Wyle breaks; PanAmSat, Intelsat up with amendment call; LCDX, cash fall; Namic sets talk

By Sara Rosenberg

New York, Jan. 17 - Wyle Laboratories Inc.'s credit facility allocated and freed up for trading on Thursday, with the term loan B quoted above its original issue discount level, and PanAmSat Holding Corp. and Intelsat Ltd. saw their secured term loans inch higher as some amendment details surfaced.

Also in trading, LCDX 9 and cash were once again softer as equities fell and selling pressure dominated the market.

In the primary, Namic/Venous Access came out with price talk on its credit facility as the deal was launched with a bank meeting during Thursday's market hours.

In other news, Augusta Sportswear Group's leverage and financial sponsor are causing some to feel hesitant toward the deal, creating the expectation that the first-lien bank debt will, at the very least, end up at the wide end of guidance and possibly see a small increase to the original issue discount before syndication wraps up.

Wyle Laboratories' credit facility hit the secondary market on Thursday, with the $200 million term loan B (Ba3/BB) quoted at 99 1/8 bid, 99 5/8 offered, according to a trader.

The term loan B is priced at Libor plus 400 basis points at an original issue discount of 99.

During syndication, the discount on the term loan B firmed up at the wide of original guidance of 99 to 991/2.

Wyle's $230 million credit facility also includes a $30 million revolver that is priced at Libor plus 400 bps as well.

Wachovia and CIT Group are the lead banks on the deal, which will be used to help fund the acquisition of RS Information Systems and refinance some debt.

Wyle is an El Segundo, Calif.-based provider of specialized engineering, scientific and technical services.

PanAmSat, Intelsat trade up

PanAmSat and Intelsat both saw their secured term loans gain ground during the session as some details on their proposed change-of-control amendments were released, according to a trader.

Both term loans were quoted at 97 bid, 98 offered, up from 96½ bid, 97½ offered at the close on Wednesday, the trader said.

However, the bank debt is down from earlier in the week. For example, on Tuesday, PanAmSat was seen quoted at 98½ bid, 99¼ offered and Intelsat was seen quoted at 99 bid, par offered, the trader added.

On Thursday, PanAmSat and Intelsat, which merged in 2006, held a conference call with lenders to launch an amendment that would allow their credit facilities to remain in place following the purchase of the merged company by BC Partners.

BC Partners is buying approximately 76% of the satellite company, while the current shareholders, including Apax Partners, Apollo Management, Madison Dearborn Partners, Permira and management, will continue to hold roughly 24% of the primary ownership in the company.

In addition to the amendment, PanAmSat launched a $150 million term loan that is being used to redeem a $150 million issue of 6 3/8% senior notes.

Credit Suisse, Bank of America and Morgan Stanley are the lead banks on the deal.

LCDX, cash slide lower

LCDX 9 and the overall cash market traded down on Thursday as stocks plummeted and "panicked selling" in loans ruled the day, according to traders.

The index was quoted at 94.75 bid, 95.00 offered, down from 95.25 bid, 95.35 offered, traders said.

Cash was off by about a quarter of a point across the board.

"Last couple of days we've seen guys taking money out of the loan market and put it in the bond market because Libor is getting crushed. Guys are trying to get out of everything they can," one trader remarked.

Stocks also got hit hard on Thursday, with Nasdaq down 47.69 points, or 1.99%, Dow Jones Industrial Average down 306.95 points, or 2.46%, S&P 500 down 39.95 points, or 2.91%, and NYSE down 254.48 points, or 2.81%.

Namic talk emerges

Switching to the primary market, Namic/Venous Access held a bank meeting on Thursday to jumpstart syndication on its $252.5 million credit facility, and in connection with the launch, price talk was announced, according to a market source.

The $40 million revolver and the $135 million first-lien term loan were both launched with talk of Libor plus 375 bps, and the $77.5 million second-lien term loan was launched with talk of Libor plus 750 bps, the source said.

All tranches are being offered to investors at an original issue discount of 99, the source added.

GE Capital is the lead bank on the deal, which will be used to help fund Avista Capital Partners' acquisition of Boston Scientific Corp.'s fluid management and venous access businesses for $425 million in cash.

The businesses produce a range of products used to manage fluid and measure pressure during angiography and angioplasty procedures and provide a portfolio of implantable devices designed to provide access to the blood stream for patients requiring intravenous antibiotics, nutrition, chemotherapy and blood sampling.

Based on adjusted EBITDA of $39 million, senior leverage is 3.6 times and total leverage is 5.6 times.

Commitments from lenders are due on Jan. 31.

Augusta leverage, sponsor under scrutiny

Augusta Sportswear's first-lien bank debt may end up at the high end of guidance, or possibly even wider of that, and the original issue discount may need to be beefed up a bit, as investors are worried about leverage and the financial sponsor, according to a market source.

Currently, the first-lien debt, comprised of a $50 million revolver and a $172 million first-lien term loan, is being talked at Libor plus 375 bps to 400 bps with an original issue discount of 99.

"Guys are struggling with the total leverage level and the sponsor," the source said.

"Quad-C has [irritated] many of the middle market guys who feel that they filed Heartland when they didn't really need to," the source remarked, referring to Heartland Automotive Holdings, Inc.'s Jan. 7 filing with the U.S. Bankruptcy Court for the Northern District of Texas, Forth Worth Division seeking relief under Chapter 11.

"Also, Quad-C has another non-performing portfolio company that guys are not happy about. So, it looks like that best case it prices at the wide end of coupon talk, 400, and maybe a little more than a point discount," the source concluded.

Augusta Sportswear's $302.5 million credit facility also includes an $80.5 million second-lien term loan that is talked at a fixed rate of 13%, of which 2% is PIK.

GE Capital is the lead bank on the deal, which will be used to help fund Quad-C Management's buyout of the company from Linsalata Capital Partners.

Augusta is an Augusta, Ga., designer, manufacturer and distributor of athletic-oriented apparel, team uniforms, sportswear and related accessories.

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