Bucyrus sets talk; OSI flex rumored on strong book; AMD dips on paydown; AMR pressured by repricing

By Sara Rosenberg

New York, April 24 - Bucyrus International Inc. released price talk on its credit facility as the deal was launched with a bank meeting on Tuesday. Also launching during the session was Gate Gourmet Inc., and although official price talk is not yet available, speculation over where the talk might fall out has begun to make its way around the market.

In other primary news, OSI Restaurant Partners Inc. is rumored to be considering a reverse flex in term loan pricing and possibly even adding a step down, as the tranche is well oversubscribed.

Over in the secondary, Advanced Micro Devices, Inc.'s term loan came in a little on paydown expectations, AMR Corp.'s term loan B softened on repricing news and Ginn Clubs & Resorts weakened on requested extensions for financial information.

Bucyrus held a bank meeting on Tuesday morning to kick off syndication on its proposed $1.29 billion credit facility (Ba3), and in connection with the launch, price talk on the deal surfaced, according to a market source.

The $400 million revolver and the $65 million equivalent euro-denominated German revolver were both presented to lenders with talk of Libor plus 175 basis points, while the $825 million term loan B was presented with talk of Libor plus 175 bps to 200 bps, the source said.

Both revolvers will have pricing step downs tied to a leverage grid, the source continued.

The term loan B will include a euro sub-tranche that will probably be sized around the $100 million equivalent area, the source added.

Lehman Brothers is the lead bank on the deal.

Proceeds from the facility will be used to fund the acquisition of Lunen, Germany-based DBT GmbH, a subsidiary of RAG Coal International, for $710 million in cash and 471,476 shares of stock.

Bucyrus is a South Milwaukee, Wis., designer and manufacturer of walking draglines, electric rope mining shovels and rotary blasthole drills used by the surface mining industry.

Gate Gourmet spread speculation

Gate Gourmet also launched its credit facility to U.S. investors on Tuesday with a bank meeting that was held in New York, and even though the syndicate opted not to present lenders with price talk until ratings emerge, some investors have been speculating that the transaction will likely come in the Libor plus 200 bps to 225 bps context, according to a market source.

Ratings on the deal are hoped to be announced around the Friday/Monday timeframe, the source added.

The facility consists of a CHF 125 million revolver, a CHF 425 million funded term loan and a CHF 300 million delayed-draw term loan.

A bank meeting for European investors was already held in London on Monday.

Goldman Sachs and Deutsche Bank are the lead banks on the deal, which will be used to refinance existing debt.

Gate Gourmet is a Zurich, Switzerland, provider of airline catering and provisioning services.

OSI considering flex

Also in the primary, OSI Restaurant is said to be contemplating lowering pricing on its $1.08 billion seven-year term loan and potentially even adding a step down, since the loan is already four times oversubscribed, according to a buyside source.

Speculation is that the term loan pricing will be reduced to Libor plus 225 bps from the current price talk of Libor plus 250 bps and a step down to Libor plus 200 bps may be added to the tranche, the source said.

However, no official word on the term loan pricing has come out as of yet, the source added.

OSI's $1.33 billion senior secured credit facility (Ba3/BB-) also includes a $150 million six-year revolver and a $100 million six-year pre-funded revolver, which are both being talked at Libor plus 250 bps as well.

Deutsche Bank and Bank of America are the lead banks on the deal, with Deutsche the left lead.

Proceeds will be used to help fund the leveraged buyout of the company by an investor group comprised of Bain Capital Partners, LLC, Catterton Partners and company founders Chris T. Sullivan, Robert D. Basham and J. Timothy Gannon.

The total transaction value, including assumed debt, is $3.2 billion, with OSI stockholders receiving $40.00 per share in cash.

Other leveraged buyout financing will come from $700 million in high-yield notes, real estate financings, $827.3 million in cash equity and $217.5 million in rollover equity.

OSI is a Tampa, Fla., casual dining restaurant company with a portfolio of brands, including Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse & Wine Bar, Roy's, Lee Roy Selmon's, Blue Coral Seafood & Spirits and Cheeseburger in Paradise.

AMD slides on repayment

Switching to the secondary, Advanced Micro Devices' term loan weakened by about an eighth of a point as lenders are being told to expect a paydown from a portion of the proceeds that were raised through a convertible senior notes offering, according to a trader.

The term loan closed out the day at par 1/8 bid, par 3/8 offered, down from prior levels of par ¼ bid, par 5/8 offered, the trader said.

On Tuesday, the company priced $2 billion of convertible senior notes due 2015 with a 6% coupon and has granted the initial purchasers a 30-day option to purchase up to $200 million of additional notes to cover over-allotments.

Of the total proceeds received from the transaction, at least $500 million will go toward repaying term loan debt, the company said in a press release.

Advanced Micro Devices is a Sunnyvale, Calif.-based provider of processing solutions in the computing, graphics and consumer electronics markets.

AMR down on repricing

In other trading news, AMR's term loan B fell off by about three-eights of a point as the company launched a repricing of the debt early on in the session, according to a trader.

The term loan B ended the day at par ¼ bid, par ¾ offered, down from previous levels of par 5/8 bid, 101 1/8 offered, the trader said.

The term loan B repricing is being talked at Libor plus 175 bps to 200 bps. Currently, the loan carries an interest rate of Libor plus 325 bps.

Citigroup is the left lead bank on the Fort Worth, Texas, airline company's repricing deal.

Ginn Clubs trades down

Ginn Clubs & Resorts' first- and second-lien bank debt headed lower on Tuesday as the company is requesting extensions of 2006 financials for the first quarter and appraisals for the first quarter, according to a trader.

The first-lien term loan closed out the day at 96½ bid, 97½ offered, down about a half a point to a point, the trader said.

Meanwhile, the second-lien term loan closed out the day at 84 bid, 86 offered after being bid as low as 81 during market hours, the trader continued. On Monday, the second-lien term loan was being quoted at 88 bid, 90 offered.

Ginn Clubs is a Celebration, Fla.-based resort development and management firm.

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