Nuveen dips with add-on news; Pharmaceutical Product reworks deal; FleetPride sets talk

By Sara Rosenberg

New York, Nov. 15 - Nuveen Investments' extended and non-extended term loans were a little weaker in trading on Tuesday as talk emerged that the company will be shopping an incremental loan to fund its recently announced purchase of a majority stake in Gresham Investment Management LLC.

Over in the primary, Pharmaceutical Product Development Inc. made a round of changes to its term loan B, including increasing the size, lowering the coupon and tightening the original issue discount - not surprising given that the deal has been labeled a blowout for a while.

Also, FleetPride Inc. released pricing guidance on its senior secured credit facility as the deal was presented to lenders during the session. Global Tel*Link Corp. and B&G Foods Inc. both held bank meetings as well, and ahead of the launches, momentum was really strong, with Global Tel*Link pretty much filled out and B&G oversubscribed.

Nuveen loans soften

Nuveen Investments' extended and non-extended term loans weakened to 96¼ bid, 97¼ offered from 96 7/8 bid, 97 3/8 offered during Tuesday's trading hours on the back of incremental debt and acquisition news, according to a trader.

The company is set to launch a $280 million add-on term loan (B) due 2017 with a conference call at noon ET on Wednesday that will be used to help fund the purchase of a 60% stake in Gresham Investment.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the lead banks on the deal.

Closing is expected by the end of the year, subject to customary conditions.

Nuveen is a Chicago-based provider of investment services to institutions as well as individual investors. Gresham Investment is a New York-based investment manager focused exclusively on portfolios providing investors access to commodities.

Pharmaceutical Product update

Meanwhile, turning to in market deals, Pharmaceutical Product Development modified its heavily oversubscribed seven-year term loan B, shifting it to a covenant-light tranche, lifting the size and tightening pricing as well as discount, according to a market source.

The B loan is now $1.45 billion, up from $1.325 billion, and priced at Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 981/2, the source said. By comparison, initial talk had been Libor plus 550 bps with a 1.25% floor and a discount of 97. The 101 soft call protection for one year was left unchanged.

Prior to its general syndication launch on Nov. 8, the deal was shown to senior managing agents and some institutional lenders in an early round effort. By the bank meeting, there was talk that north of $2 billion in orders came in through early looks and reverse inquiry of accounts wanting to get in the term B.

When the early round syndication was taking place, there were rumors that the term loan B was unofficially guided in the area of Libor plus 575 bps with a 1.5% Libor floor.

Pharmaceutical deadline

Pharmaceutical Product Development is seeking recommitments by noon ET on Wednesday on its revised term loan B, which is part of a now $1.625 billion senior secured facility (Ba3/BB-), up from $1.5 billion, that still includes a $175 million revolver.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Goldman Sachs & Co. and UBS Securities Inc. are leading the deal that will be used to help fund the acquisition of the company by Carlyle Group and Hellman & Friedman for $33.25 per share, in an all-cash deal valued at $3.9 billion.

The buyout will also be funded with $575 million of senior unsecured notes that were cut from $700 million as a result of the term loan B upsizing, $1.76 billion of equity and cash on hand.

Closing is expected in the fourth quarter, subject to shareholder approval, which will be sought at a meeting on Nov. 30, and regulatory approval.

Pharmaceutical Product Development is a Wilmington, N.C.-based product development and management services provider to the pharmaceutical research industry.

FleetPride guidance emerges

In more primary happenings, FleetPride held a bank meeting on Tuesday to launch its proposed $430 million senior secured credit facility (B+), and with the launch, price talk was announced, according to market sources.

Both the $60 million five-year revolver and the $370 million six-year term loan are being talked at Libor plus 550 bps with a 1.25% Libor floor, sources remarked. In addition, the term loan is being offered at an original issue discount of 98 and has 101 soft call protection for one year.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and ING Financial Markets LLC are the joint lead arrangers and bookrunners on the deal. ING just signed on as a lead late Monday.

Proceeds will be used to refinance existing senior secured credit facility and redeem 11½% senior notes due 2014 and senior discount notes due 2015 as well as for general corporate purposes.

FleetPride, a Woodlands, Texas-based distributor of heavy truck and trailer parts, is seeking commitments by Nov. 29 and looking to close this quarter.

Global Tel well met

Global Tel*Link launched on Tuesday too, and its $655 million credit facility (B2) was "basically subscribed" before the bank meeting even took place due to a strong reception from some early round marketing, a market source told Prospect News.

Price talk on the deal, which consists of a $50 million five-year revolver and a $605 million six-year term loan, emerged on Monday at Libor plus 600 bps with a 1.5% Libor floor. The term loan is being offered at an original issue discount of 97 and has 101 soft call protection for one year.

Commitments are due on Dec. 2.

Credit Suisse Securities (USA) LLC, UBS Securities LLC, GE Capital Markets and Nomura are leading the transaction that will be used to help fund the company's buyout by American Securities from Veritas Capital and GS Direct.

Global Tel*Link is a Mobile, Ala.-based correctional communications technology company.

B&G fills out

B&G Foods' $300 million seven-year term loan B also got heavy demand before its launch during the session, with the tranche oversubscribed going in to the meeting, according to a market source.

As was previously reported, price talk on the B loan is Libor plus 400 bps with a 1.25% Libor floor and an original issue discount of 98, and there is 101 soft call protection for one year.

The company's $500 million senior secured credit facility (BB) also includes a $100 million five-year revolver, expected to be undrawn at close, and a $100 million five-year term loan A that were launched on Nov. 3, and both of these tranches are oversubscribed as well, the source continued.

Talk on the revolver and A loan is Libor plus 300 bps. The revolver has a 50 bps unused fee.

The credit agreement includes a $150 million accordion feature, subject to 3.5 times senior secured leverage and 50 bps most-favored-nation language, and financial covenants related to total debt to EBITDA and interest coverage.

B&G lead banks

Credit Suisse Securities (USA) LLC, Barclays Capital Inc. and RBC Capital Markets LLC are the lead banks on B&G Foods' credit facility that will be used to fund the acquisition of six brands from Unilever United States Inc. for $325 million and refinance the company's existing senior secured credit facility, including a $130 million term loan.

The brands being purchased are Mrs. Dash, Molly McButter, Sugar Twin, Baker's Joy, Static Guard and Kleen Guard.

Commitments towards the credit facility are due on Nov. 22.

Closing on is targeted for Nov. 30, and pro forma LTM senior secured leverage will be 2.4 times, while total leverage will be 4.6 times.

B&G Foods is a Parsippany, N.J.-based manufacturer, seller and distributor of shelf-stable food.

CSC wraps A-4 loan

In other news, CSC Holdings LLC closed on its $600 million term loan A-4 (Baa3/BBB-/BB+) due Dec. 31, 2016, according to a news release.

Pricing on the loan is Libor plus 200 bps, and it was offered with a 37.5 bps upfront fee.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, Natixis, RBC Capital Markets LLC, RBS Securities Inc., Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc., UBS Securities LLC and U.S. Bancorp Investments Inc. led the deal.

Proceeds are being used to fund the tender offers for the 6¾% senior notes due 2012, 8½% senior notes due 2014 and 8½% senior notes due 2015 as well as for general corporate purposes.

CSC Holdings is a Bethpage, N.Y.-based subsidiary of Cablevision Systems Corp., a media and telecommunications company.

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