Bankruptcy Management floats talk; Affiliated Computer breaks; Gaming drops on Atlantic City shut down

By Sara Rosenberg

New York, July 5 - In primary happenings, Bankruptcy Management Solutions Inc. released price talk on its proposed credit facility as the deal is gearing up for its Thursday bank meeting.

Meanwhile, on the secondary side of things, Affiliated Computer Services Inc.'s term loan B freed for trading with levels quoted in the low-par context.

Also in trading, the gaming sector took a hit on Wednesday, with Trump Entertainment Resorts Inc. feeling the biggest effect, as gaming operations in Atlantic City, N.J., were shut down due to a government budget impasse.

Bankruptcy Management Solutions came out with price talk on its proposed $360 million senior secured credit facility as ratings on the deal emerged ahead of Thursday's bank meeting that will officially kick off syndication on the transaction, according to a market source.

The $15 million five-year revolver (B1/B) and the $200 million six-year first-lien term loan (B1/B) will be launched with opening price talk of Libor plus 300 basis points, the source said.

Furthermore, the company's $145 million seven-year second-lien term loan (B3/CCC+) will be launched with opening price talk of Libor plus 650 basis points and will contain call protection of 102 in year one, 101 in year two and par thereafter, the source added.

Ratings from Moody's Investors Service were announced late last week, and ratings from Standard & Poor's, although not publicly announced, were unofficially revealed during market hours.

JPMorgan and Credit Suisse are the lead banks on the deal.

Proceeds will be used to help fund the purchase of Bankruptcy Management Solutions by Charlesbank Capital Partners LLC and Ocwen Financial Corp. from Lincolnshire Management, Inc.

Bankruptcy Management Solutions is an Irvine, Calif., provider of bankruptcy case management solutions to Chapter 7 trustees.

Affiliated Computer frees to trade

Moving to the secondary, Affiliated Computer's $1.8 billion term loan B broke for trading with the $1.3 billion of funded debt quoted at par 1/8 bid, par ½ offered and the $500 million of delayed-draw debt quoted at par bid, par ½ offered, according to a trader.

The entire term loan B is priced with an interest rate of Libor plus 200 basis points. During syndication, pricing on the loan was flexed up from original talk at launch of Libor plus 175 basis points.

Of the total $1.8 billion amount, $800 million is existing term loan B debt that was repriced from Libor plus 150 basis points, while the other $1 billion - $500 million funded and $500 million delayed draw for 90 days - is an add-on.

Proceeds from the term loan B add-on will be used to fund a share repurchase program for up to $1 billion of the company's class A common stock.

Affiliated Computer got its existing $800 million term loan B in March of this year to help fund a Dutch auction for common stock.

Under the March Dutch auction tender, the company had originally offered to purchase up to 55.5 million shares of its class A common stock at a minimum price per share of $56 and a maximum price of $63, for a total value of about $3.5 billion.

But, the company only successfully tendered for about 7.4 million shares of its class A common stock at a purchase price of $63 per share for a total cost of about $465 million, which resulted in a downsizing of the term loan B size to $800 million from $4 billion.

However, under the term loan B credit agreement, provisions were made for a $3 billion accordion feature allowing for future incremental borrowings to fund purchases of equity and debt securities.

Citigroup is the lead bank on the deal.

Affiliated Computer Services is a Dallas-based provider of business process and information technology outsourcing solutions to commercial and government clients.

Gaming dips on Atlantic City woes

The gaming sector as a whole came under some pressure during Wednesday's market session as news emerged that casino operations in Atlantic City were suspended because of the New Jersey legislature's inability to pass a budget, according to a trader.

Notable names to feel the sting were Trump Entertainment and Boyd Gaming Corp., although Trump was by far the most affected being that it has the biggest exposure in the Atlantic City gaming market.

Atlantic City, N.J.-based hotel operator, Trump saw its bank debt drop to par ½ bid, par 7/8 offered from par 5/8 bid, 101 offered, the trader said.

Meanwhile, Las Vegas-based gaming company Boyd saw more of a widening in levels as the bid side on its bank debt dropped, the trader said, quoting the paper at 99 7/8 bid, par ¼ offered at the close Wednesday, compared to prior levels of par bid, par ¼ offered.

Although Boyd saw some negative impact, the co-owner of its Borgata Hotel Casino & Spa Atlantic City property, MGM Mirage, a Las Vegas-based casino company, held steady with bank debt levels unchanged at 99¼ bid, 99¾ offered, the trader added.

X-Rite closes

X-Rite Inc. closed on its new $220 million credit facility, according to a company news release, consisting of a $40 million revolver (B1/B+) at Libor plus 225 basis points, a $120 million first-lien term loan (B1/B+) at Libor plus 225 basis points and a $60 million second-lien term loan (B3/B-) at Libor plus 500 basis points.

During syndication, pricing on the second-lien term loan ended up at the low end of original guidance of Libor plus 500 to 550 basis points.

Goldman Sachs acted as the lead bank on the deal that was used to help fund the acquisition of Amazys Holding AG for about $280 million.

X-Rite is a Grandville, Mich., provider of color measurement solutions comprised of hardware, software and services for the verification and communication of color data.

Otelco closes

Otelco Inc. closed on its new $135 million senior secured credit facility, according to a company news release.

The facility consists of a $15 million revolver and a $120 million term loan, with both tranches priced at Libor plus 325 basis points.

General Electric Capital Corp. acted as the lead arranger on the deal that was used to help fund the $37.8 million cash acquisition of Mid-Maine Communications Inc. and to refinance the company's smaller existing senior secured credit facility at a lower rate.

Otelco is an Oneonta, Ala., wireline telephone services provider in rural communities in Alabama and Missouri.

Attachmate closes

Attachmate Corp. (formerly known as AttachmateWRQ) completed its acquisition of NetIQ Corp. for about $495 million, according to a company news release.

To help fund the purchase, Attachmate got a new $505 million credit facility consisting of a $20 million five-year revolver (B2/B) at Libor plus 350 basis points with a 50 basis point commitment fee, a $300 million six-year first-lien term loan B (B2/B) at Libor plus 350 basis points with 101 soft call protection for one year and a $185 million 61/2-year second-lien term loan at Libor plus 675 basis points with call protection of 102 in year one and 101 in year two.

During syndication, the term loan B was downsized from $320 million, pricing was flexed up from Libor plus 325 basis points and the call premium was added; the second-lien term loan was upsized from $165 million and pricing was reverse flexed from Libor plus 700 basis points; and revolver pricing was increased from Libor plus 325 basis points.

Credit Suisse and UBS acted as the lead banks on the deal.

Attachmate is a Seattle-based provider of access and integration software for legacy systems.

Bravo closes

Bruckmann, Rosser, Sherrill & Co. and Castle Harlan, Inc. completed their leveraged buyout of Bravo Development Inc., according to a company news release.

To help fund the transaction, Bravo got a new credit facility via lead banks Wachovia and Bank of America.

Bravo is a Columbus, Ohio, operator and owner of casual upscale Italian restaurant concepts.

WCA Waste closes

WCA Waste Corp. closed on its $100 million five-year revolving credit facility with an interest rate of Libor plus 175 basis points, according to an 8-K filed with the Securities and Exchange Commission.

Comerica Bank acted as the lead bank on the deal that was used to refinance some existing bank debt.

WCA is a Houston-based company engaged in the transportation, processing and disposal of non-hazardous solid waste.

JDA closes

JDA Software Group Inc. completed its acquisition of Manugistics Group Inc., according to a company news release.

To help fund the transaction, JDA got a new $225 million credit facility (B1/B+) consisting of a $175 million seven-year term loan B and a $50 million six-year revolver, with both tranches priced at Libor plus 225 basis points.

Citigroup and UBS acted as the lead banks on the deal.

JDA is a Scottsdale, Ariz., provider of software solutions.

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