Logan's sets talk; Kinetek upsizes, cuts spreads; PA Meadows breaks; NRG, Fidelity trade lower

By Sara Rosenberg

New York, Nov. 3 - Logan's Roadhouse Inc. came out with price talk on its credit facility as the deal was launched to investors with a bank meeting Friday, and Kinetek Inc. reworked its credit facility structure, increasing the size of both it first- and second-lien term loan tranches while reverse flexing pricing on those upsized tranches.

On the secondary front, PA Meadows' credit facility freed up, with the first-lien term loan B trading in the lower par context and the second lien trading in the upper par context.

Also in trading, NRG Energy Inc. bank debt was softer on news of an amendment and Fidelity National Information Services, Inc.'s term loan B traded down on an anticipated refinancing.

Logan's Roadhouse released price talk of Libor plus 300 bps on its $138 million term loan as syndication on the transaction officially kicked off with a bank meeting during Friday's market hours, according to a buyside source.

The company's $168 million credit facility (Ba3/B) also includes a $30 million revolver.

Wachovia is the lead bank on the deal that will be used to fund the leveraged buyout of Logan's by Bruckmann, Rosser, Sherrill & Co., Inc. and Canyon Capital Advisors LLC from CBRL Group, Inc.

Total consideration in the transaction is $486 million, subject to customary post-closing adjustments, if any, for working capital, debt and capital expenditures. This amount includes the anticipated proceeds from a real estate sale-leaseback transaction to be undertaken by Logan's and closed simultaneously with the sale.

The transaction is expected to close by Nov. 30.

Logan's is a Nashville, Tenn., full-service restaurant chain.

Kinetek tweaks deal

Kinetek announced some changes to its in-market credit facility that included upsizing both term loans and lowering spreads on those tranches, according to a market source.

With the modifications, the seven-year first-lien term loan B (B1/B) is now sized at $220 million, up from an original size of $215 million, and pricing was reduced to Libor plus 250 bps from original talk at launch of Libor plus 275 bps, the source said.

Meanwhile, the eight-year second-lien term loan (Caa1/CCC+) is now sized at $95 million, up from an original size of $85 million, and pricing was reverse flexed to Libor plus 550 bps from original talk at launch of Libor plus 650 bps, the source continued.

The company's $50 million six-year revolver (B1/B) was left unchanged in terms of size and pricing, which is initially set at Libor plus 275 bps, the source added.

Credit Suisse, Goldman Sachs and Jefferies are joint bookrunners on the $365 million deal (up from $350 million), with Credit Suisse the lead arranger.

Proceeds will be used to fund The Resolute Fund LP's acquisition of Kinetek from Jordan Industries Inc.

In connection with that sale, the company expects to redeem and pay in full its outstanding notes and bonds.

Kinetek is a Deerfield, Ill., designer and manufacturer of motors, components and control systems.

Marvell flexes up

Marvell Technology Group Ltd. increased pricing on its $500 million senior term loan to Libor plus 200 bps from original talk of Libor plus 150 bps, according to a market source.

When the deal was launched it was said that the Libor plus 150 bps pricing would change once the deal is rated to follow a grid based on corporate ratings. It was also said that if after six months the transaction is still unrated, pricing would move up to Libor plus 200 bps.

Credit Suisse is the lead bank on the loan that will be used to help fund the $600 million acquisition of Intel Corp.'s communications and application processor business.

Marvell is a Hamilton, Bermuda, provider of semiconductors of analog, mixed-signal, digital signal processing and embedded microprocessor integrated circuits.

PA Meadows frees to trade

Moving to trading news, PA Meadows' credit facility allocated and hit the secondary on Friday morning, with the $180 million five-year first-lien term loan B (B2/B) quoted at par ¼ bid, par 5/8 offered and the $70 million six-year second-lien term loan (Caa2/CCC+) quoted at par 5/8 bid, 101 offered, according to traders.

The term loan B is priced at Libor plus 300 bps, and the second-lien loan is priced at Libor plus 600 bps.

PA Meadows' $275 million senior secured credit facility also includes a $25 million five-year revolver (B2/B).

Bank of America and Merrill Lynch are the lead banks on the deal.

Proceeds will be used to pursue a gaming opportunity in Pennsylvania.

PA Meadows is a subsidiary of Cannery Casino Resorts, LLC, the owner and operator of the Cannery Casino & Hotel and operator of the Rampart Casino at the Resort at Summerlin, both of which are in Las Vegas.

NRG weaker on amendment

NRG Energy's loans headed lower in active trading on Friday as news of a proposed amendment that would increase debt hit the market, according to a trader.

The company's term loan closed the day at par 3/8 bid, par 5/8 offered, down from previous levels of par ½ bid, par ¾ offered, and its synthetic letter-of-credit facility closed the day at par ¼ bid, par ½ offered, down from previous levels of par 3/8 bid, par 5/8 offered, the trader said.

Under the amendment proposal, the Princeton, N.J.-based wholesale power generation company is looking to increase its synthetic letter-of-credit facility to $1.5 billion from $1 billion, reset the restricted payments basket to $500 million and permit the incurrence of debt to fund the company's Hedge Reset program.

The additional synthetic letter-of-credit facility funds would be used to support the incremental hedging activity, in addition to $1.1 billion of unsecured debt and cash on hand.

Partially offsetting the debt increase will be the previously announced $400 million paydown of the company's term loan B debt and the use of about $250 million of cash to fund the Hedge Reset.

The transactions are expected to close by Nov. 21.

Fidelity National down on refi

Fidelity National Information Services' term loan B moved in closer to par on the heels of the company's credit facility refinancing announcement, according to a trader.

The term loan B closed the day at par bid, par ¼ offered, compared to previous levels of par ¼ bid, par ½ offered, the trader said.

On Thursday evening, the company announced plans for a new $3.1 billion unsecured credit facility, consisting of a $1 billion five-year revolver and a $2.1 billion five-year term loan, via joint lead arrangers and joint bookrunners JPMorgan, Bank of America and Wachovia.

Proceeds will be used to refinance the company's existing senior secured credit facility, under which there is $2.7 billion outstanding.

Fidelity National is a Jacksonville, Fla.-based provider of technology to the financial services and real estate industries.

Hexion closes

Hexion Specialty Chemicals, Inc. closed on its amended and restated $2.05 billion in new seven-year bank debt (Ba3), according to a company news release, consisting of a $2 billion term loan and a $50 million synthetic letter-of-credit facility, with both tranches priced at Libor plus 250 bps.

Credit Suisse and JPMorgan acted as the lead banks on the deal.

Proceeds from the bank debt, along with $825 million of bonds, are being used to replace the company's May term loan and synthetic letter-of-credit facilities, fund a $500 million common stock dividend to its shareholders, and fund tender offers for its $300 million of second-priority senior secured floating-rate notes due 2010 and $325 million of 9% second-priority senior secured notes due 2014.

Hexion continues to have access to its current $225 million five-year revolving credit facility.

Hexion is a Columbus, Ohio, thermoset resins company.

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