Jarden reacts to bond news; Hexion rises; Cedar Fair launch rumored soon; Broadlane readies deal

By Sara Rosenberg

New York, Jan. 11 - Jarden Corp.'s term loan B experienced movement during the trading session after it announced that it would be repaying some of the debt, and the company updated its revenue and cash position estimates for the fourth quarter and full-year 2009.

Also in trading, Hexion Specialty Chemicals Inc.'s strip of institutional bank debt headed higher on talk of a lender call and Fresenius Medical Care AG & Co. KGaA's old term loan B was stronger as the overall market felt better.

In other news, there is some chatter that Cedar Fair LP's buyout loan could come to market in the next couple of days, Broadlane and WideOpenWest announced that they will be launching new deals this week, and Marquette Transportation Co. LLC floated some details on its proposed asset-based revolver.

Jarden moves on paydown

Jarden's term loan B debt saw some changes to levels as the company revealed plans to repay some of the term loan borrowings that mature in 2012, according to market sources.

The non-extended term loan B-1 and B-2 were quoted by one source at 99½ bid, par offered, up on the bidside from 99 bid, par offered on Friday, and by a second source at 99¼ bid, par offered, versus 99 bid, par offered.

The non-extended term loan B-3 was quoted by the first source at 99¾ bid, par ¼ offered, as it tightened from Friday's levels of 99½ bid, par ½ offered.

And, the extended term loan B-4 was quoted by the first source at par 1/8 bid, par 5/8 offered, up from 99½ bid, par ½ offered, and by the second source at 99¾ bid, par ¾ offered, up from 99½ bid, par ½ offered.

Jarden selling notes

Funds for Jarden's term loan B paydown will come from a $400 million senior subordinated notes offering, and remaining proceeds from the issuance will be used for general corporate purposes.

"The proposed bond offering announced today would complete the balance sheet goals we communicated to investors in the first quarter of 2009, namely lowering our term B debt while extending our debt maturities and maintaining our strong liquidity position," said Martin E. Franklin, chairman and chief executive officer, in a news release.

"Consistent with our philosophy of accessing the capital markets on an opportunistic basis, we believe that raising 10-year capital at current rates should help create attractive returns for shareholders in the long run, even if it increases the short term effective interest rate," Franklin continued.

Jarden updates estimates

In addition, on Monday, Jarden came out with new estimates for revenue and cash position for the fourth quarter and full year ended Dec. 31.

Revenue for the fourth quarter is now expected to be about $1.35 billion, slightly above the previously provided guidance of $1.3 billion.

And, the full-year 2009 revenue is now estimated at about $5.1 billion.

As for cash on hand, the company now expects that number to be roughly $800 million at Dec. 31 as a result of continued strong cash flow at the end of the quarter.

"During 2009, we exceeded the financial goals we set for ourselves at the beginning of the year, despite the challenges in the macro environment. This is a testament to the resiliency and strength of our diversified business model, which has continued to deliver solid results during this recessionary period. We expect to return to organic revenue growth in 2010," Franklin added in the release.

Jarden is a Rye, N.Y.-based consumer products company.

Hexion trades up

Hexion's strip of institutional bank debt gained some ground as chatter circulated that the company will be holding a lender call on Tuesday, according to traders.

The strip of debt was quoted by one trader at 92 bid, 93 offered, up 1½ points from previous levels, and by a second trader at 91 bid, 93 offered.

There was no indication as to what the lender call will be about, traders added.

Hexion is a Columbus, Ohio-based thermoset resins company.

Fresenius strengthens

Fresenius' old term loan B was little better on Monday as the overall market had a more positive tone, according to a trader.

The old term loan B was quoted at 97¾ bid, 98¾ offered, up from 97½ bid, 98½ offered, the trader said.

Meanwhile, the company's new term loan B was quoted at par ½ bid, 101¼ offered, unchanged on the day, the trader added.

Early in the day, Fresenius announced that it will be offering about €250 million of senior unsecured notes due 2016.

Proceeds from the notes will be used to repay short-term debt and for general corporate purposes.

Fresenius is a Bad Homburg, Germany-based provider of products and services for individuals undergoing dialysis.

Cedar Fair may come this week

Moving to the primary market, speculation is that Cedar Fair's $1.25 billion senior secured credit facility may hit the market as early as this week although nothing is definitive as of yet, market sources told Prospect News.

The credit facility consists of a $250 million revolver and a $1 billion term loan.

JPMorgan, Bank of America, Barclays Capital, UBS and KeyBanc Capital Market are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Apollo Global Management in a transaction valued at about $2.4 billion, including the refinancing of outstanding debt.

Under the acquisition agreement, Cedar Fair unitholders will receive $11.50 in cash for each limited partnership unit that they hold.

Cedar Fair also getting bonds

Other financing for Cedar Fair's buyout is expected to come from the sale of $700 million of high-yield bonds and up to $765 million in equity.

The bonds are backed by a commitment for a $700 million senior unsecured bridge loan.

Closing on the buyout is expected by the beginning of the second quarter of 2010, subject to approval of holders of two-thirds of Cedar Fair's outstanding units, the receipt of regulatory approvals and other conditions. The transaction does not include a financing condition.

Cedar Fair is a Sandusky, Ohio-based amusement-resort operator.

Broadlane launching Friday

News emerged on Monday that Broadlane will be holding a bank meeting on Friday to launch its proposed $195 million credit facility, according to a market source.

The facility consists of a $15 million revolver and a $180 million term loan, with both tranches talked at Libor plus 400 basis points with a Libor floor that is still to be determined.

The term loan is being offered with an original issue discount in the 98½ area, the source continued.

Jefferies is the lead bank on the deal that will be used to refinance bank and mezzanine debt.

Broadlane is a Dallas-based technology-oriented health care services company.

WideOpenWest readies launch

WideOpenWest has scheduled a call for Tuesday to launch a $250 million first-lien add-on term loan that is talked at Libor plus 650 bps and is being sold at par, according to a market source.

Credit Suisse is the lead bank on the deal.

Proceeds will be used to fund an acquisition.

WideOpenWest is a Denver-based provider of bundled services that include high-speed internet, cable television and telephone services.

Marquette price talk

Also on the new deal front, Marquette Transportation is working on getting a $225 million asset-based revolver due in 2014 that is being talked at Libor plus 400 bps, according to a market source.

Bank of America and Wells Fargo are the lead banks on the deal that will be used for general corporate purposes.

The company is also in market with a $250 million seven-year second-lien notes offering that will be used to repay debt.

Marquette is a Paducah, Ky.-based river freight company.

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