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  • Loan Market Commentary 08/17/2010
    It is amazing how quickly the market is able to forgive; a couple decent earnings reports, a large buyout offer, and a strong macro data point and the market breaks a 4-day slump. Equities were out of the gate strong today advancing on the earnings numbers from Home Depot and Wal-Mart. Both companies cited larger profits than expected but both missed sales estimates; so the lesson here is to be lean and mean which is the model that many American businesses have been adapting too (which is also evident in the jobs numbers). The economic numbers that came out today were mostly in-line with expectations; however, the July U.S. Industrial production number was double estimates and helped ease concerns over the economic slowdown. The equity markets closed higher with the S&P closing and 1,92.54 (+1.22%) and the Dow at 10,405.85 (+1.01%).
     
    The loan market felt much better today as sentiment in the market reversed course. Trading volumes continued to be very thin, but bids felt much better. Flow names and new issue loans were firmer an eighth to a quarter point. Off-the-run paper was also better bid by around a quarter point. The LCDX 14 opened up today a quarter higher at 96-96 ¼ and moved higher through out the day to finish at 96 ¼ - 96 ½. Toys-Deleware’s new term loan broke for trading and was last seen at 99 ½ - 100. Reynolds, GM, Fairpoint, Nielsen, and Landry’s were all active on the back of news. Tomorrow we get numbers from Symbion, PetSmart and Altegrity. On the macro front we have initial jobless claims and July leading indicators whose results will likely dictate the direction of trade. Have a good night.
     
    Headlines
    • Stock futures rise after Wal-Mart, Home Depot profits
    • Wal-Mart profit up but U.S. sales weak
    • Home Depot profit beats but sales miss estimates
    • No quick fix for Fannie and Freddie seen from meeting
    • Potash Corp rejects BHP Billiton's $39 billion offer
    • GM IPO filing expected Tuesday
    • Reynolds to buy Pactiv for about $6 billion
    • Nielsen plans to raise $2 billion in IPO: filing
    • Obama wants new model for Fannie, Freddie        
    • German investor morale drops; slowdown looms     
    • Ireland, Spain debt auctions ease euro zone nerves
     
    News
    • Reynolds Group Holdings has received committed financing from Credit Suisse, HSBC and Australia New Zealand Bank to back its $6 billion purchase of Pactiv Corporation, according to a press release. Today, Pactiv said it entered in a definitive agreement to be acquired by Reynolds Group. Reynolds is a wholly owned subsidiary of New Zealand-based Rank Group Limited, which is owned by Graeme Hart. Under the terms of the agreement, Pactiv shareholders will receive $33.25 for each share of Pactiv common stock held, representing a premium of approximately 39 percent over Pactiv's closing price of $23.97 on May 14, 2010, the last trading day prior to published reports regarding a potential transaction, the company said.
    • General Motors Co's IPO filing is expected to be today, Reuters reported, citing sources with knowledge of the preparations. The IPO is expected to raise between $15 billion and $20 billion.
    • Saks Inc posted better-than-expected quarterly results, helped by an uptick in luxury spending and the ability to sell more items at full price. Saks said sales at stores open at least a year, or same-store sales, rose 4.6% in Q2. Saks reported a net loss of $32.2 million, or 21 cents per share, for its second quarter, compared with a loss of $54.5 million, or 39 cents a share, a year earlier.
    • Fairpoint Communications Inc has filed a motion seeking U.S. bankruptcy court approval of Paul Sunu as new chief executive officer. Sunu will replace David Hauser as CEO. Hauser will remain a consultant to the company until its emergence from Chapter 11.
    • Landry's Holdings Inc $100 million senior secured offering via Jefferies is being talked expected to carry an 11.50% cash coupon, 90 issue price, with an approximate YTM of 15%. Books close 4pm today. Proceeds are to partially finance the acquisition of Landry's by Tillman J. Fertita, and for GCP.
     
    Earnings
    • Spectrum Brands' term loan is unchanged at 100.75-101 today after the company reported an 11% rise in 3Q10 revenue. The company said revenue was $653.5 million in the quarter, helped by its acquisition of Russell Hobbs Inc. Consolidated adjusted EBITDA was $124.1 million in the quarter, up from $122.8 million in the year-earlier period.
     
    On the Break
    • Toys-Delaware's new $700 million term loan broke for trading this afternoon in the 99-99.5 range and moved higher to 99.5-100. The loan was upsized for the second time to $700 million. Yesterday, the loan was increased by $150 million to $650 million after the issuers downsized its bonds by the same amount to $350 million. pricing on the covenant-lite facility firmed at LIB+450 with a 1.5% Libor floor and a 98.5 OID. Earlier, the OID was talked in the 98-98.5 range. There is also 101 soft call protection. The company's bonds priced at 7.375% on Monday. Bank of America Merrill Lynch, JP Morgan and Goldman Sachs lead the refinancing for Toys-Delaware, a subsidiary of Toys R Us.
     
    New Issues
    Price Flex
    • Bryant & Stratton College has downsized its term loan B from $180 million to $135 million and has firmed pricing on the facility at LIB+575 with a 1.5% Libor floor and a 98 OID. The facility also has 101 call protection. Earlier, price talk on the facility was LIB+500-525 with a 1.75% Libor floor and a 98 OID. The deal also has a $30 million term loan priced at LIB+550 with a 1.5% Libor floor. In addition, the size of the dividend was cut by $20 million. The deal is filled out by a $40 million revolving credit facility. GE Capital and Bank of America Merrill Lynch lead the deal. In July, the issuer netted corporate ratings of B1/B+. Proceeds will be used to refinance existing senior and mezzanine debt associated with the company's buyout in February 2008 by Parthenon Capital Partners and will provide a dividend to the sponsor/co-investors. Bryant & Stratton College is a for-profit provider of post-secondary education with a network of 16 campuses in New York, Ohio, Virginia and Wisconsin, as well as online. The College provides Bachelor and Associate degrees through 25 programs in a wide variety of areas including healthcare, business, information technology and legal.
    • Toys-Delaware has boosted its term loan B for a second time to $700 million after increasing it to $650 million yesterday. Yesterday, the company downsized its bonds by $150 million to $350 million. Pricing on the covenant-lite facility has firmed at LIB+450 with a 1.5% Libor floor and a 98.5 OID. Earlier, the OID was talked in the 98-98.5 range. There is also 101 soft call protection. Bank of America Merrill Lynch, JP Morgan and Goldman Sachs lead the refinancing for Toys-Delaware, a subsidiary of Toys R Us.
    Upsized
    • Airvana has upsized its term loan by $30 million to $360 million after increasing the size of the dividend it is paying to sponsors. Pricing has been flexed up to LIB+900 from LIB+700. A 2% Libor floor and 98 OID are unchanged. The deal is expected to allocate later this week. Jefferies, Macquarie and SG lead the deal. SAC Capital and GSO Capital Partners and ZelnickMedia are the sponsors. Airvana is a provider of mobile-broadband-network infrastructure products.
     
    Ratings
    • Moody's Investors Service changed the probability of default rating (PDR) for Energy Future Holdings Corp. (EFH) to Caa2/LD from Ca following the completion of a debt restructuring which Moody's views as a distressed exchange. EFH's Caa1 CFR and SGL-4 liquidity rating are affirmed. The rating outlook remains negative. In addition, Moody's assigned a Caa3 rating to the Energy Future Intermediate Holding Co. LLC (EFIH) 10% senior secured notes due 2020.
     
    High Yield
    Announced
    • NRG Energy Inc (NYSE:NRG) USD750m 144A (with reg rights)/Reg S sr unsec notes 2020 (10y). NC5 (MWC T+50). Equity claw: 3y 35%. Expected ratings B1/BB-. Equity call for up to 35% at par plus coupon for first 3 years. Contains "dual trigger" investor put at 101 and substantially similar covenants to the company"s 8.50% sr unsec notes due 2019. Citi/BAML/DB joint books. Co-mgrs: BNP, CA-CIB, ING, JPM, MS, RBS. Investor call at 10:30am today. Pricing this afternoon. Guaranteed by current and future restricted subs, excluding certain foreign, project and immaterial subs. UOP: GCP, including, working capital, investment in business initiatives and cap ex, repay debt, and fund recently announced acquisitions. NRG owns and operates power generation portfolios. HQ: Princeton, NJ.
    Price Talk
    • Price talk of 8.125%-8.25% is out on NRG Energy Inc (NRG) USD750m 144A Reg S sr unsec notes 2020 (10y). NC5 (MWC T+50). Equity claw: 3y 35%. Expected ratings B1/BB-. Via Citi/BAML/DB joint books. Books close at 2.30pm for pricing today.
    Priced
    • Landry's Holdings Inc USD99m prcds (USD110m face) 144A sr sec notes due June 01, 2014 (3y 9mos). NC1, then at par. Ratings TBD. Via Jefferies. No reg rights. Interest pays 03/01 adn 09/01 commencing 03/01/11. 11.50% cash coupon, at 90, 15.069% YTM. Del 08/31 (T+10). 144A
    • NRG Energy Inc (NRG) increased to USD1bn (from USD750m) 144A (with reg rights)/Reg S sr unsec notes 09/01/20 (10y). NC5 (MWC T+50). Equity claw: 3y 35%. B1/BB-. Equity call for up to 35% at par plus coupon for first 3 years. Contains "dual trigger" investor put at 101 and substantially similar covenants to the company"s 8.50% sr unsec notes due 2019. Citi/BAML/DB joint books. Co- mgrs: BNP, CA-CIB, ING, JPM, MS, RBS. 8.25% at 100. +561bp vs 2.625% 08/20. Del 08/20. 144A CUSIP: 629377BH4.
     
    What to Watch Tomorrow
    • Treasury to auction $25 billion 56-day cash management bills
    • CACI International Inc conference call 8:30 a.m. ET
    • Aquilex Holdings LLC Q2 earnings, conference call 9 a.m. ET
    • Cooper Standard Q2 earnings 8:30 a.m. ET, conference call 9 a.m. ET
    • Nortek, Inc. conference call 9:30 a.m. ET
    • Bob Evans Farms, Inc. conference call 10 a.m. ET
    • Polymer Group, Inc. conference call 10 a.m. ET
    • Altegrity, Inc. Q3 earnings, conference call 11 a.m. ET
    • Symbion, Inc. Q2 earnings, conference call 11 a.m. ET
    • PetSmart, Inc. Q2 earnings after market close, conference call 4:30 p.m. ET
    • Open Text Corp. Q4 earnings 4 p.m. ET, conference call 5 p.m. ET
    • Brocade Q3 earnings after market close, conference call 5:30 p.m. ET
    • AFC Enterprises, Inc. Q2 earnings after market close
     
     
    16th Annual Thomson Reuters LPC Loan Conference
    Wednesday September 22, 2010
    Marriott Marquis, New York City
     
    Now in its 16th year, the Thomson Reuters LPC Loan Conference has become one of the industry's premiere annual events. Join investors, lenders, financial sponsors and treasurers as they discuss the outlook for a continually evolving loan market.
     
    Click Here to view our detailed agenda and to access registration information.
     
     
    The views expressed are solely the author’s and are not associated with Reuters News nor do they reflect the opinions of Thomson Reuters.
    Aug 17 6:10 PM | Link | Comment!
  • Syndicated Loan Market Commentary 08/16/2010
    The markets today were quiet. The big news in Asia was that Japan’s 2Q GDP dropped below China’s. However that was before seasonal adjustments but I tend to give put more emphasis on the unadjusted numbers. Europe was tame and in the US volume was the lowest it has been all year, with the S&P and the Dow closing flat.
     
    The loan market was quiet and bids remained heavy with flow names lower by an eighth to a quarter point. New issues continue to perform well and are holding their value. Overall advancers and decliners were equally matched, but I would say that the market does have a negative bias, despite positive technicals. Multiplan and Chemtura’s new term loan broke for trading today and both traded atop their OID’s as accounts who got poor allocations fought for paper in the secondary. Elsewhere, Lyondell and Citadel Broadcasting’s term loans rose after announcing strong 2Q earnings.
     
    In the coming weeks, the biggest issue we are going to face is a lack of liquidity which will put pressure on the market. Between now and labor day the market is going to be quiet with a lot of the street taking time off to enjoy the final weeks of summer. After Labor Day, the primary market should pick up from where we left off on Friday with another wave of deals coming to market. Have a good night.
     
    Headlines
     
    Must Read Articles
     
    News
    • Fitch Ratings placed its ratings for Dynegy Inc on Rating Watch Evolving following news that a Blackstone subsidiary would acquire the company.
    • Fitch said it affirmed its ratings on NRG Energy Inc following NRG's announcement that it has signed a definitive agreement to purchase $1.36 billion of Dynegy Inc's assets from Blackstone. Their term loan firmed by an eighth to 97 3/8 – 98 1/8.
    • Toys R Us Delaware Inc announced $350 million in six-year senior secured notes. Proceeds, along with $500+ million in senior secured term loans are to repay senior debt.
    • Ameristar Casinos today announced it has declared a quarterly cash dividend of $0.105 per share.
    • The U.S. building materials sector recovery is beginning to gain momentum in terms of price increases and volume trends, Fitch said today in a report. Building materials directed to public infrastructure spending are likely to see continued moderately higher shipments due in part to stimulus-funded projects, Fitch said, while 2Qmomentum of building products in residential construction may stall somewhat in 3Q.
    • Frontier Communications Corp said today it has extended the deadline of its exchange offer to 5:00 p.m. on August 20, according to a filing with the SEC. The company is offering to exchange up to $500 million of its issued and outstanding 7.875% senior notes due 2015, $1.1 billion of its 8.250% senior notes due 2017, $1.1 billion of its 8.500% senior notes due 2020 and $500 million of its 8.75% senior notes due 2022 for a like principal amount of its registered 7.875% senior notes due 2015, 8.25% senior notes due 2017, 8.5% senior notes due 2020 and 8.75% senior notes due 2022.
    • Education Management Corp's term loan C is down about 50bp to 92.25-92.75 today as its stock price declined more than 17%. The stocks of for-profit education companies are under pressure today after the U.S. Department of Education released data late Friday that said a lower percentage of students at for-profit colleges repaid federal loans than those at public universities. The U.S. Department of Education recently proposed regulation to limit the ability of for-profit schools to graduate students with high debt-to-income ratios. Education Management, a for-profit provider of educational services, operates 72 campuses across the U.S. and Canada, training 72,000 enrolled students in fields such as fashion, psychology and web site design.
    • Cinram International's term loan has continued to decline since the company announced a drop in 2Q10 revenue almost a week ago. The loan is quoted 71-73 today, down from 73.5-75.5 Friday and around 80 before the company posted results on Aug. 10. Last week, the company reported revenue of $255.9 million in the quarter, down from $298.4 million in the year-earlier period. The decline in revenues focused lender attention the company's upcoming maturities. As of May, the company's bank loan became current, leaving the issuer with about nine months left to refinance. In February, the company said Warner Home Video will end its agreement to use Cinram as its exclusive provider of DVD products and distribution services on July 31. At that time, Warner accounted for about 28% of Cinram's revenue.
     
    Earnings
    • Plastics and chemical company LyondellBasell Industries NV, which just emerged from Chapter 11 bankruptcy, posted a second-quarter profit on Monday, sending its stock up nearly 5 percent. But the Rotterdam, Netherlands-based company said the long-term fundamentals for the industry had not changed appreciably, despite strong U.S. ethylene margins and improved results in European olefins and polyolefins. "The rates at which the world economy recovers and new capacity comes online in the Middle East and Asia will significantly influence operating rates and margins," said Chief Executive Officer Jim Gallogly. In over-the-counter trading, LyondellBasell shares were up 4.7 percent at $18.87. Excluding an $8.64 billion after-tax gain related to emergence from Chapter 11 and fresh-start accounting adjustments, second-quarter income was $203 million. The company posted a loss of $353 million for the year-earlier period. Excluding reorganization items and a $333 million noncash inventory charge, second-quarter earnings before interest, income taxes, depreciation and amortization, and restructuring costs more than doubled to $1.40 billion.
    • Citadel Broadcasting's exit TLB rose about 50bp to 105.25-106.25 this morning after the issuer reported a 3.3% rise in 2Q10 revenue. The company said net revenue rose to $194.4 million from $188.1 million a year ago. EBITDA in the quarter rose to $72.5 million from $58.4 million in the same period a year ago. Citadel exited bankruptcy protection on June 3. The $762.5 million exit loan is priced at LIB+800 with a 3% Libor floor.
     
    On the Break
    • MultiPlan's $1.3 billion term loan B broke for trading this afternoon in the 98.25-98.75 range. The seven-year loan is priced at LIB+475 with a 1.75% Libor floor and a 98 OID. Price talk was originally LIB+450-475 with a 1.75% Libor floor and a 98-98.5 OID. The term loan has 101 soft call protection. Senior secured and total leverage are 3.9 times and 5.9 times. The equity check is $1.27 billion. The corporate family rating is B2/B, while the facility rating is Ba3/B. Barclays, Credit Suisse and Bank of America Merrill Lynch lead the deal. It includes a $75 million, five-year revolving credit facility. Proceeds are to back the $3.1 billion LBO of the company by BC Partners and Silver Lake from Carlyle Group and Welsh, Carson, Anderson & Stowe.
    • Chemtura Corp's $300 million exit term loan broke for trading at 100.125 and has since moved up to 100.25-100.5. The six-year term loan is priced at LIB+400 with a 1.5% Libor floor and a 99 OID. The facility is rated Ba1, while the corporate family rating is Ba3. Bank of America Merrill Lynch, Citi, Wells Fargo, Barclays and Goldman Sachs lead the loan which, along with a $275 million five-year ABL revolver, backs the company's exit from bankruptcy. Senior secured leverage is 0.9 times, while total leverage is 2.3 times. Chemtura's U.S. operations filed for Chapter 11 bankruptcy protection in March 2009. The company is aiming to exit bankruptcy protection by the end of September.   
     
    Price Flex
    • Pricing on Strategic Partners' buyout loan has been cut to LIB+550 from LIB+600. At the same time, the OID has been tightened to 99 from 98. A 1.75% Libor floor remains unchanged. Commitments are due today. Leverage through the first-lien is 3.2 times, while leverage through the mezzanine piece is 4.6 times. The corporate family rating is B2, while the facility rating is B1. There is an unrated $75 million mezzanine piece. Credit Suisse leads the $205 million bank loan backing Strategic Partners' LBO by Bank of America Merrill Lynch Partners. The deal includes a $30 million revolving credit facility and a $175 million term loan. Strategic Partners provides consulting, coaching, and training services to federal agencies and corporates.
    • Toys-Delaware has upsized its term loan B by $150 million to $650 million after downsizing its bonds by the same amount to $350 million. price talk on the TLB is LIB+450 with a 1.5% Libor floor and a 98-98.5 OID. There is also 101 soft call protection. Commitments are due today. Bank of America Merrill Lynch, JP Morgan and Goldman Sachs lead the refinancing for Toys-Delaware, a subsidiary of Toys R Us.
     
    High Yield
    Announced
    • Toys "R" Us - Delaware Inc USD350m 144A sr sec notes due 2016 (6y). NC3. B1/BB- (Review poss upgrade/CW positive). Security: 2nd lien on the assets securing the ABL revolver and 1st lien on trademarks and certain other intellectual property. Via BAML/JPM/Citi/DB joint books, CS, GS, WFS, HSBC, USB as co-managers. 144A for life. Investor call at 11am today. Pricing this afternoon. UOP: along with USD500m+ sr sec term loans to repay its USD800m sr sec term loan and USD181m sr unsec credit facility. Biz: toy retailer. HQ: Wayne, NJ.
    Update
    • Radio One, Inc. announced that it had further extended the expiration time of its previously announced exchange offer for its 8.875% Sr Sub Notes due 2011 and its 6.375% Sr Sub Notes due 2013 to 5:00 p.m., NYC time, on August 30, 2010. As of 5:00 p.m., NYC time, on August 13, 2010, approximately 89.8% of the outstanding Existing Notes had been validly tendered into the exchange offer and not withdrawn.
    Price Talk
    • Price talk of 7.375%-7.50% is out on Toys R Us- Delaware Inc USD350m 144A sr sec notes due 2016 (6y). NC3. B1/BB- (Review poss upgrade/CW positive). Security: 2nd lien on the assets securing the ABL revolver and 1st lien on trademarks and certain other intellectual property. Via BAML/JPM/Citi/DB joint books, CS, GS, WFS, HSBC, USB as co-managers. 144A for life. Books close at 2:30pm. Pricing this afternoon.
    Priced
    • Toys R Us- Delaware Inc USD350m 144A sr sec notes due 09/01/16 (6y). NC3. B1/BB- (Review poss upgrade/CW positive). Security: 2nd lien on the assets securing the ABL revolver and 1st lien on trademarks and certain other intellectual property. Via BAML/JPM/Citi/DB joint books, CS, GS, WFS, HSBC, USB as co-managers. 144A for life. 7.375% at 100. +567bp vs 3% 08/31/16. Del 08/24 (T+6).
     
    16th Annual Thomson Reuters LPC Loan Conference
    Wednesday September 22, 2010
    Marriott Marquis, New York City
     
    Now in its 16th year, the Thomson Reuters LPC Loan Conference has become one of the industry's premiere annual events. Join investors, lenders, financial sponsors and treasurers as they discuss the outlook for a continually evolving loan market.
     
    Click Here to view our detailed agenda and to access registration information.
     
     
    The views expressed are solely the author’s and are not associated with Reuters News nor do they reflect the opinions of Thomson Reuters.
    Aug 16 6:19 PM | Link | Comment!
  • Syndicated Loan Market Commentary 08/12/2010
    Globally, everything was lower as investors fled from equities. Asia was down around 1% taking their cues from the US. Europe chopped around for most of the day but fell off a quarter after the U.S. jobless claims number; the FTSE bucked the trend to close firmer. The US was down around a half a percent today with the S&P and Dow closing at 1,083.61 (-0.54%) and 10,319 (-0.57%). With the economic outlook getting increasingly uncertain, investors are going to take profits from the recent rally and wait for things to get better. 2Q earnings got everyone excited, but when that was not matched with an increase in jobs, people got skeptical. Now, with the economic outlook slashed by both the U.S. and U.K. there is little incentive to add to payrolls. So, who is going to be spending? The Government? The Consumer? I doubt it will be either as they both are broke; so much for Keynesian economics. The only thing I see is the return of the supply-siders, but we need to get through the mid-term elections to see any sort of policy change. But, I digress.
     
    The loan market was weaker again today with flow names off around half a point. Newer issues are holding up but older vintage loans are having trouble. Investors are attracted to the yield of the newer issues and since most are fairly liquid that has helped keep prices stable. The strategy now is to buy selectively but remain mobile and avoid illiquid names. High beta names will continue to lose ground, so save some room to pick up those names once the weather clears. For now, keep your eyes out for any positive catalysts, but the negative trend will continue. The retail sales numbers will determine the direction of the market tomorrow so everyone better start praying. But, I will leave you with one piece of good news; loan and high yield mutual funds showed inflows of $102.4 million and $574.8 million respectively for the week ended August 11th. Have a good night.
     
    Headlines
    • Eurozone June industry output down, strong over Q2
    • Bud brewer Q2 boosted by Brazil and World Cup
    • Global stocks slip, dollar gains on US, Greek data
    • U.S. jobless claims jump shows labor market ailing
    • GM CEO steps down as profit revs up IPO engine   
    • U.S. housing market to skirt another big downturn
    • Shorting Wall Street on the campaign trail       
    • Fed to take more policy easing steps-Kaufman     
    • CVC readies Univar amend-to-extend, term loan    
     
    Must Read Articles
     
    News
    • General Motors Co has secured a $5 billion credit facility, two people briefed on the bank deal said on Wednesday, marking the return of the top U.S. automaker to the capital markets a year after it emerged from a landmark bankruptcy. GM now plans to file a registration for its IPO on Friday, a day after it reports what is expected to be its second consecutive quarterly profit, two people with direct knowledge of the process said. By securing the bank credit, GM cleared a hurdle toward an initial public offering of stock expected to make the U.S. government a minority shareholder and hand the Obama administration an important political win against critics of its $50 billion bailout of the automaker. GM, now 61 percent-owned by the U.S. government, is counting on the momentum from its improved profitability and better global auto sales to build investor interest for a stock sale that will mark the return of a one-time blue chip to the ranks of listed companies. The GM IPO, expected to be the largest ever for the U.S. market and an unprecedented privatization of an American industrial icon, is likely before the U.S. Thanksgiving holiday.
    • Las Vegas Sands has set a 2:00 p.m. deadline today after floating revisions on pricing and the terms of the paydown for the proposed amendment to its $5 billion credit facility. Pricing was increased by an additional 25bp to LIB+275 and the paydown is set to be the lesser of $1 billion or 40% of the part for those who extend for 2.5 years. Under the original terms of the amendment LVS would pay down $750 million of the outstanding $3.9 billion under its $5 billion credit facility, and extend approximately $2.25 billion for 2.5 years. Lenders who extended would have also received a 75bp price bump to LIB+250 along with a 10bp consent fee. The amendment was put to a vote Tuesday as planned, but Wednesday morning creditors were still waiting to hear the final result. At that time, the amendment was reportedly just shy of attaining the required 51% creditor approval. Several investor sources said that as of 9 a.m. yesterday morning Credit Suisse was still reaching out to lenders, having attained roughly 47% of the required vote. This morning, the blocking group was said to believe the amendment was close to netting the 51% approval.  
    • Univar USA sponsor CVC Capital Partners is prepping an amend-to-extend of the chemical company's existing credit and new $300 million term loan in a deal that would bring in an unnamed equity sponsor to buy up 49% of the company. First, under the amend-to-extend pricing would increase by 100bp to LIB+400, with the addition of a 1.5% Libor floor. The loan would be extended by two years to mature in 2016. Lenders who agree to extend would also receive an additional 12.5bp fee. Second, lenders are being asked to approve a new $300 million seven-year term loan; proceeds from the loan would pay a dividend to equity sponsor CVC. The proposed loan would pay LIB+450, carry a 1.5% Libor floor and rank pari-passu with the existing loan. Existing lenders would receive a 12.5bp fee to approve the new loan, however, under the proposed terms they would not be eligible to enter into the loan. Even though the new loan has wider pricing, it is unavailable to current lenders as it is already spoken for by a third party. Lenders are also being asked to approve the amendment and new loan without being advised on the identity of the new equity sponsor that would acquire 49% ownership of Univar. The transaction would not result in change of control. There are reportedly two equity sponsors in the running, both of which want to see the amendment passed in order to sign onto the deal. CVC however has not identified the two potential sponsors to existing lenders.
     
    On the Break
     
    New Issue
    • Vertis Inc has downsized its first-lien term loan by $60 million to $365 million. In addition, the last-out term loan is now a second-lien term loan, which has been upsized by $60 million to $210 million. Pricing on the first-lien loan remains unchanged at LIB+900 with a 97 OID and a 2% Libor floor. The call language is 104, 103.5, 102, 101 and par for the five years. Credit Suisse leads the deal. Amid market volatility in May, Vertis was to launch a $300 million note issue pari passu to its then $300 million term loan. And pricing on the term loan was to be determined after the notes had priced. Proceeds are to refinance existing debt.
    • Price talk on Toys-Delaware's $500 million term loan is LIB+450 with a 1.5% Libor floor and a 98.5 OID. Bank of America Merrill Lynch, JP Morgan and Goldman Sachs are launching today the refinancing for Toys-Delaware, a subsidiary of Toys R Us. Toys R Us announced Aug. 11 that Toys-Delaware will raise $1 billion in senior secured term loans and senior secured notes. Toys-Delaware intends to use the cash proceeds to repay its existing $800 million secured term loan facility and its existing $181 million senior unsecured credit facility, the company said in a statement. The loans and notes will not be guaranteed by Toys R Us.
    • Las Vegas Sands revised pricing and the terms of the paydown on its proposed amendment to its $5 billion credit facility. Pricing was increased by an additional 25bp to LIB+275 and the paydown is set to be the lesser of $1 billion or 40% of the part for those who extend for 2.5 years.
    • Gentiva Health Services has downsized its six-year term loan B by $20 million to $580 million after upsizing its bond offering by the same amount to $325 million. The call language is now 102, 101, compared to 101 earlier. Pricing on the term loan B was flexed up last week to LIB+500 with a 1.75% Libor floor and a 96 OID. Earlier, price talk on the TLB was LIB+450-475 with a 1.75% Libor floor and a 98 OID. Gentiva's upsized $325 million notes priced at par to yield 11.5%.
     
    High Yield
    Announced
    • Warner Chilcott Co LLC/Finance LLC (NASDAQ:WCRX) USD750m 144A sr unsec notes due 2018 (8y). NC4 (MWC T+50bp). Equity claw: 3y 35%. B3/B+ (-- /stable). Via BAML/JPM/GS joint books, Citi, CS, DB, MS, UBS as co-managers. With reg rights. Investor call at 11am today. Pricing this afternoon. UOP: along with sr sec term loans (USD500m term loan A-2 and USD1bn term loan B-2) via JPM/BAML to fund a leverage recapitalization, which includes the payment of a special dividend to its ordinary shareholders of USD8.50 per share or USD2.15bn total. Biz: specialty pharmaceuticals. HQ: Ardee, Ireland.
    • Travelport Ltd USD250m 144A/Reg S sr notes due March 2016 (6.5y). NC3 (then par plus half the coupon). Ratings TBD. Via CS/UBS joint books. Investor call late this morning. Pricing likely this afternoon. UOP: repay bank debt (term loan C and revolver), GCP. Travelport is a leading provider of critical transaction processing for the global travel industry.
    • Cardronics Inc (NASDAQ:CATM) USD200m SEC registered sr sub notes due 2018 (8y). NC4 (MWC). Equity claw: 3y 35%. Expected ratings B2/BB-. Via BAML/JPM joint books, WFS, BBVA, STI joint books. Investor call at 11am today. Pricing this afternoon.
     
    Price Talk
    • Price talk of 7.75% area is out on Warner Chilcott Co LLC/Finance LLC (WCRX) USD750m 144A sr unsec notes due 2018 (8y). NC4 (MWC T+50bp). Equity claw: 3y 35%. B3/B+ (stable/stable). Via BAML/JPM/GS joint books. Books close at 3.30pm. Pricing this afternoon.
    • Price talk is out on Cardronics Inc (CATM) USD200m SEC registered sr sub notes due 2018 (8y). NC4 (MWC T+50bp).Expected ratings B2/BB-. Via BAML/JPM joint books. Books close at 2.30pm. Pricing this afternoon.
     
    Priced
    • Multiplan Inc USD675m 144A sr notes due 09/01/18 (8y). NC4 (MWC T+50bp). Equity claw: 3y 35%. Caa1/CCC+ (stable/- -) Via BAML/Barc/CS joint books. 9.875% at 100. +767bp vs 4% 08/15/18. Del 08/26 (T+10). 144A CUSIP: 62546FAB7.
    • Cott Corp (NYSE:COT) USD375m 144A sr notes due 09/01/18 (8y). NC4. B3/B (stable/stable). Via DB/JPM/MS joint books, + co-managers. W/reg rights. 8.125% at 100. +592bp vs 4% 08/15/18. Del 08/17. 144A CUSIP: 221643AE9.
    • Gentiva Health Services Inc (NASDAQ:GTIV) increased to USD325m (from USD305m) sr notes 09/01/18 (8y). NC4 (MWC T+50bp). Equity claw: 3y 35%. B2/B- (stable/stable). Via Barc/BAML/STI joint books. With reg rights. 11.50% at 100. +928bp vs 4% 08/15/18. Del 08/17. 144A CUSIP: 37247AAA0.
    • PetroQuest Energy Inc (NYSE:PQ) USD150m SEC registered sr notes due 09/01/17 (7y). NC4 (MWC T+50bp). Equity claw: 3y 35%. Caa1/B (stable/stable). Gtd by subs, including PetroQuest Energy LLC. Via JPM sole books, BAML, CA, WFS, CS, Howard Weil, Johnson Rice, Stifel as co-managers, Capital One, Global Hunter, Pritchard, Simmons as jr co-managers. 10% at 100. +791bp vs 2.375% 07/31/17.
    • Travelport LLC/Travelport Inc USD250m 144A/Reg S sr notes due 03/01/16 (5.5y). NC3 (MWC T+50bp) (then par plus half the coupon). B3/CCC+ (stable/stable). Via CS/UBS joint books. 9% at 100. +735bp. Del 08/18 (T+4). 144A CUSIP: 89421JAA0.
     
    What to Watch tomorrow 8/13/10
    • Consumer price index, July (Bureau of Labor Statistics) 8:30 a.m. ET
    • Earnings, July (Bureau of Labor Statistics) 8:30 a.m. ET
    • Retail sales, July (Census Bureau) 8:30 a.m. ET
    • Business inventories, June (Census Bureau) 10 a.m. ET
    • Darling International Inc. conference call 10 a.m. ET
    • Hexion Specialty Chemicals, Inc. Q2 earnings before market open, conference call 10 a.m. ET
    • NBC Acquisition Corp. Q1 earnings, conference call 10 a.m. ET
    • OSI Restaurant Partners, LLC Q2 earnings, conference call 10 a.m. ET
    • Peninsula Gaming, LLC conference call 10 a.m. ET
    • Reichhold Industries, Inc. Q2 earnings, conference call 10 a.m. ET
    • SGS International, Inc. Q2 earnings, conference call 10 a.m. ET
    • Exopack Holding Corp. Q2 earnings, conference call 11 a.m. ET
    • GEO Group conference call 11 a.m. ET
    • Ahern Rentals, Inc. Q2 earnings, conference call 2 p.m. ET
    • Sheridan Group, Inc. Q2 earnings, conference call 2 p.m. ET
     
     
    16th Annual Thomson Reuters LPC Loan Conference
    Wednesday September 22, 2010
    Marriott Marquis, New York City
     
    Now in its 16th year, the Thomson Reuters LPC Loan Conference has become one of the industry's premiere annual events. Join investors, lenders, financial sponsors and treasurers as they discuss the outlook for a continually evolving loan market.
     
    Click Here to view our detailed agenda and to access registration information.
    Aug 12 6:09 PM | Link | Comment!
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