Citadel term B rises on bankruptcy filing; Bucyrus emerges with sizable deal for next year

By Sara Rosenberg

New York, Dec. 21 - Citadel Broadcasting Corp.'s term loan B headed higher on Monday following the company's weekend announcement that it filed for Chapter 11 and has reached an agreement with a majority of its senior secured lenders on a restructuring.

Meanwhile, over in the primary market, another large deal has surfaced for next year's business as Bucyrus International Inc. announced plans to get a new billion dollar plus term loan B to help fund an acquisition.

Citadel B loan trades up

Citadel Broadcasting's term loan B was stronger as the company announced that it filed for bankruptcy in order to implement a pre-negotiated financial restructuring, according to traders.

The restructuring was agreed upon by over 60% of the company's senior secured lenders and would result in the extinguishment of about $1.4 billion of debt.

On the back of the news, the company's term loan B was quoted by one trader at 73½ bid, 74½ offered, up from 71¼ bid, 72¼ offered on Friday, and by a second trader at 73 bid, 75 offered, up from 71¼ bid, 72¼ offered.

To fund its restructuring, Citadel has reached an agreement with its secured lenders to access more than $36 million of cash on hand, as well as all cash flow from operations.

"We are pleased with the support from the majority of our senior lenders, and we look forward to working with the remaining senior lenders and other stakeholders to ensure a complete and expeditious restructuring," said Farid Suleman, chief executive officer, in a news release.

Citadel getting new term loan

Under the proposed restructuring, Citadel's $2.1 billion secured credit facility will be converted into a new $762.5 million term loan.

Holders of senior secured claims will receive a pro rata share of the new term loan and 90% of the new common stock in the reorganized company.

The plan also proposes that holders of unsecured claims, including the secured lenders' deficiency claim of about $900 million, unsecured notes and general unsecured claims will have the option to receive either a pro rata share of cash in an amount equal to 5% of the unsecured claim, capped at $2 million or 10% of the new common stock.

Citadel is a Las Vegas-based radio broadcasting company.

Bucyrus joins 2010 cast

Moving to new deal happenings, Bucyrus International revealed on Monday that it plans to launch a new deal in 2010, joining, among others, Cedar Fair LP's proposed $1.25 billion credit facility and IMS Health Inc.'s $2.275 billion senior secured credit facility on the forward calendar.

Specifically, Bucyrus said that it is looking to get a $1.075 billion six-year term loan B and a $50 million revolver add-on.

In addition, the company plans to amend and extend its existing credit facility, company officials said in a conference call.

Proceeds from the new debt will be used to help fund the acquisition of Terex Corp.'s mining equipment business for $1.3 billion.

The term loan B commitment is actually for $1.2 billion, but the company hopes to issue $300 million in equity to Terex and, therefore, will need less term loan B debt for the transaction.

Bucyrus lead banks

JPMorgan, Bank of America and Macquarie are the lead banks on Bucyrus' new deal, with JPMorgan the left lead, according to market sources.

The revolver add-on will be obtained under the accordion feature of the existing revolver.

Bucyrus officials said in the call on Monday that these financings will increase total liquidity to over $500 million and pro forma leverage is 2.1 times.

Closing on the acquisition is expected to take place during the first quarter of 2010, subject to regulatory approvals and other customary conditions.

Bucyrus is a Milwaukee, Wis.-based designer and manufacturer of high productivity mining equipment for surface and underground mining.

Butler Schein tweaks deal

In other news, Butler Schein Animal Health made some changes to its credit facility, including increasing the size of the term loan B and reducing the original issue discount, according to sources.

The term loan B is now sized at $320 million, up from $300 million, and the original issue discount is now 991/2, down from 99, sources said.

Pricing on the term loan B was left unchanged at Libor plus 350 basis points with a 2% Libor floor. The spread, however, can step down to Libor plus 325 bps when leverage is less than 2.5 times.

JPMorgan is the lead bank on the now $350 million deal, which also includes a $30 million revolver that is priced at Libor plus 350 bps.

Butler Schein forming through merger

Proceeds from Butler Schein's credit facility will be used to help fund the combination of Henry Schein Inc.'s U.S. animal health businesses and Butler Animal Health Supply, and to refinance debt.

The new company will be 50.1% owned by Henry Schein and 49.9% owned by the owners of Butler Animal Health Supply, including Oak Hill Capital Partners and the Ashkin Family Group.

Closing on the transaction is expected by year-end.

Butler Schein Animal Health is a Dublin, Ohio-based companion animal health distribution company with combined revenues for the last 12 months of about $850 million.

AMN trims revolver

AMN Healthcare Services Inc. downsized its three-year revolving credit facility to $40 million from $75 million, while leaving pricing unchanged at Libor plus 400 bps, according to a market source.

The $110 million four-year term loan was left unchanged in terms of size and pricing, which is Libor plus 400 bps with a 2.25% Libor floor and an original issue discount of 96.

The facility actually freed up for trading on Friday, with the term loan quoted at 97 bid, 98 offered, the source added.

Bank of America and SunTrust are the lead banks on the now $150 million deal that is being used to refinance the company's existing credit facility, with Bank of America the left lead.

AMN is a San Diego-based health care staffing company.

Hayes Lemmerz closes

Hayes Lemmerz International Inc. closed on its $200 million term loan, according to a news release.

Pricing on the term loan is Libor plus 950 bps with a 2% Libor floor and an original issue discount of 96.

During syndication, the loan was upsized from $150 million, pricing was flexed up from Libor plus 800 bps and the discount firmed at the high end of initial talk of 96 to 97.

Deutsche Bank acted as the lead bank on the deal that was used for exit financing as the company emerged from Chapter 11.

Hayes Lemmerz is a Northville, Mich.-based maker of automotive and commercial highway wheels.

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