PITG Gaming retranches, reveals manager; Keeley price talk emerges; Hexcel firms pricing

By Sara Rosenberg

New York, May 29 - PITG Gaming came out with some more changes to its credit facility on Thursday and announced to lenders that Harrah's Entertainment Inc. is going to be the manager of the new gaming facility.

In more primary news, Keeley Holdings Inc. came out with price talk on its credit facility as the deal was launched with a bank meeting during the session, and Hexcel Corp. finalized pricing on its incremental term loan.

PITG Gaming once again revised its credit facility structure, this time upsizing the first-lien term loan and downsizing the second-lien term loan, according to market sources.

The first-lien term loan is now sized at $480 million, up from a most recent size of $380 million and an initial size at launch of $370 million, sources said.

Pricing on the first-lien loan remained at Libor plus 600 basis points, with a 3.25% Libor floor, and an original issue discount of 94. Earlier on in syndication, the original issue discount on the tranche was increased from 96.

Call protection on the first-lien term loan is non-callable for 2½ years, then at 102, 101. Previously, this call protection had been changed from non-callable for 1½ years, then at 102, 101.

As for the second-lien term loan, that is now sized at $150 million, down from a most recent size of $260 million and an initial size at launch of $250 million, sources remarked.

Pricing on the second-lien loan was left unchanged at Libor plus 1,000 bps cash plus 500 bps PIK, with a 3.25% Libor floor and an original issue discount of 92. However, earlier in the syndication process, pricing on the tranche had been increased from Libor plus 1,000 bps cash plus 300 bps PIK and the original issue discount widened from 96.

Call protection on the second-lien term loan is now non-callable for 2½ years, then at 109, 107, 105. Previously this call protection had been changed from non-callable two years, then at 106, 104, 102.

Sources said that Apollo Management, one of the sponsors behind Harrah's, is going to take down half of the second-lien loan.

PITG Gaming's now $640 million credit facility, down from a most recent size of $650 million, also includes a $10 million revolver that is priced at Libor plus 600 bps, with a 3.25% Libor floor.

Credit Suisse is the lead bank on the deal that will be used to help fund the Pittsburgh casino. Construction started in December and the grand opening is projected for May 2009.

An update call for lenders was held on Thursday to discuss the changes and recommitments are due next week, sources added.

Keeley comes out with talk

Keeley held a bank meeting on Thursday at 2 p.m. ET to kick off syndication on its proposed $185 million five-year credit facility, and in connection with the launch, price talk was announced, according to a market source.

The facility is being talked at Libor plus 475 basis points, with a 3% Libor floor, and investors are being offered an original issue discount in the 98 to 99 context, the source said.

Tranching on the deal is comprised of a $10 million revolver and a $175 million amortizing term loan that has a 75% excess cash flow sweep.

Bank of Montreal and CIT are the lead banks on the facility, with Bank of Montreal the left lead.

Proceeds from the financing will be used to help fund the purchase of a minority interest in Keeley by TA Associates.

Opening senior leverage is in the low 2s.

Keeley is a Chicago-based investment manager that has about $9 billion in asset under management.

Anchor Glass launches

Also holding a bank meeting during market hours was Anchor Glass Container Corp., as it launched a $350 million term loan to investors, according to market sources.

Price talk on the term loan is Libor plus 450 bps, with a 3.5% Libor floor, and an original issue discount of 98, sources said.

Credit Suisse is the lead bank on the deal that will be used to fund a dividend to sponsors.

Anchor Glass is a Tampa, Fla., manufacturer of glass containers for the beer, food, beverage and liquor markets.

Hexcel sets pricing

Hexcel firmed up pricing on its $80 million incremental term loan (BB+) at Libor plus 250 bps with an original issue discount of 991/2, according to a market source.

During syndication, the loan was upsized from $75 million and the original issue discount picture became clearer from the mid-99 area guidance that emerged at launch.

Deutsche Bank is the lead bank on the deal.

Proceeds are being used by the company to repay borrowings under its revolving credit facility.

In connection with this incremental loan, pricing on the company's existing term loan debt stepped up to Libor plus 212.5 bps, the source added.

Hexcel is a Stamford, Conn.-based advanced structural materials company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.