Market awaits new sizable 2010 deals, including Cedar Fair, IMS Health and Bucyrus

By Sara Rosenberg

New York, Dec. 24 - As the year is coming to a close, investors are now looking ahead at what 2010 will bring, such as large new credit facilities from Cedar Fair LP, IMS Health Inc. and Bucyrus International Inc.

Cedar Fair is planning on coming to market with a $1.25 billion credit facility that consists of a $250 million revolver and a $1 billion term loan, according to sources.

JPMorgan, Bank of America, Barclays Capital, UBS and KeyBanc Capital Market are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Apollo Global Management.

Cedar Fair also getting bonds

In addition to the new credit facility, Cedar Fair is also planning on approaching the high-yield market with a $700 million bond offering, sources said.

The bonds are backed by a commitment for a $700 million bridge loan.

The buyout of Cedar Fair is valued at about $2.4 billion, including the refinancing of the company's outstanding debt. Cedar Fair unitholders will receive $11.50 in cash for each limited partnership unit that they hold.

Closing on is expected by the beginning of the second quarter of 2010, subject to approval of holders of two-thirds of Cedar Fair's outstanding units, the receipt of regulatory approvals and other conditions.

The transaction does not include a financing condition.

Cedar Fair is a Sandusky, Ohio-based amusement-resort operator.

IMS readies loan, notes

Also expected to hit the market in 2010 is IMS Health's proposed $2.275 billion credit facility and $1 billion senior unsecured notes offering, sources said.

According to an 8-K filed that was filed with the Securities and Exchange Commission back in November, the credit facility is comprised of a $2 billion term loan and a $275 million revolver.

Goldman Sachs is the lead bank on the debt financing.

As a backup for the notes, Goldman has provided the company with a commitment for a $1 billion senior unsecured term loan.

IMS being acquired

Proceeds from IMS Health's credit facility and notes will be used to help fund its buyout by TPG Capital and the CPP Investment Board.

Under the acquisition agreement, IMS shareholders will receive $22 in cash per share of common stock. The transaction has a total value of $5.2 billion, including the assumption of debt.

Equity financing for the buyout is expected to total $2.793 billion.

Completion of the transaction is expected to occur by the end of the first quarter of 2010, subject to approval of IMS shareholders, regulatory approvals and customary closing conditions.

IMS is a Norwalk, Conn.-based provider of market intelligence to the pharmaceutical and health care industries.

Bucyrus plans new debt

Another large deal that is being labeled as 2010 business is Bucyrus' proposed $1.075 billion six-year term loan B and $50 million revolver add-on, sources remarked.

The debt will be used to help fund the acquisition of Terex Corp.'s mining equipment business for $1.3 billion.

JPMorgan, Bank of America and Macquarie are the lead banks on the deal, with JPMorgan the left lead.

The company has actually received a commitment for a $1.2 billion term loan B, but it plans to issue $300 million of equity to Terex to help fund the acquisition so that the more permanent capital structure includes a smaller term loan B.

The revolver add-on will be obtained under the accordion feature of the existing revolver.

Bucyrus amending and extending

On top of getting the new bank debt, Bucyrus is also hoping to amend and extend its existing credit facility.

By completing these financings, total liquidity will be expanded to over $500 million.

Pro forma leverage for the transaction is 2.1 times.

Closing on the acquisition is expected to take place during the first quarter of 2010, subject to regulatory approvals and other customary conditions.

Bucyrus is a Milwaukee, Wis.-based designer and manufacturer of high productivity mining equipment for surface and underground mining.

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