Evergreen shifts funds, ups first-lien spreads; Concord Re sets talk; Arrowhead, TransFirst, ASR break

By Sara Rosenberg

New York, Aug. 9 - Evergreen International Aviation, Inc. moved some funds out of its first-lien term loan and into its second-lien term loan and lifted pricing on the first-lien term loan as well as on the revolver.

In other primary news, Concord Re came out with official price talk on its term loan that was right in the middle of the previously wide guidance heard on the transaction.

In secondary happenings, Arrowhead General Insurance Agency Inc., TransFirst Holdings Inc. and American Safety Razor Co. (ASR) all freed for trading during the Wednesday session.

Evergreen International Aviation made some changes to its in-market credit facility, shifting $50 million out of its first-lien term loan B and into its second-lien term loan while at the same time increasing pricing on the downsized first-lien tranche and on the revolver, according to a market source.

The five-year first-lien term loan B (B1/B+) is now sized at $250 million, down from an original size of $300 million, and pricing was flexed up to Libor plus 325 basis points from original talk at launch of Libor plus 275 basis points, the source said.

On the flip side, the 61/2-year second-lien term loan (Caa1/CCC+) is now sized at $100 million, up from an original size of $50 million, the source continued. Pricing on this tranche is unchanged at Libor plus 750 basis points and the paper carries, and has since launch, call premiums of 102 in year one and 101 in year two.

Lastly, the company's $50 million five-year revolver (B1/B+) also saw an increase in pricing, with the spread moving to Libor plus 325 basis points from original talk at launch of Libor plus 275 basis points, the source added.

Recommitments are due from lenders by the end of the day Friday.

Credit Suisse is the lead bank on the $400 million credit facility that 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.

Concord Re price talk

Concord Re launched its $375 million term loan B on Wednesday with price talk of Libor plus 450 basis points, the mid-point of previously whispered guidance in the Libor plus 400 to 500 basis points range, according to a market source.

Mid-to-high BB ratings are expected on the transaction.

Goldman Sachs is the lead bank on the deal that will be used to serve as collateral for the ability to underwrite insurance business.

This transaction is an insurance deal for Lexington Property Division of AIG.

Concord is a single purpose dedicated insurance vehicle designed for participating in commercial property insurance business for AIG. It has a diversified book of insurance business which includes energy, manufacturing, general property, real estate, communications, inland marine and construction services.

JC Flowers is the sponsor on the deal, providing $375 million of equity.

Arrowhead frees to trade

Switching to the secondary, Arrowhead General Insurance allocated its credit facility, with its $130 million six-year first-lien term loan (B2/B) freeing for trading at par 5/8 bid with no offers, according to a market source.

The first-lien term loan is priced with an interest rate of Libor plus 300 basis points and carries a step down to Libor plus 275 basis points effective when leverage falls below 3.75x.

During syndication, the first-lien term loan was upsized from $125 million and pricing was flexed up from original talk of Libor plus 275 basis points with the addition of the step.

Arrowhead's $185 million credit facility also contains a $15 million five-year revolver (B2/B) with an interest rate of Libor plus 300 basis points and a $40 million 61/2-year second-lien term loan (B3/CCC+) with an interest rate of Libor plus 725 basis points.

During syndication, revolver pricing was flexed up from original talk of Libor plus 275 basis points and the second-lien term loan was downsized from $45 million with a pricing increase from original talk of Libor plus 650 to 700 basis points.

Wachovia is the lead bank on the deal that will be used to help fund Spectrum Equity's leveraged buyout of the company.

Arrowhead is a San Diego-based seller of commercial and personal property/casualty insurance products.

TransFirst breaks

TransFirst's credit facility also hit the secondary on Wednesday, with its $275 million first-lien term loan B (B2/B+) quoted at par ½ bid, par ¾ offered and its $120 million second-lien term loan (Caa1/B-) quoted at par 5/8 bid, 101 1/8 offered, according to a trader.

The first-lien term loan is priced with an interest rate of Libor plus 250 basis points, and the second-lien loan is priced with an interest rate of Libor plus 625 basis points.

During syndication, pricing on the first-lien term loan firmed up at the low end of original guidance of Libor plus 250 to 275 basis points and pricing on the second-lien term loan firmed up at the low end of its guidance of Libor plus 625 to 650 basis points.

TransFirst's $430 million credit facility also includes a $35 million revolver (B2/B+) with an interest rate of Libor plus 250 basis points, which also firmed up at the low end of original Libor plus 250 to 275 basis points talk.

Merrill Lynch Capital is the lead bank on the deal that will be used for a dividend recapitalization.

TransFirst is a Dallas-based provider of credit card processing services and payment enabling technologies.

American Safety Razor starts trading

Another deal that broke for trading Wednesday was American Safety Razor, with its $225 million seven-year first-lien term loan B (B2/B) quoted at par 5/8 bid, par 7/8 offered, according to a fund manager.

The first-lien term loan B is priced with an interest rate of Libor plus 250 basis points, the low end of original guidance at launch of Libor plus 250 to 275 basis points.

American Safety Razor's $435 million credit facility also contains a $35 million six-year revolver (B2/B) with an interest rate of Libor plus 250 basis points, also the low end of original guidance at launch of Libor plus 250 to 275 basis points, and a $175 million 71/2-year second-lien term loan (Caa1/CCC+) with an interest rate of Libor plus 625 basis points, the mid-point of original price talk of Libor plus 600 to 650 basis points.

The company is also getting a $35 million holding company mezzanine loan facility, which is pay-in-kind for the first five years and cash pay thereafter, priced at 13.5%, the high end of original guidance at launch of 13% to 13.5 %.

UBS is the lead bank on the deal that will be used to help fund Lion Capital LLP's leveraged buyout of American Safety Razor from J.W. Childs Associates, LP in a transaction valued at $625 million.

American Safety Razor is a Cedar Knolls, N.J., manufacturer of private label wet shaving razors and blades and industrial, specialty and medical blades.

Secondary stronger

The overall secondary market tone on Wednesday was one filled with positive feelings as better buyers seemed to appear, pushing various names up by an eighth of a point, according to a trader.

Some such names that saw this slight strengthening in levels amidst active trading included Eastman Kodak Co., PanAmSat Holding Corp., Charter Communications Inc. and Cablevision Systems Corp.

Kodak's term loan B closed the day quoted at par bid, par ¼ offered, PanAmSat's term loan B closed out the day quoted at par ¾ bid, 101¼ offered, Charter's term loan B closed the day quoted at par ¼ bid, par ½ offered and Cablevision's term loan B closed the day quoted at 99½ bid, 99¾ offered, the trader said.

Kodak is a Rochester, N.Y.-based digital imaging products, services and solutions company. PanAmSat is a Wilton, Conn.-based satellite company. Charter is a St. Louis-based broadband communications company. And, Cablevision is a Bethpage, N.Y., media, entertainment and telecommunications company.

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