Del Monte, Ntelos set talk; Murray firms spreads; Alaska, Maxim, Performance Transport change pricing

By Sara Rosenberg

New York, Jan. 20 - The primary market was all a buzz with a slew of pricing information as Del Monte Foods Co. released price talk on its $950 million senior secured credit facility in connection with the deal's launch, Ntelos Inc.'s first-lien price talk came out, Murray Energy Corp. revealed firmer pricing levels, Alaska Communications Systems Group Inc. reduced pricing on its term loan, Maxim Crane Works reduced pricing on its exit facility and Performance Transportation Services Inc. flexed up its second-lien term loan.

Del Monte Foods revealed price talk of Libor plus 150 basis points on its $200 million six-year term loan A and $350 million six-year revolver and price talk of Libor plus 175 basis points on its $400 million seven-year term loan B as the deal launched via a bank meeting on Thursday, according to a market source.

Bank of America, Morgan Stanley and JPMorgan are the lead banks on the deal, with Bank of America the left lead.

Proceeds will be used to help fund the repurchase of the company's 9¼% senior subordinated notes due 2011 and refinance existing bank debt.

The facility is expected to close in early February.

Del Monte Foods is a San Francisco producer, distributor and marketer of branded and private label food and pet products.

Ntelos talk

Price talk came out on Ntelos' $400 million first-lien term loan with the tranche expected to open in the Libor plus 275 basis points area, according to a market source.

Price talk on the $35 million revolver and $225 million second-lien term loan are still not available.

The $660 million senior secured credit facility is expected to launch via a bank meeting on Monday.

Morgan Stanley Senior Funding Inc. and Bear Stearns & Co. Inc. are joint lead arrangers and joint bookrunners on the deal, with Morgan Stanley the left lead and administrative agent.

Proceeds will be used to help in the recapitalization and sale of the company to affiliates of Quadrangle Capital Partners LP and Citigroup Venture Capital.

In the first step of the transaction, Ntelos will refinance its existing debt and repurchase up to 75% of its existing equity in a self-tender offer at a price of $40 per common share.

Following that step, Quadrangle and CVC will purchase up to 24.9% of the post-recapitalization equity of the company, also at a price of $40 per share.

And, after receipt of regulatory approvals, Quadrangle and CVC will acquire the remainder of the company's equity, at the same $40 per share price, in a merger transaction.

The closings of the refinancing and initial stock repurchase by the company are not conditioned on the sale of any equity to Quadrangle and CVC.

Ntelos is a Waynesboro, Va., regional integrated communications provider.

Murray Energy pricing

Murray Energy firmed up pricing on its term loans, with the $150 million first-lien term loan pricing at Libor plus 300 basis points - the low end of opening price talk of Libor plus 300 to 350 basis points - and the $250 million second-lien term loan pricing at Libor plus 775 basis points - below opening price talk of Libor plus 800 to 850 basis points, according to a market source.

Both term loans were oversubscribed on the day of the bank meeting last week, with some saying that the investors' attraction to the deal was sparked by it being asset rich in a favorable industry with full pricing.

The $425 million credit facility also contains a $25 million revolver tranche.

Goldman Sachs is the lead bank on the deal that will be used to refinance existing debt.

Alaska Communications cuts pricing

Alaska Communications reverse flexed its $335 million term loan B to Libor plus 200 basis points from price talk of Libor plus 225 to 250 basis points, according to sources.

CIBC and JPMorgan are the lead banks on the deal, with CIBC the left lead.

The $385 million senior credit facility (B1/B+) also contains a $50 million revolver.

Proceeds from the facility, along with proceeds from a proposed $75 million common stock offering, will be used to repay the existing senior secured credit facility and to repurchase all outstanding 9 3/8% senior subordinated notes due 2009 and about 35% of the outstanding 9 7/8% senior notes due 2011.

Pro forma net leverage after the offerings would be 4.7x, down from 5.3x.

Alaska Communications is an Anchorage, Alaska, communications provider.

Maxim Crane cuts spread

Maxim Crane Works reduced pricing on its $325 million exit financing credit facility, lowering the spread on the $175 million term loan and the $50 million revolver to Libor plus 275 basis points from the Libor plus 300 basis points area and lowering the spread on the $100 million second-lien term loan to Libor plus 550 basis points from the Libor plus 600 basis points area, according to a market source.

Both term loans were oversubscribed on the day of the bank meeting last week, with some saying that the immediate success was a result of investors feeling comfortable with the well known historical credit.

Goldman Sachs is the lead bank on the Pittsburgh-based crane rental company's deal.

Performance Transport makes changes

Performance Transportation Services made another round of changes to its in-market credit facility, this time upsizing the revolver size slightly and increasing pricing on the second-lien term loan, according to a syndicate document.

The five-year revolver (B/B2) is now sized at $20 million, up from $15 million. Price talk remained at Libor plus 425 basis points with a commitment fee of 50 basis points.

Furthermore, pricing on the $35 million 71/2-year second-lien term loan (B3/CCC+) was flexed up to Libor plus 800 basis points from Libor plus 700 basis points, the document said.

Pricing on the $45 million five-year synthetic letter-of-credit facility (B2/B) and the $80 million seven-year term B (B2/B) was left unchanged at Libor plus 425 basis points during this round of changes. However, the letter-of-credit facility, term loan B and revolver had all previously been flexed up from opening pricing levels of Libor plus 325 basis points that came out at the Dec. 6 bank meeting.

Credit Suisse First Boston is the sole lead arranger on the deal that will be used to refinance existing debt.

Performance Transportation Services is a Wayne, Mich., provider of automotive transportation and logistics services for light vehicle original equipment manufacturers.

PanAmSat expected to pass

PanAmSat Corp.'s repricing amendment is expected to get done - this time around - as basically all lenders have given their verbal OK to the deal, according to a market source. Written consents aren't actually due until Friday.

As was outlined in a Jan. 6 conference call, the Wilton, Conn., satellite provider is looking to lower pricing on its term loan B to Libor plus 225 basis points from Libor plus 275 basis points, with a step down to Libor plus 200 basis points if operating company leverage falls below 41/2x.

This is PanAmSat's second attempt at this repricing - the first try was made in late 2004, but so few investors signed off on the amendment that it was pretty much left to die.

However, on Dec. 20, the company announced plans to do an initial public offering of common stock with proceeds from the IPO earmarked for an approximately $700 million debt repayment.

The proposed IPO and reduction of leverage turned PanAmSat into a completely different credit, leaving investors more amenable to the proposal this time around.

More specifically, according to the S-1 filed with the Securities and Exchange Commission on Dec. 20, proceeds from the IPO will be used to repay about $345 million of term loan A debt, to redeem $353.5 million, or 35%, of its $1.01 billion 9% senior notes and to pay $200 million of a dividend payment that stockholders will receive.

Citigroup, Merrill Lynch and Morgan Stanley are the lead banks on the deal, with Citigroup the left lead.

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