Energy Transfer rises; Graham tweaks deal; United Components firms spread; Knology sets talk

By Sara Rosenberg

New York, Sept. 15 - Energy Transfer Equity LP saw levels on its term loan head higher in trading on Wednesday with news of a paydown, and a roughly $559 million bids-wanted-in-competition/offers-wanted-in-competition emerged.

Over in the primary market, Graham Packaging Co. Inc. lowered pricing on its term loan D and moved up the commitment deadline, United Components Inc. firmed pricing on its term loan at the tight end of talk and Knology Inc. released guidance on its facility.

Also, Grifols is getting ready to launch its term loan B after downsizing the tranche in favor of getting more pro rata debt, and Angelica Corp. revealed plans for a new deal.

Furthermore, Clopay Ames True Temper Holding Corp. (Griffon Corp.) is still in the process of trying to syndicate its bank deal, and NBTY Inc. is currently expected to firm up the size of its revolver and allocate its credit facility early next week.

Energy Transfer gains ground

Energy Transfer Equity's term loan rose to 99½ bid, par offered from 98½ bid, 99½ offered after the company announced plans for a full repayment of the $1.45 billion loan using proceeds from a bond offering, according to a trader.

The bonds, sized at $1.8 billion after being increased from $1 billion, will also be used to repay all $142.1 million of borrowings under the company's existing $500 million revolving credit facility.

In conjunction with the repayments, the company will enter into a new $200 million revolver to replace the existing bank deal.

The new revolver is being led by Credit Suisse and is priced at Libor plus 300 basis points with a 50 bps commitment fee.

Energy Transfer Equity is a Dallas-based natural gas midstream, transportation and storage company.

BWIC/OWIC surfaces

An about $559 million BWIC/OWIC was announced on Wednesday, and bids and offers from retail investors as well as from dealers are due by 1 p.m. ET on Thursday, according to market source.

The BWIC is sized at $315.95 million and the OWIC is sized at $242.9 million.

The BWIC is comprised mostly of first-lien loans, with the one exception being a second-lien loan from Goodyear Tire & Rubber Co. Included in the BWIC are Aramark Corp., DaVita Inc., Dole Food Co. Inc., First Data Corp., Ford Motor Co., Kinder Morgan Inc., Rite Aid Corp. and Supervalu Inc.

As for the OWIC, that's made up of all first-lien loans, including debt from Del Monte Corp., First Data Corp., Ford Motor Co., HealthSouth Corp., Michaels Stores Inc., Rite Aid Corp. and Univision Communications Inc.

Graham revises pricing

Switching to the primary, Graham Packaging reduced pricing and discount on its $913 million six-year term loan D (B1/B+) and accelerated the commitment deadline to 5 p.m. ET on Wednesday from Thursday, according to a market source.

Pricing on the term loan D is now Libor plus 425 bps, down from Libor plus 450 bps, and the original issue discount is now 991/4, down from 99, the source said.

Also, 101 soft call protection for one year was added to the tranche, while the 1.75% Libor floor was left unchanged

Of the total term loan D, $350 million is new money that will be used to help fund the acquisition of Liquid Container LP and $563 million will be used to refinance an existing term loan B that matures in 2011.

Graham Packaging notes

In addition to the credit facility, Graham Packaging is selling $250 million of notes to fund the Liquid Container acquisition.

Initially, the new money portion of the term loan D was expected at $300 million and the notes were expected at $300 million, but $50 million was shifted between the financings last week.

At close, leverage will be 4.7 times, up from 4.4 times currently.

Deutsche Bank and Citigroup are the lead banks on the credit facility, with Deutsche the left lead.

Graham Packaging is a York, Pa.-based designer, manufacturer and seller of technology-based, customized blow-molded plastic containers. Liquid Container is a West Chicago, Ill.-based operator of blow molded plastic container plants.

United Components pricing

As expected, United Components finalized pricing on its $425 million term loan B at Libor plus 450 bps with a 1.75% Libor floor and an original issue discount of 99, the low end of initial talk of Libor plus 450 bps to 475 bps with a 1.75% floor and a discount of 98½ to 99, according to a market source.

The term loan B still includes 101 soft call protection for one year.

Commitments were due at 5 p.m. ET on Wednesday, after the deadline was recently accelerated from Sept. 20.

The company's $500 million credit facility (Ba3), which also includes a $75 million revolver, is expected to allocate on Friday.

Bank of America and Deutsch Bank are leading the deal that will be used to refinance existing bank debt and senior subordinated notes.

United Components is an Evansville, Ind.-based vehicle replacement parts company.

Knology reveals talk

Knology held a bank meeting on Wednesday afternoon to launch its proposed $770 million credit facility (B1), and in connection with the event, price talk was announced, according to a market source.

The $50 million revolver and $150 million term loan A are both being talked at Libor plus 400 bps, and the $570 million term loan B is being talked at Libor plus 450 bps with a 1.75% Libor floor and an original issue discount of 981/2, the source said.

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

Other funds for the transaction will come from cash on hand.

Knology is a West Point, Ga.-based provider of interactive communications and entertainment services. Sunflower is a provider of video, voice and data services to residential and business customers.

Grifols launching in London

Grifols is set to hold a bank meeting in London on Thursday to launch its proposed $1.6 billion term loan B, which was downsized from $2.35 billion as the company opted to increase its term loan A to $1.5 billion from $750 million, according to a market source.

The term loan A, which is priced at Libor plus 375 bps/Euribor plus 400 bps, and a $300 million revolver have already been marketed to banks.

Of the total term loan B amount, around $300 million is being targeted to be raised in euros, the source said.

Official price talk is not yet available, but it is known that there will be a 1.75% Libor floor. Also, this summer there was some chatter of talk in the Libor plus 400 bps/Euribor plus 425 bps context on the term loan B.

Deutsche Bank, Nomura, BBVA, BNP Paribas, HSBC and Morgan Stanley are the lead banks on the deal.

Grifols acquiring Talecris

Proceeds from Grifols' $3.4 billion credit facility (Ba3/BB), along with $1.1 billion of notes backed by a bridge loan commitment, will be used to help fund the acquisition of Talecris Biotherapeutics Holdings Corp.

Grifols is buying Talecris for a combination of cash and newly issued Grifols non-voting shares having an aggregate value of $3.4 billion. The enterprise value of the transaction is $4 billion if Talecris' debt is included.

Total leverage is around 5.0 times.

Closing is expected to take place in the second half of the year, subject to customary conditions, including antitrust and regulatory review, and the approval of each company's shareholders.

Grifols is a Spain-based health care company and producer of plasma protein therapies. Talecris is a Research Triangle Park, N.C.-based biotherapeutics products company.

Angelica coming soon

Angelica is planning a bank meeting in early October to launch a credit facility that will be used to fund a $35 million dividend payment to its sponsor, Trilantic Capital Partners, and to completely refinance an existing credit facility and mezzanine debt, according to a market source.

The facility is expected to include a $50 million term loan A and a $100 million term loan B, the source said.

Macquarie and Jefferies are the joint lead arrangers on the deal, with Macquarie the left lead.

Pro forma first-lien/total leverage will be 3.5 times.

Angelica is a St. Louis-based provider of outsourced linen management services to the healthcare industry.

Clopay Ames still working

Clopay Ames True Temper's credit facility is still in the marketing process and now investors have until Sept. 21 to throw in their orders, according to a market source.

The deal launched on Aug. 3 as a $500 million six-year term loan (B2/BB) and a $150 million four-year ABL revolver (Ba2/BB+).

Price talk on the term loan at launch had been Libor plus 450 bps to 500 bps with a 1.75% Libor floor and original issue discount of 98.

However, around mid-August, the spread on the term loan was revised to Libor plus 600 bps, with the floor and the discount left unchanged, and the revolver was downsized to $100 million.

Since then, sources have told Prospect News that pricing on the term loan was changing again but details are not being given out.

Clopay Ames lead banks

Goldman Sachs is the lead arranger on Clopay Ames True Temper's term loan and JPMorgan is the lead bank on the revolver.

Proceeds from the credit facility will be used to help fund the acquisition of Ames True Temper Inc. by Griffon Corp., the parent company of Clopay Ames True Temper.

The company is being bought from Castle Harlan Inc. for a total consideration of $542 million.

The transaction is expected to close by Sept. 30.

Griffon is a New York-based manufacturing company. Ames True Temper is a Camp Hill, Pa.-based manufacturer and marketer of non-powered lawn and garden tools, wheelbarrows and other outdoor work products.

NBTY readies allocations

NBTY is anticipated to give out allocations on its up to $2 billion senior secured credit facility (Ba3/BB-) early next week, which is also when the size on the revolver is expected to be finalized, according to a market source.

As was previously reported, the revolver is currently being discussed with a size of $200 million to $250 million, whereas originally it was only sized at $200 million.

The facility also includes a $1.5 billion term loan B, which was recently upsized from $1.3 billion, and a $250 million term loan A, which was recently upsized from $200 million.

As a result of the term loan upsizings, the company's senior unsecured notes offering was downsized to $650 million from $900 million.

NBTY pricing details

NBTY's revolver and term loan A are priced in line with initial talk at Libor plus 425 bps with a 1.75% Libor floor. There are upfront fees based on commitment size.

Meanwhile, the term loan B is priced at Libor plus 450 bps with a step down to Libor plus 425 bps based on leverage, a 1.75% Libor floor and an original issue discount of 99. Recently, pricing firmed from talk of Libor plus 450 bps to 475 bps with a 1.75% Libor floor and an original issue discount of 98½ to 99, and the step down was added.

The term loan B has 101 soft call protection for one year - a feature that was also added when pricing was finalized.

Books on the term loan B closed at 5 p.m. ET on Wednesday. This deadline had been accelerated form Sept. 21 because of overwhelming investor demand.

Barclays, Bank of America Merrill Lynch and Credit Suisse are the lead banks on the deal, with Barclays the left lead.

NBTY being acquired

Proceeds from NBTY's credit facility, the notes and $1.6 billion in equity will be used to finance the acquisition of the company by the Carlyle Group for $55.00 per share in cash. The transaction is valued at $3.8 billion.

Closing on the transaction is expected to occur before the end of the year, subject to customary conditions, including approval of NBTY stockholders and regulatory approvals. It is not subject to any financing condition.

Stockholder approval will be sought at a special meeting on Sept. 22.

NBTY is a Ronkonkoma, N.Y.-based manufacturer and marketer of nutritional supplements.

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