Cinram, InfrastruX break; GM trades up on rekindled refi buzz; Century Campus Housing sets talk

By Sara Rosenberg

New York, May 3 - Cinram International Inc.'s credit facility freed for trading, with its term loan B wrapping right around par, and InfrastruX Group Inc.'s credit facility broke for trading as well, with its first-lien term loan quoted atop par and its second-lien term loan quoted atop 101.

In other trading news, General Motors Corp.'s revolver saw a strong amount of activity at higher levels during Wednesday's market hours as the company outright said that it is working on an amendment or refinancing of its credit facility and provided timing for the potential transactions.

Moving to the primary market, Century Campus Housing Management came out with price talk on its credit facility as the deal was launched into general syndication through a Wednesday bank meeting.

Cinram's new credit facility started trading on Wednesday, with the $675 million term loan B quoted at 99 7/8 bid, par ¼ offered, according to traders.

The term loan is priced with an interest rate of Libor plus 175 basis points. During syndication, the tranche was downsized from $700 million and pricing was increased from Libor plus 150 basis points talk.

Cinram's $825 million credit facility (B1/BB-) also contains a $150 million revolver with an interest rate of Libor plus 175 basis points - unchanged since launch.

JPMorgan and Credit Suisse are joint lead arrangers on the deal that will be used to refinance existing debt in connection with the company's conversion to an income trust. The conversion would be effected pursuant to a plan of arrangement, under which the current shareholders of Cinram would exchange their common shares for units of the newly created Cinram International Income Fund, and/or class B exchangeable limited partnership units of a limited partnership owned by the fund, on a one-for-one basis.

Cinram is a Toronto-based provider of pre-recorded multimedia products and logistic services.

InfrastruX frees to trade

InfrastruX saw its credit facility break for trading during Wednesday's market hours, with the $150 million six-year first-lien term loan B quoted at par ¾ bid and the $55 million seven-year second-lien term loan quoted at 101 1/8 bid, according to a market source.

Both the first- and the second-lien term loans were well oversubscribed during the syndication process, the source added.

InfrastruX's $275 million credit facility also contains a $70 million five-year senior secured revolver.

KeyBanc Capital Markets is the lead arranger and administrative agent on the deal.

Proceeds from the term loans will be used to help fund Tenaska Power Fund's leveraged buyout of InfrastruX from Puget Energy Inc.

The revolver is expected to be undrawn at close and will provide funds for working capital.

Senior leverage will be about 3x, and total leverage will be about 4x.

InfrastruX is a Bellevue, Wash.-based provider of end-to-end infrastructure construction services, primarily for the electric and natural gas utility end-markets.

GM stronger on refi talk

GM saw a nice improvement in trading levels on Wednesday as the company revealed plans in an 8-K filed with the Securities and Exchange Commission to complete either an amendment or a refinancing of its existing $5.6 billion line of credit by the end of the second quarter or early in the third quarter, according to a trader.

Prior to this announcement, GM had revealed that it may not be able to draw on its existing line of credit because of the restatement of its prior financial results. At that time, the company had said that an amendment or a refinancing was under consideration to fix the problem - somewhat less specific, although not much less informative, than the current announcement which has the company actually working on such a transaction.

"The timing is new. Otherwise, there's nothing really new here," the trader added.

The Detroit-based automaker's revolver traded as high as 98 on Wednesday, spurred on by the amendment/refinancing admission, but then settled down a touch to close the day at 96¾ bid, 97½ offered, the trader said. By comparison, on Tuesday, the bank debt went out at 95 bid, 95¾ offered.

Century Campus Housing price talk

Meanwhile, in primary happenings, Century Campus Housing revealed opening price talk on its $201.2 million senior credit facility as the general syndication process kicked off with a bank meeting on Wednesday, according to a market source.

The $181.2 million five-year first-lien term loan was launched with price talk of Libor plus 137.5 basis points and the $20 million eight-year second-lien term loan was launched with price talk of Libor plus 300 basis points, the source said.

Both term loans carry a commitment fee of 37.5 basis points. The loans are not classified as typical delayed draw - they will be drawn as existing third party debt is repaid, the source explained. The loans will be completely funded by Dec. 31.

The second-lien term loan contains call protection of 103 in years one through three, 101 in years four and five, and par thereafter, the source added.

RBS Securities is the lead arranger and bookrunner on the deal. LBBW has signed on as syndication agent.

Proceeds will be used to finance Transfield Pty. Ltd.'s acquisition of Century Campus Housing from its previous owner, Century Development, and to acquire about $130 million of existing debt.

Houston-based Century Campus Housing is the largest private sector on-campus student housing company in the United States.

Allegheny Energy Supply closes

Allegheny Energy Supply Co. LLC closed on its new $967 million five-year credit facility consisting of a $200 million revolver and a $767 million term loan A, with both tranches priced at Libor plus 87.5 basis points, according to a company news release.

Pricing on the new credit facility can decrease if the company's credit ratings improve from current levels.

The revolver contains a 20 basis point commitment fee.

Proceeds were used to refinance the company's existing $967 million secured term loan C due 2011 that carried an interest rate of Libor plus 150 basis points.

Citigroup Global Markets Inc., The Bank of Nova Scotia and Banc of America Securities LLC acted as joint lead arrangers on the deal.

Allegheny Energy Supply is a Monroeville, Pa., power producer.

Sports Authority closes

Leonard Green & Partners LP and members of management completed their leveraged buyout of The Sports Authority Inc. for $37.25 in cash per share, according to a news release.

To help fund the LBO, Sports Authority got a new $1.025 billion senior secured credit facility consisting of a $275 million seven-year covenant-light term loan B (B1/B) at Libor plus 225 basis points, a $685 million five-year ABL revolver at Libor plus 150 basis points with a 25 basis point commitment fee, and a $65 million five-year first-in, last-out ABL revolver at Libor plus 300 basis points.

During syndication, the term loan B was upsized from $225 million and pricing was reverse flexed from Libor plus 250 basis points.

Bank of America, Credit Suisse and Lehman Brothers acted as the lead banks on the deal, with Bank of America the left lead.

Sports Authority is an Englewood, Colo., full-line sporting goods retailer.

Anchor Glass closes

Anchor Glass Container Corp. closed on its $215 million exit financing credit facility as it emerged from Chapter 11, according to a company news release.

The facility consists of a $70 million five-year revolver with an interest rate of Libor plus 150 basis points and a 37.5 basis point commitment fee, and a $145 million seven-year term loan B with an interest rate of Libor plus 225 basis points.

Credit Suisse acted as the lead bank on the deal for the Tampa, Fla., glass container manufacturer.

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