DeCrane overfills; Titan sets talk; Seminole postponed; Yankee breaks; HCA up on added call protection

By Sara Rosenberg

New York, Feb. 6 - DeCrane Aircraft Holdings Inc.'s credit facility has already received a strong amount of investor interest in the few days that it's been in market, creating an environment where potential lenders are being guided toward the low end of talk and prompting rumors of a possible price cut.

In other primary news, Titan Specialties Ltd. and Arizona Chemical released price talk on their credit facilities, and Seminole Hard Rock Entertainment Inc. cancelled its Tuesday bank meeting, and although there are plans to reschedule, a new date has not yet been picked.

Meanwhile, in the secondary, The Yankee Candle Co. Inc.'s credit facility allocated and freed for trading with levels on the term loan seen in the high par to 101 context, HCA Inc.'s term loan B inched higher as call protection was added to its repricing proposal and MetroPCS Communications Inc.'s term loan B softened with the launch of its repricing.

DeCrane Aircraft's credit facility has already reached oversubscription levels since launching just last Thursday, and due to this strong response, investors are being told to focus on the tight end of the original price talk, according to a market source.

In fact, things are going so well for the deal, that speculation of a potential reverse flex in pricing being announced next week has begun to make its way around the market, the source remarked.

The $365 million credit facility consists of a $25 million revolver (B1/B), a $180 million term loan B (B1/B) and a $160 million second-lien term loan (Caa1/CCC+).

Currently, the revolver and the term loan B (B1/B) are officially being talked at Libor plus 325 to 350 basis points, and the $160 million second-lien term loan (Caa1/CCC+) is officially being talked at Libor plus 700 to 750 bps.

The second-lien loan carries call protection of 102 in year one and 101 in year two.

Credit Suisse is the lead bank on the deal that will be used to refinance the company's existing credit facility.

DeCrane is a Columbus, Ohio, aircraft parts and equipment manufacturer.

Titan Specialties price talk

Titan Specialties came out with price talk on its $205 million credit facility as syndication officially kicked off with a bank meeting that was held on Tuesday at 2 p.m. ET, according to a market source.

The $25 million five-year revolver and $130 million six-year first-lien term loan were both presented to lenders with talk of Libor plus 300 bps, and the $50 million second-lien term loan was presented with talk of Libor plus 650 bps, the source said.

The second lien carries call protection of 102 in year one and 101 in year two, the source added.

Credit Suisse is the lead bank on the deal.

Leverage through the first lien will be 3.4 times, and leverage through the second lien will be 4.8 times.

Proceeds will be used to help fund the acquisition by Carlyle/Riverstone Global Energy and Power Fund III, LP of a majority of the limited and general partnership interests in the company held by the existing owners, co-founders Bill Berry and Clarence Marak, and chief financial officer Jerry Wilson.

Carlyle/Riverstone will provide $77.5 million of equity toward the transaction and $12.5 million of subordinated pay-in-kind notes are being provided by the seller.

Titan Specialties is a Pampa, Texas, designer, manufacturer and distributor of perforating gun systems, shaped charges, well-logging instrumentation and other ancillary drilling and completion products for the oilfield services industry.

Arizona guidance emerges

Also on the price talk front, Arizona Chemical released guidance on its in-market $426 million credit facility on the heels of ratings having been announced on the deal, according to a market source.

The $50 million revolver (B1/B) is being talked at Libor plus 250 bps, the $140 million first-lien U.S. term loan B (B1/B) is being talked at Libor plus 250 bps, the $100 million first-lien euro equivalent term loan B (B1/B) is being talked at Euribor plus 250 bps and the $136 million second-lien term loan (Caa1/CCC+) is being talked at Libor plus 600 bps, the source said.

The second-lien term loan carries call protection of 102 in year one and 101 in year two.

Goldman Sachs is the lead bank on the deal, which was launched with a bank meeting this past Thursday and will be used to help fund Rhone Capital III LP's buyout of the company from International Paper for about $485 million.

As part of the transaction, International Paper will acquire a minority interest of about 10% in the acquisition vehicle to be formed by Rhone Capital.

The transaction is expected to close in the first quarter, subject to certain customary closing conditions.

Leverage through the first lien will be roughly 3.2 times, and total leverage will be roughly 5.0 times.

Arizona Chemical is a Jacksonville, Fla., supplier of pine chemicals to the adhesives, inks and coatings and oleochemicals markets.

Seminole cancels meeting

Seminole decided to cancel the Tuesday bank meeting it was going to hold to launch its $700 million term loan because of management time issues, according to a market source.

The company still plans on holding a bank meeting for the deal; however, the exact timing has not been figured out as of yet, the source explained.

Merrill Lynch is the lead bank on the loan.

Proceeds from the term loan will be used to help fund the acquisition of The Rank Group plc's Hard Rock business, a rock-music based entertainment brand, for $965 million.

Seminole Hard Rock Entertainment, Inc. is a wholly owned subsidiary of the Seminole Tribe of Florida, a Hollywood, Fla.-based operator of hotels and casinos.

Mattress Firm tweaks deal

Mattress Firm made some changes to its credit facility, including upsizing its term loan B and lowering pricing on the tranche, according to a fund manager.

The seven-year term loan B is now sized at $205 million, up from $185 million, and pricing was reverse flexed to Libor plus 225 bps from original talk at launch of Libor plus 275 bps, the fund manager said.

The funds for the term loan B upsizing were taken out of the company's mezzanine financing, which was downsized to $100 million from $120 million, the fund manager added.

The company's now $230 million (up from $210 million) credit facility (Ba3/B) also includes a $25 million six-year revolver.

UBS is the lead bank on the deal that will be used to fund J.W. Childs Associates LP's leveraged buyout of the company from Sun Capital Partners.

Mattress Firm is a Houston-based specialty bedding retailer.

Yankee frees to trade

Moving to the secondary market, Yankee Candle's credit facility broke for trading with the $650 million term loan quoted at par ¾ bid, 101 offered, according to a trader.

The term loan is priced at Libor plus 200 bps. During syndication, pricing on the tranche was reduced from original talk at launch of Libor plus 250 bps.

Yankee's $775 million senior secured credit facility (Ba3/B+) also includes a $125 million revolver.

Lehman Brothers and Merrill Lynch acted as the lead banks on the facility that was used to help fund Madison Dearborn Partners, LLC's now completed leveraged buyout of Yankee for $34.75 in cash per common share. The total value of the transaction, including assumed debt, is about $1.6 billion.

Yankee is a South Deerfield, Mass., designer, manufacturer, wholesaler and retailer of scented candles.

HCA trades up as call premium added

HCA's term loan B traded stronger by about a quarter of a point during market hours after the company announced the addition of call protection to its repricing amendment, according to a trader.

The term loan B closed the day at 101 bid, 101¼ offered, up from previous levels of par ¾ bid, 101 offered, the trader said.

Under the revised proposal, the company is now offering 101 soft call protection for one year on its term loan B, which is being repriced to Libor plus 225 bps from Libor plus 275 bps.

As was previously reported, HCA will also be repricing its term loan A to Libor plus 225 bps from Libor plus 250 bps and its European term loan to Euribor plus 225 bps from Euribor plus 250 bps.

Bank of America is the lead bank on the repricing.

HCA is a Nashville health care services company.

MetroPCS lower with repricing

MetroPCS' term loan B came under some pressure in trading on Tuesday after the company launched a repricing proposal that would cut the spread by 50 bps, according to a trader.

The term loan B closed the session at par 3/8 bid, par 7/8 offered, down from Monday's closing levels of par ¾ bid, 101¼ offered, the trader said.

Under the repricing, the company is looking to take the term loan B spread down to Libor plus 225 bps from Libor plus 250 bps.

Bear Stearns is the lead bank on the deal.

MetroPCS is a Dallas-based provider of wireless communications services.

Wastequip closes

Odyssey Investment Partners LLC completed its acquisition of Wastequip Inc. from DLJ Merchant Banking Partners in a transaction valued at $616 million, according to a news release.

To help fund the transaction, Wastequip got a new $381 million credit facility (Ba3/B+) consisting of a $246 million six-year term loan B priced at Libor plus 225 bps, an $85 million six-year delayed-draw term loan B priced at Libor plus 225 bps and a $50 million five-year revolver priced at Libor plus 250 bps.

During syndication, pricing on the two term loan tranches was reverse flexed from original talk at launch of Libor plus 250 bps.

Credit Suisse acted as the lead bank on the deal.

Wastequip is a Cleveland-based designer, manufacturer and marketer of equipment used to collect, process and transport solid, liquid and semi-liquid waste materials.

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