gold sheets - reutersshare.thomsonreuters.com/loanpricing/gold_sheets_aug_01_2011.pdf · gold...

Recent trends dominate despite

debt ceiling concerns

364-day

AA 3.5 2.5 5.0 20.3 5,000.0

A 9.83 7.00 12.50 50.50 2,094.00

BBB 21.7 10.0 30.0 166.7 558.3

Multi-year

AA 11.17 6.00 15.00 79.95 750

A+ NA NA NA NA NA

A 10.00 7.00 15.00 70.24 1,337.50

A- 18.33 15.00 25.00 141.67 1,166.67

BBB+ 17.50 15.00 20.00 140.00 1,550.00

BBB 21.25 15.00 30.00 135.63 1,162.50

BBB- 31.25 25.00 35.00 193.75 1,218.75

were light, with many investors looking to

remain invested but careful about picking

their spots. The result was a continued

buyers’ strike, causing the market to leak

slightly lower.

Volumes in the middle market loan space

were somewhat light but the same space

was insulated to a great extent from the

volatility in the broader market.

And the investment grade sector kept right

on ticking as banks continue to market large

bridge facilities at relatively thin spreads.

Leveraged

It was a tale of two markets in the pri-

mary leveraged loan market last week as

investors lapped up strong credits amid a

slowing pipeline.

With the drama unfolding in Washington

on the debt ceiling issue, the loan market

(LOAN MARKET cont’d on p. 2)

Thomson Reuters LPC uses the 3-5 latest transactions in each

ratings category. The credits represent syndications that were not

substantially under- or over-subscribed. Agent and syndications

fees are not included. Leveraged BSL Grid available at www.

loanconnector.com

BSL GRID Avg. Min. Max. Avg. Fully Avg.Applic. Undrawn Undrawn Undrawn Drawn FacRating (LIB spread Size + Ann ($Mils.) + Usage)

Due to the lack of adequate deal fl ow, the multi-year revolver of some rating categories will not be posted until such time when there are suffi cient deals to report.

Despite some growing nerves going

into the end of the week as the impasse

over the debt ceiling continued, the re-

sponse in the loan market was muted.

Throughout the week, the institutional

loan market showed continued strength

as most issuers were able to cut the

spreads on their loans during syndica-

tion. And while accounts were said to

be doing some lightening up throughout

the course of the week, sellside pres-

sure in the secondary market remained

relatively light.

If anything could be said of last week’s

events, it was that the recent trends that

have come to dominate the loan market

recently continued to dominate.

Investors favored better-quality names,

piling into loans with good ratings and

decent coupons while leaving lower-quality

names to go begging. Trading volumes

Copyright notice: Any copying, redistribution (including electronic forwarding) or republication of Thomson Reuters LPC publications, or their content is strictly prohibited. Copyright © 2011

GOLD SHEETS....................................................................Vol XXV, No. 29 A Thomson Reuters LPC Publication August 1, 2011

5 THINGS TO KNOW

• Immucor is preparing to launch a $700M credit

facility Tuesday via JP Morgan and Citigroup

to back its $1.97B buyout by TPG Capital.

• The CLO market has shown a remarkable

comeback in 2011. CLO issuance year to date

is $7.6B, with another $2B in the pipeline.

• Price levels in the syndicated loan market remain

weak as markets grapple with an uncertain

macroeconomic picture. Since April, average

prices for riskier second-lien multi-quoted

credits are down over 2.7 points to the 87

context.

• Non-sponsored middle market issuance topped

$29B in 2Q11 pushing the total for the fi rst half

to $49.5B, not far behind 1H07’s $56B.

WHAT TO WATCH

DDetailed. Accurate. Transparent.

LPC COLLATERALTHE FIRST STEP INCLO ANALYSIS

LPC COLLATERAL provides

a competitive edge to

CLO investors, managers

and traders.

For more information e-mail

[email protected] or visit

www.loanpricing.com

1 Despite the uptick in volatility seen in the

broader markets, the U.S. leveraged loan

market witnessed continued strength in

the form of a handful of downward price

fl exes. p. 17

2Thomson Reuters LPC’s Loan Market

Scoreboard provides a snapshot of key

statistics in the leveraged loan and high

yield bond markets. p. 3

3 U.S. independent power producer

Dynegy Inc, after failing to fi ll the book

on its $1.7B refi nancing deal by the July

22 commitment deadline, last week

raised pricing and revised tranching to

better match investor demand. p. 18

4 Deutsche Bank is in the market with a

$1.88B refi nancing for Silgan Holdings.

The facility comprises an $800M million,

fi ve-year revolver and multi-tranched

TLA. p. 18

5As the August 2 deadline for raising

the U.S. debt ceiling looms, market

participants wonder what the ultimate

impact of a downgrade could have in the

investment grade market. p. 19

GOLD SHEETS –August 1, 2011 2

INSIDE

Copyright notice: Any copying, redistribution

(including electronic forwarding) or republication of

Thomson Reuters LPC publications, or their content is strictly prohibited.

Copyright © 2011

LOAN MARKET SCORECARD ........................................ 3ANALYTIC SNAPSHOT ................................................... 5LCDS, IGR MARKET BASED PRICING ............................7RELATIVE VALUE ANALYSIS .......................................... 8FORWARD CALENDAR .................................................. 9LEAGUE TABLE ..............................................................10DEALS..........................................................................11-16THE WEEK IN NEWS ................................................ 17-24ASIA NEWS ....................................................................20EUROPE NEWS ..............................................................21

LT Sec’ Bond

Borrower Rating Loan LCDS Swap CDS

Aramark Corp B+ 241 274 523 395

Biomet Inc B+ 323 262 563 339

Burlington Coat Factory

Warehouse Corp B- 471 316 778 663

Cablevision Systems Corp BB 177 156 312 332

Hertz Corporation B+ 277 182 495 358

Huntsman International LLC B+ 244 205 395 354

Mediacom LLC BB- 297 427 575 627

Michaels Stores Inc B- 456 289 759 533

SuperValu Inc B+ 154 201 538 668

TRW Automotive Inc BB+ 111 197 257 220

Source: Source: Thomson Reuters Eikon

See www.loanconnector.com. for more names and methodology.

CROSS MARKET COMPS GRID

LOAN MARKET REVIEW

Fig. 1: Downward and upward price fl exes balance out in July

So

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ho

mso

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eu

ters

LP

C

H

HH

H

H

H

H

H

H

H

H

H

H

H HHHH

H

H

H

B

BB

B

B

B

B

B

B

B

B

B

B

B

B

B

B

B

B

B

B

Ashl

and

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s An

alyt

ical

Tere

x

Qua

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raph

ics

Acad

emy

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ts

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oke

Auto

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(2n

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n)

US

Secu

rity

Asso

c.

Cap

suge

l

Prim

edia

DEI

Hol

ding

s

SMAR

T M

odul

ar

INC

Res

earc

h

inVe

ntiv

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lth

Cro

wn

Med

ia

Nor

it H

oldi

ngs

SRA

Inte

rnat

iona

l

Cum

ulus

(2nd

lien

)

Nan

a

Dyn

egy

Gas

Co

0%

2%

4%

6%

8%

10%

12%

H Final

B Original

Down UP

Yiel

d (3

−yea

r)

was largely immune to concerns about

sovereign default or a downgrade. Many

loan market investors noted that the

macroeconomic concerns engulfi ng the

U.S. are a much bigger issue for equity

investors than they are for loan or bond

market participants.

“Loan issuers don’t need a signifi cant

growth of GDP. They need an absence of

a recession,” said one investor from a large

buyside shop.

Many loan investors echoed that senti-

ment, noting that new money deals were

seeing signifi cant commitments, while

opportunistic refi nancing or dividend loans

were undergoing price tweaks. Investors

heaped praised on the continued supply

of high quality names such as Capsugel

and Autoparts Holdings.

In a clear sign of bifurcation in the market,

many refi nancing deals struggled to get

done as launched, with the most prominent

tweaks faced by Dynegy. The issuer moved

funds from its GasCo loan to the CoalCo

tranche and bumped up pricing by 125bp

on the GasCo piece.

Meanwhile, even though the number of

issuers undergoing upward and downward

price fl exes was more or less the same

in July, acquisition and LBO deals were

favored for downward price revisions (Fig.

1). Investors remain hungry for new money

deals and have been booking assets such

as Academy Sports’ $840 million covenant-

lite term loan, in spite of the deal being

highly levered. Other issuers that were

able to fl ex down were OM Group and U.S.

Security Associates.

And, despite investors’ “fl ight to quality,”

sponsors and issuers are still confi dent of

an open debt capital market, with recent

announcements for deals such as Kinetic

Concepts’ LBO loan providing comfort that

private equity fi rms are incentivized to put

money to work even amid an uncertain

economic picture.

Middle Market

A pair of buyout loans, a dividend deal

and a refi nancing hit the middle market last

week, and a handful of lenders announced

new hires.

CHI Overheard Doors launched a $203.5

million bank loan backing its sale to Fried-

man, Fleischer & Lowe from JLL Partners.

The deal is led by GE Capital and Wells

Fargo. The $127.5 million, six-year fi rst-lien

term loan is talked at LIB+525 with a 1.5

percent Libor fl oor and a 99 OID. The $51

million, 6.5-year second-lien term loan is

talked at LIB+925 with a 1.5 percent Libor

fl oor and a 98 OID. A $25 million, fi ve-year

revolver fi lls out the credit.

On Wednesday, Credit Suisse launched a

$215 million loan backing New Mountain

Capital’s acquisition of a majority stake in

SNL Financial. The deal includes a $30 mil-

lion revolver and a $175 million covenant-lite

term loan. Price talk on the loan is LIB+600

with a 1.25 percent fl oor and a 99 OID.

The loan also has 101 soft call protection

for one year.

On Thursday, Jefferies launched a $160

million refi nancing loan for Steak ‘N Shake.

The facility includes a $20 million, three-

year revolver and a $140 million, four-year

term loan. Pro forma leverage is being

marketed at 3.2 times. Proceeds from the

new facility will refi nance existing debt

and fund the return of capital to its parent

Biglari Holdings.

And MSC Software Corp set price talk on

its $215 million fi rst-year term loan. The loan

is talked at LIB+500 with a 1.5 percent Libor

fl oor. The OID is to be determined. However,

lenders will enjoy a 101 soft call for one

year. Proceeds from the Bank of America

Merrill Lynch-led loan will fund a dividend

to sponsors Symphony Technology Group

and Elliott Management Corp.

Elsewhere, FirstMerit Bank, Monroe

Capital, NewStar Financial each announced

new hires as they expand their respective

platforms.

Secondary

High beta fl ow names declined toward

the end of last week as the deadline for an

agreement to raise the debt ceiling drew

— cont’d from p. 1

GOLD SHEETS – AUGUST 1, 2011 3

(LOAN MARKET cont’d on page 4)

LOAN MARKET REVIEW

Fig. 2: Average bid in SMi100 declines amid thin volumes

So

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LS

TA

/T

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mso

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ters

LP

C M

TM

Pri

cin

g

6/23/2010 8/27/2010 11/1/2010 1/6/2011 3/14/2011 5/17/2011 7/21/201192

93

94

95

96

97

98

Avg.

bid

(%of

par

)

close and uncertainty began to weigh.

Friday morning, a handful of fl ow names

opened down 25bp to 50bp as the impasse

continued. Meanwhile, new issues contin-

ued to hold up as better credits remained

in favor.

The average bid in the overall market

ended Thursday at 96.21, down from 96.25

the week before, according to LSTA/Thom-

son Reuters LPC MTM Pricing (Fig. 2). The

average bid in the SMi100 (the 100 most

widely held loans) ended Thursday at 96.95,

down from 96.99 the week before.

Chrysler’s TLB was trading 97-97.5 Friday

morning, down from 97.5-98 at the begin-

ning of the week. Harrah’s Entertainment’s

loan was trading 90-90.5 Friday morning,

down 25bp from the day before and a point

on the week.

Meanwhile, newer loans were holding

up better. Ashland’s TLB was ticked down

12.5bp Friday morning to 100.125-100.375

after holding at 100.25 throughout the

week.

OM Group’s new $350 million U.S. TLB

was 99.875-100.125 Friday morning after

breaking in that same context the day

before.

Reynolds Group’s new $2 billion term

loan was off slightly at 99-99.375 Friday

morning after breaking for trading in the

99.25-99.75 range Wednesday.

Academy Sports new $840 million term

loan was down about 50bp from its break

price earlier in the week at 99.5-100 Friday

morning.

Meanwhile, Capsugel’s new loan broke for

trading Wednesday afternoon in the 100.25-

100.75 range. Terex Corp’s new $460 million

term loan was trading 100.25-100.5 after

also breaking for trading Wednesday.

And bids for a $22 million cash loan BWIC

were due Thursday. The portfolio consists

of 21 tranches of mostly off-the run names.

Investment Grade

Despite growing concerns about the U.S.

debt ceiling, the investment grade loan

market continued to see a growing pipeline

for bridge loans backing M&A transactions.

In recent weeks, knowledge of at least four

potential bridge loans backing the acqui-

sitions of Medco Health Solutions, Nalco,

Temple-Inland and Southern Union have

been announced in the U.S. investment

grade loan market. And more are expected

to follow, according to bankers (see pg. X).

Express Scripts is currently in the market

with a $14 billion bridge loan via Credit

Suisse and Citigroup. Joining the bridge is a

$5.5 billion pro rata tranche that is expected

to subsequently become its permanent

fi nancing to back its merger with Medco

Health. The issuer is offering upfront fees

of roughly 40bp on its $14 billion bridge

loan and around 50bp on the $5.5 pro rata

tranches for commitments of $1 billion.

The company is currently in discussion

with the fi rst-tier of banks and is asking

for tickets of $1 billion, with $700 million

LOAN MARKET SCORECARD

For the week endedLEVERAGED PIPELINE ($Bils.) 2011 High 2011 Low 7/14/11 7/21/11 7/28/11

Leveraged pipeline $63.00 $16.00 $42.80 $50.30 $40.46 Instituitonal pipeline $45.00 $8.80 $25.62 $26.55 $18.55 Institutional new deals this week $9.75 $1.49 $1.68 Institutional closed deals this week $4.69 $0.47 $9.49

3Q11 To Date

YIELDS (LEVERAGED) 1Q11 2Q11 7/14/2011 7/21/11 7/28/11

Avg. Spread (bps) 409 436 516 516 509 Avg. Libor fl oor (%) 1.34% 1.33% 1.36% 1.37% 1.36%Avg. OID 99.34 99.13 98.61 98.61 98.63Avg. Yield (3yr term to repay) 5.67% 6.01% 7.04% 7.05% 6.97%

For the quarter ended For the week ended

FUND FLOWS 1Q11 2Q11 7/13/2011 7/20/11 7/27/11

(Lipper FMI)($Mils.) Bank loans +14,655 +9,311 +209 +2.4 +42.9HY bonds +6,398 -4,378 +1,301 +287.3 +303.8

SECONDARY 3/31/2011 6/30/2011 7/14/2011 7/21/11 7/28/11

Average Bid Levels SMi100 97.39 96.91 96.97 96.99 96.95Overall Market 96.42 96.48 96.45 96.25 96.21Euro Lev 40 97.04 96.04 95.55 95.21 94.94Middle Market 94.9 95.63 95.53 95.53 95.50Second Lien 89.09 87.52 87.04 86.89 87.48Covenant Lite 95.61 96.05 96.03 96.08 96.24LBOs 95.64 94.97 94.96 94.50 94.45Ba1/Ba2 98.4 97.93 97.96 97.97 97.96Ba3 98.67 98.5 98.48 98.41 98.38B1 98.65 98.73 98.82 98.86 98.50B2/B3 96.39 95.71 95.46 95.29 95.06 Source: Thomson Reuters LPC, Lipper FMI, LSTA/LPC MTM pricing


LOAN MARKET REVIEW

Fig. 3: Final week in July a big one for HY bonds

So

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Wk

1/10

Wk

1/17

Wk

1/24

Wk

1/31

Wk

2/7

Wk

2/14

Wk

2/21

Wk

2/28

Wk

3/7

Wk

3/14

Wk

3/21

Wk

3/28

Wk

4/4

Wk

4/11

Wk

4/18

Wk

4/25

Wk

5/2

Wk

5/9

Wk

5/16

Wk

5/23

Wk

5/30

Wk

6/6

Wk

6/13

Wk

6/20

Wk

6/27

Wk

7/5

Wk

7/11

Wk

7/18

Wk

7/25

$0

$2

$4

$6

$8

$10

$12

$14

$16

Wee

kly

bond

vol

ume

($B

ils.)

allocated to the bridge loan and $300

million for the pro rata tranches. The pro

rata tranches constitute the loan portion of

the permanent fi nancing that, along with

a bond issuance, is expected to replace

the bridge. It includes a $4 billion funded

fi ve-year term loan A and a $1.5 billion fi ve-

year revolving credit. The fi rst-tier banks

are Bank of America Merrill Lynch, Bank of

Tokyo Mitsubishi, Credit Agricole, Deutsche

Bank, Mizuho, Morgan Stanley, Sumitomo

Mitsui, SunTrust, RBS and Wells Fargo,

sources said. Credit Suisse and Citigroup

are leading the fi nancing.

At current ratings of Baa3/BBB+, the

Express Scripts bridge pays LIB+175. Pric-

ing on the term loan A is also expected to

open at LIB+175.

Bankers are also waiting for International

Paper (IP)’s $1 billion 364-day bridge. And

Deutsche Bank is in the market with a $1.88

billion refi nancing for Silgan Holdings. The

facility comprises a $800 million fi ve-year

revolver and multi-tranched term loan A.

Bonds

Although last week began with a small

high yield pipeline, July will not end as the

lowest month of issuance since June 2010.

The week of July 25 will wind up pricing the

largest amount of weekly volume in the U.S.

high yield corporate bond market since May

16 (Fig. 3). In fact, last week’s volume of

$10.51 billion is almost twice as large as all

the other weeks in July combined.

Despite the continued uncertainty sur-

rounding the U.S. debt talks and fear of a

potential downgrade as Republicans and

Democrats refuse to compromise on a

budget plan, issuers are rushing into the

market ahead of the debt deadline. It is

important to note that the better quality,

well liked and well known high yield credits

were driving volume last week.

Double-B rated credits accounted for 60

percent of issuance last week. Tuesday was

by far the biggest volume day of the week

and year at $7.88 billion as a result of the

Reynolds Group and HCA bringing their

large two-part deals to market.

The Reynolds Group was the largest

deal to enter the high yield market since

Arch Coal priced its $2 billion offering in

early June. The deal performed well in the

secondary market, initially climbing over

2 points. Later Tuesday, infl uenced by the

Reynolds Group’s success, HCA pulled the

trigger and priced a quick print, $5 billion

dollar deal that was upsized from an origi-

nally planned $1 billion.

The book for the HCA deal was overheard

at around $10 billion, thus justifying the sub-

stantial upsize. HCA’s deal comes in as the

sixth-largest high yield deal on record and

made up nearly half of last week’s volume.

(Caleb Frazier, Leela Parker, Smita Madhur and Michael Langellotti contributed to this report.)


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ANALYTIC SNAPSHOT

High yield bond volume slows in July

So

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Jan−

10

Feb−

10

Mar

−10

Apr

−10

May

−10

Jun−

10

Jul−

10

Aug

−10

Sep

−10

Oct

−10

Nov

−10

Dec

−10

Jan−

11

Feb−

11

Mar

−11

Apr

−11

May

−11

Jun−

11

Jul−

11

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

VolumePipeline

Mon

thly

bon

d vo

lum

e($

Bils

.)

Middle market non-sponsored

tenors almost back to pre-crisis levels

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Th

om

son

Re

ute

rs L

PC

2003 2004 2005 2006 2007 2008 2009 1Q10 2Q10 3Q10 4Q10 1Q11 2Q1120

25

30

35

40

45

50

55

60

Large MM

Trad. MM

Teno

r (m

onth

s)

AAA spreads for new issue CLOs

stablilize in 120-130bp area

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LP

C

0.0x

3.0x

6.0x

9.0x

12.0x

15.0x

100

110

120

130

140

150

160

170

Fra

ser S

ulliva

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Are

s M

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redit

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)

Levera

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AA

A S

pre

ad (

bps)

Debt to Equity AAA spread

Riskier loans show biggest pullback given

macro concerns

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1/3/2011 2/10/2011 3/22/2011 5/2/2011 6/10/2011 7/21/201182

83

84

85

86

87

88

89

90

2nd

lien

aver

age

bids

(% o

f par

)

Non-sponsored middle market issuance topped $29 billion in 2Q11 pushing the total for the fi rst half to $49.5 billion, not far behind 1H07’s $56 billion. Unlike 2007, however, refi nancings continue to dominate, making up 70 percent of loan volume. Meanwhile, new money issuance remains at low levels. Lenders say that while they have seen some expansion in credit lines, there is still little core demand for loans in the non-sponsored market. Banks are not only struggling with the lack of new money, but are also concerned about the limited amounts of drawings that they are seeing under revolving credit lines, which make the bulk of lending in the non-sponsored pro-rata space. Without a meaningful increase in drawings and new money issuance, competi-tion for assets remains fi erce and non-sponsored lenders say that the market is as competitive as ever. Banks are hungry for assets and issuers continue to take advantage of this appetite to obtain better terms. Pricing has dropped dramatically and tenors are almost back to pre-crisis levels. The average tenor on large and traditional middle market non-sponsored revolvers was 4.5 and 3.9 years, respectively – very close to the 4.6 and four years seen back in 2006 and 2007.

High yield corporate bond volume has slowed signifi cantly in July, expected to barely top the double digit mark. In fact, July might end up as the fourth-lowest month of issuance in the past two years. The uncertainty surrounding sovereign debt concerns from both home and abroad have been the main driver of the slowing primary market. Last week, only $8.85 billion had priced over 21 deals. Volume last week was supported by the Reynolds Group, which priced its upsized $2.5 billion, two-part deal, the largest U.S. deal in the high yield market since Arch Coal priced its $2 billion offering in early June. Even so, the negative market tone was a result of continued uncertainty surrounding the U.S. debt talks and fear of a potential U.S. downgrade as Republicans and Democrats refuse to compromise on a budget plan. As a result, opportunistic issuers will most likely stay on the sidelines waiting for future stability in the market.

Price levels in the syndicated loan market remain weak as markets grapple with an uncertain macroeconomic picture. Since late April, average prices for riskier second-lien multi-quoted credits are down over 2.7 points to the 87 context as investors remain risk sensitive. The average bid for the overall market is also down 1.2 points since early May to the 96 context. Investors continue to face headwinds in a fragile economic recovery as sovereign debt problems threaten fi nancial markets. In Europe, despite the new bailout program unveiled recently, sovereign fears persist and are pressuring to include Spain and Italy. And while investors believe the U.S. will reach an eleventh hour deal to raise the nation’s debt ceiling, most economists believe the country’s AAA rating may be downgraded by at least one of the major rating agencies, according to a Thomson Reuters poll. A setback that threatens to derail already tepid economic growth.

The CLO market has shown a remarkable comeback in 2011. CLO issuance year to date is $7.6 billion, with another $2 billion in the pipeline. An even more bullish sign is that several CLOs raised this year exhibit debt-to-equity ratios that mirror leverage levels seen pre-crisis. Symphony, Carlyle and GSO Blackstone were all able to issue CLOs with leverage in the 11-13 times area. Spreads on new issue AAA rated tranches have also tightened, dropping from 160-170bp in January to the 120-130bp area in June and July. However, with recent negative headlines regarding the economy and sovereign debt issues, spreads in the secondary CLO market have widened out. Despite the CLO market’s vulnerability to macroeconomic events, many CLO managers are still predicting healthy issuance for the year. Demand for the CLO product across the capital stack is expected to remain strong, with banks and insurance companies reaching down to get higher yielding mezzanine CLO paper. Robust demand, of course, should translate to tighter pricing and higher leverage down the road but market participants are waiting it out for now to get some clarity on the fi nancial markets. Even so, activity in the new issue market has not come to a halt, with Octagon and Invesco waiting to print CLOs this summer.


THE WEEK’S BIGGEST WINNERS

Biggest Winners among widely quoted syndicated loans in secondary trading. All loans contain at least three bids.

Source: LSTA/LPC Mark-To-Market Pricing

Note: These are the averages of indicative bid prices provided by bank loan traders and expressed as a percentage of the par, or face, value. Coupon, or interest rate, is in

1/100s of a percentage point over Libor, the benchmark London Interbank Offered Rate. All ratings are for specifi c loans and not for the company itself except as noted

with an (a). These prices do not represent actual trades nor are they offers to trade; rather they are estimated values provided by dealers.

THE WEEK’S BIGGEST LOSERSBiggest Losers among widely quoted syndicated loans in secondary trading. All loans contain at least three bids.

Source: LSTA/LPC Mark-To-Market Pricing

Note: These are the averages of indicative bid prices provided by bank loan traders and expressed as a percentage of the par, or face, value. Coupon, or interest rate, is in

1/100s of a percentage point over Libor, the benchmark London Interbank Offered Rate. All ratings are for specifi c loans and not for the company itself except as noted

with an (a). These prices do not represent actual trades nor are they offers to trade; rather they are estimated values provided by dealers.

Pricing as of Friday, July 29

SECONDARY NEWS

Pricing as of Friday, July 29

Average WeeklyNon Institutional Par Losers Loan rating bid changeName Tranche Moody’s/S&P Coupon Maturity (pct. pts.) (pct. pts.)CCS Income Trust RC B2/B L+300 11/5/2013 90.75 -0.75Astoria Generating LC WR/NR L+225 2/1/2011 96.25 -0.63Aramark Corp LC Ba3/BB L+325 7/1/2016 99.00 -0.50Las Vegas Sands Delay Draw TL N.R.*/BB L+275 11/23/2016 96.43 -0.45Hub International LTD Delay Draw TL B2/B L+250 6/13/2014 97.25 -0.37

Average WeeklyInstitutional Par Losers Loan rating bid changeName Tranche Moody’s/S&P Coupon Maturity (pct. pts.) (pct. pts.)Astoria Generating 2nd Lien TL N.R.*/CCC- L+375 8/1/2013 92.08 -3.67Telepizza SA TLB N.R.*/N.R.* E+225 12/11/2014 90.25 -2.36PHS Group Plc TLB N.R.*/N.R.* L+250 11/27/2015 91.65 -1.55Flint Group (Aster) TLB N.R.*/N.R.* E+225 12/31/2016 95.60 -0.90Gentiva Health Services Inc TLB Ba2/BB- L+350 8/17/2016 98.38 -0.78

Average WeeklyNon Institutional Distressed Losers Loan rating bid changeName Tranche Moody’s/S&P Coupon Maturity (pct. pts.) (pct. pts.)Coach America Delay Draw TL N.R.*/N.R.* NA NA 79.00 -1.00Clear Channel Communications RC Caa1/CCC+ L+340 7/30/2014 87.56 -0.35ProSiebenSat 1 Media AG RC (EURO) N.R.*/N.R.* E+200 6/28/2015 86.67 -0.33Realogy Corp RC B1/B- L+425 4/10/2016 86.75 -0.25Central Parking Corp LC Ba3/CCC L+250 3/29/2014 85.00 -0.17

Average WeeklyInstitutional Distressed Losers Loan rating bid changeName Tranche Moody’s/S&P Coupon Maturity (pct. pts.) (pct. pts.)Yell Group Plc (TPI) TLA N.R.*/N.R.* L+350 4/1/2014 35.50 -2.38Panrico SA TL (Euro) N.R.*/N.R.* E+453 NA 23.17 -2.08Viridian Group Plc TL N.R.*/N.R.* L+375 4/20/2013 84.17 -1.75Viridian Group Plc TL N.R.*/N.R.* L+375 4/20/2013 84.17 -1.75Yellow Brick Road TL (Euro) N.R.*/N.R.* NA NA 34.00 -1.67TXU Corp TLB B2/CCC L+450 10/10/2017 74.88 -1.67

**Par = Average Bid≥ 90 ***Distressed = Average Bid < 90 *Not rated

Average WeeklyNon Institutional Par Winners Loan rating bid changeName Tranche Moody’s/S&P Coupon Maturity (pct. pts.) (pct. pts.)Realogy Corp Delay Draw TL B1/B- L+225 9/30/2013 94.25 +1.46Las Vegas Sands RC WR/BB L+150 5/1/2012 96.58 +0.58Travelport Inc Delay Draw TL Ba3/B L+225 5/23/2014 96.07 +0.45Flextronics International Ltd Delay Draw TL N.R.*/N.R.* L+225 10/1/2014 98.83 +0.38Flextronics International Ltd Delay Draw TL N.R.*/N.R.* L+225 10/1/2014 98.83 +0.38

Average WeeklyInstitutional Par Winners Loan rating bid changeName Tranche Moody’s/S&P Coupon Maturity (pct. pts.) (pct. pts.)Wind Telecomunicazione Spa TLA2 N.R.*/N.R.* E+400 11/2/2016 94.42 +1.54Wind Telecomunicazione Spa TLA2 N.R.*/N.R.* E+400 11/2/2016 94.42 +1.54Realogy Corp TLB B1/B- L+300 9/30/2013 94.25 +1.46Lender Processing Services Inc TLB Baa3/BBB L+250 6/16/2014 99.00 +1.33Abbot Group TLB N.R.*/CCC L+350 4/27/2016 91.17 +1.04

Average WeeklyNon Institutional Distressed Winners Loan rating bid changeName Tranche Moody’s/S&P Coupon Maturity (pct. pts.) (pct. pts.)Tribune Co Incremental TL WR/NR L+250 4/19/2014 66.96 +0.92Lee Enterprises RC N.R.*/N.R.* L+150 1/31/2012 82.88 +0.88Capmark Financial Group Inc RC N.R.*/N.R.* L+67.5 3/23/2011 59.50 +0.80TXU Corp RC N.R.*/N.R.* L+350 10/10/2013 89.00 +0.67Capmark Financial Group Inc RC N.R.*/N.R.* L+67.5 3/23/2011 58.15 +0.56

Average WeeklyInstitutional Distressed Winners Loan rating bid changeName Tranche Moody’s/S&P Coupon Maturity (pct. pts.) (pct. pts.)Tribune Co TLB WR/NR L+300 5/17/2014 69.02 +1.11Culligan International TLB Caa2/CCC+ L+225 10/16/2012 75.75 +0.63Capmark Financial Group Inc TL N.R.*/N.R.* L+67.5 3/23/2011 58.32 +0.54American Gaming Systems TLB Caa2/B- L+300 5/1/2013 82.67 +0.50Capmark Financial Group Inc TL N.R.*/N.R.* L+67.5 3/23/2011 57.61 +0.46

**Par = Average Bid ≥ 90 ***Distressed = Average Bid < 90 *Not rated


BIGGEST WEEKLY LCDS MOVERS: LCDX16 NAMES As of Thursday, July 28

5 yr LCDS change Loan Spread* Loan Spread Basis

Name LCDS (LIB+) Change Basis Change

Reynolds Group Holdings Ltd 474 82 340 -1 134 82

Sabre Holdings Corporation 298 68 495 5 -196 63

Las Vegas Sands LLC 283 -61 259 4 23 -65

Toys ‘R’ Us Inc 308 54 448 2 -141 52

Dex Media West LLC 1,443 45 988 34 455 11

Univar Inc. 358 33 351 3 8 30

J. Crew Group, Inc. 465 25 452 6 14 19

Travelport LLC 330 23 346 -8 -16 32

Berry Plastics Corporation 292 19 348 1 -55 19

United AirLines Inc 465 18 315 -4 150 21

Avaya Inc. 624 17 368 5 256 11

Carestream Health, Inc. 499 17 529 11 -30 5

Laureate Education, Inc. 608 15 420 10 188 5

Wynn Las Vegas LLC 411 15 305 1 106 14

Allison Transmission 504 15 325 6 179 9

WEEKLY LCDS INDUSTRY SNAPSHOT: LCDX16 NAMES Avg. 5 yr LCDS Avg. Loan* Loan Spread Avg. Basis Industry LCDS Change Spread (LIB+) Change Basis Change Count

Automobiles & Components 213 2 244 2 -31 1 4

Capital Goods 548 5 554 3 -6 2 3

Commercial Services & Supplies 585 11 474 7 110 4 7

Consumer Services 333 -5 338 2 -5 -7 7

Food & Staples Retailing 275 4 246 2 29 2 3

Food, Beverage & Tobacco 299 -1 242 1 57 -2 4

Health Care Equipment & Services 261 3 327 3 -66 0 8

Materials 249 12 247 1 2 12 11

Media 501 2 556 5 -56 -3 10

Pharmaceuticals, Biotechnology & Life Sciences 248 -3 306 1 -58 -4 1

Real Estate 516 5 324 -3 192 8 3

Retailing 374 16 466 3 -92 13 5

Semiconductors & Semiconductor Equipment 427 0 175 0 252 0 1

Software & Services 335 8 389 0 -54 8 3

Technology Hardware & Equipment 434 8 285 3 149 4 3

Transportation 404 16 386 2 18 14 6

Utilities 417 2 231 1 186 1 3

*Assuming a rolling four-year term to maturity.For more information, write to [email protected] or contact your Reuters representative.

MARKET BASED PRICING SNAPSHOT

(Investment grade revolvers where drawn spread is tied to CDS/CDX)

CDS MARKET

Source: Thomson Reuters Eikon

Prior Prior

CDS/CDX CDS/CDX Deal Deal

Borrower name S&P Moody’s Drawn spread is tied to: Floor Cap (7/29/11) (near close) Deal Close Undrawn (Undrawn) (Drawn)

HJ Heinz Co BBB Baa2 One year CDS NA NA 19.91 14.2 6/30/2011 50 37.5 MBP

Air Products & Chemicals Inc A A2 Four year CDS 35 100 49.81 47.3 6/30/2011 NA 37.5 225

Altria Group Inc BBB Baa1 Details undisclosed NA NA NA NA 6/30/2011 37.5 15 MBP

Altria Group Inc BBB Baa1 Details undisclosed NA NA NA NA 6/30/2011 50 15 MBP

Paccar Inc A+ A1 50% of CDX 65 No cap 95.84 98.5 6/23/2011 4 NA MBP

Paccar Inc A+ A1 50% of CDX 65 No cap 95.84 98.5 6/23/2011 10 NA MBP

Baxter International Inc A+ A3 Co’s CDS (details undisclosed) 25 100 NA NA 6/17/2011 8 10 45

PepsiCo Inc A- A1 Details undisclosed NA NA NA NA 6/14/2011 2.5 4 MBP

PepsiCo Inc A- A1 Details undisclosed NA NA NA NA 6/14/2011 5 4 MBP

Illinois Tool Works Inc A+ A1 Details undisclosed NA NA NA NA 6/10/2011 10 10 MBP

Illinois Tool Works Inc A+ A1 Details undisclosed NA NA NA NA 6/10/2011 12.5 12.5 MBP

Novartis AG AA- Aa2 One year CDS 10 75 10.22 9.2 6/10/2011 5 5 MBP

Wal-Mart Stores Inc AA Aa2 One year CDS 10 75 13.86 13.9 6/9/2011 1.5 2.5 MBP

Wal-Mart Stores Inc AA Aa2 One year CDS 10 75 13.86 13.9 6/9/2011 NA 10 MBP

Wal-Mart Stores Inc AA Aa2 One year CDS 10 75 13.86 13.9 6/9/2011 4 10 MBP

Charles Schwab Corp A A2 Details undisclosed NA NA NA NA 6/8/2011 15 15 MBP

Automatic Data Processing NR NR Details undisclosed NA NA NA NA 6/7/2011 1.75 5 MBP

Automatic Data Processing NR NR Details undisclosed NA NA NA NA 6/7/2011 4 8 MBP

* Note: data shown in basis points

Source: Thomson Reuters LPC, Markit on Source: Thomson Reuters Eikon


Disc./L

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RELATIVE VALUE OF LEVERAGED LOANS VS. HIGH YIELD BONDS

Spread/ Discounted

Bank loan rating/ Coupon LIB-equiv.

Borrower Bond rating Tranche Maturity (bps/%) Spread (bps)

Avaya Inc B+ TLb Oct-14 275 382 CCC+/Caa2 Sr. Unsec. Nov-15 9.75% 767BE Aerospace Inc BBB-/Ba1 TLb Jul-14 275 262 BB+/Ba3 Sr. Unsec. Jul-18 8.5% 417Casella Waste Systems Inc BB/Ba2 TLb Apr-14 500 500 B-/Caa1 Sr. Sub. Feb-19 9.75% 714Cenveo Inc BB/Ba2 TLb Dec-16 475.0 463 B-/Caa1 Sr. Notes Aug-16 10.5% 881Charter Communications BB+/ Ba2 TLb Mar-14 225 230 /B1 Sr. Unsec. Sep-14 10.875% 619Compucom Systems Inc BB/Ba2 TLb Jul-14 300 425 B/B3 Sr. Sub. Oct-15 12.5% 936Constellation Brands BB/Ba3 TLb Jun-15 275 269 B+/B2 Sr. Sub. May-17 7.25% 319DineEquity Inc CCC+/B2 TLb Sep-17 450 450 CCC+/B3 Sr. Notes Oct-18 9.5% 528Emergency Medical Services B+/B1 TLB May-18 375 384 Caa1 Sr. Notes Jun-19 8.13% 539First Data Corp B+/B1 TLb Sep-14 275 504 CCC+/Caa2 Sr. Unsec. Sep-15 9.875% 798Graham Packaging B+ / B1 TLc Apr-14 425 421 CCC+/Caa1 Sr. Sub. Oct-14 9.875% 799Huntsman International LLC B+/Ba2 TLb Mar-17 250 308 B-/B3 Sr. Sub. Mar-20 8.625 391Isle of Capri Casinos BB-/Ba3 TLb Mar-16 350 339 B-/B3 Sr. Notes Mar-19 7.75% 468Laureate Education B/B1 TLb Aug-14 325 455 CCC+/Caa1 Sr. Sub. Aug-17 11.75% 773Lender Processing Services BBB/Baa3 TLb Jul-14 250 340 BB+/Ba2 Sr. Unsec. Jul-16 8.125% 610 Average of term loans 334 383Average of high yield bonds 9% 649

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The yield differential between loans and bonds for the 30 liquid names included in the LPC Relative Value composite tightened by 24bp last week. The average loan

yield increased to LIB+383 while the average bond swap spread decreased to LIB+649, creating a differential of 265bp. In contrast, the LTM bond-loan differential

averaged 259bp.

The chart compares institutional term loans with high yield bonds of several issuers on a Libor-equivalent basis. Loan spreads are determined by their coupon

and secondary market price, and are calculated through a discounted cash fl ow model. Bond Libor-equivalent spreads are determined by taking the yield to worst,

subtracting a comparable Treasury yield and swapping the result to a fl oating-rate equivalent.

The borrowers used in this analysis have loans that are widely held in institutional portfolios. In addition, the sample is weighted to refl ect the overall market share

of each industry. Fifteen of the borrowers are shown below. Averages apply to all 30 issuers that make up the LPC Relative Value composite. See LoanConnector

Relative Value page for a list of all 30 issuers.

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RELATIVE VALUE MARKET


Amneal Pharmaceuticals Healthcare GE Capital/RBS Citizens 7/20 RFI 250 NA 5 325 NA

ArchBrook Laguna Holdings LLC Retail GE NA DIP 50 NA NA 375 NA

Ardent Health Services Healthcare BAML 7/14 ACQ 200 NA NA 500 NA

Aventine Renewable Energy Utilities Wells Fargo 7/21 GCP 50 NA 4 300-350 NA

BJ’s Wholesale Club Inc Retail DB/Citi/Barclays/Jefferies/GE/WF NA LBO 2575 NA NA NA NA

Blackboard Inc Technology BAML/DB/MS NA LBO 1150 NA NA NA NA

Bojangles Restaurants Eats Jefferies 7/26 LBO 215 NA 5 NA NA

California Pizza Kitchen Inc Eats Jefferies/GE Capital NA LBO 365 NA NA NA NA

Carrols LLC Eats NA NA GCP 85 NA NA NA NA

Chefs’ Warehouse Restaurants JPM/GE Capital NA RFI 80 NA NA 250 NA

CHI Overhead Doors GenManuf GE Capital/Wells Fargo 7/27 LBO 204 NA 5 NA NA

CKX Media NA NA LBO 595 NA NA NA

Clement Pappas FoodBeverage Jefferies/BMO 7/20 ACQ 280 NA NA NA NA

Diamond Foods Inc FoodBeverage BAML June ACQ 1000 NA 5 250 NA

Duckwall-ALCO Stores Retail Wells Fargo Capital Finance 7/21 RFI 120 NA 5 200 NA

Dynamics Research Corp Technology BAML/SunTrust Bank/PNC Bank NA ACQ 130 NA 5 400 50

Dynegy Inc Utilities Credit Suisse/Goldman Sachs/Barclays 7/11 ACQ 1700 NA 5 775 NA

EchoStar Corp Technology Deutsche Bank NA ACQ NA NA NA NA NA

Energy Transfer Equity LP OilGas Credit Suisse NA ACQ 3700 NA 364 NA NA

Fogo De Chao Eats JPM 7/26 GCP 205 NA 5 NA NA

General Cable Corp Cable JPM NA RFI 400 NA 5 150-200 NA

Go Daddy Technology BC/DB/RBC/KKR NA LBO NA NA NA NA NA

Henniges Automotive Automotive Credit Suisse/Macquarie/PNC 7/14 ACQ 155 NA 5 600 NA

Hertz Global Holdings Inc Automotive NA NA ACQ 650 NA NA NA NA

Immucor Inc Healthcare Citi/JPM NA LBO 1100 NA 5 NA NA

Insight Global Inc BusServices BNP Paribas 7/18 RFI 157 157 NA 500 NA

Insight Pharmaceuticals Healthcare GE Capital/RBC/SunTrust 7/21 ACQ 420 NA NA 500 NA

Ipreo Holdings BusServices RBC 7/7 LBO 170 115 NA NA NA

Kinetic Concepts Inc Healthcare BAML/CS/MS NA LBO 4950 NA NA NA NA

La Paloma Generating Utilities BAML 7/21 RFI 424 NA 5 NA NA

Lender Processing Services Technology JPM 7/28 RFI 1300 550 5 NA NA

Level 3 Communications Media BAML/Citi NA ACQ 1750 NA 7 425 NA

Lion Copolymer GenManuf HSBC/Wells Fargo 7/14 DivRecap 400 350 5 500 NA

Los Angeles Dodgers Holding Co Leisure JPM NA DIP 150 NA 1 700 NA

Masergy Communications Inc Telecom GE Capital 6/29 LBO 110 NA NA 450 NA

MCCI Medical Group Healthcare GE Capital/SunTrust 7/7 DivRecap 155 NA 5 500 NA

Meritas LLC BusServices Credit Suisse 7/6 RFI 200 NA NA 600 NA

Metropolitan Health Healthcare GE Capital 8/3 ACQ 355 NA 5 NA NA

Microsemi Corp Technology Morgan Stanley NA ACQ 425 NA NA NA NA

Nana Development Corp BusServices GoldmanSachs 6/7 RFI 435 NA 5 NA NA

Ocwen Financial Financials Barclays 7/19 ACQ 575 575 NA 575 NA

OM Group BusServices BAML/PNC/BNP 7/7 ACQ 900 600 NA 375 NA

OpenText Corp Technology Ba2/BB+ Barclays/RBC NA RFI 600 NA NA NA NA

Phillips Plastics Corp GenManuf GE Capital/BNP Paribas 7/20 ACQ 245 NA NA 500 NA

Pike Electric Corp Utilities Regions Bank 7/13 RFI 200 NA NA 250 NA

Pringles ConsProducts BAML NA RFI 1050 675 5 NA NA

Rock Ohio Caesars Gaming Credit Suisse/Deutsche Bank/Citadel 7/27 GCP 275 NA 5 NA NA

Royalty Pharma Healthcare BAML/GS/Citi 7/14 DivRecap 3600 NA 5.25 275 NA

Sealed Air Corp ConsProducts Citi 7/25 ACQ 4420 1300 5 250 NA

Smart Modular Technologies Technology B+/B2 JPM/UBS 6/23 LBO 350 NA 5 NA NA

SNL Financial Financials Credit Suisse 7/27 LBO 205 NA NA NA NA

Solera Holdings BusServices Goldman/BAML NA ACQ 350 NA NA NA NA

Stackpole International Automotive B2/B+ RBC 7/12 LBO 165 NA 5 475-500 NA

Steak ‘N Shake Restaurants Jefferies 7/28 RFI 160 NA 3 NA NA

U.S. Coal Corporation Mining Credit Suisse 7/18 NA 105 NA 6 600 NA

Water Pik Inc ConsProducts GE Capital 7/19 DivRecap 197 NA NA 500-525 NA

YRC Worldwide Shipping JPM NA RFI 400 NA NA 700 NA

Total TLs

TOTAL LEVERAGED $40,457,000,000 $4,322

NON-LEVERAGED

3M Co ConsProducts AA- JPM June RFI 1500 NA 5 NA NA

Airgas Inc OilGas BAML/Wells Fargo 6/23 RFI 750 NA 5 125 20

Banco Itau Financials BNP/HSBC/Mizuho 6/30 RFI 500 NA 3 120 NA

Bank of America Leasing Financials BAML March NA 90 NA 8 250 NA

BP Wind Energy Utilities A2/A NA July GCP 385 NA NA NA NA

Dentsply International Healthcare Morgan Stanley June ACQ 1750 NA 5 NA NA

Express Scripts Healthcare Baa3/BBB+ Credit Suisse/Citi July ACQ 14000 NA NA 175 NA

Georgia-Pacifi c LLC Paper NA 7/27 RFI 3000 NA NA NA NA

International Paper Paper UBS July ACQ 2200 NA NA NA NA

Jefferies Group Inc Financials BBB JPM/Natixis 5/26 ACQ 1000 NA 3 175 NA

Joy Global Inc Mining JPM/GS/BAML July ACQ 1500 NA 1 NA NA

Lonza Group Healthcare JPM 7/21 ACQ 2250 600 5 NA NA

NCR Corp BusServices JPM/RBC/BAML/MS July ACQ 1400 700 NA 125-150 NA

Praxair Inc OilGas BAML/Citi/HSBC July RFI 1750 NA 5 NA NA

Trafi gura AG OilGas BNP Paribas 6/24 GCP 1100 NA 1 115 35

Walgreens Co Retail BAML/Wells Fargo 6/23 RFI 500 NA 4 NA NA

TOTAL NON-LEVERAGED $33,675,000,000

TOTAL IN PIPELINE $74,132,000,000

Pro

Ann./ Forma

Lead Launch Resp. Deal TLs Tenor LIBOR Com. Tot./

Borrower Industry Rating Banks Date Date Purp. Amt. (B, C, D) in Yrs. Spread Fee Sr. Lev.

($Mils.) ($Mils.) (bps) (bps)

Deals in market as of July 28, 2011Added last week: $21.22 billion Bold = New from July 21

— compiled by Jon Methven

Tenor and pricing for pro rata tranches only. See LoanConnector for further deal information and additional forward calendars,

SYNDICATED LOAN FORWARD CALENDAR


Thomson Reuters LPC compiles league tables in four ways to catalogue different aspects of syndications volume:

Full-Credit

Full-credit leagues award full credit of a transaction to each agent/co-agent in the lending group.

Number of Deals

Number of deals leagues rank bank holding companies by the number of transactions led or co-led.

Agent-Only

Agent-only leagues award full credit to each lender with an admin., syn. or doc. agent title, up to fi ve banks. For deals $10 billion or more,

full credit awarded to up to fi ve lenders, provided they meet certain criteria.

Bookrunner

This table awards credit to bank(s) with a Bookrunner or Lead Arranger title on the loan documentation.

U.S. League Table Parameters

• Loans must be to U.S. borrowers (Thomson Reuters LPC’s Global League Tables rank worldwide lending).

• Commercial & industrial loans only (real estate and private placements are excluded).

• Loans greater than $10 billion and with more than fi ve agents receive weighted pro rata credit for Agent-only league tables.

For more information concerning league tables contact at (646) 223-6890.

THOMSON REUTERS LPC’S LEAGUE TABLES

Thomson Reuters LPC

GOLD SHEETS

Loans Editor

Tessa Walsh

Managing Editor

Jon Methven

Directors of Analytics

Ioana Barza

Maria C. Dikeos

Colm Doherty

New York Bureau Chief

Caleb Frazier

London Bureau Chief

Christopher Mangham

Hong Kong Bureau Chief

Jacqueline Poh

Australia Editor

Sharon Klyne

Senior Correspondents

Smita Madhur (New York)

Michelle Sierra (New York)

Foster Wong (Hong Kong)

Correspondents

Maggie Chen (Hong Kong)

Leela Parker (New York)

Alasdair Reilly (London)

Wakako Sato (Tokyo)

Clinton Townsend (New York)

Sandra Tsui (Hong Kong)

Production Manager

Michael Green

For subscription information call:Direct Marketing

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Gold Sheets is published 50 times a year by Thomson Reuters LPC,

3 Times Square, New York, NY 10036. If you notice incompleteness

or inaccuracies in Gold Sheets please contact Jon Methven at (646)

223-6840 or [email protected]. Gold Sheets is

available real-time via the world wide web on LoanConnector.

The content in this publication, including news, quotes, data and other

information, is provided by Reuters LPC and its third party content

providers for your personal information only, and is not intended for

trading purposes. Content in this publication is not appropriate for the

purposes of making a decision to carry out a transaction or trade. Nor

does it provide any form of advice (investment, tax, legal) amounting to

investment advice, or make any recommendations regarding particular

fi nancial instruments, investments or products.

Neither Thomson Reuters LPC nor its third party content providers

shall be liable for any errors, inaccuracies or delays in content, or for

any actions taken in reliance thereon. Thomson Reuters LPC expressly

disclaims all warranties, expressed or implied, as to the accuracy of

any of the content provided, or as to the fi tness of the information

for any purpose.

Ann = Annual

AIS* = All-in Spread (Drawn/Undrawn)

Cancel = Cancellation

CAN$ = Canadian Dollars

CBO = Competitive Bid Option

COF = Cost of Funds

Commit. = Commitment

CP = Commercial Paper

DIP = Debtor-in-Possession

DM = Deutschemarks

FF = Federal Funds

Ffr = French Francs

FQ = Fiscal Quarter

FY = Fiscal Year

GBR = Gold Base Rate

Guid.= Guidance Line (Uncommitted)

HK$ = Hong Kong Dollars

HLT = Highly Leveraged Transaction

is = Implied Senior

LIB = LIBOR (London

Interbank Offered Rate)

Lt = Lire

MMR = Money Market Rate

NA = Not Available/Not Applicable

P = Prime

PIK = Pay in Kind

SBLC = Standby Letter of Credit

Sfr= Swiss Francs

si = Senior Implied

TreasSpr = Treasury

TrLC = Trade Letter of Credit

Upfr. = Upfront

Util. Fee = Utilization Fee

Types of Loans

BL = Bridge Loan

LC = Letter of Credit

RC = Revolving Credit

TL = Term Loan

PARTIAL = No Pricing Info

Abbreviations

LEAGUE TABLE

2011 YTD U.S. New Money Bookrunner Volume

Bookrunner # of Market

Rank Bank Holding Company Volume Deals Share

1 Bank of America Merrill Lynch $51,021,082,391 240 22%

2 JP Morgan 37,727,848,041 154 16

3 Barclays Bank Plc 19,196,480,666 54 8

4 Morgan Stanley 17,653,750,000 32 7

5 Citi 16,598,608,247 50 7

6 Wells Fargo & Co 13,319,073,721 119 6

7 Credit Suisse 13,290,232,418 52 6

8 PNC Bank 5,620,669,428 50 2

9 General Electric Capital Corp 5,551,512,500 68 2

10 SunTrust Bank 4,965,225,000 50 2

11 Goldman Sachs & Co 4,853,665,000 20 2

12 Deutsche Bank 3,922,787,302 30 2

13 BNP Paribas SA 3,894,650,000 27 2

14 RBC Capital Markets 3,624,990,200 24 2

15 RBS 3,486,242,872 30 1

16 BMO Capital Markets 3,425,145,000 40 1

17 U.S. Bancorp 2,848,195,000 41 1

18 Mitsubishi UFJ Financial Group 2,788,397,250 17 1

19 Jefferies Finance LLC 2,254,500,000 13 1

20 UBS AG 2,245,300,000 14 1

21 KeyBank 1,951,375,000 24 1

22 Scotia Capital 1,866,460,000 14 1

23 Rabobank 1,705,200,000 12 1

24 Credit Agricole Corporate and Investment Bank S.A. 1,667,500,000 9 1

25 Societe Generale 943,960,000 10 1

Source: Thomson Reuters LPC

GOLD SHEETS – AUGUST 1, 2011 11* - ALL- IN SPREAD, DRAWN / UNDRAWN

BORROWER RATINGS AMOUNT TYPE MATUR. ACT./EXP. SPREADS FEES AIS* PURPOSE

INVESTMENT GRADE DEALS

EXPRESS SCRIPTS INC BBB+/Baa3 (Sr.) $5.5B Corp. purposes

St. Louis, MO (PACKAGE)

$45B

SIC 5912, 8011, 6719

(Drug stores and

proprietary stores)

PARTIAL

REFI CREDIT

LEAD LENDERS: Citigroup - Arranger/Lead Arranger, Credit Suisse AG - Arranger/Lead Arranger

COMMENTS: Credit will replace the company’s $14B bridge loan which backs the takeover of Metro Health Solutions. Co. is asking for $1B tickets with

$700M allocated to the BL and $300M to this agreement. Assignments: Pro Rata = y.

$1.5B RC 60 08/05/2011 NA/NA Corp. purposes

(Part 1/2) 08/05/2016

$4B TL A 60 08/05/2011 LIB+175 175.0/NA Corp. purposes

(Part 2/2) 08/05/2016

FEDEX CORP BBB/Baa2 (Sr.) $1B RC 60 04/26/2011 P+25 Com 25 125.0/25.0 Corp. purposes

Memphis, TN A-2/P-2 (CP) (Unsec’d) 04/26/2016 LIB+125 CP backup

$39B Capital expend.

SIC 4513, 4215

(Air courier

services)

REFI CREDIT GUARANTOR(S): Credit is guaranteed by certain of co.’s subsidiaries.

LEAD LENDERS: JPMorgan Chase Bank (8.5%) - Admin. Agent/Lead Arranger, BNP Paribas SA (4.5%) - Documentation Agent, SunTrust Bank (4.5%)

- Documentation Agent, Citibank (8.5%) - Syndications Agent/Lead Arranger

OTHERS IN DEAL: BOA (6.5%), Bank of Nova Scotia (6.5%), Goldman Sachs Bank USA (6.5%), Morgan Stanley Bank (4.5%), Deutsche Bank (4%), RegBk

(4%), Mizuho Corporate Bank USA (3.5%), Wells Fargo Bank (3.5%), BONYM (2.5%), Bank of Tokyo-Mitsubishi (2.5%), Commerzbank AG (2.5%), Fifth

Third Bank (2.5%), HSBCBankUSA (2.5%), Ind Comm Bk of China (2.5%), Keybank N.A. (2.5%), PNC Bank NA (2.5%), SMBC (2.5%), US Bank (2.5%),

ComericaBk (2%), First Tennessee Bank NA (2%), KBC (2%), Standard Chartered Bank (2%), State Street Bank (2%)

COMMENTS: Credit refi nances co.’s previous $1B credit agreement dated 07/22/09. JP Morgan Securities LLC and Citigroup Global Markets Inc. acted

as joint lead arrangers and joint bookrunners. Law Firm: Simpson Thacher & Bartlett LLP (for lender). Pricing: (See grid). Default rate = +200 bps.

Prime fl oor = one month LIBOR plus 100 bps. No LIBOR fl oor. Financial Covenant(s): Max. leverage ratio of 0.7:1. Prepayments: Amount Reduction

= 100%. Guarantor Release = 100%. Margin Reduction = 100%. Tenor Extension = 100%. Dividends are not materially restricted. Required Lenders =

51%. Term Changes = 100%. Assignments: Company consent required, Agent consent required. Assign. min. = $5M. Assign. fee = $4,000. Pro Rata

= y. Min. hold = $5M.

Level Sr Rating P+ LIB+ Com

1 > or =A- 0 87.5 17.5

2 > or =BBB+ 0 100 22.5

3 > or =BBB 25 125 25

4 > or =BBB- 50 150 32.5

5 <BBB- 100 200 37.5

Pricing is as indicated initially, tied to co.’s senior unsecured LTD ratings by S&P and Moody’s thereafter. If split rated, higher rating applies. If split rated

by more than one level, level below higher rating applies.

NATIONWIDE HEALTH BBB-/Baa2 (Sr.) $800M TL 12 06/03/2011 P+50 Com 10 150.0/10.0 Corp. purposes

PROPERTIES INC (Unsec’d) 06/01/2012 LIB+150

Newport Beach, CA

$439.3M

SIC 6798

(Real estate

investment trusts)

REFI CREDIT

LEAD LENDERS: JPM Co - Admin. Agent/Lead Arranger, Credit Agricole SA - Arranger/Lead Arranger, Keybank NA - Arranger/Lead Arranger, Wells

Fargo & Co - Arranger/Lead Arranger

COMMENTS: Credit replaces co.’s previous $700M RC dated 10/20/05. Credit Agricole Corporate & Investment Bank, Keybank NA, Wells Fargo Securi-

ties LLC and JP Morgan Securities LLC acted as joint bookrunners and joint lead arrangers. Law Firms: Sherry Meyerhoff Hanson & Crance LLP and

Skadden Arps Slate Meagher & Flom LLP (for borrower). Pricing: Default rate = Applic. P+200 bps. Prime fl oor = one month LIBOR plus 100 bps.

No LIBOR fl oor. Financial Covenant(s): Min. fi xed charge coverage ratio of 1.75:1; max. leverage ratio of 0.6:1. Min. net asset value of 85% of net asset

value as of closing. Max. secured debt ratio = 0.3:1. Max. unencumbered asset value ratio = 0.6:1. Indicated fi nancial covenant ratios required any

time acquisitions and dispositions by borrower are >$100M in any FQ. Indicated leverage ratio and unencumbered asset value ratio may be > 0.6:1 but

<= 0.65:1 for up to two consecutive FQs. Repayments: $800M install. on 06/01/2012. Prepayments: Debt Iss. Sweep = 100%. Equity Iss. Sweep =

100%. Amount Reduction = 100%. Margin Reduction = 100%. Tenor Extension = 100%. Dividends are not materially restricted. Required Lenders =


= n. Elig. Assignees = commercial banks with total assets >$1B and combined capital and surplus >= $250M; life insurance cos. with admitted assets

>=$1B; nationally or internationally recognized investment banking cos. or other fi nancial institutions. Avg. life = 1 yrs.


PRAXAIR INC A/A2 (Sr.) $1.75B RC 60 07/28/2011 Com 8 NA/8.0 Corp. purposes

Danbury, CT A-1/P-1 (CP) 07/28/2016

$10.1B

SIC 2813, 3479, 3569

(Industrial gases)

PARTIAL

REFI CREDIT

LEAD LENDERS: Bank of America Merrill Lynch (9.14%) - Admin. Agent/Lead Arranger, Citibank (9.14%) - Syndications Agent/Lead Arranger, HSBC

(9.14%) - Syndications Agent/Lead Arranger

OTHERS IN DEAL: Bank of Tokyo-Mitsubishi (7.43%), Deutsche Bank (7.43%), RBS (7.43%), Wells Fargo Bank (7.43%), Credit Suisse (5.71%), JP Morgan

Chase (5.71%), Sovereign Bank (5.71%), BBVA (4.29%), Societe Generale (4.29%), SMBC (4.29%), BONYM (2.86%), Bank of Nova Scotia (2.86%), US

Bank (2.86%), China Merchants Bank (1.43%), Intesa Sanpaolo (1.43%), NorthernTr (1.43%)

COMMENTS: Credit refi nances existing debt. Pricing: (See grid). Assignments: Pro Rata = y.

Level Sr Rating Com

1 > or =AA- 5

2 > or =A+ 6

3 > or =A 8

4 > or =A- 10

5 > or =BBB+ 15

6 <BBB+ 17.5

Pricing is tied to company’s CDS, with initial fl oor of 25bp and a cap of 125bp. Level 1 a fl oor of 20bp and a cap of 100bp applies; for Level 2 a fl oor of

22.5bp and a cap of 112.5bp applies; for Level 3 a fl oor of 25bp and a cap of 125bp applies; for Level 4 a fl oor of 50bp and a cap of 137.5bp applies; for

Level 5 a fl oor of 75bp and a cap of 162.5bp applies; and for Level 6 a fl oor of 100bp and a cap of 187.5bp applies.

SOUTHWEST BBB-/Baa3 (Sr.) $800M RC 60 04/28/2011 P+125 Com 37.5 225.0/37.5 Corp. purposes

AIRLINES CO (Unsec’d) 04/28/2016 LIB+225 SBLC 225 Capital expend.

Dallas, TX

$12.1B

SIC 4512

(Air transportation,

scheduled)

REFI CREDIT

LEAD LENDERS: JP Morgan (15%) - Admin. Agent/Lead Arranger, Citibank (15%) - Syndications Agent/Lead Arranger, Barclays Capital Group (10.63%)

- Co-agent, Deutsche Bank AG (10.63%) - Co-agent, Goldman Sachs & Co (10.63%) - Co-agent, Morgan Stanley (10.63%) - Co-agent

OTHERS IN DEAL: BNP Paribas (6.88%), Comerica Bank NA (6.88%), Societe Generale (6.88%), WellsFar&Co (6.88%)

COMMENTS: Credit refi nances co.’s previous credit agreement dated 09/29/09. JP Morgan Securities LLC and Citigroup Global Markets Inc. acted as

co-lead arrangers and joint bookrunners. Law Firm: Simpson Thacher & Bartlett LLP (for lender). Pricing: (See grid). Default rate = +200 bps. Prime

fl oor = one month LIBOR plus 100 bps. No LIBOR fl oor. Option(s): $250M LC. Financial Covenant(s): Min. interest coverage ratio of 1.25:1. Indicated min.

interest coverage ratio may be reduced to 0.8:1 for two consecutive FQs, but co. must pay a quarterly fee of 25 bps to each bank for reduction. Prepay-

ments: Amount Reduction = 100%. Margin Reduction = 100%. Tenor Extension = 100%. Dividends are not materially restricted. Required Lenders =


= y. Elig. Assignees: commercial banks with total assets >$1B.

Level Sr Rating P+ LIB+ Com SBLC

1 > or =A 0 100 12.5 100

2 > or =A- 12.5 112.5 15 112.5

3 > or =BBB+ 25 125 17.5 125

4 > or =BBB 50 150 25 150

5 > or =BBB- 75 175 32.5 175

6 <BBB- 125 225 37.5 225

Pricing is as indicated initially, tied to co.’s senior unsecured LTD ratings by S&P and Moody’s thereafter. SBLC fee = LIBOR margin plus co. also pays an

undisclosed issuance fee. If split rated, higher rating applies. If Split Rated by more than one level, level below higher rating applies.

* - ALL- IN SPREAD, DRAWN / UNDRAWN


INVESTMENT GRADE DEALS cont’d

GOLD SHEETS – AUGUST 1, 2011 13* - ALL- IN SPREAD, DRAWN / UNDRAWN

(Deal cont’d on next page)


M&A DEALS cont’d

BOJANGLES $215M LBO

RESTAURANTS INC (PACKAGE)

Charlotte, NC

SIC 5812

(Eating places)

PARTIAL

SPONSOR(S): Advent International Corp.

LEAD LENDERS: Jefferies Finance LLC - Arranger/Lead Arranger

COMMENTS: Credit backs the company’s buyout by Advent International. Credit comes with a roughly 45% equity check, which would value the deal at

approximately $390M. Jefferies is leading the deal. Assignments: Pro Rata = n.

$25M RC 60 08/05/2011 NA/NA LBO

(Part 1/2) 08/05/2016

$190M TL 72 08/05/2011 LIB+625 Upfr 100 625.0/NA LBO

(Part 2/2) 08/05/2017

COMMENTS: Pricing: Libor fl oor = 1.25%. OID = 99.

EXPRESS SCRIPTS INC BBB+/Baa3 (Sr.) $14B BL 12 08/05/2011 LIB+175 175.0/NA Takeover

St. Louis, MO 08/04/2012

$45B

SIC 5912, 8011, 6719

(Drug stores and

proprietary stores)

LEAD LENDERS: Credit Suisse AG - Admin. Agent/Lead Arranger, Citibank - Syndications Agent/Lead Arranger, Bank of America Merrill Lynch - Co-

arranger, Bank of Tokyo-Mitsubishi Group - Co-arranger, Credit Agricole SA - Co-arranger, Deutsche Bank AG - Co-arranger, Mizuho Bank - Co-arranger,

Morgan Stanley - Co-arranger, Royal Bank of Scotland Plc [US] - Co-arranger, Sumitomo Mitsui Banking Corp - Co-arranger, SunTrust Bank - Co-arranger,

Wells Fargo Bank - Co-arranger

COMMENTS: Credit fi nances the company’s $29.1B takeover of Medco Health Solutions,for $71.36 per share. The facility will be replaced by a permanent

bond and loan fi nancing consisting of a $1.5B RC and $4B TLA in August. Co. is asking for $1B tickets with $700M allocated to this facility and $300M

allocated to the $5.5B pro-rata agreement. Assignments: Pro Rata = y.

PROLOGIS INC BBB-/Baa2 (Sr.) $1.778B Acquis. line

Denver, CO (PACKAGE)

$909M

SIC 6798, 6531, 6512

(Real estate

investment trusts)

REFI CREDIT ADDITIONAL BORROWER(S): Credit is arranged for Prologis LP and certain affi liate borrowers.

COMMENTS: Credit is arranged to fi nance the merger between ProLogis and AMB Property Corp. Credit refi nances existing credit agreements dated

07/16/07 between AMB Property LP and Bank of America, an agreement dated 11/10/10 between AMP Property LP and JP Morgan Chase Bank NA,

and an agreement dated 10/06/05 between Old Prologis and Bank of America. Credit may be increased up to $2.75B (or its equivalent) and may be

extended for one additional year. Merrill Lynch Pierce Fenner & Smith Inc., JP Morgan Securities LLC, RBS Securities Inc. and Sumitomo Mitsui Bank-

ing Corp. acted as global lead arrangers and global bookrunners. Law Firms: Mayer Brown LLP, Weidema van Tol, Anderson Mori & Tomotsune and

Morrison & Foerster LLP (for borrower). Haynes & Boone (for lender). Pricing: (See grid). Default rate = +200 bps. Prime fl oor = one month LIBOR.

No LIBOR fl oor. Financial Covenant(s): Min. fi xed charge coverage ratio of 1.5:1; min. debt service coverage ratio of 1.5:1; max. loan to value ratio of 0.6:1.

Tangible Net Worth = $10B. Indicated loan to value ratio may be >0.6:1 but <=0.65:1 after any material acquisition. Prepayments: Amount Reduction

= 100%. Guarantor Release = 100%. Margin Reduction = 100%. Tenor Extension = 100%. Dividends are materially restricted. Required Lenders = 51%.

Term Changes = 100%. Assignments: Company consent required, Agent consent required. Assign. min. = $5M. Assign. fee = $3,500. Pro Rata = y.

Revolver/Line >= 1 Yr. EUR 480 M: Assign. min. = EUR 5 M Assign. Fee = EUR -,999,999. Assig. fee = US$3,500.Revolver/Line >= 1 Yr. JPY 22896 M :

Assign. min. = JPY 5 M Assign. Fee = JPY -,999,999. Assig. fee = US$3,500.

BBB-/Baa2 $702.432M RC 48 06/03/2011 P+40 Ann 30 170.0/30.0 Acquis. line

(At Close Sr.) (Part 1/3) 06/03/2015 LIB+140 SBLC 152.5

(Unsec’d) ExtenFee 20

GUARANTOR(S): ProLogis Inc. Credit is also guaranteed by Prologis LP.


LEAD LENDERS: Bank of America Merrill Lynch (10%) - Admin. Agent/Lead Arranger, JP Morgan (10%) - Syndications Agent/Lead Arranger, Royal Bank

of Scotland Plc [RBS] (10%) - Syndications Agent/Lead Arranger, Sumitomo Mitsui Banking Corp (6.63%) - Syndications Agent

OTHERS IN DEAL: Goldman Sachs & Co. (8.84%), RBC (8.84%), Wells Fargo Bank (8.84%), Citicorp NA (6.63%), Deutsche Bank (6.63%), MorganStnlyS-

rFund (6.63%), HSBC (3.68%), Calyon Corporate & Invest (2.95%), Credit Suisse (2.95%), ING Bank (2.95%), Scotiabank Europe Plc (2.95%), CompassBk

(1.47%), NorthernTr, PNCBk

COMMENTS: Facility labelled as euro tranche. Facility is also available in US dollars, pounds sterling and yen. Option(s): $73.2M LC and $146.3M swingline.

Level Sr Rating P+ LIB+ Ann SBLC

1 > or =A- 17.5 117.5 22.5 130

2 > or =BBB+ 25 125 25 137.5

3 > or =BBB 40 140 30 1152.5

4 > or =BBB- 65 165 35 177.5

5 <BBB- 105 205 45 217.5

Pricing is as indicated initially thru 10/03/11, tied to co.’s senior unsecured LTD ratings by S&P, Moody’s and Fitch thereafter. If rated by all three agencies,

higher of S&P and Moody’s applies. If rated by only two agencies, higher rating applies. SBLC fee includes a 12.5 bps issuance fee.

BBB-/Baa2 $285.273M RC 48 06/03/2011 P+40 Ann 30 170.0/30.0 Acquis. line




LEAD LENDERS: Bank of America Merrill Lynch (14.38%) - Admin. Agent/Lead Arranger, JP Morgan (14.38%) - Syndications Agent/Lead Arranger, Royal

Bank of Scotland Plc [RBS] (14.38%) - Syndications Agent/Lead Arranger, Sumitomo Mitsui Banking Corp (10.66%) - Syndications Agent/Lead Arranger

OTHERS IN DEAL: Citibank Japan Ltd (10.66%), Deutsche Bank (10.66%), Morgan Stanley MUFG Loan (10.66%), Bank of Nova Scotia (3.55%), Calyon

Corporate & Invest (3.55%), Credit Suisse (3.55%), ING Bank (3.55%), Goldman Sachs & Co., HSBC, NorthernTr, PNCBk

COMMENTS: Facility labelled as yen tranche. Facility is also available in US dollars, Euros and pounds sterling. Option(s): $26.8M LC.


1 > or =A- 17.5 117.5 22.5 130

2 > or =BBB+ 25 125 25 137.5

3 > or =BBB 40 140 30 152.5

4 > or =BBB- 65 165 35 177.5

5 <BBB- 105 205 45 217.5



BBB-/Baa2 $790M RC 48 06/03/2011 P+40 Ann 30 170.0/30.0 Acquis. line




LEAD LENDERS: Bank of America Merrill Lynch (5.49%) - Admin. Agent/Lead Arranger, Sumitomo Mitsui Banking Corp (6.33%) - Syndications Agent,

JP Morgan (5.49%) - Syndications Agent/Lead Arranger, Royal Bank of Scotland Plc [RBS] (5.49%) - Syndications Agent/Lead Arranger

OTHERS IN DEAL: Goldman Sachs & Co. (8.23%), RBC (8.23%), Wells Fargo Bank (8.23%), Citicorp NA (6.33%), Deutsche Bank (6.33%), US Bank (6.33%),

Union Bank NA (6.33%), Morgan Stanley Bank (4.43%), HSBC (3.16%), PNCBk (3.16%), Bank of Nova Scotia (2.53%), Calyon Corporate & Invest (2.53%),

Credit Suisse (2.53%), ING Bank (2.53%), NorthernTr (2.53%), CompassBk (1.9%), MorganStnlySrFund (1.9%)

COMMENTS: Facility labelled as US tranche. Facility is also available in Euros, pounds sterling, yen and Canadian dollars. Option(s): $150M LC and

$100M swingline.


1 > or =A- 17.5 117.5 22.5 130

2 > or =BBB+ 25 125 25 137.5

3 > or =BBB 40 140 30 152.5

4 > or =BBB- 65 165 35 177.5

5 <BBB- 105 205 45 217.5





M&A DEALS cont’d

PROLOGIS INC

CONT’D


ASSOCIATED ESTATES $125M TL 60 06/03/2011 P+80 Cancel 50 180.0/NA Corp. purposes

REALTY CORP (Unsec’d) 06/02/2016 LIB+180

Richmond Heights, OH

$153.7M

SIC 6798, 6513, 6531

(Real estate

investment trusts)

REFI CREDIT GUARANTOR(S): Co.’s subsidiaries acted as guarantors.

LEAD LENDERS: PNC Bank (24%) - Admin. Agent/Lead Arranger, US Bank NA (20%) - Documentation Agent, Wells Fargo & Co (24%) - Syndications Agent

OTHERS IN DEAL: RBS Citizens (11%), RaymndJamesCorp (11%), Citicorp (10%)

COMMENTS: Credit refi nances co.’s previous RC dated 10/18/10. PNC Capital Markets LLC acted as lead arranger. Law Firms: Greenberg Traurig LLP

(for borrower). SNR Denton (for lender). Pricing: (See grid). Default rate = +400 bps. Prime fl oor = one month LIBOR plus 100 bps. No LIBOR fl oor.

Indicated cancellation fee applies thru year one. Financial Covenant(s): Min. fi xed charge coverage ratio of 1.5:1; max. loan to value ratio of 0.6:1. Max.

consolidated unsecured debt to unencumbered real property value ratio = 0.6:1. Min. unencumbered real property adjusted NOI to consolidated interest

expense on consolidated unsecured debt ratio = 2:1. Min. % of total residential units in the qualifying unencumbered projects that are physically occupied

by tenants = 85%. Min. consolidated tangible net worth = $500M plus 85% of proceeds from any equity issuances. Prepayments: Amount Reduction

= 100%. Margin Reduction = 100%. Tenor Extension = 100%. Dividends are materially restricted. Required Lenders = 66.67%. Term Changes = 100%.

Assignments: Company consent required, Agent consent required. Assign. min. = $5M. Assign. fee = $3,500. Pro Rata = n.

Level Loa/Value P+ LIB+

1 >0.55 < or =0.6 155 255

2 >0.5 < or =0.55 130 230

3 >0.45 < or =0.5 105 205

4 < or =0.45 80 180

Pricing is as indicated initially thru 06/30/11, tied to co.’s consolidated outstanding debt to total asset value ratio thereafter.

DRESSER-RAND BB+/Ba1 (Sr.) $1B Corp. purposes

Houston, TX B+/B1 (Sub.) (PACKAGE)

$2B

SIC 3511

(Turbines and

turbine generator

sets)

REFI CREDIT ADDITIONAL BORROWER(S): D-R Holdings (France) SAS.

COMMENTS: Credit refi nances co.’s previous credit agreement dated 08/30/07. Indicated maturity may be extended to 03/15/16, if by 05/01/14, the

domestic borrower’s 2014 senior subordinated notes have (i) had their maturity extended to a date >= 6 months after 03/15/16, (ii) been repaid in cash in

full or (iii) been refi nanced by new unsecured senior or senior subordinated notes having maturity >= 6 months after 03/15/16. Credit may be increased

up to $1.15B. Credit comes in conjunction with $375M 144A senior subordinated notes due 05/01/21 at 6.5%. JP Morgan Securities LLC acted as sole lead

arranger and sole book manager. Law Firms: Gibson Dunn & Crutcher LLP and Shearman & Sterling LLP (for borrower). Vinson & Elkins LLP (for lender).

Pricing: (See grid). Default Rate = +200 bps. Prime fl oor = one month LIBOR plus 100 bps. No LIBOR fl oor. Financial Covenant(s): Min. interest cover-

age ratio of 3:1; max. debt to EBITDA ratio of 3.75:1. Max. Capex (initial) = $110M. Max. Capex (fi nal) = $150M. Capex carryover = 100%. Debt to EBITDA =

consolidated debt to consolidated EBITDA. Prepayments: Assets Sales Sweep = 100%. Indicated asset sales sweep not required if proceeds <= $5M or

if proceeds are reinvested within one year. Indicated prepayments apply to TL facilities. Amount Reduction = 100%. Guarantor Release = 100%. Margin

Reduction = 100%. Tenor Extension = 100%. Dividends are materially restricted. Required Lenders = 51%. Term Changes = 100%. Collateral Release

= 100%. Assignments: Company consent required, Agent consent required. Assign. min. = $5M. Assign. fee = $3,500. Pro Rata = n. Min. hold = $5M.

BB+/Ba1 $600M RC 38 03/15/2011 P+100 Upfr 87.5 200.0/37.5 Corp. purposes

(At Close Sr.) (Part 1/3) 05/01/2014 LIB+200 Com 37.5

B+/B1 (Sec’d) SBLC 212.5

(At Close Sub.)

B1 (At Close CP)

LEAD LENDERS: JP Morgan (9%) - Admin. Agent/Lead Arranger, Bank of America (8.5%) - Co-agent, Commerzbank AG (8.5%) - Co-agent, DnB NOR

Bank ASA (8.5%) - Co-agent, Sovereign Bank (8.5%) - Co-agent, Wells Fargo & Co (8.5%) - Co-agent

OTHERS IN DEAL: BBVA Compass (6.5%), Bank of Tokyo-Mitsubishi (6.5%), Citigroup (6.5%), HSBCBankUSA (6.5%), Sumitomo Mitsui Banking C (6.5%),

Barclays Bank Plc (4%), US Bank (4%), BB&T Cap (2%), ComericaBk (2%), Morgan Stanley (2%), NorthernTr (2%)

COMMENTS: Facility is also available in Euros and pounds sterling. Option(s): $600M LC and $30M swingline. LC can be Financial or Performance LC.

LC is also available in alternate currency. Euro sublimit = $350M. Pounds sterling sublimit = $75M. Collateral: Unknown.

Level Debt/CF P+ LIB+ Com SBLC

1 > or =3 175 275 50 287.5

2 > or =2.25 <3 150 250 50 262.5

3 > or =1.5 <2.25 125 225 37.5 237.5

4 <1.5 100 200 37.5 212.5

Pricing is as indicated initially, tied to co.’s consolidated debt to consolidated EBITDA ratio thereafter. Indicated SBLC fee applies for Financial LC. Co.

pays Performance LC as follows: 177.5 bps for Level 1, 162.5 bps for Level 2, 147.5 bps for Level 3 and 132.5 bps for Level 4. Financial and Performance

LC fee includes a 12.5 bps issuance fee.


(Deal cont’d on next page)


LEVERAGED DEALS cont’d

Non-M&A loans with LIBOR spreads ≥ 275 bps.


BB+/Ba1 $240M Del. Draw 38 03/15/2011 P+100 Upfr 87.5 200.0/37.5 Corp. purposes

(At Close Sr.) (Part 2/3) 05/01/2014 LIB+200 Com 37.5

B+/B1 (Sec’d)

(At Close Sub.)

B1 (At Close CP)





COMMENTS: Collateral: Unknown. Repayments: 8 Qtrly. installs. of $3M beg. 06/30/2012; $216M install. on 05/01/2014. Avg. life = 3.18 yrs.

Level Debt/CF P+ LIB+ Com

1 > or =3 175 275 50

2 > or =2.25 <3 150 250 50

3 > or =1.5 <2.25 125 225 37.5

4 <1.5 100 200 37.5

Pricing is as indicated initially, tied to co.’s consolidated debt to consolidated EBITDA ratio thereafter.

BB+/Ba1 $160M TL 38 03/15/2011 P+100 200.0/NA Corp. purposes

(At Close Sr.) (Part 3/3) 05/01/2014 LIB+200

B+/B1 (Sec’d)

(At Close Sub.)

B1 (At Close CP)





COMMENTS: Collateral: Unknown. Repayments: 8 Qtrly. installs. of $2M beg. 06/30/2012; $144M install. on 05/01/2014. Avg. life = 3.18 yrs.

Level Debt/CF P+ LIB+

1 > or =3 175 275

2 > or =2.25 <3 150 250

3 > or =1.5 <2.25 125 225

4 <1.5 100 200

Pricing is as indicated initially, tied to co.’s consolidated debt to consolidated EBITDA ratio thereafter.

GLIMCHER $250M RC 9 03/31/2011 P+300 Com 40 400.0/40.0 Work. cap.

PROPERTIES LP (Sec’d) 12/14/2011 LIB+400 SBLC 412.5 Capital expend.

Columbus, OH ExtenFee 30 Corp. purposes

SIC 6798

(Real estate

investment trusts)

REFI CREDIT

GUARANTOR(S): Glimcher Realty Trust. Co.’s subsidiaries also acted as guarantors.

LEAD LENDERS: Keybank NA (14%) - Admin. Agent/Lead Arranger, Bank of America Merrill Lynch (14%) - Syndications Agent/Lead Arranger, US Bank

NA (14%) - Co-agent, Wells Fargo Bank (14%) - Co-agent, Huntington Bank (12%) - Co-agent, Charter One Bank NA - Co-agent

OTHERS IN DEAL: PNCBk (12%), Goldman Sachs Bank USA (8%), Aareal Bank (6%), Eurohypo-Deutsche Bk (6%)

COMMENTS: Credit amends & restates company’s $470M agreement dated 12/14/2006. Credit may be increased up to $300M and extended for two

additional one-year periods. Keybanc Capital Markets Inc. and Merrill Lynch Pierce Fenner & Smith Inc. acted as joint lead arrangers. Pricing: (See grid).

Default rate = +400 bps. Prime fl oor = one month LIBOR plus 100 bps. No LIBOR fl oor. Option(s): $50M LC and $35M swingline. Financial Covenant(s):

Min. fi xed charge coverage ratio of 1.35:1; min. interest coverage ratio of 1.75:1; max. loan to value ratio decreasing from 0.65:1 to 0.62:1. Net Worth =

$800M + build up. Min. consolidated net worth = $800M plus 75% of equity contributions or sales of treasury stock received by co. Collateral: Real Estate.

Prepayments: Amount Reduction = 100%. Guarantor Release = 100%. Margin Reduction = 100%. Tenor Extension = 100%. Dividends are materially

restricted. Required Lenders = 66.67%. Term Changes = 100%. Collateral Release = 100%. Assignments: Company consent required, Agent consent

required. Assign. min. = $5M. Assign. fee = $3,500. Pro Rata = y. Min. hold by Keybank NA = 10% of total commitment.

Level Loa/Value P+ LIB+ SBLC

1 >0.6 325 425 437.5

2 >0.55 < or =0.6 300 400 412.5

3 >0.5 < or =0.55 250 350 362.5

4 < or =0.5 225 325 337.5

Pricing is as indicated initially, tied to co.’s consolidated outstanding debt to total asset value ratio thereafter. SBLC fee = LIBOR margin plus a 12.5 bps

issuance fee (min. of $1.5K).



LEVERAGED DEALS cont’d

Non-M&A loans with LIBOR spreads ≥ 275 bps. DRESSER-RAND

CONT’D


(NEWS cont’d on page 18)

Despite the uptick in volatility seen in the

broader markets, the U.S. leveraged loan market

witnessed continued strength in the form of a

handful of downward price fl exes last week as a

majority of loans currently in market were able

to slash spreads during syndication.

“There’s still plenty of demand for good qual-

ity credits out there,” noted one market player.

Despite its B2 corporate family rating, sporting

goods seller Academy Sports & Outdoors was

able to cut pricing on its $840 million covenant-

lite loan to back its leveraged buyout by Kohlberg,

Kravis & Roberts. A good underlying business

profi le and positive same store sales through the

downturn helped investors get comfortable with

the deal. A large equity check from the sponsor

also helped.

Nevertheless, Morgan Stanley played it some-

what safe when it released initial price talk on the

deal. Originally, the deal was talked at LIB+475-

500 with a 1.5 percent Libor fl oor and a 98.5 OID

for a relatively wide yield of more than 7 percent

given a three-year maturity. That compares to

an average yield of around 6.3 percent in 2Q11

for similarly rated credits, according to data

compiled by Thomson Reuters LPC.

“Some issuers have been starting out (syndica-

tions) with wider pricing but then tighten pretty

quickly once they begin getting traction,” noted

another market player. “Banks don’t want to get

caught having to go the other way.”

Ultimately, Academy Sports took the spread

down to LIB+450 with a 1.5 percent Libor fl oor

and a 99 OID for a yield to a three-year maturity

of around 6.37 percent, a yield more in line with

the recent average.

Despite the cut, the loan performed admirably

in the secondary market, trading up a full point

to 100-100.25 on the break last Wednesday.

“A lot of the higher-quality names originally

came out with massive discounts so it looks like

they’re tightening dramatically. But in reality

they’re still trading wide to the secondary mar-

ket,” noted a portfolio manager.

Further helping to bolster demand for new is-

sues, the institutional loan pipeline has dwindled

amid the usual summer lull. Last week, the

forward calendar dropped from more than $26

billion to $18 billion as a handful of existing

syndications closed and few new ones appeared

Academy Sports fl exes down amid continued loan demandto take their place.

“A lot of deals have been pushed until after

Labor Day,” the portfolio manager said. “So

whatever deals there are aren’t facing too much

competition for investor attention.”

Helped by its Ba2 rating profi le, OM Group

last week cut pricing on its cross-border $900

million loan backing its acquisition of Germany’s

Vacuumschmelze GmbH & Co. The interest

margin on the $350 million term loan B was

reduced to LIB+425 from initial price talk of

LIB+475-500. In addition, the margin on the

$250 million (equivalent) euro term loan B was

cut to EUR+475 from EUR+500.

And Capsugel shaved 50bp off the coupon on

its $920 million covenant-lite loan and tightened

its OID by another 50bp. The B1/BB- rated facility

priced at LIB+400 with a 1.25 percent Libor fl oor

and a 99.5 OID for a yield of around 5.4 percent.

And when the loan broke for trading last

Wednesday, it was quoted 100.25-100.75.

“There’s still a lot of cash in the system right

now,” the portfolio manager said. “So guys are

going into these deals pretty aggressively.”

THE WEEK IN NEWS

Immucor preps $700M LBO fi nancing

for launch

Immucor Inc is preparing to launch a $700

million credit facility Tuesday via JP Morgan

and Citigroup to back its $1.97 billion buyout

by TPG Capital, according to sources familiar

with the transaction.

The fi nancing includes a $100 million, fi ve-year

revolver and a $600 million, seven-year senior

secured term loan. Earlier, Immucor tapped a

$400 million senior unsecured bridge facility

to assist in the $1.1 billion fi nancing package.

Immucor manufactures and sells reagents and

systems used by hospitals, reference laboratories

and donor centers to detect and identify certain

properties of the cell and serum components of

blood prior to transfusion. – C.T.

Leveraged fi nance co-heads leave

Nomura

Julie Persily and Steven Seltzer, co-heads of

Nomura Securities’ leveraged fi nance group,

have both left the fi rm, sources said.

Persily and Seltzer were named co-heads of

the business in July 2010.

Before Nomura, Persily was at Citigroup where

she was co-head of leveraged fi nance. Seltzer

joined Nomura from North Sea Partners. – C.F.

Sealed Air unseals price talk;

outlines TLB structure

Sealed Air Corp unveiled price talk Tuesday

on the $1.45 billion pro rata portion of its $4.5

billion acquisition fi nancing led by Citigroup.

The deal, which backs Sealed Air’s $4.9 billion

acquisition of Diversey Inc, consists of a $700

million, fi ve-year revolving credit facility and a

$920 million, fi ve-year term loan A, of which $80

million will be a Canadian dollar denominated

equivalent, sources said.

Price talk on the pro rata portion is LIB+250

with no Libor fl oor or OID.

Commitments are due August 10.

Alongside the pro rata portion, Citi, at a later

date, will syndicate a $1.3 billion seven-year

term loan B.

As previously reported, Sealed Air expects to

have $3.8 billion fully funded at closing and will

leave the combined companies with pro forma

net leverage of 4.4 times.

Sealed Air manufactures bubble wrap and

other protective materials for food and industrial

packaging. – C.T.

Level 3 launches $650M TLB for

launch

Bank of America Merrill Lynch and Citi

launched Thursday a $650 million term loan

B for Level 3 Communications, sources said.

In an SEC fi ling from April, Level 3 had said it

would raise the $650 million TLB alongside a

$1.1 billion senior unsecured bridge loan. At the

time, the company had also said that the TLB

would be covenant-lite and would be talked at

LIB+400 with a 1.5 percent Libor fl oor and a

99 OID. The bridge loan would be priced at 14

percent, the fi ling said.

Proceeds are to back Level 3’S acquisition of

Global Crossing for about $1.9 billion. – S.M./C.T.

LPS sets price talk on TLB

Lender Processing Services (LPS) set price talk

of LIB+325-350 with a 1 percent Libor fl oor and

a 99.5 OID on its TLB, sources said. The deal,

which was launched Thursday by JP Morgan,

includes a $400 million revolver, a $350 million,

fi ve-year TLA and a $550 million, seven-year

TLB. Proceeds are to refi nance debt.

In 2008, LPS raised a $510 million TLB, a $700

million TLA and a $140 million revolver as part

of its spin-off from Fidelity National Informa-

tion Services.

LPS is a provider of integrated technology

and services to the mortgage and real estate

industries. – S.M.

– by Caleb Frazier


THE WEEK IN NEWS

Dynegy bumps pricing to fi ll book despite threat of lawsuitU.S. independent power producer Dynegy Inc,

after failing to fi ll the book on its $1.7 billion

refi nancing deal by the July 22 commitment

deadline, last week raised pricing and revised

tranching to better match investor demand for

the paper, sources said.

The company’s covenant-lite refi nancing is

split between two facilities, the “GasCo” and

“CoalCo” loans. Price talk on the “GasCo” loan

was bumped up by 125bp, and the loan is now

expected to be sold at a wider discount. Ad-

ditionally, $200 million was shifted from the

“GasCo” loan to the “CoalCo” facility.

The now $1.1 billion “GasCo” and $600 million

“CoalCo” facilities are priced in line with each

other. Both offer lenders a spread of LIB+775

with a 1.5 percent Libor fl oor (unchanged) and

an OID of 98.

“This deal is priced to sell,” said one portfolio

manager, of the revised pricing. “I don’t think

they’ll have any problems selling.”

Following the changes, sources said Dynegy

had received several sizable tickets at the new

talk.

However, at launch, the proposed $400 million

“CoalCo” loan, the smaller but initially more

richly priced of the two, was selling more suc-

cessfully than the proposed $1.3 billion “GasCo”

loan that received a tepid response from inves-

tors, sources said.

That same day, two lawsuits were fi led against

the company, further complicating the syndica-

tion process that marks the fi rst step in Dynegy’s

restructuring efforts.

The restructuring is led by the company’s two

largest shareholders, investor Carl Icahn and

hedge fund Seneca Capital.

Proceeds from the two new credit facilities will

be used to refi nance debt at Dynegy Holdings

Inc (DHI). However, under the terms of the credit

facilities, Dynegy’s gas and coal assets have

been ring-fenced, moving them away from the

– by Leela Parker, Clinton Townsend

DB markets $1.88 billion Silgan refi

Deutsche Bank is in the market with a $1.88

billion refi nancing for Silgan Holdings, sources

said. The facility comprises an $800 million, fi ve-

year revolver and multi-tranched term loan A.

The TLA is split between a $520 million

tranche, a 335 million euro piece, and a C$81

million tranche. All three tranches have six-year

maturities.

The $520 million has been upsized from $400

million.

Pricing is tied to a leveraged base grid and

opens at LIB+175.

The facility was expected to close last week.

In April, Silgan lined up a $4.5 billion debt

fi nancing package also via BofA Merrill Lynch

to back its acquisition of Graham Packaging.

It included an $800 million fi ve-year multicur-

rency revolver, a $900 million six-year TLA, a

$2.3 billion, seven-year TLB and a $500 million

senior unsecured bridge loan.

The loan was cancelled when Silgan was outbid

by Reynolds Group Holdings. – M.S.

La Paloma offers price talk on

$424M refi

La Paloma, which launched via Bank of America

Merrill Lynch on July 21, offered price talk on its

$409.2 million refi nancing facility, according to

sources familiar with the deal.

The deal includes a $15 million fi ve-year revolv-

ing credit facility and a $299.2 million six-year

fi rst-lien term loan guided at LIB+525-550 with

a 96-97 OID. Also included is a $110 million

seven-year term loan guided at LIB+875 with

a 97 OID. Both fi rst and second-lien tranches

have a 1.5 percent Libor fl oor.

Proceeds are to refinance existing debt,

prefund a debt service reserve, fund 2011-2013

major maintenance and cash collateralize $30.2

million of LCs.

La Paloma Generating owns and operates a

natural gas-fi red power generation facility in

Kern County, California. – C.T.

Fogo De Chao sets price talk on

$205M facility

Fogo De Chao set price talk Tuesday on its $205

million credit facility at a bank meeting with JP

Morgan, sources said. The new facility consists

of a $10 million fi ve-year revolving credit facil-

ity and a $195 million seven-year term loan B.

Price talk on the TLB was guided at LIB+475-

500 with a 1.25 percent Libor fl oor and a 99 OID.

Proceeds from the facility will fi nance the

acquisition of shares from current shareholders.

Brazilian private equity fi rm GP Investments cur-

rently owns about 35 percent of Fogo De Chao.

Fogo De Chao is a churrascaria restaurant

chain in the U.S. and Brazil. – C.T.

MSC Software sets price talk on

dividend recap

MSC Software Corp set price talk Thursday at

LIB+500 with a 1.5 percent Libor fl oor on its $215

million six-year fi rst-lien term loan, according to


An OID has yet to be determined. However,

lenders will enjoy a 101 soft call for one year.

Proceeds from the Bank of America Merrill

Lynch-led loan will fund a dividend to spon-

sors Symphony Technology Group and Elliott

Management Corp, who bought MSC in 2009

for $360 million.

MSC Software manufactures design related

software which helps engineers create virtual

prototypes. – C.T.

CHI Overhead Doors sets price talk on

buyout loan

Price talk is out on CHI Overhead Doors’ buyout

loan, sources said.

The $127.5 million, six-year fi rst-lien term loan

is talked at LIB+525 with a 1.5 percent Libor

fl oor and a 99 OID. The $51 million, 6.5-year

second-lien term loan is talked at LIB+925 with

a 1.5 percent Libor fl oor and a 98 OID.

As reported earlier, the deal was launched

Wednesday by GE Capital and Wells Fargo. The

rest of the credit is fi lled out by a $25 million,

fi ve-year revolver.

Proceeds are to back CHI’s sale to Friedman,

Fleischer & Lowe from JLL Partners.

CHI Overhead Doors is a garage door company

and a manufacturer of residential sectional

garage doors, as well as commercial sectional

and rolling steel. – S.M.


debt laden DHI to create two new entities with

no existing debt or liabilities.

Ring-fencing ensures that the assets securing

the “GasCo” and “CoalCo” facilities are bank-

ruptcy remote in the event of a DHI bankruptcy.

In other words, only the new lenders to these

facilities have a claim against the assets.

LibertyView Capital and PSEG, holders of

lease obligations guaranteed by DHI, argue in

two separate lawsuits that the creation of the

bankruptcy remote entities increases the risk of

default and violates DHI’s guarantee of the lease

obligations in the event of a default.

“From a plain reading of the covenants these

lawsuits are a bit of a stretch,” said Chris Chaice,

analyst at Covenant Review, an independent

credit research fi rm.

A Delaware court was expected to rule by this

past Friday on whether Dynegy’s proposed debt

restructuring should be put on hold, Reuters

reported last week, citing a Dynegy spokesman.


THE WEEK IN NEWS


Rock Ohio Caesars sets price talk on

$125M TL

Price talk on Rock Ohio Caesars’ $125 million,

six-year fi rst-lien term loan is LIB+650 with a

1.5 percent Libor fl oor and a 98 OID, sources

said. The loan is non-callable for two years and

thereafter callable at 102, 101. The deal was

launched Wednesday by Credit Suisse, Deutsche

Bank and Citadel.

Rock Ohio Caesars is a joint venture between

Caesars Entertainment Corp and Rock Gaming.

The new facility consists of a $25 million fi ve-

year revolving credit facility, the $125 million

six-year fi rst-lien term loan, and a $125 million

six-year delayed-draw term loan.

Rock Ohio Caesars will also have $50 million

of incremental capacity in either the revolving

credit facility or the term loan.

Alongside the incremental capacity, Rock

Ohio Caesars will also have the ability to issue

an additional $300 million in loans, coined the

“Project Tranche,” which will allow for up to 50

percent of the issue amount to be pari passu

with the fi rst-lien term loan.

Price talk has yet to be determined. However,

the loan will be non-callable for two years, then

callable at 102, 101 in subsequent years.

Proceeds from the new credit facility will back

the development and operation of two casinos

in Ohio. – S.M.

SNL Financial launches $215M loan

Credit Suisse launched Wednesday a $215

million loan backing SNL Financial’s buyout by

New Mountain Capital, sources said. The deal

includes a $30 million revolver and a $175 million

covenant-lite term loan.

New Mountain Capital is acquiring a majority

stake in SNL.

SNL Financial is a provider of fi nancial informa-

tion on more than 4,000 public companies and

50,000 private companies. – S.M.

Bojangles sets price talk on

$215M LBO facility

Bojangles Restaurants set price talk Tuesday

on its $215 million credit facility backing its

buyout by Advent International, according to


The $190 million, six-year term loan was guided

at LIB+625 with a 1.25 percent Libor fl oor and

a 99 OID.

Alongside the TL is a $25 million, fi ve-year

revolving credit facility.

Sole lead, Jefferies, is asking commitments

by August 8.

Advent is said to have committed a 45 percent

equity check for the transaction which would

value the deal at roughly $390 million.

Bojangles is a franchised chain of fried chicken

restaurants throughout the United States. – C.T.

Ally Commercial hires middle market

veteran Acosta

Ally Commercial Finance LLC announced

that Luis Acosta has joined the middle market

lender as senior managing director. Acosta will

report to George Triebenbacher, president of

Structured Finance.

Acosta has more than 25 years of debt invest-

ing experience, principally engaged in middle

market sponsor fi nance. He has held various

business development, transaction execution

and leadership roles, working extensively with

private equity fi rms and intermediaries.

Previously, Acosta was head of Business

Development for the Capital Solutions Group

at PineBridge Investments. He has also served

as co-head of Sponsor Finance at Silver Point

Capital. In addition, Acosta spent 14 years at GE

Capital (including Heller Financial) in various

capacities, including transaction execution, port-

folio management and business development.

Ally Commercial Finance provides fi nancing,

including asset-based loans and enterprise value

to meet the needs of equity sponsors and middle

market companies. Ally CF lends to manufactur-

ers, distributors, retailers, and service companies

in a broad spectrum of industries including

specialty areas such as healthcare, retail and

automotive.

Products include asset-based loans and

enterprise value-based cash fl ow loans to sup-

port refi nancing, growth, acquisition and/or

recapitalization. – L.P.

Bridge loan pipeline signals M&A optimism despite debt ceiling concerns

As the August 2 deadline for raising the U.S.

debt ceiling looms, market participants wonder

what the ultimate impact of a downgrade could

have in the investment grade market. But a

growing pipeline for bridge loans that keeps

building despite concerns of a potential U.S.

default signals optimism among U.S. corporates

regarding a favorable resolution, bankers said.

“The pipeline for bridge transactions keeps

building,” said a senior banker. “This is a good

indication that despite concerns regarding the

U.S. debt ceiling, corporates and CEOs continue

to make decisions to meet their strategic goals.”

“So far, nothing has stopped those that wanted

to go out with M&A transactions,” a second

banker said.

The growing pipeline of bridge loans suggests

that corporates are shrugging off looming jitters

of a U.S. default and the consequent ratings

downgrade.

Bridge loans are short-term and temporary

loans that corporates use to back takeovers.

Corporates put them in place to have funds avail-

able while the acquisition transaction closes and

they are able to obtain permanent fi nancing in

the loan and bond markets. Bridge loans include

incentives to encourage earlier repayments.

In recent weeks, knowledge of at least four

potential bridge loans backing the acquisitions

of Medco Health Solutions, Nalco, Temple-Inland

and Southern Union have been announced in the

U.S. investment grade loan market. And more

are expected to follow, according to bankers.

Express Scripts is currently in the market with

a $14 billion bridge loan via Credit Suisse and

Citigroup. Joining the bridge is a $5.5 billion pro

rata tranche that is expected to subsequently

become its permanent fi nancing to back its

merger with Medco Health.

Bankers are also waiting for International Pa-

per (IP)’s $1 billion 364-day bridge. UBS is lead-

ing the loan that backs IP’s hostile takeover bid

for Temple-Inland. Also backing the transaction

is a $1.2 billion fi ve-year term loan. The facility

comprises a $1 billion 364-day bridge loan and

a $1.2 billion fi ve-year term loan.

An outcome is also anticipated in the bidding

war for Southern Union. Williams Co and Energy

Transfer Equity are understood to have lined up

bridge facilities backing their bids.

Lastly, bankers are tied to their seats trying to

fi gure out whether the proposed acquisition of

Nalco Holding by Ecolab will bring more bridge

loan paper to the market. Early last week, Ecolab

announced its plans to buy Nalco without com-

mitted fi nancing. The company is understood

to still be evaluating the optimal way to fi nance

its planned acquisition and has not tapped a

lead arranger.

The delay has left senior bankers wondering if

the company will indeed look for a bridge loan

and pay underwriting fees, use cash or a funded

term loan, or a combination of the two.

If nothing else, the fact that Ecolab did not

announce the deal with an underwritten fi nanc-

ing in place is further testament of confi dence

regarding the company’s ability to come up with

the necessary funds to back its acquisition even

in uncertain times.

– by Michelle Sierra


The pressing cost of funds issue continues

to haunt the syndicated loan market this year.

Already, Chinese, Hong Kong and Taiwanese

banks are all experiencing increasing costs and

implementing different strategies to counteract

the shortage of US$ funds.

And as the Italy debt crisis unfolded recently,

European banks’ costs of funds scaled higher.

The Europeans, similar to Asian banks, are also

fi nding ways to tide through this crisis.

An Asia-based Spanish banker said European

banks’ costs had been in the 100s this year but

have recently surged to around 200bp.

“Our cost of funds was about 140-150bp

a couple of weeks ago,” he said. “Once Italy

became front-page news, our cost jumped to

about 180-190bp.”

An Asia-based Italian banker said their costs

were even higher at over 200bp. A US-based

Italian banker affi rmed that their cost is now at

about 200bp.

It seems the French banks are not hurting as

much as other European banks. French banks’

costs may not have reduced like they wanted, but

their costs have stabilised since the beginning

of the year, an Asia-based French banker said.

All pointed out that the major issue was with

US$ funding which many need for overseas and

domestic businesses. “Euro funding is about

40bp cheaper than US$ funds,” a source said.

Not As Bad as Lehman Times

A few bankers who spoke to basis point are

positive that costs will go down.

One said, “Our cost now is not as high as during

Lehman days when it took about three to four

months after for costs to go down.”

Another added, “Nobody was doing anything

after Lehman. At least we are still seeing Euro-

peans in deals now.”

In fact, another Asia-based French banker said

they are now operating at a steady pace. “We

are not expanding or aggressively bidding for

mandates, but we are maintaining our presence.”

However, “we do notice lesser activity from

Europeans compared to a couple of years ago”,

the same source said.

A US-based European banker noted, “The

French banks are still strong, the Spanish banks

are still bidding for mandates, and the Germans

are weathering the storm.”

But one source said the European crisis has

been too prolonged.

Another believes it could probably be a year

before recovery starts. “Until the individual

countries’ risks become less of an issue -- then

we might see light.”

… but still a potential time bomb

One European banker cautioned that loss of

confi dence from investors may trigger a run on

deposits.

“We may have passed the stress test but that is

not enough to assure investors,” the banker said.

Another banker said the stress test was too

easy, so it did nothing to increase investor

confi dence.

As some markets, such as the US investment

grade market, continue to offer wafer-thin

margins or single-digit commitment fees, some

players fear their banks will lose competitiveness.

“A 364-day facility can offer 2bp undrawn fee,

and we now need at least 15bp for that kind of

structure. We are becoming too expensive and

may soon be pushed out of the market,” a US-

based European banker said.

Also, a few have begun implementing Basel III

rules, which add to the liquidity burden as banks

are required to increase their capital reserves.

According to a US-based Italian banker, it feels

like they are the only ones in the US exercising

Basel III requirements.

Meanwhile, in Asia, a Spanish banker said

they are already preparing for Basel III. And a

French bank confi rmed that they are aligning

themselves with the new rules.

Another source said that Singaporean banks

are already complying with Basel III.

Taking Steps to Avoid Loss

In a survey by LPC in March, many bankers

agreed they would rather go for unfunded revolv-

ers, even if there was not much yield, because

“at least I know my cost of funds”.

If a revolver is drawn and the borrower paid a

Libor-based pricing that is lower than a bank’s

cost of funds, the bank will suffer a loss.

Or as one put it, “That would be a nightmare

scenario.”

Some believed that a few banks may already

be incurring losses on recent low-priced deals.

Several said they would be looking not just at

non-funded credits, but bilateral loans or project

fi nancing as well. Project fi nancing deals tend

to offer higher yields but are longer tenored.

One source mentioned going down the rating

spectrum to look for yields. “Otherwise there is

nothing to look at,” the source said.

“Or we will provide guarantees or take un-

funded risks of credits and fi nd other banks to

help fund the deals. The Chinese (banks) are

already doing it anyway,” he continued.

When asked about relationship clients, a

Spanish banker replied, “That’s a very tough

question. We may have to suck it up, but for

which clients?”

ASIA

Jacqueline PohCost of funds issue heightened as Europe crisis prolongs

Amex locks up A$4.5B loan

Credit card company American Express Credit

Corp is wrapping up a A$4.5 billion loan which

has been signifi cantly oversubscribed by exist-

ing lenders, according to banking sources. The

deal underscores bank appetite for fi nancial

institution paper despite a spiralling debt crisis

in Europe and the US.

The loan pays a margin of 135bp over BBSY

and 170bp over BBSY, said the sources familiar

with the transaction. The deal -- arranged by

Citigroup, Commonwealth Bank of Australia,

National Australia Bank and Westpac Banking

Corp -- is to refi nance an existing A$4.25bn loan

maturing later this year.

The loan book was oversubscribed by around

20 percent, one of the sources said, underscoring

investor appetite. The four leads alone commit-

ted A$500 million each.

Existing lenders are among the largest global

banks, including Barclays Capital, Royal Bank

of Scotland, ING Bank, Mizuho Corporate Bank,

Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui

Banking Corp and Standard Chartered.

American Express is rated BBB+ by Standard

& Poor’s.

The success of the deal bodes well for Macqua-

rie Group which is in discussions with lenders to

refi nance A$3 billion of existing loans.

Macquarie Group, rated A-, higher than Amex,

is seeking tenors of 3.5 years and 5.5 years and is

asking for 160bp over BBSY for the longer tenor.

The bank is speaking to a lead group of banks

to commit large holds at a top level. There are

plans to tap a second tier of lenders in a later

phase. Macquarie has over 40 lenders in the

current loan.

The bank is also open to taking oversubscrip-

tions, which would increase the overall amount

of debt raised.

Macquarie’s earnings have come under pres-

sure due to weak market conditions that have

hurt its investment banking and trading divi-

sions. – S.K.


EUROPE

Wolfskin loans launch after fl ex and

second-lien added

The loan backing Blackstone’s 700 million euro

buyout of German outdoor brand Jack Wolfskin

has launched to wider syndication, banking

sources said Wednesday.

Following completion of an early bird phase

and investor feedback, the deal was restructured

by adding a 70 million euro second-lien tranche

and reducing the amount of senior debt. In ad-

dition, pricing on the senior debt was increased

by 50bp.

Private equity fi rm Blackstone mandated Bank

of America Merrill Lynch, Morgan Stanley, IKB

and UBS to arrange the debt.

The new structure on the loan is now as follows:

•• 80 million euro, revolving credit facility, pay-

ing EUR+450

•• 350 million euro seven-year term loan B,

paying EUR+500

•• 70 million euro seven and a half year second

lien, paying EUR+950

The debt-to-EBITDA ratio is around 4.4 times

total and 3.6 time through the senior debt.

A bank meeting was be held in London July 29.

An original issue discount on the loan will be

revealed at the bank meeting. Banks will be

offered tickets of 15 million euros on the RCF

and the term loan B, with a 200bp fee on offer.

Blackstone concluded negotiations to buy Jack

Wolfskin from Quadriga Capital and Barclays

Private Equity July 21. The brand’s rivals, in the

fast-growing market for outdoor clothing and

equipment, include VF Corp-owned The North

Face. – C.R./I.W.

TNK-BP approaches banks for

$1.5B loan

Ten relationship banks have been approached

to participate in a $1.5 billion, four-year club loan

for Russia’s TNK-BP, in which oil major BP has

a 50 percent stake, bankers said on Tuesday.

Bank of America and Bank of Tokyo-Mitsubishi

UFJ are the coordinators and bookrunners, with

Bank of America acting as documentation agent

and BTMU as facility agent. BayernLB, Citigroup,

Credit Agricole, HSBC, Mizuho, Nordea, SMBC and

WestLB have been approached to join the deal.

All 10 banks will come in at the same level,

committing $150 million each, one of the bank-

ers said.

Lenders’ credit approvals are expected by

August 5, another banker said.

TNK-BP’s chief fi nancial offi cer Jonathan Muir

said on Tuesday that the company is looking to

raise a $1.5 billion loan for “operational needs”.

The loan is priced at LIB+130.

“TNK-BP’s pricing is more aggressive than

deals for other comparable companies,” one

banker said, adding that it has deterred some

banks from participating.

TNK-BP last tapped the market in October 2010

when it signed an unsecured $2 billion, three-

year club loan that paid a margin of LIB+175.

The lending banks on that deal included

Banca Intesa, Bank of America, Bank of Tokyo-

Mitsubishi-UFJ, BayernLB, BNP Paribas, Citi,

Credit Agricole, Deutsche Bank, HSBC, ING,

Mizuho, Nordea, RBS, Societe Generale, SMBC

and WestLB.

TNK-BP International is rated BBB- by Fitch

and Standard and Poor’s and Baa2 by Moody’s.

– M.M.

Numericable pushes out commitment

deadline on amend and extend

French cable operator Numericable has ex-

tended the commitment deadline to an amend

and extend on its 3 billion euros of debt as the

company continues to negotiate with a number

of investors, sources close to the deal said.

The deadline has been extended by a week to

August 2 after gaining little investor support by

the original deadline of July 26, the sources said.

The company said it postponed the deadline to

fi nalize some documentation, one investor said

Investors expressed dissatisfaction at the fees

on offer for agreeing to extend maturities on all

of Numericable’s 3 billion euro debt facilities by

for two years and for consenting to the company

raising 500 million euro of senior secured or

subordinated bonds to repay existing debt.

Currently the blended cash interest margin

on the company’s term loan B/ C tranche is

EUR+250 plus an additional PIK of EUR+125.

If a majority of lenders agree to extend the

facilities they will see the 125bp PIK converted

into cash.

Those consenting to the bond could see a

margin increase on the TLB/C loans, but the

uplift depends on the overall leverage multiple.

Lenders will receive an additional 50bp if over-

all leverage is above 5 times; 25bp if leverage

is above 4.25 times; and no additional margin

interest if leverage is below 4.25 times.

Leverage could remain over 5 times if a senior

secured bond is issued while an unsecured

bond is likely to push overall leverage below

4.25 times.

“The company is already close to being 5 times

leveraged which means realistically at best we

are looking at 25bp increase or nothing for

agreeing to these changes. It doesn’t look that

compelling at the moment,” an investor said.

In addition, if leverage falls below 4.25 times,

the PIK will fall from 125bp to 75bp due to a

margin ratchet put in place in the original deal.

Consent fees are 12.5bp with an additional

37.5bp when a lender rolls into the new facility.

If the company gets enough support, it will

have until February to raise the bond.

BNP Paribas is running the process and wants

50 percent support from TLA and capital ex-

penditure facility lenders and 67 percent from

the TLB/C lenders.

Numericable had around 3.2 billion of loans

which backed its leveraged buyout by private

equity fi rms Cinven, Carlyle Group and Altice

in 2006.. – C.R.

Lactalis signs 7.5B euro acquisition

loan

French dairy group Lactalis has closed 7.5 bil-

lion euros of loan facilities backing its acquisition

of a majority stake Italy’s Parmalat, the lead

banks said in a statement on Thursday.

The loan, a rare new money fi nancing in a

market dominated by refi nancing, was fully

underwritten by bookrunners and mandated

lead arrangers Credit Agricole CIB, HSBC France,

Natixis and Societe Generale.

Syndication was launched to a limited group

of banks on May 23 with lenders offered tickets

of 300 million euro and 600 million euro. The

fi nancing closed oversubscribed and lenders

were scaled back signifi cantly, signing into the

deal on July 8.

The fi nancing, which also refi nances several

of Lactalis’s existing credit facilities, comprises

the following facilities:

•• Facility A: 1.65 billion euro, one-year term

loan, initial margin EUR+125

•• Facility B: 1 billion euro, two-year revolving

credit facility, initial margin EUR+125

•• Facility C: 750 million euro, three-year term

loan, initial margin EUR+225

•• Facility D: 3 billion euro, fi ve-year amortiz-

ing term loan and a 1.1 billion euro, fi ve-year

multicurrency revolving credit facility

As previously reported, facility A has a six-

month term-out extension option, while facility

C is has two one-year extension options at the

lenders’ discretion.

Pricing on facility A rises to 150bp after six-

months, rising to 200bp after 12 months. Pricing

on facility B rises to 150bp after six months, rising

to 200bp after 12 months and 250bp after 18

months. Pricing on facility B ratchets between

110bp and 275bp depending on a leverage ratio,

or 100bp to 250bp when facility A is fully repaid.

After the acquisition, the new Lactalis Group

will have annual turnover of around 15 billion

euros and more than 52,000 employees. – A.R.


THE WEEK IN NEWS — cont’d from p. 19

Steak ‘N Shake launches $160M refi

Steak ‘N Shake launched Thursday a $160

million credit facility via Jefferies, sources said.

The new facility is fi lled out with a $20 million

three-year revolver and a $140 million four-year

term loan. Pro forma leverage is being marketed

at 3.2 times.

Proceeds from the new facility will refi nance

existing debt and fund the return of capital to

its parent Biglari Holdings.

Steak ‘N Shake is a franchised restaurant chain

throughout the United States serving signature

hamburgers and milkshakes. – C.T.

General Cable nets $400M ABL

General Cable Corp announced last Monday

its successful refi nancing of its $400 million

asset-based revolving credit facility, according

to a company press release.

The new fi ve-year ABL also contains an ac-

cordion feature which allows General Cable to

increase the facility by up to $100 million.

Backed by assets of its U.S. and Canadian

subsidiaries, the JP Morgan-led ABL will have

fi rst priority security interest in both tangible

and intangible assets.

Pricing on the ABL is set at LIB+150-200 with

a commitment fee ranging from 37.5bp to 50bp.

The facility also has two springing maturities.

One to August 16, 2013 if General Cable does

not refi nance $355 million of the 0.875 percent

convertible notes due 2013. The other springs

to December 31, 2014, should General Cable

not refi nance $125 million of its Senior Floating

Notes due 2015. – C.T.

Ipreo shifts funds into mezz

Ipreo Holdings shifted $35 million of funds

into its mezzanine tranche from its term loan B,

sources said. The covenant-lite TLB now stands

at $115 million.

As a result, senior secured leverage is now

3.1 times.

Pricing on the TLB is unchanged at LIB+650

with a 1.5 percent Libor fl oor and a 98 OID. The

loan also has 101 soft call protection.

As reported earlier, the deal, which is led by

RBC, also includes a $20 million revolver.

Moody’s has assigned a B2 corporate family

rating and a B1 facility rating.

KKR is buying the company from Veronis

Suhler Stevenson. Terms of the buyout were

not disclosed.

Ipreo is a provider of data, market intelligence,

and productivity solutions to investment banking

and corporate clients. – S.M.

Monroe Capital adds four to

origination team

Monroe Capital LLC announced it has ex-

panded its origination team with the addition

of four new hires. Thomas Karle, Laura Kraus,

Cameron Fleming, and Lori Potter have joined

the private investment fi rm, which targets in-

vestments in middle-market and lower-middle

market companies.

“We are very excited and fortunate to expand

our origination team with the addition of four ex-

perienced professionals to better serve middle-

market businesses nationwide,” said Theodore

Koenig, president and chief executive offi cer of

Monroe Capital, in a statement.

Karle joins as managing director and will be

responsible for origination in the Eastern region.

Prior to joining Monroe, Karle was managing

director at MFC Capital Funding where he was

responsible for new business origination.

Kraus joins as managing director. She will be

responsible for origination in the Midwest region.

Kraus also joins Monroe from MFC Capital Fund-

ing where she was a director, with responsibility

for new business origination.

Potter will be responsible for origination in

the Southeast region. Potter brings more than

25 years experience in both asset-based and

cash-fl ow lending with GE Capital and GMAC

Structured Finance. Most recently, she has been

providing fi nancial consulting, capital raise

advice and fractional CFO services to middle-

market clients.

Cameron Fleming will be responsible for

origination in New York City and the surrounding

metropolitan area. Fleming brings 22 years of

experience in leveraged and structured fi nance.

Most recently, Mr. Fleming was Director of Sourc-

ing for Golden Tree Asset Management.

Monroe Capital is a private investment fi rm

providing senior and junior debt and equity co-

investments to middle-market companies in the

U.S. and Canada, including one-stop fi nancings,

bridge loans, acquisition facilities, mezzanine

debt, second lien or last-out loans, equity co-

investments and acquisitions of distressed debt.

In March, Monroe Capital registered to launch

a business development company (BDC) under

the name Monroe Capital Corp, according to a

regulatory fi ling. – L.P.

LBC Credit delivers one-stop facility

to Wenner Bread

LBC Credit Partners announced Wednesday

it served as the sole lender and administra-

tive agent for a $36.5 million one-stop senior

credit facility to support Frontenac Company’s

recapitalization of Wenner Bread Products Inc.

Proceeds from the credit facility supported

Frontenac’s purchase of Wenner, a family-owned

wholesale bakery founded in 1956. Wenner

manufactures high-quality frozen, par-baked,

and fully-baked dough, breads and rolls.

LBC also made an equity co-investment in

Wenner.

“LBC was instrumental in helping us complete

this investment and in navigating the challenges

associated with investing in a family owned busi-

ness. Their structuring experience, fl exibility and

commitment to a successful close are what made

them a truly valuable partner. We look forward

to working with them as our fi nancial partner,”

said Ron Kuehl, Principal, Frontenac Company.

LBC Credit Partners is a provider of middle

market fi nancing solutions including senior

term, unitranche, second lien, junior secured, and

mezzanine debt; and equity co-investments. LBC

follows a “lend and hold” strategy, and typically

invests $10 million to $50 million per transaction

in support of acquisitions, growth strategies, re-

fi nancings, recapitalizations, and restructurings

in a wide range of industries located throughout

North America. LBC has offi ces in Philadelphia,

Chicago and New York. – L.P.

NewStar hires Williams to spearhead

Midwest ABL opportunities

NewStar Business Credit, a division of NewStar

Financial Inc, announced it has hired Mike Wil-

liams to lead asset-based fi nancing opportuni-

ties in the Midwest, according to a statement.

Williams, joining as senior vice president, will

head the division’s regional marketing and origi-

nation efforts, with responsibility for generating

new asset-based fi nancing opportunities with

middle market companies out of NewStar’s

Chicago offi ce.

“Mike is well known throughout the market-

place and will be a great addition to our origina-

tion efforts in the Midwest region,” said Milton

Iskra, executive vice president and national mar-

keting manager for NewStar. “He adds strong

marketing and credit skills as well as valuable

execution experience to the NewStar team.”

Prior to joining NewStar, he was a director with

Gordon Brothers Group in Chicago. Previously, he

worked for UPS Capital and PNC Business Credit.

NewStar Business Credit provides asset-based

loans to mid-sized companies operating across

a variety of industries nationwide. Deals typically

range in size from $5 million to $25 million and

are structured to meet the unique needs of each

client through a combination of revolving lines

of credit and term loans.


THE WEEK IN NEWS

NewStar Financial is a specialized commercial

fi nance company focused on companies and

private investors in the middle markets. It spe-

cializes in providing a range of senior secured

debt fi nancing options to mid-sized companies

to fund working capital, growth strategies,

acquisitions and recapitalizations, as well as,

equipment purchases. – L.P.

FirstMerit adds loan syndications

manager

FirstMerit Bank has appointed Ron Majka

senior vice president and manager of loan syndi-

cations, according to a statement from the bank.

Majka will be responsible for the development

and management of FirstMerit’s Loan Syndica-

tions Group.

FirstMerit Loan Syndications will support

multi-bank relationships in the bank’s middle

market, and specialized lending groups, includ-

ing FirstMerit Bank Business Credit, Healthcare

Real Estate, Equipment Finance, and Insurance

Premium Finance.

Majka reports to Brian Karrip, executive vice

president Specialized Lending. Karrip joined

FristMerit from KeyBank last September to lead

the expansion of FirstMerit’s buyside platform,

with an eye on establishing a syndicated loan

business in the long term, Karrip said upon

joining the bank.

Prior to joining FirstMerit, Majka spent 12 years

with National City Bank, where he served as a

director in the Loan Syndications Group. During

his tenure at National City, Majka also served

as a senior vice president in the bank’s Upper

Middle Market Group where he was responsible

for a $500 million loan portfolio comprised of

public and private Northeast Ohio companies.

FirstMerit Corp is a diversifi ed fi nancial services

company headquartered in Akron, Ohio. – L.P.

Judge rejects Dodgers’ $150M

bankruptcy loan

The Los Angeles Dodgers were directed to

negotiate a $150 million loan from Major League

Baseball on July 22 to fi nance their bankruptcy

after a judge rejected the team’s preferred loan.

In rejecting the proposed loan from Highbridge

Capital, a hedge fund unit of JPMorgan Chase

& Co, Delaware Bankruptcy Judge Kevin Gross

said baseball’s proposed alternate fi nancing had

“substantial economic superiority.”

He also wrote that baseball’s loan must “be

independent and uncoupled” from the league’s

oversight and governance of the Dodgers under

the league’s constitution.

The money will keep the team operating and

give team owner Frank McCourt time to try to

sell cable TV rights to broadcast the team’s

games, which should put the Dodgers on sound

fi nancial footing.

Commissioner Bud Selig rejected the team’s

proposed $3 billion deal for those rights last

month, and days later the Dodgers fi led for

bankruptcy in a bid to prevent the league from

seizing the team. – Reuters

Allocations out on Praxair’s

$1.75B revolver

Allocations are out for Praxair Inc’s $1.75 billion

fi ve-year revolver, sources said.

Bank of America Merrill Lynch, Citigroup and

HSBC Securities are lead arrangers.

BofA Merrill, Citigroup and HSBC came in with

$160 million each. Bank of Tokyo-Mitsubishi,

Deutsche Bank, Royal Bank of Scotland and

Wells Fargo came in with $130 million each.

JP Morgan, Sovereign Bank and Credit Suisse

came in with $100 million each.

Banco Bilbao Vizcaya Argentaria, Sumitomo

Mitsui Banking Corp and Société Générale came

in with $75 million each.

Bank of New York Mellon, Bank of Nova Scotia,

U.S. Bank came in with $50 million each.

Intesa Sanpaolo, Northern Trust and China

Merchants Bank came in with $25 million each.

The facility will refi nance existing debt.

Pricing is on a grid based on the company’s

CDS with a fl oor of 25bp and a cap of 125bp at

current ratings. The commitment fee is 8bp.

The grid is as follows:

Rating Floor Cap Commit. fee

(=)AA-/Aa3 20 100 5

A+/A1 22.5 112.5 6

A/A2 25 125 8

A-/A3 50 137.5 10

BBB+/Baa2 75 162.5 15

(=)BBB/Baa2 100 187.5 17.5

Praxair is an industrial gas provider. – M.S.

CS upsizes bridge commitment to

$3.7B

Credit Suisse, which agreed to back Energy

Transfer Equity LP’s acquisition of Southern

Union with a $3.3 billion bridge loan, upsized its

commitment to $3.7 billion, documents show.

The 364-day bridge was upsized due to a

bidding war that ensued between Williams

Companies and ETE for control of Southern

Union. In the end, Southern Union chose ETE’s

$9.4 billion offer.

The deal is fi lled out with $5.7 billion in cash

and ETE stock.

Southern Union and Energy Transfer Equity

are both engaged in the transport and storage

of natural gas in the U.S. – C.T.

Danaher closes $2.5B revolver

Danaher Corp’s $2.5 billion fi ve-year revolver

has closed and allocated, according to an SEC

fi ling.

Lead arranger Bank of America Merrill Lynch,

together with Bank of Tokyo-Mitsubishi UFJ,

Citibank, JP Morgan and Wells Fargo Bank came

in with $150 million each.

Barclays Bank, BNP Paribas Bank, Deutsche

Bank, Goldman Sachs, HSBC, Mizuho, Morgan

Stanley Senior Funding, Northern Trust, Sumi-

tomo Mitsui Banking Corp, UBS Loan Finance

and US Bank participated with $100 million each.

Intesa Sanpaolo and Bank of Nova Scotia put

in $75 million each.

PNC Bank, Bank of New York Mellon, BBVA,

Credit Suisse, Danske Bank, DnB NOR Bank,

Nordea Bank, Standard Charter Bank, Westpac

Banking Corp and Australia & New Zealand

Banking Group Limited lent $50 million each.

As previously reported, the loan will refi nance

Danaher’s $1.45 billion multi-year revolver due

April 25, 2012.

At current ratings of A+/A1, pricing on the $2.5

billion refi nancing loan is 75 basis points over

Libor with a 7.5bp facility fee.

The pricing grid is as follows:

Debt Rating Facility Fee Margin

AA- / Aa3 0.060% 0.750%

A+ / A1 0.075% 0.750%

A / A2 0.100% 0.875%

A- / A3 0.125% 1.000%

< BBB+/Baa1 0.175% 1.250%

The deal launched on Friday June 17 the same

day the company closed a $3 billion, 364-day

unsecured bridge loan that backed the purchase

of medical test-maker Beckman Coulter. Ten

days later, the company reduced the $3 billion

loan to $2.2 billion with proceeds from an over-

subscribed $1.8 billion bond offering, according

to SEC fi lings.

At closing on July 15 the 364-day facility had

been further reduced to $1.5 billion.

Danaher is a manufacturer of technology for

the medical industry. – M.S.



THE WEEK IN NEWS — cont’d from p. 23

Insight Global sets talk on $157M

refi TLB

Insight Global Inc is guiding its $157 million

term loan at LIB+500 with a 1.5 percent Libor

fl oor, sources said. An OID is to be determined.

As reported earlier, BNP Paribas launched the

deal last Monday. The loan will take out the

company’s existing mezzanine debt.

The refi nancing would make the deal an all-

senior one with leverage of less than three times.

Last July, the company raised a $121 million TLB

at LIB+700 with a 2 percent Libor fl oor, along

with 101 soft call protection. The loan was sold

at 97 cents on the dollar.

Sources said the company has performed

well since the July 2010 deal. S&P upgraded

the company from B to B+, while an upgrade

to the current B2 Moody’s rating is also likely.

Insight Global had LTM Ebitda as of June 30

of around $54 million.

Proceeds from the 2010 deal, with leverage

of 3.3 times senior and 4.3 times total, were

used to fi nance Harvest Partners’ acquisition

of the company.

Insight Global is in the staffi ng services busi-

ness. – S.M.

China Security nets $500M

China Security and Surveillance has netted a

$500 million debt commitment letter from the

China Development Bank to back the company

going private, according to regulatory fi lings.

As part of the transaction, Guoshen Tu, chair-

man and CEO of China Security and Surveillance,

will purchase all the outstanding common stock

for the company that he does not already own

for $6.50 per share. The transaction is valued

at $442 million.

The eight-year term loan will bear an interest

at LIB+350 during the fi rst fi ve years and then

will step up to LIB+450 thereafter.

Tu and his wife are personally guaranteeing the

loan with their equity interests in the company.

China Security and Surveillance engages in

the manufacturing, retailing and servicing of

surveillance equipment to various branches of

government and private industry. – C.T.

Ardent Health sets talk on

$200M add-on TL

Ardent Health Services set price talk on its

$200 million add-on term loan, sources said.

The new facility is offered at LIB+500 with a 1.5

percent Libor fl oor and a 98.5 OID, sources said.

The add-on will be made to a $325 million,

5.5-year term loan syndicated in March 2010,

sources said. Pricing on the new tranche is in

line with pricing on the 2010 deal.

Commitments are due July 26th.

Ardent also has a $75 million revolving credit

facility which pays LIB+475.

Bank of America Merrill Lynch is leading the

add-on with incumbent Barclays and GE Capital

on the right.

Proceeds from the add-on will be used to

fi nance the acquisition of two hospitals from

Community Health Systems.

Based in Nashville, Tenn., Ardent own and

operate acute care health systems. The company

was acquired by Welsh, Carson, Anderson &

Stowe in 2001. – C.T.

Joy Global nets $1.5B bridge for 41%

stake in mining co.

Joy Global Inc netted a debt commitment letter

for a $1.5 billion bridge loan from JP Morgan,

Goldman Sachs, and Bank of America Merrill

Lynch to back its acquisition of a 41 percent

stake in International Mining and Machinery,

according to SEC documents. – C.T.

17TH ANNUAL THOMSON REUTERS LPC LOAN CONFERENCE

Don’t miss the loan market event of the year!

Boom to Bust and Back:The Global Loan Market Moves Forward

Thursday September 22, 2011 Marriott Marquis, New York City

Join hundreds of corporate treasurers, CFOs, institutional investors, senior bankers, rating agency

representatives and other market participants for a day of insight and networking as they meet to

discuss the current and future state of the global syndicated loan market.

www.loanpricing.com/conference.html

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