Capital Auto, AmeriPath talk emerges; Alliant ups spread; Crown breaks; Midwest Gen dips on repricing

By Sara Rosenberg

New York, Nov. 16 - Capital Automotive REIT and AmeriPath Inc. came out with price talk on their credit facilities as both deals launched with bank meetings on Wednesday. And, Alliant Resources Group Inc. raised price talk on its second-lien term loan by 50 basis points.

In secondary doings, Crown Holdings Inc. allocated and freed for trading, with the term loans quoted in the pars. Also, Midwest Generation LLC's term loan weakened slightly after the company launched its repricing effort.

Capital Automotive REIT came out with opening price talk at its Wednesday launch and firmed up the size of its term loan B tranche at a slightly lower amount than was originally disclosed.

The company's five-year term loan B was launched with a size of $1.42 billion, down from the previous approximate size of $1.60 billion, as the amount of equity and other financing contributions for the acquisition of the company were figured out a bit more definitively, according to a market source.

Furthermore, price talk on the term loan B emerged at Libor plus 150 basis points, the source said.

In addition, the company's proposed $250 million four-year revolver was also launched with opening price talk of Libor plus 150 basis points.

Lehman is the lead bank on the $1.67 billion credit facility.

Proceeds from the facility, along with proceeds from a proposed $500 million senior notes offering, will be used to help fund DRA Advisors LLC's acquisition of Capital Automotive.

Under the terms of the agreement, holders of the company's common shares will receive $38.75 per share payable in cash. The total transaction value is about $3.4 billion, including the assumption of debt and preferred shares.

Capital Automotive is a McLean, Va., specialty finance company for automotive retail real estate.

AmeriPath sets talk

AmeriPath announced opening spreads of Libor plus 225 basis points on both tranches contained in its $298.5 million credit facility (B1/BB-) as the deal was presented to potential lenders at a Wednesday meeting.

Tranching on the facility breaks down as a $203.5 million term loan and a $95 million revolver.

Wachovia, Citigroup, Deutsche Bank and UBS are the lead banks on the deal.

Proceeds from the term loan, about $50 million of revolver borrowings, cash on hand and a $45.9 million equity contribution will be used to fund the approximately $305 million acquisition price for Special Laboratories Inc. and refinance the company's existing senior secured credit facility.

Through this transaction, the company is increasing its debt level by about $140 million by essentially increasing its term loan by $103 million and drawing funds under the proposed revolver.

Under the terms of the merger agreement, AmeriPath will acquire all common shares of Specialty Laboratories for $13.25 per share.

The acquisition is expected to be completed by the first quarter of 2006, with the exact timing being dependent on the completion and review of necessary SEC and other filings.

AmeriPath is a Riviera Beach, Fla.-based provider of physician-based anatomic pathology, dermatopathology and molecular diagnostic services. Specialty Laboratories is a Valencia, Calif.-based hospital-focused clinical reference laboratory.

Alliant ups second-lien talk

Alliant Resources increased price talk on its $95 million second-lien term loan (B3) to Libor plus 700 basis points from Libor plus 650 basis points, according to a market source.

The second-lien loan contains call protection of 102 in year one, 101 in year two and par thereafter.

Price talk on Alliant's $30 million revolver (B2) and $175 million first-lien term loan B (B2) was left unchanged at Libor plus 300 basis points, the source added.

JPMorgan and General Electric Capital Corp. are the lead banks on the deal, with JPMorgan the left lead.

Proceeds from the $300 million credit facility will be used to help fund Lindsay Goldberg & Bessemer LP's leveraged buyout of the company from GTCR Golder Rauner LLC.

Alliant is a Stamford, Conn., distributor of insurance and financial services.

PGS revolver price talk

Petroleum Geo-Services ASA (PGS) set price talk on its $150 million five-year revolver at Libor plus 175 to 200 basis points ahead of Thursday's afternoon bank meeting that will officially launch the deal into syndication, according to a market source.

As was previously reported, the company's proposed $850 million seven-year term loan will be launched with opening spreads of Libor plus 200 to 225 basis points.

UBS Securities LLC, Credit Suisse First Boston and Barclays Capital are the lead banks on the $1 billion credit facility (B+).

Proceeds will be used to retire the company's $746 million outstanding 10% senior notes due 2010 and refinance its existing $110 million revolver.

Petroleum Geo-Services is an Oslo, Norway-based oilfield service company.

Crown trades atop par

Crown Holdings freed up for trading on Wednesday, with the U.S. term loan quoted at par 5/8 bid, par 7/8 offered by day's end and the euro term loan quoted at par ¼ bid, par ½ offered, according to a trader.

The $165 million U.S. term loan and the $335 million equivalent euro-denominated term loan are both priced with an interest rate of Libor plus 150 basis points. Originally, the U.S. term loan was sized at $250 million and the euro term loan was sized at the equivalent of $250 million, but during syndication, $85 million was shifted out of the U.S. term loan and into the euro term loan.

Crown's $1.3 billion equivalent credit facility (Ba2/BB-) also contains an $800 million revolver with an interest rate of Libor plus 150 basis points.

Deutsche Bank and Lehman Brothers acted as the lead banks on the deal that is being used to fund the tender for any and all of Crown European Holdings SA's outstanding notes.

Crown Holdings is a Philadelphia-based packaging company.

Midwest Gen dips on repricing

Midwest Generation's term loan fell off by about a quarter of a point during market hours after the company approached lenders with a repricing proposal that, if approved, would take spreads down by 25 basis points, according to a trader.

The term loan closed Wednesday's session at 101¼ bid, 101¾ offered, down from previous levels of 101½ bid, 102 offered, the trader said.

Under the repricing proposal, the company is looking to take interest rates on its term loan and its revolver down to Libor plus 175 basis points from Libor plus 200 basis points.

Citigroup is the lead bank on the Chicago-based electric company's deal.

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