Goodman Global, Vertafore break; Language Line, Green Mountain, Sports Authority set talk

By Sara Rosenberg

New York, Oct. 27 - Goodman Global Group Inc.'s credit facility allocated and freed up for trading on Wednesday, with levels on the first-lien term loan quoted above its original issue discount price, and Vertafore's second-lien term loan started trading as well.

In addition, Las Vegas Sands Corp.'s extended term loan headed higher after the company released quarterly numbers that showed a year-over-year improvement in income, revenue and adjusted property EBITDA.

Over in the parimary, Language Line Services, Green Mountain Coffee Roasters Inc. and Sports Authority Inc. released price talk on their bank deals as the transactions were presented to lenders during the session, and Virtual Radiologic came out with timing on its proposed credit facility, while leaving the details of the deal a mystery.

Also in the primary, Illumination and Detection Solutions has been seeing a strong reception from lenders and the books have almost completely filled out already, CraftWorks is fully subscribed at initial terms and Fibertech Networks is coming along.

Goodman trades above discount

Goodman Global's credit facility broke for trading, with the $1.5 billion first-lien term loan (B1/B+) quoted at par ½ bid, 101 offered on the open and then it moved up to 101 1/8 bid, 101 5/8 offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 basis points with a 1.75% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, the first-lien loan was upsized from $1.4 billion, pricing was lowered from Libor plus 450 bps, the discount came in from 98½ and call protection was added.

JPMorgan, Barclays Capital, Deutsche Bank and GE Capital are the lead banks on the deal, with JPMorgan the left lead.

Goodman second-lien, revolver

Goodman Global's $2.025 billion secured credit facility also includes a $250 million revolver (Ba3/B+) and a $275 million second-lien term loan (B3/B-).

Pricing on the second-lien loan is Libor plus 700 bps with a 2% Libor floor, and it was sold at an original issue discount of 98. There is call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the second-lien loan was downsized from $375 million, pricing was flexed down from Libor plus 800 bps, the discount was reduced from 971/2, and call protection was changed from non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

Proceeds from the credit facility will be used to repay substantially all of the company's outstanding debt, to fund a distribution to equityholders and for other general corporate purposes.

Goodman is a Houston-based manufacturer of heating, ventilation and air conditioning products for residential and light commercial use.

Vertafore frees up

Also hitting the secondary market on Wednesday was Vertafore's $260 million seven-year second-lien term loan (Caa1/CCC+), with levels quoted at par bid, no offers and little activity seen in the name, according to a trader.

Pricing on the loan is Libor plus 825 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99. There is call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, pricing firmed at the midpoint of the initial Libor plus 800 bps to 850 bps talk, the floor was reduced from 1.75%, and the discount tightened from talk of 98 to 981/2.

Bank of America, Credit Suisse, Barclays and RBC Capital are the lead banks on the deal that will be used to refinance an unsecured term loan.

Vertafore is Bothell, Wash.-based provider of software and information to the insurance industry.

Las Vegas Sands up

Las Vegas Sands' extended term loan rose to 93¼ bid, 93¾ offered from 92¼ bid, 92 5/8 after the released of third-quarter results, according to a trader who said that the company "blew out earnings and [its] stock was up."

For the quarter, the company reported net income of $168 million, or $0.21 per diluted share, compared to net loss of $123 million, or $0.19 per diluted share, in the prior year.

Net revenue for the quarter was $1.91 billion, an increase of 67.3% compared to $1.14 billion in the third quarter of 2009.

And, consolidated adjusted property EBITDA in the quarter increased 136.9% to $645.2 million, compared to $272.3 million last year.

Las Vegas Sands is a Las Vegas-based developer of multi-use integrated resorts.

Language Line talk surfaces

Switching to the primary, Language Line Services held a conference call on Wednesday to kick off syndication on its proposed $250 million second-lien term loan (B3/B-), and in connection with the event, official price talk was announced, according to a market source.

The loan was launched with talk of Libor plus 900 basis points with a 1.75% Libor floor and an original issue discount of 98, the source said.

By comparison, prior to launch, there was some early guidance on the loan floating around the market in the Libor plus 850 bps to 900 bps area.

The loan includes call protection of 103 in year one, 102 in year two and 101 in year three, the source added.

Language Line amending

In connection with the new deal, Language Line is asking lenders to amend its existing credit facility to permit the incurrence of the second-lien loan and revise covenants.

Proceeds from the new second-lien loan will be used to redeem preferred stock, repay debt and fund a dividend.

Credit Suisse, Bank of America and Morgan Stanley are the lead banks on the new second-lien term loan. Bank of America is the administrative agent on the existing facility.

Language Line is a Monterey, Calif.-based provider of telephone interpreting and language services.

Green Mountain releases guidance

Another deal to come out with price talk was Green Mountain Coffee Roasters as it launched its $1.45 billion senior secured credit facility (Ba3/B+) with a bank meeting in the afternoon, according to a market source.

The $650 million five-year revolver and the $250 million five-year term loan A are both being talked at Libor plus 350 bps, the source said.

And, the $550 million six-year term loan B is being talked at Libor plus 400 bps to 425 bps with a 1.75% Libor floor and an original issue discount of 98½ to 99, the source said, adding that the tranche includes 101 soft call protection for one year.

Prior to launch, the term loan B was upsized from $350 million and the revolver was downsized from $750 million, resulting in a $100 million increase to the overall deal size.

Green Mountain lead banks

Bank of America and SunTrust are the lead banks on Green Mountain Coffee Roasters' credit facility that will be used to help fund the acquisition of LJVH Holdings Inc. (Van Houtte) and refinance existing debt.

Green Mountain is buying Van Houtte, a Montreal-based gourmet coffee brand, from Littlejohn & Co. LLC for about $890 million.

The transaction is expected to close by the end of the year, subject to customary conditions, including certain regulatory approvals.

Leverage at closing is expected to be around 3.5 times. In the long term, the company is targeting leverage of less than 3.0 times.

Green Mountain is a Waterbury, Vt.-based specialty coffee company.

Sports Authority discloses talk

Continuing on the topic of pricing, Sports Authority released talk of Libor plus 525 bps to 550 bps with a 1.5% Libor floor and an original issue discount of 98 to 99 on its $350 million seven-year covenant-light term loan.

As was previously reported, the loan, which launched with a bank meeting on Wednesday, includes 101 soft call protection for one year.

Bank of America and JPMorgan are the lead banks on the deal that will be used to refinance existing debt.

Sports Authority is an Englewood, Colo.-based sporting goods retailer.

BHI Energy launches

Also launching with a bank meeting on Wednesday was BHI Energy's $137 million credit facility that is being led by GE Capital and BNP Paribas.

As was previously reported, the facility consists of a $40 million five-year revolver and a $97 million six-year term loan, with both tranches talked at Libor plus 500 basis points with a 1.75% Libor floor and an original issue discount of 981/2.

Proceeds will be used to help fund the buyout of the company by Harvest Partners from Berkshire Partners LLC and Summit Partners LLC.

BHI Energy is a Plymouth, Mass.-based provider of technical and professional project and staffing services to the nuclear, wind, hydroelectric, fossil, industrial and government energy markets.

Virtual Radiologic sets launch

Virtual Radiologic has scheduled a bank meeting for Tuesday to launch its proposed senior secured credit facility, but details on structure are not being disclosed as of yet, according to a market source.

However, based on recent filings with the Securities and Exchange Commission, it is expected that the facility will be sized at up to $253 million.

GE Capital is the lead bank on the deal.

Proceeds will be used to help fund the acquisition of NightHawk Radiology Holdings Inc. for $6.50 per share in cash. The transaction is valued at roughly $170 million.

Virtual Radiologic debt

In addition to the credit facility, Virtual Radiologic has received an $80 million debt commitment from BlackRock Kelso Capital Advisors LLC, Newstone Capital Partners LLC and Providence Equity Capital Markets LLC for acquisition financing.

Closing on the transaction is expected in the first quarter of 2011, subject to customary conditions, including the approval of NightHawk's stockholders.

Virtual Radiologic is an Eden Prairie, Minn.-based radiology practice and developer of radiologist workflow technology. NightHawk is a Scottsdale, Ariz.-based provider of radiology services to radiology groups.

Illumination and Detection going well

Illumination and Detection Solutions' $215 million credit facility has received a lot of interest before and since its Oct. 21 bank meeting, according to a market source.

"Had a lot of commitments in before it even launched," the source said, adding that now the deal is almost fully subscribed already.

The facility, which consists of a $15 million revolver and a $200 million term loan, is talked at Libor plus 650 bps with a 1.75% Libor floor and an original issue discount of 98.

UBS and Credit Suisse are the lead banks on the deal, with UBS the left lead.

Illumination being acquired

Proceeds from Illumination and Detection Solutions' credit facility will be used, along with $90 million of mezzanine financing, to help fund the buyout of the company by Veritas Capital from PerkinElmer Inc. for about $500 million in cash.

Prior to launch, the term loan was upsized from $178 million as a result of a growth in EBITDA.

Closing on the transaction is expected by the end of the year, subject to customary conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

Illumination and Detection Solutions is a provider of specialty lighting and sensor components, subsystems and integrated products to OEMs for health, environmental and security segments.

CraftWorks allocating soon

CraftWorks wrapped syndication of its $150 million credit facility at initial terms and expects to give out allocations some time next week, according to a market source.

The facility consists of a $125 million term loan and a $25 million revolver, with both tranches priced at Libor plus 525 bps with a 1.75% Libor floor and an original issue discount of 981/2.

Wells Fargo and GE Capital are the lead banks on the deal that will be used to help fund Centerbridge Partners' acquisition of restaurant brands, Rock Bottom Brew Pubs and Gordon Biersch Brewery.

Fibertech moving along

Books on Fibertech Networks' $260 million credit facility (B2/B) are "going very well with commitments due on Friday," according to a market source.

The facility, led by TD Securities, consists of a $25 million revolver and a $235 million term loan B.

Price talk on the term loan B is Libor plus 500 bps to 550 bps with a 1.5% to 1.75% Libor floor and an original issue discount of 981/2.

Proceeds from the facility, along with equity, will be used to fund the buyout of the company by Court Square Capital Partners from Nautic Partners and Ridgemont Equity Partners.

Closing is expected later this year, subject to customary conditions, including all required regulatory approvals.

Fibertech is a Rochester, N.Y.-based provider of fiber optic bandwidth services.

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