutic proteins. The company is the former Blood Plasma Business of Bayer AG.

Motorsport trims term loan pricing

Motorsport Aftermarket Group reverse flexed pricing on its $160 million term loan to Libor plus 250 bps, down from original price talk at launch of Libor plus 275 bps, the source said.

Goldman Sachs, Credit Suisse and UBS are the lead banks on the $220 million transaction (Ba3/B) that also includes a $60 million revolver, with Goldman the left lead.

Proceed from the facility, along with $110 million of mezzanine debt, will be used to help fund the leveraged buyout of Motorsport Aftermarket Group by Leonard Green & Partners LP.

Motorsport Aftermarket Group is a provider of aftermarket parts for motorcycles.

Plastech updates guidance, extends deadline

Plastech Engineered Products has narrowed down the unofficial pricing range that is being given to accounts on its proposed $250 million first-lien term loan B (B2/B+) and has decided to extend the syndication timeline, according to a market source.

The first-lien term loan B is being guided at Libor plus 475 to 500 bps, as opposed to previous guidance of Libor plus 450 to 500 bps, the source said. The tranche is, and has been throughout syndication, being talked with 101 soft call protection for one year.

The company's $150 million second-lien term loan (Caa2/B-) is still being guided in the Libor plus 750 to 800 bps region, with call protection of 102 in year one and 101 in year two, and the $200 million ABL revolver (B1/BB) is still being guided around Libor plus 200 bps.

Official price talk on the deal has yet to emerge.

"There is A LOT of information on Syndtrak for this deal, and investors' diligence is a bit heftier than usual given the sector. So the process is taking a little longer, but there are a lot of investors working," the source remarked.

"The ABL and first lien are going better than the second [lien]," the source continued. "The second is also going well, but it is more new investors that are looking at the second, versus the ABL and first lien, which were lots of existing lenders, so commitments have come slower."

The commitment deadline will be extended until sometime after the Thanksgiving holiday, but a specific date has not yet been set, the source added. Originally, the commitment deadline was scheduled for Tuesday.

Goldman Sachs is the lead bank on the $600 million 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.

NRG breaks

Meanwhile, in the secondary, NRG Energy's $500 million senior secured synthetic letter-of-credit facility add-on freed for trading during Monday's session with the levels quoted at par 3/8 bid, par ½ offered, according to a trader.

The add-on is priced at Libor plus 200 bps, in line with current pricing on the company's existing $1 billion synthetic letter-of-credit facility.

However, a step up to Libor plus 225 bps was added to the new and existing synthetic letter-of-credit facility debt that would become effective if it's downgraded by Moody's Investors Service or Standard & Poor's.

Merrill Lynch and Morgan Stanley are the lead banks on the deal, with Merrill Lynch the left lead.

Proceeds from the additional synthetic letter-of-credit facility funds, along with $1.1 billion of unsecured debt and cash on hand, will be used to support the company's incremental hedging activity.

The add-on is part of an amendment to the company's credit facility that would also reset the restricted payments basket to $500 million and permit the incurrence of debt to fund the company's Hedge Reset program.

The transactions are expected to close Tuesday.

NRG is a Princeton, N.J.-based wholesale power generation company.

Tenet closes

Tenet Healthcare Corp. completed the syndication of its $800 million five-year secured revolving credit facility (Ba3/BB-/BB-) that is priced at Libor plus 175 bps, according to a company news release.

The facility carries a 37.5 bps commitment fee.

Citigroup and Bank of America acted as the lead banks on the deal, with Citi the administrative agent and Bank of America the syndication agent. The Bank of Nova Scotia and GE Healthcare Financial Services served as co-arrangers for the facility.

Security is the patient accounts receivables at Tenet's acute and specialty hospitals and includes standard terms and conditions for an asset backed facility.

Covenants include a minimum fixed charge coverage ratio to be met when available credit under the facility falls below $100 million and limits on debt, liens, asset sales and prepayments of senior debt.

"The completion of the new credit facility transitions Tenet toward a more traditional capital structure and provides us additional flexibility for the future," said Biggs Porter, chief financial officer, in the release. "It also releases $262.5 million of cash previously required to support letters of credit, thus improving our liquidity even further."

Tenet is a Dallas-based owner and operator of acute care hospitals and related health care services.

Pinnacle closes

Pinnacle Entertainment Inc. closed on its $250 million increase to its existing $750 million credit facility, according to a company news release.

The incremental debt consists of a $175 million revolver add-on and a $75 million term loan add-on at Libor plus 200 bps.

Originally, it was contemplated that the revolver add-on would be sized at $50 million and the term loan add-on would be sized at $200 million, but during syndication, the company opted to shift funds from one tranche to the other.

Lehman and Bear Stearns acted as the lead banks on the deal, with Lehman the left lead.

Proceeds from the add-ons will be used to help fund the acquisition of the entities that own The Sands and Traymore sites in Atlantic City, N.J.

Pinnacle is a Las Vegas-based owner and operator of casinos.

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