Dura second lien rebounds; Cinemark nets strong interest; IPC Information oversubscribed

By Sara Rosenberg

New York, Sept. 8 - Dura Automotive Systems Inc.'s second-lien term loan gained back some of its recent losses during the Friday session as investors' concern over the lien perfection issue seemed to ease.

In primary happenings, Cinemark USA Inc.'s billion-dollar-plus credit facility has already received enough interest to fill the books as investors quickly jumped on the deal since it launched just two days ago. And, the books on IPC Information Systems LLC's first- and second-lien term loans are already overfilled even though the deal has only officially been in the market for about a day.

Dura Automotive's second-lien term loan saw an improvement in levels on Friday on improved sentiment toward the perfection of the lien on the loan, according to a trader.

The second-lien paper closed the day quoted at 98¼ bid, 98¾ offered, up about half a point when compared to Thursday's levels.

On Thursday, the loan had fallen by about a point and a half to the 98 context on nervousness over whether the lien on the second lien was perfected.

"No one really seems to know if the lien is perfected or not but people seem to be feeling better about it today," the trader added.

Dura Automotive is a Rochester Hills, Mich.-based designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the automotive industry.

Cinemark commitments roll in

Cinemark's $1.27 billion senior credit facility (Ba2/B) was already fully subscribed by Friday afternoon, just two days after syndication on the deal officially kicked off through a bank meeting that was held this past Wednesday, according to a market source.

The facility consists of a $1.12 billion term loan and a $150 million revolver, with both of these tranches talked at Libor plus 225 basis points.

Proceeds from the term loan will be used to fund the acquisition of Century Theatres, Inc. and to refinance existing credit facility debt. The equity purchase price for Century is about $681 million. The bank debt to be refinanced includes Cinemark's current senior facility of $254 million and Century's senior facility of $360 million.

The revolver is expected to be undrawn at closing.

The source explained that both Cinemark and Century have credit facilities, which resulted in a lot of commitments from existing lenders rolling into this new deal. These rollover orders played a large role in the transaction's quick subscription.

Lehman Brothers and Morgan Stanley are the lead banks on the credit facility.

Completion of the acquisition is subject to the satisfaction of customary closing conditions, including antitrust approval and completion of financing.

The transaction will not constitute a change of control for purposes of Cinemark's 9¾% senior discount notes or its 9% senior subordinated notes.

Cinemark is a Plano, Texas, motion picture exhibitor. Century is a San Rafael, Calif., motion picture exhibitor.

IPC sees strong demand

IPC Information's new credit facility has been incredibly well-received by the market as the first- and second-lien term loan tranches were already oversubscribed by Friday afternoon, according to a market source.

The transaction was just presented to lenders on Thursday morning through a bank meeting that was held at the LeParker Meridien in New York but commitments had started coming in as early as the week before the actual launch, the source added.

The $415 million seven-year first-lien term loan (Ba3/B+) is being talked in the Libor plus 275 basis points area, and the $170 million eight-year second-lien term loan (Caa1/B-) is being talked in the Libor plus 675 basis points area.

Call premiums on the second-lien loan are 102 in year one and 101 in year two.

IPC Information's $635 million credit facility also includes a $50 million six-year revolver (Ba3/B+) that is being talked in the Libor plus 275 basis points area.

Goldman Sachs, JPMorgan and Morgan Stanley are the lead banks on the deal, with Goldman the left lead.

Proceeds will be used to help fund Silver Lake Partners' leveraged buyout of the company for about $800 million from GS Capital Partners.

IPC is a New York-based provider of mission-critical communications solutions and services.

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