IAP, Custom Building Products price talk emerges; Data Transmission breaks in the 101s

By Sara Rosenberg

New York, March 16 - Price talk started circulating on IAP Worldwide Services' $435 million credit facility and Custom Building Products Inc.'s $440 million credit facility on Wednesday as the deals begin gearing up for launch.

In the secondary, Data Transmission Network Corp.'s term loan B broke for trading in the 101s and Tower Automotive Inc.'s bank debt came under some pressure after General Motors Corp. lowered its financial guidance.

IAP pricing guidance was sent out to some accounts, ahead of Thursday's upcoming bank meeting, with the $75 million revolver talked at Libor plus 300 basis points, the $240 million term loan talked at Libor plus 275 to 300 basis points and the $120 million second-lien term loan talked at Libor plus 550 to 575 basis points, according to a buyside source.

Deutsche Bank and Goldman Sachs are the lead banks on the deal, with Deutsche the left lead.

Proceeds will be used to help fund Cerberus' leveraged buyout of the company, another source added.

IAP Worldwide Services is an Imco, S.C.-based company that provides products and services to public and private sector companies and government agencies.

Custom Building spread speculation

Meanwhile, unofficial price talk found its way around the marketplace on Custom Building's credit facility, with the $30 million revolver talked around the Libor plus 250 basis points area, the $280 million first-lien term loan talked around the Libor plus 250 basis points area and the $130 million second-lien term loan talked around the Libor plus 500 basis points area, a market source told Prospect News.

Bank of America is the lead bank on the deal that is scheduled to launch via a bank meeting on March 23.

Proceeds will be used to help fund the Kelso & Co.'s leveraged buyout of Custom Building Products, the source added.

Custom Building Products is a Seal Beach, Calif., provider of installation solutions for tile and stone.

Nexstar price talk surfaces

Price talk emerged on the Nexstar Broadcasting Group Inc./Mission Broadcasting Inc. $455 million credit facility, with the $100 million seven-year revolver talked at Libor plus 125 basis points and the $355 million 71/2-year term loan talked at Libor plus 175 basis points, according to a market source.

The $100 million revolver is divided into two $50 million tranches - one for Nexstar and one for Mission.

The term loan is also divided into two tranches - one going to each borrower - with one piece sized at $182.3 million and the second piece sized at $172.7 million, the source explained.

Bank of America, UBS and Merrill Lynch are joint lead arrangers on the deal, with Bank of America the administrative agent and UBS and Merrill the co-syndication agents.

The facility, which launched via a bank meeting this past Tuesday, will be used to fund the redemption of the company's $160 million outstanding 12% senior subordinated notes due April 1, 2008 and refinance debt.

The company is also working on a $75 million tack-on to its existing 7% subordinated notes due 2014 with proceeds going toward note redemption as well.

Nexstar is an Irving, Texas, television broadcasting company.

Data Transmission hits mid-101s

Data Transmission allocated its credit facility on Wednesday, with the $155 million term loan B freeing up for trading with quotes around 101 1/8 bid, 101 5/8 offered and trading in that context throughout the session, according to a trader.

The term loan is priced with an interest rate of Libor plus 300 basis points and contains a step down to Libor plus 275 basis points under certain conditions. Initially, the deal was launched with price talk of Libor plus 325 basis points but was reverse flexed with the addition of the step down during syndication.

The $175 million senior secured credit facility (B2/B+) also contains a $20 million revolver.

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

Data Transmission Network is an Omaha, Neb., provider of real-time information to agriculture, refined fuels, commodities trading and weather impacted businesses.

Tower Auto lower

Tower Automotive's debtor-in-possession financing facility fell about half a point during Wednesday's session as it felt the sting of General Motors' early morning earnings warning, according to a trader.

The DIP closed out the day at 101¾ bid, 102¼ offered, down from 102½ bid, 102¾ offered, the trader said.

On Wednesday, General Motors said that it revised its first quarter and calendar year earnings guidance to reflect lower North American sales and production volumes, a tougher pricing environment and a more car-based sales mix.

General Motors now expects to report a loss of about $1.50 per fully diluted share in the first quarter of 2005, excluding special items, compared to a previous target of breakeven or better. For the calendar year, the company expects to report earnings of about $1.00 to $2.00 per share, excluding special items, compared to a previous target of $4.00 to $5.00 per share.

Tower Automotive is a Novi, Mich.-based maker of automotive assemblies. General Motors is a Detroit, Mich.-based automaker.

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