Nortek deal allocates; Neiman Marcus sets pricing; quiet session sees LCDX up slightly

By Paul A. Harris

Portland, Ore., April 25 - The post-holiday Monday session, rendered quiet by ongoing vacations and school breaks, saw the LCDX 16 bank loan index finish slightly higher at 100 5/8 bid, a market source said.

Meanwhile, the primary market generated considerable news.

Nortek Inc.'s $350 million Libor plus 400 bps term loan allocated, and Neiman Marcus Group Inc. set price talk of Libor spread of 375 basis points to 400 bps at a discount of 99½ and a 1.25% Libor floor on its $2.06 billion term loan.

Nortek's $350 million six-year senior secured covenant-light term loan (B1/BB-) priced at 991/2, on top of price talk, with a 400 bps Libor spread and a 1.25% Libor floor.

The term loan includes 101 soft call protection for one year.

UBS Securities LLC was the lead bank on the deal.

Proceeds, along with $500 million of senior notes, will be used to fund a tender offer for the company's roughly $753 million of 11% senior secured notes due 2013.

The company will continue to have access to its current $300 million asset-based revolver due in 2015. However, this revolver will need to be amended to allow for the refinancing.

Neiman Marcus deal

Neiman Marcus' term loan has a 101 soft call for one year.

The deal also includes a $700 million revolver.

The leads are Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Merrill Lynch, Wells Fargo Securities LLC and Barclays Capital Inc.

Proceeds from the incremental borrowings under the term loan facility, along with cash on hand, will be used to repurchase or redeem the company's $752.4 million of 9%/9¾% senior notes due 2015.

Frac Tech talks $1.5 billion

Elsewhere, Frac Tech International LLC set pricing for its $1.7 billion of term loans (B2/B+).

A $1.5 billion five-year term loan B is talked with a 475 bps spread to Libor and a 1.5% Libor floor, discounted to 99.

The $200 million delayed draw loan is also talked at Libor plus 475 bps with a 1.5% Libor floor. The discount talk is 993/4. The discount, however, increases to 99 if the loan is funded at closing. There is also a 250 bps unused fee on the delayed draw loan.

Both tranches feature 101 soft calls.

Commitments are due on Friday.

Merrill Lynch and Citigroup Global Markets Inc. are the lead banks.

Proceeds will be used to help fund the acquisition of a controlling stake in Frac Tech Services LLC by an investor group including Temasek Holdings Ltd. and RRJ Capital from the Wilks family and to fund a dividend payment to Chesapeake Energy Corp., which owns 30% of Frac Tech.

Delphi sets Wednesday meeting

Delphi Corp. will host a Wednesday bank meeting for its $2.5 billion credit facility.

J.P. Morgan Securities LLC has the books.

Proceeds will be used to help fund $4.4 billion of stock repurchases representing the stakes of General Motors Corp. and the Pension Benefit Guaranty Corp. in Delphi.

Tranching and pricing of the facility remain to be determined.

TASC revives refinancing

TASC Inc. plans to revive its $675 million credit facility during a Tuesday lender call.

The deal, which was withdrawn in mid-March due to market conditions, is comprised of a $575 million revolver and a $100 million revolver.

Pricing on the withdrawn deal was set at Libor plus 325 bps with a 1.25% Libor floor at an original issue discount of 991/2.

Pricing on the revived deal will be announced during the Tuesday call.

A 6.75x leverage maintenance test has been added to the term loan.

The pro rata tranche is the $100 million revolver.

Barclays Capital Inc. is the left lead. Deutsche Bank Securities Inc., KKR Capital Markets and RBC Capital Markets are the joint leads.

Proceeds will be used to refinance debt.

Green Valley sets meeting

Finally, Green Valley Ranch Resorts Spa Casinos will hold a Thursday bank meeting for its $310 million credit facility.

The deal is comprised of a $215 million five-year first-lien term loan, an $85 million six-year second-lien term loan and a $10 million revolver.

Jefferies & Co. Inc. is the left bookrunner. Goldman Sachs & Co. Inc. is the joint bookrunner.

Proceeds will be used to help fund the acquisition of the Henderson, Nev., lodging and entertainment company by Station Casinos LLC.

The deal is leveraged 4.6x through the first-lien loan and 6.4x through the entire facility.

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