Boston Generating, Tropicana set talk; Greatwide second lien already subscribed; Oceania breaks

By Sara Rosenberg

New York, Dec. 4 - Boston Generating LLC came out with price talk on its credit facility as the deal was launched with a bank meeting on Monday, and Tropicana Entertainment LLC started floating spread guidance around the market as it's gearing up to launch with a Tuesday bank meeting.

Also in the primary, Greatwide Logistics Services' second lien is said to already be done in terms of syndication even though the official launch for the deal is not scheduled to take place until Tuesday.

In secondary happenings, Oceania Cruises Inc.'s credit facility freed for trading with the first-lien term loan quoted in the upper par's and the second-lien term loan wrapping around 101.

Boston Generating held a bank meeting on Monday to officially kick off syndication on its proposed $1.8 billion credit facility, and in connection with the launch, price talk on the deal emerged, according to a market source.

The company's $70 million five-year revolver (B+), $250 million seven-year synthetic letter-of-credit facility (B+) and $1.08 billion seven-year term loan B (B+) were all presented to lenders with opening price talk set at Libor plus 300 basis points, the source said.

The synthetic letter-of-credit facility and term loan B carry 101 soft call protection for one year.

Meanwhile, the $400 million 71/2-year second-lien term loan (B-) was presented with price talk of Libor plus 500 bps, the source continued.

The second-lien loan carries call premiums of 102 in year one and 101 in year two.

In addition to the credit facility, the company is also marketing a $300 million 10-year holding company mezzanine tranche, which was launched with price talk of Libor plus 850 bps pay in kind, the source added.

The mezzanine debt is non-callable for two years, then at 103 in year three, 102 in year four and 101 in year five.

Credit Suisse and Goldman Sachs are the lead banks on the power plant's deal, with Credit Suisse the left lead.

Proceeds from the new financing will be used for a dividend recapitalization.

Tropicana spread guidance

Tropicana Entertainment (Columbia Entertainment) released price talk on its $2.11 billion in credit facilities ahead of its Tuesday bank meeting as ratings on the deal surfaced, according to a market source.

The $1.49 billion five-year opco senior secured term loan (Ba3/B+) and $180 million opco senior secured revolver (Ba3/B+) are being talked at Libor plus 275 bps, the source said.

As for the $440 million 18-month senior secured loan (B2/B+) to be borrowed by LV Tropicana, that is being talked at Libor plus 300 bps, the source added.

Credit Suisse is the lead bank on the credit facility that will be used, along with $925 million in high-yield bonds, to fund Columbia Entertainment's acquisition of Aztar Corp. for $54.00 per share in cash.

The $440 million 18-month senior secured loan borrowed by LV Tropicana, which will indirectly hold Aztar's 34-acre parcel situated on the Las Vegas "Strip," will have two six-month extension options. It is expected that the loan will be refinanced with permanent financing for the redevelopment of the property.

Columbia is a Fort Mitchell, Ky., owner, developer and operator of hotel properties and casinos. Aztar is a Phoenix-based gaming company.

Greatwide second lien done

Greatwide Logistics' $127 million second-lien term loan and $80 million senior unsecured mezzanine note at the holding company are already fully syndicated ahead of the deal's official launch into syndication, which is scheduled to take place on Tuesday, according to a market source.

The company's proposed $487 million credit facility also includes a $70 million revolver and a $290 million first-lien term loan.

UBS and Bear Stearns are joint lead arrangers and joint bookrunners on the financing, with UBS the left lead.

Proceeds from the new debt will be used to fund Investcorp's leveraged buyout of Greatwide Logistics from Fenway Partners.

Greatwide Logistics is an Irving, Texas, transportation and logistics provider.

Oceania frees to trade

Moving to the secondary market, Oceania Cruises' credit facility broke for trading with the $300 million six-year first-lien term B (B1/B) quoted at par ½ bid, par ¾ offered on the open and then moving up to par 5/8 bid, par 7/8 offered, where it closed the day, according to a trader.

Meanwhile, the company's $75 million seven-year second-lien term loan (Caa1/CCC+) was quoted at par ¾ bid, 101¼ offered, the trader said.

The term loan B is priced at Libor plus 275 bps, and the second-lien term loan is priced at Libor plus 675 bps.

During syndication, pricing on the first-lien term loan B was reverse flexed from original talk at launch of Libor plus 300 bps and pricing on the second-lien loan was reverse flexed from original talk at launch of Libor plus 700 bps.

Oceania's $400 million credit facility also includes a $25 million five-year revolver (B1/B) priced at Libor plus 275 bps.

During syndication, pricing on the revolver was also reduced from original talk at launch of Libor plus 300 bps.

UBS and Lehman are the lead banks on the Miami-based upscale cruise line's deal, with UBS the left lead.

Proceeds will be used to buy cruise ships that the company currently leases.

HCA trades up

In other trading news, HCA Inc.'s term loan B was slightly stronger on Monday on market technicals, according to a trader.

The term loan B closed the day at par ¾ bid, 101 offered, versus previous levels of par 5/8 bid, par 7/8 offered, the trader said.

HCA is a Nashville, Tenn., health care services company.

Psychiatric Solutions closes

Psychiatric Solutions, Inc. closed on its $300 million of add-on bank debt (Ba3/B+) that consists of a $150 million add-on to its term loan and a $150 million add-on to its revolver, according to a company news release.

The term loan add-on priced at Libor plus 175 bps, in line with existing term loan pricing, and the revolver add-on priced at Libor plus 125 bps, down from existing pricing of Libor plus 150 bps. The existing revolver was repriced to Libor plus 125 bps from Libor plus 150 bps as well.

Citigroup and Bank of America acted as joint leads on the term loan, and Bank of America acted as sole lead on the revolver.

Proceeds were used to fund the acquisition of Alternative Behavioral Services, Inc. for $210 million from FHC Health Systems, Inc.

Psychiatric Solutions is a Franklin, Tenn., provider of inpatient behavioral health care services.

Mosaic closes

The Mosaic Co. closed on its new $1.012 billion in new term debt (Ba1/BB/BB+) consisting of a $400 million term loan A and a $612 million term loan B, according to a company news release.

The term loan A is priced at Libor plus 150 bps, and the term loan B is priced at Libor plus 175 bps.

During syndication, the term loan A was upsized from $200 million, and the term loan B was downsized from $800 million with pricing reverse flexing from Libor plus 200 bps.

JPMorgan and BNP Paribas acted as the lead banks on the deal, with JPMorgan the left lead.

Proceeds from the new term debt, along with $475 million in 7 3/8% senior notes due 2014 and $475 million in 7 5/8% senior notes due 2016, were used to refinance the company's $345 million term loan B and fund the purchase of about $1.4 billion in outstanding senior notes and debentures.

Mosaic is a Plymouth, Minn., producer and marketer of concentrated phosphate and potash crop nutrients.

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