Dunkin' up with numbers; Flextronics dips; Pilot Travel, Presidio, Radio One revise deals

By Sara Rosenberg

New York, March 23 - Dunkin' Brands Inc.'s term loan B gained some ground in the secondary market on Wednesday following the release of full-year earnings, and Flextronics International Ltd.'s term loan weakened in active trading.

Over in the primary market, Pilot Travel Centers LLC came out with some changes to its term loan B, including increasing the spread, original issue discount and call protection; Presidio Inc. widened price talk; and Radio One Inc. revised discount and call protection.

Also, Pacific Architects and Engineers Inc. and Engineering Solutions & Products Inc. released price talk, and Tank Intermediate set original issue discount guidance, as their credit facilities were launched to lenders during market hours.

Furthermore, Triple Point Technology Inc., Global Defense Technology & Systems Inc. and Not Your Daughter's Jeans (NYDJ Apparel LLC) began circulating price talk on their upcoming deals, and Hubbard Broadcasting Inc. is getting ready to bring its new credit facility to market.

Dunkin' Brands rises

Dunkin' Brands' term loan B was a little stronger in trading after the company announced full-year 2010 results, according to traders.

The term loan B was quoted by one trader at par ¼ bid, par ½ offered, up from par bid, par 3/8 offered, and by a second trader at par ¼ bid, par 5/8 offered, up from par 1/8 bid, par ½ offered.

For the year ended Dec. 25, the company reported net income of $26.9 million, down around 23% from $35 million in the previous year, primarily impacted by non-recurring pre-tax expenses related to debt extinguishment.

Total revenues for the year were $577.1 million, up about 7% from $538.1 million in fiscal 2009.

And, adjusted EBITDA was $282 million, compared to $279.2 million in the prior year.

Canton, Mass.-based Dunkin' Brands is the parent company of Dunkin' Donuts, a coffee and baked goods restaurant chain, and Baskin-Robbins, an ice cream specialty store chain.

Flextronics softens

Flextronics' term loan due in 2014 dropped to 99 1/8 bid, 99 5/8 offered from 99 3/8 bid, 99 7/8 offered with a good amount of activity seen in the name, according to a trader.

Meanwhile, the company's shorter-maturity term loan was unchanged on the day at 99 3/8 bid, 99 7/8 offered.

"Technicals have been dominating the flows here," the trader remarked.

Flextronics is a Singapore-based electronics manufacturing services provider.

Pilot Travel reworks B loan

Moving to the primary, Pilot Travel Centers raised pricing on its $1 billion seven-year term loan B to Libor plus 325 bps from talk of Libor plus 275 bps to 300 bps, is offering the debt at a discount of 991/2, instead of at par, and the 101 soft call protection has been extended to one year from six months, according to a market source. The 1% Libor floor was left unchanged.

The company's $2.6 billion senior secured credit facility (Ba2) also includes an $800 million five-year revolver and an $800 million five-year term loan A, both priced at Libor plus 225 bps, with the revolver having a 35 bps unused fee. Pricing on the tranches will be based on a leverage grid.

Covenants include a maximum leverage ratio and a minimum interest coverage ratio.

Allocations may go out, at the earliest, on Friday afternoon, after comments on the credit agreement come in by noon ET on that day.

Pilot Travel lead banks

Bank of America Merrill Lynch, Wells Fargo and SunTrust are the lead banks on Pilot Travel's credit facility that will be used to refinance existing debt and back a distribution to sponsors.

In 2009, to fund the acquisition of Flying J. Inc.'s travel plaza business, the company got a $2.15 billion senior secured credit facility comprised of a $500 million revolver, a $500 million term A, an $800 million term loan B and a $350 million term loan C.

Pricing on the existing revolver, term loan A and term loan B is Libor plus 325 bps with a 2% Libor floor, the B loan had been sold at an original issue discount of 99.

Pilot Travel Centers is a Knoxville, Tenn.-based operator of travel centers.

Presidio modifies pricing

Presidio lifted guidance on its $325 million term loan B to Libor plus 550 bps to 575 bps from Libor plus 450 bps, while leaving the 1.5% Libor floor, original issue discount of 99½ and 101 call protection for one year unchanged, according to a market source.

Commitments toward the company's $360 million credit facility (Ba3/B+), which also includes a $35 million revolver, are due later this week.

Initially, the commitment deadline had been set for Friday, but it was known that syndication would bleed into this week as a result of the recent market volatility.

The deal had launched with a bank meeting on March 4, but price talk didn't emerge until March 10, after the leads did some price discovery.

Barclays and Morgan Stanley are the joint lead arrangers and bookrunners on the deal, and GE Capital Markets is a bookrunner as well.

Presidio being acquired

Proceeds from the credit facility will be used to help fund the buyout of Presidio, a Greenbelt, Md.-based provider of advanced technology infrastructure services, by American Securities.

In December, the company came to market with a dividend recapitalization deal led by JPMorgan that struggled in syndication.

In the end, Presidio ended up with a $200 million term loan B priced at Libor plus 575 bps with a 1.75% Libor floor that was sold at an original issue discount of 971/2. There is 101 soft call protection for one year.

However, it took a slew of changes to get the deal done. During syndication, the loan had to be reduced from $300 million, and as a result, so was the dividend; pricing was flexed up from Libor plus 550 bps and, before that, from Libor plus 475 bps; and the discount was increased from 98 and, prior to that, from 981/2.

Radio One tweaks deal

Radio One widened the original issue discount on its $386 million five-year term loan B (B2/B) to 98 from 99 and sweetened call protection to 103 in year one, 102 in years two and three and 101 in year four, from just 101 soft call protection for one year, according to a market source.

Pricing on the term loan was left unchanged at Libor plus 600 bps with a 1.5% Libor floor.

The company's $411 million credit facility also includes a $25 million four-year revolver (B1/B+) priced at Libor plus 550 bps.

Credit Suisse and Deutsche Bank are the lead banks on the deal that will be used to refinance existing debt.

Radio One is a Lanham, Md.-based urban-oriented multi-media company.

Pacific Architects sets talk

In more primary happenings, Pacific Architects and Engineers held a bank meeting on Wednesday morning to kick off syndication on its proposed credit facility, at which time lenders were told that the $105 million six-year term loan B is being talked at Libor plus 500 bps with a 1.5% Libor floor and an original issue discount in the 99 area, according to a market source.

RBC is the lead bank on the $155 million credit facility, which also includes a $50 million five-year revolver.

Proceeds will be used to help fund the acquisition of the company by Lindsay Goldberg LLC from Lockheed Martin Corp., with closing expected in the second quarter, subject to customary conditions.

Leverage will be less than 3 times.

Pacific Architects and Engineers is an Arlington, Va.-based provider of contract support services to U.S. government agencies, international organizations and foreign governments.

Engineering price guidance

Also holding a bank meeting during the session was Engineering Solutions & Products, and it too released price talk in connection with the event, according to a market source.

The $120 million term loan is being talked at Libor plus 550 bps with a 1.5% Libor floor and an original issue discount of 99, the source said.

Prior to launch, there were rumors floating around that the term loan was expected in the Libor plus 500 bps area, but official guidance had not been available.

The company's $140 million credit facility also includes a $20 million revolver.

Bank of America Merrill Lynch is the lead bank on the deal that will be used to help fund the buyout of the company by Berkshire Partners.

Engineering Solutions & Products is an Eatontown, N.J.-based provider of engineering, technical and consulting services in response to Department of Defense requirements.

Tank OID surfaces

Tank Intermediate revealed that its $285 million credit facility is being offered with original issue discount talk of 99 to 99½ as it launched with a bank meeting on Wednesday as well, according to a market source.

Price talk on the facility, which consists of a $20 million revolver and a $265 million term loan B, was outlined prior to launch at Libor plus 350 bps to 400 bps with a 1.25% to 1.5% Libor floor.

GE Capital Markets is the lead bank on the deal that will be used to refinance existing debt.

Tank Intermediate is a manufacturer of polyethylene and steel tanks.

Auction.com launches

Auction.com launched its $120 million five-year credit facility on Wednesday at the previously outlined price talk of Libor plus 450 bps to 500 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2, according to a market source.

The SunTrust-led facility, which consists of a $10 million revolver and a $110 million term loan, will be used to refinance existing debt and to fund a dividend payment.

Leverage is roughly 2 times.

Auction.com is an Irvine, Calif.-based real estate auction firm.

Triple Point floats guidance

Triple Point Technology started disclosing price talk on its $135 million credit facility as the deal is getting ready to launch with a bank meeting on Thursday at 1:30 p.m. ET, according to a market source.

The $125 million five-year term loan B and $10 million five-year revolver are being guided at Libor plus 450 bps to 475 bps with a 1.5% Libor floor and an original issue discount of 99, the source said. The B loan has 101 soft call protection for one year.

Credit Suisse, the sole lead bank on the deal, is asking for commitments by April 6.

Triple Point Technology, a Westport, Conn.-based provider of software for end-to-end commodity management, will use the proceeds to refinance existing debt and pay a dividend to shareholders.

Pro forma leverage for the transaction is 4.0 times.

Global Defense talk emerges

Global Defense Technology & Systems also released some price talk as it prepares for a Friday bank meeting that will launch a $157.5 million credit facility, according to a market source.

The facility, comprised of a $25 million five-year revolver and a $132.5 million six-year term loan B, is being talked at Libor plus 500 bps with a 1.5% Libor floor and a discount that is still to be determined, the source said.

Wells Fargo and SunTrust are leading the deal that will be used to help fund the buyout of the company by Ares Management LLC through a cash tender offer at $24.25 per share. The transaction is valued at about $315 million, including the assumption of debt and prior to expenses.

Closing is expected in the second quarter, subject to a majority of shares being tendered and regulatory approvals.

Global Defense is a McLean, Va.-based provider of mission-critical, technology-based systems, solutions and services for national security agencies and programs of the U.S. government.

NYDJ pricing

Not Your Daughter's Jeans is talking its $100 million credit facility at Libor plus 400 bps ahead of its Thursday morning bank meeting, according to a market source.

The facility consists of a $15 million revolver that has a 50 bps unused fee and an $85 million term loan A, the source said.

SunTrust and RBC are the lead banks on the deal that will be used to refinance existing debt and fund a dividend.

Following completion of the transaction, leverage will be 2.54 times.

Not Your Daughter's Jeans is a Vernon, Calif.-based designer, manufacturer and marketer of jeans and pants for woman typically age 35 and above.

Hubbard sets launch

Hubbard Broadcasting has set a bank meeting for Thursday at 10:30 a.m. ET at the Le Parker Meridien in New York to launch a proposed $405 million credit facility, according to a market source.

The facility consists of a $10 million five-year revolver, a $255 million six-year first-lien term loan and a $140 million seven-year second-lien term loan, the source said, adding that price talk is not yet available.

Morgan Stanley and Goldman Sachs are the lead banks on the deal that will be used to help fund the acquisition of 17 radio stations from Bonneville International Corp. for $505 million.

The acquisition is expected to be completed upon FCC approval and other customary conditions.

It has been known since January that the company would be coming to market with new bank debt for the transaction, however, specifics had been unavailable.

Hubbard Broadcasting is a St. Paul, Minn.-based television and radio broadcasting company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.