Las Vegas Sands, Cannery, American Gaming, Jason set talk; Delta tweaks deal; AM General breaks

By Sara Rosenberg

New York, April 17 - Las Vegas Sands Corp., Cannery Casino Resorts LLC and American Gaming Systems Inc. came out with price talk on their credit facilities as all of these transactions were launched with bank meetings during Tuesday's session.

Also on the price talk front, Jason Inc. began circulating guidance on its credit facility as the deal is getting ready to launch with a bank meeting on Thursday.

In other primary happenings, Delta Air Lines, Inc. made some changes to its credit facility, including moving some funds out of its second-lien term loan and into its first-lien term loan, lowering pricing on the second-lien loan and firming up pricing at the low end of talk on the first-lien tranches.

Over in the secondary market, AM General LLC's holdco term loan freed up for trading, and Intelsat Ltd. and PanAmSat Holding Corp. both saw their bank debt gyrate on rumors of a potential sale.

Las Vegas Sands held a bank meeting on Tuesday morning to launch its $5 billion senior secured credit facility (Ba3/BB-) to investors, and in connection with the launch, price talk on the deal was announced, according to a market source.

The $3 billion seven-year funded term loan B, the $600 million delayed-draw term loan that will be available for 12 months with a seven-year final maturity and the $400 million delayed-draw term loan that will be available for 18 months with a six-year final maturity were all launched with talk of Libor plus 175 basis points, while the $1 billion five-year revolver was launched with talk of Libor plus 150 bps, the source said.

The 12-month delayed-draw loan has an unused fee of 75 bps, the 18-month delayed-draw loan has an unused fee of 50 bps and the revolver has an unused fee of 37.5 bps, the source continued.

Banks are being asked to commit to the revolver for 50%, the 18-month delayed-draw loan for 20% and the term loan B for 30%.

Institutional lenders are being asked to commit to the remaining $2.4 billion of term loan B that the banks don't get and the 12-month delayed-draw loan, the source added.

Goldman Sachs, Lehman Brothers and Citigroup are the joint lead arrangers and joint bookrunners on the deal, with Goldman the left lead. Scotia Capital and JPMorgan are agents.

Financial covenants include minimum ratios of EBITDA to interest expense and total debt to EBITDA.

Proceeds will be used to refinance the company's existing credit facility, to fund domestic development projects, to provide liquidity to support international development projects and for working capital and general corporate purposes.

Domestic development projects include the completion of the Palazzo Resort Hotel Casino and the Palazzo mall, the construction of the Palazzo condominium tower, the refurbishment of rooms at the Venetian Resort Hotel Casino, the construction of the Sands Expo and Convention Center II and the construction of Sands Bethworks.

Las Vegas Sands is a Las Vegas-based developer of multi-use integrated resorts.

Cannery price talk

Cannery Casino Resorts held its bank meeting on Tuesday afternoon to launch a proposed $860 million credit facility, at which time it too released price talk to lenders, according to a market source.

The $75 million five-year revolver (B2/BB-), the $350 million six-year first-lien term loan B (B2/BB-) and the $320 million six-year delayed-draw term loan (B2/BB-) were all launched with talk of Libor plus 225 bps, while the $115 million seven-year second-lien term loan (Caa1/B-) was launched with talk of Libor plus 450 bps, the source said.

The delayed-draw term loan carries an unused fee of 112.5 bps.

The second-lien term loan is non-callable for one year, then at 102 in year two and 101 in year three, the source added.

Bank of America and Merrill Lynch are the lead banks on the deal, with Bank of America the left lead on the first-lien debt and Merrill Lynch left lead on the second-lien debt.

Proceeds will be used to refinance existing debt, to construct a permanent casino in western Pennsylvania and to redevelop the Nevada Palace casino in Las Vegas.

Cannery Casino is a Las Vegas-based owner and operator of hotels and casinos.

American Gaming spread guidance

Yet another deal to announce price talk was American Gaming Systems, as it too kicked off syndication with a bank meeting during market hours, according to a market source.

The $20 million five-year revolver, the $125 million six-year first-lien term loan and the $30 million six-year delayed-draw first-lien term loan were all launched with opening talk set at Libor plus 300 bps, the source said.

The revolver commitment fee is 50 bps and the delayed-draw unused fee is 100 bps for the first six months and half the applicable Libor interest margin thereafter, the source added.

UBS is the lead bank on the $175 million senior secured deal that carries a full covenant package.

Proceeds will be used to refinance the company's existing debt and to fund new business development.

The deal is expected to close by May 7.

American Gaming Systems is a Simpsonville, S.C., designer, manufacturer and operator of slot machines and other games for the U.S. Native American casino market.

Jason floats talk

Also regarding price talk, Jason guidance started making its way around the market as the company is getting ready to present its $260 million deal to investors through a bank meeting on Thursday, according to a market source.

Both the $40 million revolver and the $220 million term loan are being talked at Libor plus 275 bps to 300 bps, the source said.

General Electric Capital Corp. is the lead bank on the deal.

Proceeds will be used to refinance the company's existing first- and second-lien loans, subordinated debt and preferred equity not held by the sponsor or management.

Jason is a Milwaukee-based diversified manufacturing company. The company's motor vehicle businesses manufacture nonwoven fiber insulation for the automotive industry and seating products for motorcycles, boats and off-road mobile equipment. Its industrial businesses manufacture finishing products for industrial applications and precision components for original equipment manufacturers.

Delta shifts funds, cuts second-lien spread

Meanwhile, in other primary news, Delta Air Lines revised its credit facility by shifting $100 million out of its second-lien term loan and into its first-lien term loan, reverse flexing pricing on the second-lien term loan and finalizing pricing on the revolver and first-lien term loan at the tight end of talk, according to a market source.

The seven-year second-lien term loan B (B-) is now sized at $900 million, down from $1 billion, and pricing was reduced to Libor plus 325 bps from original talk at launch of Libor plus 350 bps, the source said.

On the flip side, the five-year first-lien term loan A (B+) is now sized at $600 million, up from $500 million, and pricing firmed up at Libor plus 200 bps, the low end of original guidance of Libor plus 200 bps to 225 bps, the source continued.

Lastly, pricing on the $1 billion five-year revolver (B+) - size unchanged - also finalized at Libor plus 200 bps, the low end of original guidance of Libor plus 200 bps to 225 bps, the source added.

JPMorgan, Goldman Sachs, Merrill Lynch, Lehman Brothers, UBS and Barclays Capital are the lead banks on the $2.5 billion exit financing credit facility, which was way oversubscribed, with JPMorgan the left lead on the first-lien debt and Goldman Sachs the left lead on the second-lien debt.

Security will be substantially all of the first-priority collateral in the existing debtor-in-possession facility.

Proceeds will be used to repay the Atlanta-based airline company's $2.1 billion DIP facility led by GE Capital and American Express, to make other payments required upon exit from bankruptcy and to increase its cash balance.

Fontainebleau Las Vegas reworks deal

Fontainebleau Las Vegas LLC also modified its in-market deal, downsizing the revolving credit facility, downsizing the delayed-draw term loan B tranche while increasing the unused fee, and creating a new funded term loan B tranche, according to a market source.

The five-year revolver is now sized at $800 million, down from $1 billion, with pricing unchanged at Libor plus 275 bps and the commitment fee remaining at 50 bps, the source said.

Meanwhile, the delayed-draw term loan B was downsized to $350 million from $850 million, with pricing unchanged at Libor plus 275 bps, but the unused fee was increased to 200 bps from 175 bps, the source continued.

To compensate for the downsizings, a new $700 million funded term loan B tranche was added to the capital structure with pricing of Libor plus 275 bps, the source concluded.

Bank of America, Barclays, Deutsche and Merrill Lynch are the lead banks on the $1.85 billion deal (B1/B).

Proceeds will be used to fund the construction of a hotel and casino project in Las Vegas.

AM General holdco loan breaks

Moving to the secondary, AM General's $200 million five-year holdco term loan broke for trading, with levels quoted at par bid, 101 offered, according to a trader.

The loan is priced at Libor plus 575 bps cash pay with call protection of 103 in year one, 102 in year two and 101 in year three. During syndication, pricing on the loan was flexed up from original talk at launch of Libor plus 500 bps cash pay.

The loan is being obtained by MacAndrews AMG Holdings.

Citigroup and Bear Stearns are the lead banks on the deal, which will be used to pay a dividend and to refinance some debt at MacAndrews AMG.

AM General is a South Bend, Ind., military and special-purpose vehicles company.

Intelsat, PanAmSat bounce on sale rumors

Also in trading, Intelsat and PanAmSat both saw their term loan Bs head lower on Tuesday after rumors that the companies may be sold made their way through the market place, according to a trader.

Both the Intelsat and the PanAmSat term loan Bs ended the session at par 3/8 bid, par ¾ offered, down from previous levels of par 7/8 bid, 101 1/8 offered, the trader said, explaining that the fall was a function of par paydown fears.

However, Intelsat's unsecured term loan actually ended the day higher at par 1/8 bid, par 3/8 offered, up from 99 7/8 bid, par ¼ offered, as some people seemed to assume that the debt carries a 101 put like the company's bonds, the trader remarked. "I'm not sure that's the case," the trader added regarding the put.

Intelsat is a Pembroke, Bermuda, satellite company. PanAmSat is a Wilton, Conn., satellite company.

The companies are currently owned by Apax Partners, Apollo Management, Madison Dearborn Partners and Permira.

Stater closes

Stater Bros. Markets closed on its new $100 million three-year unsecured revolving credit facility that is priced at Libor plus 175 bps, according to an 8-K report filed with the Securities and Exchange Commission Tuesday.

The revolver has a 25 bps commitment fee.

Bank of America acted as the lead bank on the deal, which was completed this past Monday.

Proceeds were used to refinance the company's existing credit facility.

Stater is a Colton, Calif., supermarket chain.

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