Evergreen, American Cellular set talk; Verso trims spread; Infor breaks, Toys under pressure

By Sara Rosenberg

New York, July 25 - Evergreen International Aviation, Inc. came out with price talk on its credit facility as the deal was launched to investors on Tuesday morning, and American Cellular Corp. announced price talk on is already in-market deal now that ratings have emerged.

In other primary happenings, Verso Papers Holdings LLC lowered pricing on its term loan B by 25 basis points during market hours.

On the secondary side of things, Infor Global Solutions' credit facility freed for trading, Toys 'R' Us Inc. came under some pressure, and TransDigm Inc. and Sensata Technologies Inc. both saw an improvement in levels.

Evergreen International Aviation released opening price talk on its proposed $400 million credit facility as syndication on the transaction officially kicked off with a 10 a.m. ET bank meeting on Tuesday, according to a market source.

The $50 million revolver (B1/B) and the $300 million first-lien term loan (B1/B) were both launched with price talk of Libor plus 275 basis points, and the $50 million second-lien term loan (Caa1/CCC+) was launched with price talk of Libor plus 750 basis points, the source said.

The second-lien term loan contains call protection of 102 in year one and 101 in year two.

Both the first- and the second-lien term loans are being offered to investors at par, the source added.

Credit Suisse is the lead bank on the deal.

Proceeds from the credit facility will be used to fund a tender offer for any and all of the company's outstanding $215 million 12% senior second secured notes due 2010. The tender offer is scheduled to expire on Aug. 21.

Evergreen is a McMinnville, Ore.-based portfolio of five diverse aviation companies.

American Cellular price talk

American Cellular went out to potential lenders with price talk of Libor plus 250 basis points on all tranches under its $250 million credit facility now that ratings of B1/B+ have been assigned to the transaction, according to a market source.

The Moody Investors Service rating was announced this past Friday and the Standard & Poor's rating was announced on Monday; however, price talk did not emerge until Tuesday due to scheduling and other minute details.

Tranching under the facility, which launched on July 18, breaks down to a $50 million revolver, a $100 million funded term loan and a $100 million delayed-draw term loan.

The delayed-draw loan is delayed draw for 12 months. The tranche carries an unused fee of 75 basis points for the first four months, 125 basis points for the following four months and 175 basis points for the last four months.

Bear Stearns is the lead bank on the deal.

Proceeds from the funded term loan will be used to fund the acquisition of Highland Cellular LLC, which provides cellular wireless service to southern West Virginia and two adjacent counties in Virginia, for $95 million.

Borrowings under the delayed draw will be available for participating in the AWS auction, other acquisitions and general corporate purposes.

American Cellular is a subsidiary of Dobson Communications Corp., an Oklahoma City-based provider of wireless phone services to rural markets.

Verso reverse flexes

Verso announced on Tuesday that it is taking pricing on its $285 million seven-year term loan B down to Libor plus 175 basis points from original talk at launch of Libor plus 200 basis points, according to a market source.

Pricing on the company's $200 million six-year revolver is said to have remained unchanged at Libor plus 200 basis points, the source added.

Credit Suisse is the lead arranger on the $485 million credit facility (Ba2/BB).

Proceeds will be used to help fund Apollo Management's leveraged buyout of International Paper's Memphis, Tenn.-based coated and supercalendered papers business for about $1.4 billion.

United Surgical oversubscribed

United Surgical Partners International Inc.'s $200 million seven-year term loan B (Ba2/BB-) is currently well oversubscribed at price talk of Libor plus 200 basis points, according to a market source.

The loan was originally launched with spread guidance of Libor plus 200 to 225 basis points, but, based on the amount of interest it has received, the 225 price talk has basically been taken off the table.

Bear Stearns and SunTrust are joint lead arrangers on the deal, with Bear acting as bookrunner.

The term loan will have two covenants - a debt to EBITDA requirement and an EBITDAR to interest plus rents requirement.

At close, leverage will be 2.7x.

Proceeds will be used to fund a tender offer for the company's approximately $160 million 10% senior subordinated notes due 2011 and to repay some revolver borrowings.

United Surgical Partners is an Addison, Texas, owner and operator of surgical facilities.

Infor breaks atop par

Switching to the secondary, Infor Global Solutions' credit facility freed for trading on Tuesday, with the $2.25 billion seven-year term loan B quoted at par 3/8 bid, par 5/8 offered, according to a trader.

The term loan B is priced with an interest rate of at Libor plus 375 basis points and contains call protection of 101 for one year. During syndication, the tranche was upsized from $2 billion with the company's proposed bond offering downsized by the equivalent amount, and pricing was flexed up from original talk at launch of Libor plus 325 basis points to guidance of Libor plus 350 to 375 basis points before settling in at the wide end of talk.

JPMorgan, Credit Suisse and Merrill Lynch are joint bookrunners and co-lead arrangers on the deal, with JPMorgan the left lead.

Infor's $2.4 billion euro- and dollar-denominated credit facility (B2/B) also contains a $150 million six-year revolver with a 50 basis point commitment fee.

Proceeds from the new credit facility will be used to help fund the acquisitions of Systems Union Group and SSA Global, to finance the combination of Infor and Extensity - which are both currently Golden Gate Capital portfolio companies - and to refinance debt at all four companies.

Under the SSA acquisition agreement, Infor is paying $19.50 per share in cash to SSA Global's shareholders, and, under the Systems Union agreement, Extensity will pay 215p per share in cash to Systems Union stockholders.

Infor is an Alpharetta, Ga.-based software provider focused on the manufacturing and distribution industries. Extensity is an Atlanta-based financial performance management company focused on the needs of finance professionals. SSA Global is a Chicago-based provider of enterprise software applications for manufacturing, distribution, retail, services and public organizations. Systems Union is a U.K.-based financial management, reporting and performance management solutions company.

Toys 'R' Us softens

Toys 'R' Us saw levels on its new $804 million six-year senior secured term loan come under some pressure during market hours with no particular news seen sparking the reaction, according to a trader.

The term loan closed out the day quoted at par 7/8 bid, 101 1/8 offered, down from the previous 101 1/8 bid level that the paper has been quoted at fairly consistently since it broke for trading early last week, the trader said.

Toys 'R' Us is a Wayne, N.J., specialty toy retailer.

TransDigm, Sensata trade up

TransDigm and Sensata both saw levels on their term loan B's head higher in trading on Tuesday seemingly on market technicals as nothing particular was seen sparking the momentum, according to traders.

TransDigm's term loan B closed the day quoted at par ¼ bid, par ½ offered, up from previous levels of par 1/8 bid, par 3/8 offered, the trader said. "Airline stuff in general felt better today," a second trader remarked regarding the paper's movement.

Meanwhile, Sensata's term loan B closed out the day quoted at 99½ bid, 99¾ offered, up from previous levels of 99¼ bid, 99½ offered, the traders added.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for commercial and military aircraft. Sensata Technologies is an Attleboro, Mass., supplier of engineered sensors and controls to the appliance, climate control, industrial, automotive, lighting and aircraft markets.

General Motors gains ground

General Motors Corp.'s new credit facility headed higher during its second day of trading, moving to levels of 94¾ bid, 95¼ offered from 94¼ bid, 94¾ offered, according to a trader.

The Detroit-based automotive company completed an amendment and restatement of its credit facility on July 20, providing for a secured extended facility of $4.48 billion due July 20, 2011 with an interest rate of Libor plus 225 basis points and an unsecured non-extended facility of $152 million due June 16, 2008 with an interest rate of Libor plus 160 basis points.

Extending lenders received a consent fee of 40 basis points.

In the event of certain work stoppages, the facility will be temporarily reduced to $3.5 billion.

BHM closes

First Atlantic Capital, Ltd. completed its acquisition of a majority interest in BHM Technologies LLC, according to a company news release.

To help fund the transaction, BHM got a new $335 million credit facility consisting of a $235 million seven-year first-lien term loan B at Libor plus 300 basis points with an original issue discount of 981/4, a $65 million 71/2-year second-lien term loan at Libor plus 675 basis points with an original issue discount of 97¾ and call protection of 102 in year one and 101 in year two, and a $35 million six-year revolver at Libor plus 300 basis points.

During syndication, the first-lien term loan B was upsized from $220 million, pricing was increased from original talk at launch of Libor plus 250 basis points and the original issue discount was added; the second-lien term loan was downsized from $80 million, pricing was increased from original talk at launch of Libor plus 575 basis points and the original issue discount was added; and, the revolver saw its pricing increase from original talk at launch of Libor plus 250 basis points.

Lehman acted as the lead bank on the Michigan-based auto supplier's deal.

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