Six Flags term loan breaks; AMC Entertainment rises with amendment; Citadel tweaks size

By Sara Rosenberg

New York, Dec. 2 - Six Flags Entertainment Corp.'s first-lien term loan allocated and hit the secondary market on Thursday, with levels quoted well above par, and AMC Entertainment Inc.'s term loan was stronger on amend and extend news.

Over in the primary, Citadel Broadcasting Corp. increased the size of its term loan as a result of strong demand and, as a result, decreased the size of its high-yield bond offering.

Also, Syniverse Technologies, Harbor Freight Tools, CNO Financial Group Inc. and MDA Info Products released price talk on their bank deals as the transactions were launched to lenders during market hours, and Cenveo Inc. came out with talk on its in market loan.

Furthermore, Henry Co. and Remy International Inc. emerged with plans to come to market with new credit facilities, and FilmYard Holdings LLC's term loans are already seeing good traction since launching earlier this week.

Six Flags frees up

Six Flags' $950 million first-lien term loan (B1) started trading on Thursday, with levels quoted at par 5/8 bid, 101 offered on the open and then the bid moved up to par ¾ while the offer remained at 101, according to a trader.

Pricing on the term loan is Libor plus 400 basis points with a step-down to Libor plus 375 bps at Ba3/BB- corporate ratings or 3.0 times senior secured leverage. There is a 1.5% Libor floor and 101 soft call protection for one year, and new money orders got an original issue discount of 991/2.

During syndication, pricing on the term loan was increased from talk of Libor plus 350 bps to 375 bps, the step-down was added and the original issue discount widened from 993/4.

JPMorgan is the lead bank on the deal.

Six Flags repaying exit loan

Proceeds from Six Flags' new term loan will be used to refinance first- and second-lien term loans that were obtained when the company exited Chapter 11 earlier this year.

Upon emergence, the company's facility included a $770 million first-lien term loan priced at Libor plus 400 bps with a 2% Libor floor, and a $250 million second-lien term loan priced at Libor plus 725 bps with a 2% Libor floor that has hard call protection of 103 in year one, 102 in year two and 101 in year three.

The exit facility also has a $120 million revolver priced at Libor plus 425 bps with a 2% Libor floor.

Six Flags is a Dallas-based regional theme park company.

AMC trades up

AMC Entertainment's term loan was better as the company launched an amendment that would extend the debt's maturity in return for higher pricing, according to traders.

The term loan was quoted by one trader at 99¼ bid, 99¾ offered, up from 99 bid, 99½ offered, and by a second trader at 99¼ bid, 99 5/8 offered, up from 99 bid, 99 3/8 offered.

Under the proposal, the company is looking to extend its term loan to December 2016 from January 2013 at pricing of Libor plus 300 bps, up from Libor plus 150 bps currently, and lenders are being offered a 10 bps consent fee.

Citigroup and Barclays are the lead banks on the transaction and are asking for responses by Dec. 10.

AMC Entertainment is a Kansas City, Mo.-based theatrical exhibition and entertainment company.

Citadel reworks size

Moving to the primary, Citadel Broadcasting upsized its six-year term loan to $350 million from $250 million and downsized its bond offering to $400 million from $500 million, according to a market source.

As before, the Las Vegas-based radio company's term loan is being talked at Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 991/2.

JPMorgan is the left lead bank on the now $500 million, up from $400 million, credit facility (Baa3/BB+) that also includes a $150 million three-year revolver.

Proceeds from the loan and the notes will be used to refinance existing bank debt.

In June, the company emerged from Chapter 11 with a $762.5 million term loan led by JPMorgan that is priced at Libor plus 800 bps with a 3% Libor floor. The loan includes call protection of 105 in year one and 102 in year two against optional repayments.

Syniverse price talk

Syniverse Technologies held a bank meeting at the New York Palace with a 9:30 a.m. start time on Thursday to kick off syndication on its proposed $1.175 billion million senior secured credit facility, and in connection with the event, price talk was announced, according to a market source.

Both the $150 million revolver and the $1.025 billion term loan are being talked at Libor plus 425 bps with a 1.5% Libor floor, the source said.

The revolver is being offered at an original issue discount of 98½ and the term loan is being offered at a discount of 99, the source continued.

Barclays Capital, Credit Suisse and Goldman Sachs are the lead banks on the deal and are asking for lender commitments by Dec. 16.

Syniverse being acquired

Proceeds from Syniverse's credit facility will be used to help fund the buyout of the company by the Carlyle Group for $31 per share. The transaction is valued at $2.6 billion.

Other financing for the transaction will come from $475 million of senior notes and up to $1.245 billion of equity.

Closing is expected in the first quarter of 2011, subject to customary conditions, including stockholder approval and various regulatory organizations. The company has already been granted early termination of the waiting period under Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Syniverse is a Tampa, Fla.-based provider of technology and business services for the telecommunications industry.

Harbor Freight launches

Another deal to launch was Harbor Freight Tools with its $775 million credit facility presented to lenders with talk of Libor plus 500 bps with a 1.5% Libor floor, according to market sources.

Barclays is the lead bank on the deal that is comprised of a $750 million term loan and a $25 million revolver.

The term loan includes soft call protection of 102 in year one and 101 in year two, and is being offered at an original issue discount of 99, sources said.

Proceeds will be used to refinance an existing term loan and fund a distribution to shareholders, and following completion of the transaction, leverage will be in the mid-2s.

Commitments are due on Dec. 16.

Harbor Freight Tools is a Camarillo, Calif.-based tool and equipment catalog retailer.

CNO guidance revealed

CNO also held a bank meeting on Thursday to launch its new bank deal - a $325 million senior secured term loan - at which time it also disclosed price talk, according to a market source.

The term loan due in September 2016 is being talked in the Libor plus 625 bps context with a 1.75% Libor floor and an original issue discount of 98 to 99, the source said, adding that there is no call protection.

Morgan Stanley and Barclays are the lead banks on the deal, with Morgan Stanley the left lead, and FBR Capital Markets is the documentation agent.

Commitments are due on Dec. 16.

CNO refinancing debt

Proceeds from CNO Financial Group's term loan will be used to help repay an existing $652.1 million senior secured term loan that matures in October 2013.

Other funds for the refinancing will come from senior secured notes and cash on hand.

The goal of the refinancing is to strengthen CNO's capital structure by extending nearer-term maturities so that there are no material maturities until 2016 and to gain increased financial flexibility, the company previously said in a news release.

CNO is a Carmel, Ind.-based holding company for insurance companies - principally Bankers Life and Casualty Co., Colonial Penn Life Insurance Co. and Washington National Insurance Co.

MDA Info talk surfaces

MDA Info Products launched its $350 million term loan on Thursday with price talk of Libor plus 450 bps to 475 bps with a 1.5% Libor floor and an original issue discount of 98½ to 99, according to a market source.

Bank of America, RBC and BMO are the lead banks on the $400 million credit facility (Ba3/B+), which also includes a $50 million revolver.

Proceeds will be used to help fund TPG Capital's acquisition of the company from MacDonald, Dettwiler and Associates Ltd for about $850 million, with closing expected early next year, subject to the customary regulatory and other approvals.

MDA Info is a provider of property information to insurance companies, lenders and legal professionals.

Cenveo floats guidance

Cenveo began circulating price talk of Libor plus 475 bps to 500 bps with a 1.5% Libor floor and an original issue discount of 99 on its $375 million term loan B on the back of ratings coming out, according to a market source.

The term loan includes 101 soft call protection for one year, the source continued.

Bank of America and Macquarie are the lead banks on the $525 million credit facility (Ba3/BB-), which was launched with a bank meeting on Wednesday and also provides for a $150 million revolver.

Proceeds will be used to refinance existing debt.

Cenveo is a Stamford, Conn.-based manager and distributor of print and related products and services.

Henry sets meeting

In more primary happenings, Henry Co. revealed plans to come to market with a new $195 million senior secured credit facility that will be used to refinance existing debt and fund a dividend payment, according to a market source.

UBS Investment Bank is the lead bank on the deal that will be launched with a bank meeting on Friday with a 10:30 a.m. ET start time at the Intercontinental Hotel in New York.

The facility consists of a $20 million five-year revolver, a $135 million six-year first-lien term loan and a $40 million 61/2-year second-lien term loan, the source said, adding that price talk should be available following the meeting.

Henry is an El Segundo, Calif.-based provider of roof coatings, cements, roofing systems, driveway maintenance products and sealants.

Remy readies loan

Remy International has set a bank meeting for Monday to launch a proposed $425 million credit facility that consists of a $330 million term loan B and a $95 million ABL revolver, according to a market source.

Bank of America, UBS, Wells Fargo and Barclays are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Remy is a Pendleton, Ind.-based provider of alternators, starters and hybrid motors for the heavy duty and light duty original equipment markets, and remanufactured alternators and starters to the aftermarket.

FilmYard attracts interest

FilmYard's $408 million of first- and second-lien term loans are being "very well received" by the market with the "order book building" nicely, according to a market source, who said that there were already some commitments in prior to the deal's Wednesday launch.

"People like the low leverage, high degree of contracted cash flows [and] strong amortization schedule," the source said.

Total net leverage is 2.6 times and first-lien net leverage is 2.0 times.

Amortization on the $325 million 51/2-year first-lien term loan is $70 million year one, $60 million in year two and $50 million in years three, four and five, with the balance due at maturity. There is no amortization on the $83 million six-year second-lien term loan.

FilmYard loan details

As was previously reported, FilmYard's first-lien loan is being talked at Libor plus 600 bps with a 1.75% Libor floor and an original issue discount of 98, and its second-lien loan is being talked at Libor plus 1,000 bps with a 2% Libor floor and an original issue discount of 98.

The first-lien loan has 101 soft call protection for one year, and the second-lien is non-callable for one year, then at 104 in year two, 102 in year three and 101 in year four.

Barclays and Jefferies are the lead banks on the deal that will be used to help fund the acquisition of Miramax Films by Ron Tutor, Tom Barrack, Colony Capital LLC and other individuals from Walt Disney Co.

FilmYard is a New York-based film company.

Amscan closes

In other news, Amscan Holdings Inc. closed on its $675 million seven-year senior secured covenant-light term loan (B2/B) that was used to refinance an existing senior secured term loan due in 2013 and to fund a cash dividend of about $311 million, according to a news release.

Pricing on the term loan is Libor plus 525 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing was increased from talk of Libor plus 450 bps to 475 bps and the call protection was added.

Credit Suisse and Goldman Sachs acted as the joint lead arrangers on the deal, and were bookrunners with Wells Fargo, Deutsche Bank and Barclays.

Amscan is an Elmsford, N.Y.-based designer, manufacturer and distributor of decorated party goods and party accessories.

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