Deltek breaks; Petco, Activant rise; CB Richard, Bristow tweak deals; TransDigm sets loan talk

By Sara Rosenberg

New York, Nov. 3 - Deltek Inc.'s credit facility freed up for trading on Wednesday, with the term loan bid above its original issue discount price, and Petco Animal Supplies term loan was better as investors reacted to refinancing news.

Also in trading, Activant Solutions Inc.'s term loan gained some ground on the company's amendment and extension plans and MGM Resorts International's extended term loans moved around with earnings.

Over in the primary market, CB Richard Ellis Group Inc. came out with some changes to its term loan B, including reducing the spread and the original issue discount, and Bristow Group Inc. increased the size of its revolver and term loan while pricing was decreased.

Additionally, TransDigm Group Inc. released pricing guidance on its credit facility as the deal was presented to lenders during the session, Piper Jaffray Cos. began circulating talk on its upcoming facility, and Vonage Holdings Corp. and Revel Entertainment Group LLC emerged with plans for new deals.

Deltek frees up

Deltek's credit facility hit the secondary market on Wednesday, with the $200 million term loan due in 2016 quoted at par bid, according to traders.

Pricing on the term loan is Libor plus 400 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99.

During syndication, the term loan was upsized from $190 million, pricing was reverse flexed from Libor plus 425 bps, the floor was reduced from 1.75% and the discount tightened from 981/2.

The $230 million secured credit facility (B1/BB) also includes a $30 million revolver due in 2015.

Credit Suisse and RBC are the lead banks on the deal that will be used to refinance an existing credit facility and for general corporate purposes.

Deltek is a Herndon, Va.-based provider of enterprise applications software designed specifically for project-focused businesses and professional services firms.

Petco strengthens

Petco Animal Supplies' term loan headed up to 99¾ bid, par 1/8 offered from 98½ bid, 99½ offered as word surfaced that the company will be refinancing the debt with a new credit facility, according to a trader.

The new facility, which will also be used to fund a dividend payment, consists of a $250 million ABL revolver and a $1.1 billion term loan.

Credit Suisse, JPMorgan, Bank of America, Wells Fargo, Morgan Stanley and Goldman Sachs are the lead banks on the new deal.

The revolver launched on Wednesday, while the bank meeting for the term loan is set to take place this coming Tuesday.

Petco revolver talk

In connection with the launch of the Petco's revolver, it was revealed that pricing can range from Libor plus 225 bps to 275 bps based on availability.

Also, the unused fee on the revolver can range from 37.5 bps to 62.5 bps, based on availability as well.

Lenders are being offered 50 bps upfront for commitments of $35 million or more toward the revolver, and 37.5 bps upfront for commitments of less than $35 million.

Petco is a San Diego-based specialty retailer of pet food, supplies and services.

Activant posts gains

Activant Solutions term loan moved to 98 bid, par offered from 96 bid, 97 offered as the company scheduled a conference call for Thursday to launch an amendment and extension proposal that is being led by Deutsche Bank, according to a trader.

Under the amendment, the company is looking to extend at least $250 million of the existing term loans to Feb. 2, 2016 from May 2, 2013 and up to $33 million of the revolver to May 2, 2013 from May 2, 2011.

In addition, the amendment would revise the maximum leverage ratio so that it steps down to 4.25 times from Dec. 31 to and Sept. 30, 2011, to 4.00 times from Dec. 31, 2011 through 2012 and to 3.75 times thereafter.

Activant Solutions is a Livermore, Calif.-based technology provider of business management solutions.

MGM Resorts moves around

MGM Resorts' extended term loan C and E were quoted higher by some and lower by others after the release of quarter numbers.

The term loans were quoted by one trader at 94 3/8 bid, 94 7/8 offered, up from 94 1/8 bid, 94 5/8 offered, by a second trader at 94 1/8 bid, 94½ offered, down from 94¼ bid, 95 offered, and by a third trader at 94 1/8 bid, 94 5/8 offered, down from 94¼ bid, 94¾ offered.

For the third quarter, the Las Vegas-based owner and operator of casino resorts reported a net loss of $318 million, or $0.72 per diluted share, compared with a net loss of $750 million, or $1.70 per diluted share, last year.

Revenues for the quarter were $1.56 billion, compared with $1.53 billion in the third quarter of 2009.

And, adjusted EBITDA for the quarter was $271 million, compared with $188 million in the previous year.

CB Richard trims pricing

Moving to the primary, CB Richard Ellis announced issuer-friendly changes to the pricing on its $300 million six-year term loan B and asked lenders to recommit to the deal by 5 p.m. ET on Wednesday, according to a market source.

The term loan B is now priced at Libor plus 325 bps with an original issue discount of 991/2, as opposed to at Libor plus 350 bps with a discount of 99, the source said.

There continues to be no Libor floor on the B loan.

Allocations are expected to go out some time this week.

CB Richard pro rata unchanged

CB Richard Ellis' $1.35 billion senior secured credit facility (Ba1/BB) also includes a $700 million 41/2-year revolver and a $350 million five-year term loan A.

Pricing on both the revolver and the term loan A was left intact at Libor plus 225 bps.

Credit Suisse, Bank of America and HSBC Securities are the lead banks on the credit facility.

Proceeds, along with about $500 million of cash on hand and $350 million of notes, will be used to refinance $1.5 billion of existing bank debt.

CB Richard Ellis is a Los Angeles-based commercial real estate services firm.

Bristow revises size, spread

Bristow upsized its five-year secured credit facility and reverse flexed pricing as the deal was "well over two times oversubscribed" by banks since its mid-October launch, according to a market source.

Under the changes, the revolver is now sized at $175 million, up from $150 million, and the term loan is now sized at $200 million, up from $150 million, the source said.

In addition, pricing on both tranches was reduced to Libor plus 237.5 bps from Libor plus 250 bps, the source continued.

SunTrust is the lead bank on the deal.

Bristow is a Houston-based provider of helicopter services.

TransDigm talk emerges

TransDigm held a bank meeting at 10 a.m. ET on Wednesday to kick off syndication on its proposed $1.2 billion senior secured credit facility (Ba2/BB-), and in connection with the launch, price talk was announced, according to sources.

Both the $900 million six-year term loan and a $300 million five-year revolver were presented with talk of Libor plus 375 bps to 400 bps with a 1.5% Libor floor, sources said. The revolver has a 50 bps unused fee.

The term loan is being offered at an original issue discount of 99 and the revolver is being offered with a one point upfront fee.

Credit Suisse, UBS, Barclays and Morgan Stanley are the lead banks on the deal, with Credit Suisse the left lead.

Commitments are due from lenders on Nov. 19, with closing and funding targeted for Nov. 24.

TransDigm getting notes

In addition to the credit facility, TranDigm plans on issuing $780 million of new senior subordinated notes.

Proceeds from the bank and bond debt will be used to fund the $1.27 billion acquisition of McKechnie Aerospace Holdings Inc., repay about $280 million of existing term loan borrowings at TransDigm and refinance its existing $200 million revolver.

McKechnie, an Irvine, Calif.-based supplier of aerospace products, is being bought from JLL Partners.

Pro forma net debt to EBITDA will be 5.8 times, up from 3.9 times at July 3, and total debt will be 6.3 times, up from 4.6 times at July 3.

TransDigm capital structure

Following completion of the acquisition and paydown, TransDigm expects that $500 million of its existing term loan debt and $1 billion of its existing 7¾% senior subordinated notes will remain outstanding.

The refinancing/paydown plans did not come as a surprise to lenders, given that the company had said early on that in connection with the acquisition and depending on market conditions, it would replace its existing revolver with a new, possibly larger revolver and may repay a portion of its existing term loan borrowings.

However, the total size of the new bank deal did come a little smaller than expected, as the company had previously revealed that it received a commitment for a $1.3 billion facility.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components.

Paxton Media launches

Also launching with a bank meeting was Paxton Media Group LLC's $240 million credit facility consisting of $10 million five-year revolver, a $20 million three-year term loan A and a $210 million six-year term loan B.

Price talk on the revolver and the term loan A is Libor plus 450 bps with no Libor floor, while talk on the term loan B is Libor plus 550 bps with a 1.75% Libor floor and an original issue discount of 98.

Wells Fargo and U.S. Bank are the lead banks on the deal that will be used to refinance existing debt.

Paxton is a Paducah, Ky.-based newspaper and television company.

Royall comes to market

And yet another deal to launch on Wednesday was Royall & Co.'s $103.25 million five-year senior secured credit facility that is being led by GE Capital.

The facility consists of a $10 million revolver and a $93.25 million term loan, with both tranches talked at Libor plus 500 bps to 550 bps with a 1.75% Libor floor and an original issue discount of 98.

Proceeds will be used for a dividend recapitalization.

Royall is a Richmond, Va.-based direct marketing company focused on working with colleges and universities to achieve their enrollment and financial goals.

Piper Jaffray floats talk

Back to the topic of price talk, Piper Jaffray revealed guidance of Libor plus 275 bps on its $150 million three-year credit facility as the deal is getting ready to launch with a bank meeting on Monday in New York, according to a market source.

The facility consists of s $50 million revolver and a $100 million term loan.

The revolver has a 50 bps unused fee.

SunTrust and U.S. Bank are the joint lead arrangers on the deal.

Piper Jaffray is a Minneapolis-based investment bank and institutional securities firm.

Vonage expected this month

In other primary happenings, Vonage announced on Wednesday that it plans to get a new $200 million senior secured term loan led by Bank of America and Deutsche Bank, and, according to a market source, the deal should launch with a bank meeting later this month.

Proceeds from the term loan, along with cash on hand, will be used to refinance existing term loans totaling $194 million.

The company will exercise its right to retire the first-lien debt under the make-whole provisions of the credit agreement and retire the second-lien debt at a discount of more than 25% to the contractual make-whole amount.

And, the company's third-lien notes will be converted into 8.3 million shares of its common stock. In addition, the third-lien noteholders will receive a cash payment of $2.2 million plus accrued interest of $1.1 million.

Vonage cutting costs

Vonage officials said in a conference call that pricing on the new term loan is expected to be less than half the blended rate of the current debt and, as a result, it should save over $20 million in interest costs per year.

Also, covenants under the new term loan, which are expected to include total leverage, interest costs and capital expenditures, will be less restrictive than covenants under the existing debt, and the loan will be prepayable at par.

Following completion of the refinancing, total leverage will be at or below 1.5 times debt to EBITDA and net debt will be around 1.1 times.

Closing on the new loan is expected to occur prior to Dec. 31.

Vonage is a Holmdel, N.J.-based provider of communications services connecting individuals and social networks through broadband devices.

Revel readies deal

Revel Entertainment is set to launch a new credit facility on Thursday that is rumored to consist of an $800 million first-lien loan and a $472 million second-lien loan, according to a market source.

JPMorgan is the lead bank on the deal.

Proceeds will be used to help fund the construction of a casino and hotel in Atlantic City, N.J.

Revel Entertainment is a gaming and entertainment company.

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