Metaldyne launches $225 million term loan; TriZetto prices $100 million incremental term loan

By Paul A. Harris

St. Louis, Sept. 30 - Metaldyne LLC launched its $225 million term loan at a Thursday bank meeting.

In the primary market TriZetto Group Inc. priced its $100 million incremental term loan with a 425 basis points spread to Libor and a 1.5% Libor floor at 991/2. The deal is talked with a 750 bps spread to Libor with a 2% Libor floor. Price talk is 98.

The LCDX 14 bank loan index closed Thursday at 97 3/8 bid, 97 5/8 offered, up 3/16 points on the day, according to a hedge fund manager.

Meanwhile, bank loan funds continue to see large cash inflows.

The funds saw $303 million come in during the week to Wednesday, according to Lipper-AMG. This follows the previous week's $319 million inflow and extends year-to-date flows to $6.7 billion, according to the hedge fund manager.

Metaldyne term loan

Metaldyne's $225 term loan has soft calls at 102 in year one and 101 in year two.

Deutsche Bank Securities and Barclays Capital are the lead banks.

Proceeds will be used to refinance existing debt and fund a dividend.

TriZetto prices loan

TriZetto's deal was quoted at 100¼ bid, 100¾ offered.

RBC Capital Markets is the lead bank on the deal.

Proceeds, along with cash on hand, will be used to repay all of the company's $192 million of mezzanine notes, which would bring the capital structure to all senior debt.

Elsewhere, Harrington Holdings, Inc.'s $315 million Libor plus 500 bps six-year term loan B (B1/B+) was quoted at 99¾ bid, 100¼ offered, after having recently priced at 98.

Knology downsizes

Knology Inc. downsized its term loan B to $545 million from $570 million and shifted $25 million of proceeds to its term loan A, increasing its size to $175 million from $150 million.

The shift of proceeds reflects strong demand for the Libor plus 400 bps term loan A.

As previously reported, the company lowered pricing on the term loan B to Libor plus 400 basis points from Libor plus 450 bps as a result of strong demand.

Additionally, the Libor floor on the term loan B was moved to 150 bps from 175 bps, and the original issue discount tightened to 99 from 981/2, the source said.

The company's $770 million credit facility (B1/B+) also includes a $50 million revolver talked at Libor plus 400 bps.

Credit Suisse and SunTrust are the lead banks on the deal that will be used, along with cash on hand, to fund the acquisition of Sunflower Broadband for $165 million in cash and to refinance existing debt.

Fortress downsizes facility

Fortress Investment Group LLC downsized its credit facility to $340 million from $440 million, reducing the sizes of both the term loan and the revolver.

The $100 million downsizing takes the term loan to $280 million from $340 million and trims the size of the revolver to $60 million from $100 million.

Price talk on the term loan remains at Libor plus 400 basis points with a 1.75% floor, and it is being offered at par.

The term loan is non-callable for two years, after which it becomes callable at 101.

Bank of America is the lead bank on the deal.

Proceeds will be used to refinance existing debt.

AdvancePierre closes

Pierre Foods, Advance Food Co. and Advance Brands announced that they closed on their merger to form AdvancePierre Foods.

Financing the transaction was a $1.14 billion credit facility led by Credit Suisse, Barclays Capital, Morgan Stanley, BMO Capital Markets and Deutsche Bank.

The facility included a $75 million ABL revolver; a $835 million first-lien term loan (B1/B+) priced at Libor plus 525 bps with a 1.75% Libor floor and sold at an original issue discount of 98; a $230 million second-lien term loan priced at Libor plus 950 bps, also with a 1.75% Libor floor and sold at an original issue discount of 961/2.

The first-lien term loan has a soft call at 101 while the second-lien tranche is non-callable for 18 months. After that, it can be redeemed at 106 for six months, then at 103 and 101.

AdvancePierre said more than 75 lenders participated in the syndicate.

The company is a Cincinnati-based supplier of value-added protein and handheld convenience food products to the foodservice, school, retail, club, vending and convenience store channels. It is owned by funds managed by Oaktree Capital Management, LP, current Advance shareholders and members of the company's leadership team.

Denny's closes

Denny's Corp. said it completed a $300 million amended and restated credit facility as part of a refinancing intended to improve financial flexibility.

The bank debt (B1/B+) is made up of a $250 million six-year term loan with a coupon of Libor plus 475 bps, a 1¾% Libor floor and priced at an OID of 981/2, and a $50 million five-year revolver also priced with a coupon of Libor plus 475 bps and also carrying a 1¾% Libor floor. The term loan has a soft call at 101.

There is an accordion feature allowing for an additional $25 million.

Bank of America and Wells Fargo led the loan.

"The closing of this amended and restated facility substantially increases our financial flexibility through the relaxing of restrictive covenants and an ability to return value to stockholders over time through debt reduction and additional measures," commented Debra Smithart-Oglesby, interim chief executive officer and board chair, in a new release.

"The amended and restated facility is a testament to the progress we have made over the years to position our company in a much more advantageous position both financially and as a leader in the industry. This facility will help us continue to execute on our strategy of gaining market share and improving our operating performance over time."

Denny's is a Spartanburg, S.C., restaurant franchise operator.

Alliance Laundry wraps facility

Alliance Laundry Systems LLC said it closed on Thursday on a $345 million senior secured credit facility (B1/B+).

The facility includes a $60 million five-year revolver and a $285 million six-year term loan brought to market at Libor plus 450 bps with a 1.75% Libor floor and priced at an OID of 99. The term loan has a soft call at 101.

Bank of America, NA was administrative agent, swing line lender and an issuing lender, BMO Capital Markets and Morgan Stanley Senior Funding, Inc. were co-syndication agents, and Bank of Nova Scotia and PrivateBank and Trust Co/ were co-documentation agents.

Proceeds from the term loan were used along with other funds to pay for a tender offer for the company's 8½% senior subordinated notes due 2013.

Alliance is a Ripon, Wis., provider of laundry products and services.

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