infoGROUP, Del Taco break; IMG, Hillman tweak deals; Genband shelved; AWAS, Trident set talk

By Sara Rosenberg

New York, May 18 - infoGROUP Inc. and Del Taco LLC (Sagittarius Restaurants LLC) saw their credit facilities allocate and hit the secondary market during Tuesday's trading session, with both companies' term loans quoted above their original issue discount prices.

Over in the primary, IMG Worldwide Inc. came out with some changes to its term loan B, including sweetening the spread and increasing the original issue discount, Hillman Group Inc. lowered the discount on its B loan, and Genband Inc. pulled its loan from market.

Also, AWAS and Trident Resources Corp. began circulating price talk their proposed term loans, and BWAY Holding Co. released official original issue discount talk on its in market deal.

Additionally, Aurora Diagnostics Inc.'s credit facility filled out by its Tuesday commitment deadline, Sedgwick Claims Management Services Inc. is anticipated to firm pricing on its bank deal shortly as the books have been shut, and U.S. Gas & Electric Inc. launched its term loan.

infoGROUP frees to trade

infoGROUP's credit facility broke for trading on Tuesday, with the $315 million term loan quoted at 99 bid, 99½ offered, according to sources.

Pricing on the term loan is Libor plus 450 basis points with a 1.75% Libor floor, and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, pricing on the term loan firmed at the high end of the initial Libor plus 425 bps to 450 bps talk, the Libor floor firmed at the wide end of the 1.5% to 1.75% talk, and the original issue discount was increased from talk in the 98½ area.

The company's $365 million senior secured credit facility (B1/BB-) also includes a $50 million revolver.

infoGROUP led by BofA

Bank of America is the lead bank on infoGROUP's credit facility, which will be used to help fund the buyout of the company by CCMP Capital Advisors LLC for $8.00 in cash per share. The transaction has a total value of about $635 million, including the refinancing of its outstanding debt.

Equity for the transaction will be $343.7 million.

Closing is anticipated in early summer, subject to the approval of infoGROUP shareholders, regulatory approvals and customary closing conditions.

infoGROUP is an Omaha, Neb.-based provider of data-driven and interactive resources for targeted sales, marketing and research services.

Del Taco starts trading

Another deal to break for trading on Tuesday was Del Taco, with its $160 million term loan quoted at 98 bid, 99 offered, according to a market source.

Pricing on the term loan is Libor plus 550 bps with a 2% Libor floor, and it was sold at an original issue discount of 971/2. There is call protection of 102 in year one and 101 in year two.

During syndication, pricing was flexed up from Libor plus 450 bps, the discount widened from the initial 98 to 99 talk and the call protection was added.

Del Taco getting revolver

Del Taco's $195 million five-year credit facility (B1/B) also includes a $35 million revolver tranche.

Prior to launch, the facility was expected to be sized at $190 million, comprised of a $40 million revolver and a $150 million term loan. However, at the bank meeting, lenders were presented with the current structure.

Wells Fargo and GE Capital are the lead banks on the deal that will be used to refinance existing debt.

Del Taco is a Lake Forest, Calif., operator and franchiser of restaurants.

IMG revises pricing

Moving to the primary market, IMG Worldwide raised pricing on its $300 million five-year term loan B (Ba2/B+) to Libor plus 500 bps from Libor plus 425 bps, according to a market source.

In addition, the original issue discount was increased to 98 from 981/2, while the 1.75% Libor floor was left unchanged, the source said.

JPMorgan and Deutsche Bank are the lead banks on the deal that will be used to refinance existing debt and for general corporate purposes.

IMG is a New York-based provider of sports and event marketing and management services.

Hillman trims OID

Hillman lowered the original issue discount on its well received $290 million six-year term loan B to 99½ from 99, while leaving pricing at Libor plus 375 bps with a 1.75% Libor floor, according to a market source.

Barclays Capital, Morgan Stanley and GE Capital are the bookrunners on the $320 million senior secured credit deal (Ba3/B+), which also includes a $30 million five-year revolver.

Pricing on the revolver was left unchanged at Libor plus 375 bps with a 75 bps undrawn fee, a 1.75% Libor floor and a discount of 98.

Proceeds will be used to help fund the buyout of the company by Oak Hill Capital Partners from Code Hennessy & Simmons, Ontario Teachers' Pension Plan and certain members of company management for about $815 million.

Hillman prices notes

Hillman is also getting $150 million of senior unsecured notes to help fund its buyout, and those notes priced on Tuesday at par to yield 10.875%.

Equity will also be used to fund the acquisition.

Pro forma leverage is 3.2 times net senior secured, 5.0 times net opco and 6.2 times net total.

The completion of the buyout is expected in the second quarter, subject to regulatory approvals and customary conditions.

Hillman is a Cincinnati-based distributor of fasteners, key duplication systems, engraved tags and related hardware items.

Genband halts syndication

Genband pulled its $250 million term loan B (B) from market as a result of unfavorable conditions, according to a market source.

The term loan B was being talked at Libor plus 450 basis points with a 2% Libor floor and an original issue discount of 981/2.

JPMorgan was acting as the lead bank on the deal that was going to be used to help fund the acquisition of substantially all assets of the Nortel Carrier VoIP and Application Solutions Business.

Genband is a Plano, Texas-based next-generation media and security gateway services provider.

AWAS floats talk

AWAS revealed price talk on its $530 million six-year term loan (Ba2/BBB-), which launched this past Friday with talk previously described as still to be determined.

The term loan is being guided at Libor plus 500 bps to 550 bps with a 1.75% Libor floor and an original issue discount of 98, according to a market source.

There is 101 soft call protection for one year.

Goldman Sachs and Credit Agricole are the lead banks on the deal that will be used to refinance existing debt.

AWAS is a Dublin-based aircraft leasing company.

Trident Resources sets guidance

Price talk on Trident Resources' proposed $410 million four-year term loan began making its way around the market ahead of the Wednesday bank meeting that will officially kick off syndication on the deal, according to sources.

The loan is being talked at Libor plus 950 bps with a 3% Libor floor and an original issue discount of 97, sources said.

In addition, the loan is non-callable for one year, then at 105 in year two, 104 in year three and 103 in year four.

Credit Suisse is the lead bank on the deal.

Trident Resources funding exit

Proceeds from Trident Resources' term loan will be used to help fund its emergence from Chapter 11.

The company has already received court approval of the disclosure statement for its plan of reorganization, and the plan confirmation hearing is scheduled for June 15.

As part of the reorganization plan, the company is looking to do a $200 million equity rights offering and holders of 2006 credit agreement claims and 2007 credit agreement claims will be entitled to purchase that stock.

Trident is a Calgary, Alta.-based natural gas production company.

BWAY OID emerges

BWAY came out with official guidance on the original issue discount for its $490 million term loan at 99 to 991/2, whereas before it was described as still to be determined, according to a market source.

The loan, which launched last week, is being talked at Libor plus 375 bps with a 1.75% Libor floor.

The company's $565 million senior secured credit facility (Ba3/B+) also includes a $75 million revolver.

Deutsche Bank, Bank of America and Barclays are the lead banks on deal, with Deutsche the left lead.

BWAY being acquired

Proceeds from BWAY's credit facility will be used to help fund the buyout of the company by Madison Dearborn Partners LLC for $20 in cash per share. The transaction is valued at roughly $915 million, including the assumption of debt.

The company has received a commitment for a $200 million senior unsecured bridge loan to help fund the acquisition as well.

Closing is expected to take place in the second or third quarter, subject to shareholder approval, regulatory approvals and other customary conditions.

In connection with the buyout, BWAY has begun a cash tender offer for any and all of its outstanding 10% senior subordinated notes due 2014. The tender offer is scheduled to expire on June 9.

BWAY is an Atlanta-based supplier of general line rigid containers.

Aurora Diagnostics attracts orders

Aurora Diagnostics' $340 million credit facility (B1/B) went well as it was fully subscribed by Tuesday's 5 p.m. ET commitment deadline, according to a market source.

The facility consists of a $110 million four-year revolver and a $230 million six-year term loan B, with both tranches talked at Libor plus 425 bps with a 2% Libor floor.

The term loan B is being offered to lenders at an original issue discount of 981/2.

Barclays, Morgan Stanley and UBS are the lead banks on the deal that will be used to refinance existing bank debt, to redeem Aurora Holdings' class Z capital and for acquisitions, working capital and general corporate purposes.

Aurora Diagnostics leverage multiples

With the new credit facility, Aurora Diagnostics' secured leverage is 3.5 times and total leverage is 4.4 times.

Closing on the deal is expected to occur before the company completes its proposed initial public offering of class A common stock - the net proceeds of which will be used to acquire Aurora Holdings' units and to increase the company's capitalization and financial flexibility, fund its growth, and for working capital and general corporate purposes.

Of the total revolver amount, $50 million will be available at the close of the facility and $60 million will be available upon completion of the IPO.

Aurora Diagnostics is a Palm Beach Gardens, Fla.-based diagnostics company.

Sedgwick deadline hits

Sedgwick Claims Management Services closed down the books on its $660 million credit facility at the close of business on Tuesday, and is expecting to finalize pricing soon, according to a market source.

The deal was oversubscribed by the commitment deadline, the source remarked.

The $60 million five-year revolver (B1) and the $400 million six-year first-lien term loan (B1) are being talked at Libor plus 375 bps to 400 bps with a 1.5% Libor floor, and the term loan is being offered at an original issue discount of 99.

And, the $200 million seven-year second-lien term loan (B3) is being talked at Libor plus 750 bps with a 1.5% Libor floor and an original issue discount of 981/2.

The second-lien term loan is non-callable for two years, then at 103 in year three, 102 in year four and 101 in year five.

Sedgwick lead banks

Bank of America and Barclays Capital are the lead banks on Sedwick's credit facility that will be used to help fund the buyout of the company by Stone Point Capital LLC and Hellman & Friedman LLC for $1.1 billion, including repayment of debt.

The company is being acquired from Fidelity National Financial Inc., Thomas H. Lee Partners LP, Evercore Capital Partners and other minority shareholders.

Closing on the transaction is expected to take place during the second quarter, subject to usual and customary conditions and the receipt of regulatory approvals.

Sedgwick is a Memphis, Tenn.-based provider of claims and productivity management services to corporate and institutional clients.

U.S. Gas & Electric launches

U.S. Gas & Electric launched its proposed $125 million second-lien term loan with a bank meeting on Tuesday morning that was said by one source to have gone well.

As was already reported, price talk on the loan is Libor plus 750 bps to 850 bps with a 2% Libor floor and an original issue discount of 98.

Macquarie Capital is the lead arranger and bookrunner on the deal that will be used to refinance existing debt and back the acquisition of a similar company.

U.S. Gas & Electric, an MVC Capital portfolio company, is a provider of energy supply to commercial and residential consumers.

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