Worldspan sets price talk on $225 million credit facility ahead of Thursday's bank meeting

By Sara Rosenberg

New York, June 9 - A launch date and price talk surfaced Wednesday on Worldspan Technologies Inc.'s proposed $225 million credit facility, with the bank meeting set to take place on Thursday, according to a market source.

Pricing on the $185 million term loan and the $40 million revolver is expected at Libor plus 225 basis points, although the syndicate is still waiting for confirmation of ratings, the source added.

Lehman and JPMorgan are joint bookrunners on the credit facility, with Lehman listed on the left for the transaction.

The company is obtaining the credit facility in connection with its proposed initial public offering of common stock, which is expected to generate proceeds of about $604.4 million.

IPO proceeds along with the proposed term loan will be used to repay about $71 million of bank debt, repurchase about $107.4 million of 9 5/8% senior notes, prepay about $89.1 million under the 10% seller notes originally issued to Delta Air Lines and 12% seller notes originally issued to American, prepay all credit, or about $154.8 million, provided to Delta and Northwest Airlines pursuant to their FASA, terminate advisory fees payable to CVC Management LLC for about $5.3 million, prepay the approximately $3.5 million special dividend payable on class B convertible common stock and redeem shares of series A preferred stock, according to the filing.

When the company first filed its S-1 with the Securities and Exchange Commission it was anticipated that the revolver would be sized at $50 million. However, the revolver was later downsized to $40 million as was revealed in an S-1/A filed this past Monday.

The revolver is expected to be undrawn at closing.

Worldspan Technologies is an Atlanta provider of mission-critical transaction processing and information technology services to the travel industry.

CACI trades

CACI Inc.'s term loan B traded a bit in the mid to upper 98s, pretty much unchanged, according to a trader, despite news of a class action lawsuit being filed against the company related to the Iraqi prison abuse scandal.

On Wednesday, the Center for Constitutional Rights and the Philadelphia law firm of Montgomery, McCracken, Walker and Rhoads filed a lawsuit in federal court in San Diego charging CACI and Titan Corp. with violating the Racketeer Influenced and Corrupt Organizations Act and alleging that the companies used illegal acts to obtain intelligence from prisoners, in the pursuit of more contracts from the government. The action also brings claims under the Alien Tort Claims Act and various Constitutional amendments as well as other U.S. and international laws.

CACI is an Arlington, Va., provider of IT and network solutions.

Overall, the secondary market was better bid with a lot of people interested in buying paper but not very much activity taking place, according to a number of traders.

Alliance Laundry reverse flexes

Alliance Laundry Systems LLC's (B2/B) $110 million term loan B was recently reverse flexed to Libor plus 325 basis points from Libor plus 375 basis points, according to a market source.

The $50 million revolver was left unchanged with an interest rate of Libor plus 375 basis points, the source added.

CIBC World Markets Corp. and Lehman Brothers Inc. are joint lead arrangers and joint book managers on the deal, with CIBC listed on the left.

Proceeds from the credit facility, combined with proceeds from an Income Deposit Securities sale and notes offering, will be used to redeem the company's 9 5/8% notes in a tender offer and consent solicitation, repay all borrowings under the company's existing credit facility, repay its junior notes, redeem the mandatorily redeemable preferred membership interests in Alliance Laundry Systems held by affiliates of Trust Co. of the West and affiliates of Sankaty Advisors, fund working capital, and to buy back the company's equity investors' remaining equity interests.

Alliance Laundry is a Ripon, Wis., manufacturer of commercial laundry products.

Language Line flexes higher

Some final modifications to Language Line Inc.'s credit facility (B2/B) were made recently, including increasing pricing on the $285 million term loan B to Libor plus 425 basis points from Libor plus 400 basis points, according to a market source.

The $40 million revolver is priced with an interest rate of Libor plus 350 basis points, the source added.

Pricing was not the only portion of the deal that has been fluid since it first hit the primary. Originally, the deal was launched as a $335 million term loan B, but the tranche was reduced in size after the company decided to add a $55 million mezzanine tranche of nine-year non-call-four-year senior discount notes at the holding company level to its bond offering. The size of the company's offering of eight-year senior subordinated notes, which are non-callable for four years, was reduced at that time to $165 million from $170 million.

Merrill Lynch and Bank of America are the lead banks on the credit facility, with Merrill listed on the left for the transaction.

Proceeds from the credit facility and the bonds will be used to fund Abry Partners LLC's acquisition of Language Line from Providence Equity Partners.

Language Line is a Monterey, Calif., provider of over-the-phone interpretation services.

Milacron closes

Milacron Inc. anticipates being allowed access to its new $75 million revolver now that shareholders have approved proposals required to implement the company's recent refinancing transactions that include a bond sale and a bond redemption. JP Morgan Chase was the lead bank on the deal.

The revolver can be used for working capital purposes.

Also as part of the refinancing, the company will pay off a bridge credit facility, under which about $110 million is drawn, including letters of credit.

"We are very pleased with the support shown by our shareholders at today's annual meeting," said Ronald D. Brown, chairman, president and chief executive officer, in a company news release. "With the approval of the proposals necessary to complete our refinancing transactions, we are now able to put in place a solid capital structure with less debt and more equity."

Milacron is a Cincinnati supplier of plastics-processing technologies and industrial fluids.

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