GXS, AmeriMark, Hunter Defense, CPM set talk; LCDX rebounds slightly, cash choppy

By Sara Rosenberg

New York, July 24 - GXS Worldwide Inc., AmeriMark Direct, Hunter Defense Technologies, Inc. and CPM came out with price talk on their credit facilities as all of these deals were launched with bank meetings during the Tuesday session.

Meanwhile, over in the secondary market, LCDX actually headed higher for the first time in a couple of sessions and the cash market was all over the place with some names managing to remain unscathed and others continuing to fall.

GXS Worldwide held a bank meeting on Tuesday to kick off syndication on its proposed $560 million senior secured credit facility, and in connection with the launch, price talk was announced, according to a market source.

The $50 million revolver (Ba3/B+) and the $378.5 million first-lien term loan (Ba3/B+) were both presented to lenders with talk of Libor plus 325 basis points, and the $131.5 million second-lien term loan (Caa1/B-) was presented with talk of Libor plus 675 bps, the source said.

The second-lien term loan carries call protection of 102 in year one and 101 in year two, the source added.

GE Capital and Societe Generale are the lead banks on the deal.

Proceeds from the facility, along with a $55 million unsecured holding company payment-in-kind note, will be used to refinance existing debt.

GXS is a Gaithersburg, Md., business-to-business e-commerce services provider.

AmeriMark price talk

AmeriMark Direct also came out with guidance on its proposed credit facility as the deal was launched to lenders with a 4 p.m. ET bank meeting, according to a market source.

The $20 million revolver and the $185 million first-lien term loan are both being talked at Libor plus 325 bps to 350 bps, and the $110 million second-lien term loan is being talked at Libor plus 625 bps to 650 bps, the source said.

The second-lien term loan carries call protection of 102 in year one and 101 in year two, the source added.

RBC Capital and CIT are the joint bookrunners on the $315 million deal.

Proceeds will be used to fund the acquisition of catalog company Dr. Leonards.

AmeriMark is a direct marketer of women's apparel, shoes, cosmetics, fragrances, jewelry, watches, accessories and health-related merchandise.

Hunter Defense guidance emerges

Yet another transaction to release price talk in connection with its bank meeting on Tuesday was Hunter Defense Technologies, according to a market source.

The $20 million revolver (B1/BB) and the $165 million first-lien term loan (B1/BB) were both presented with talk of Libor plus 300 bps, and the $80 million second-lien term loan (Caa1/B-) was presented with talk of Libor plus 625 bps, the source said.

The second-lien term loan carries call protection of 102 in year one and 101 in year two, the source added.

Bear Stearns and Bank of America are the lead banks on the $265 million deal.

Proceeds will be used to help fund the buyout of the company by Metalmark Capital.

Hunter Defense is a Solon, Ohio, developer of comprehensive solutions to provide shelter, heat, power generation and chem/bio protection for military and Homeland Security applications.

CPM spread talk

Lastly on the price talk front, CPM announced guidance on its proposed $235 million credit facility (B1) as it too launched with a bank meeting during market hours, according to a source.

The $25 million five-year revolver is talked at Libor plus 250 bps, with a 50 bps commitment fee, and the $210 million seven-year term loan is talked at Libor plus 300 bps, the source said.

The term loan is being offered to investors with an original issue discount of 991/2, the source added.

Credit Suisse and BMO are the lead arrangers on the deal, which will be used for acquisition financing.

CPM is a Waterloo, Iowa-based company involved in designing and assembling process machinery and other equipment utilized primarily in the agricultural and food producing/processing industries.

DAE Aviation lifts pricing

DAE Aviation Holdings Inc. increased pricing on its term loan debt and added original issue discounts, according to a buyside source.

The $557 million term loan B is now priced at Libor plus 325 bps, up from original talk of Libor plus 275 bps, and the $280 million asset-sale loan is now priced at Libor plus 350 bps, up from original talk of Libor plus 300 bps, the source said.

In addition, the term loans are now being sold to investors with an original issue discount of 981/2, the source remarked.

DAE Aviation's $937 million secured credit facility (BB-) also includes a $100 million revolver.

Barclays Capital is the lead bank on the deal.

Financial covenants include debt to EBITDA and capital expenditures.

Proceeds from the credit facility, along with proceeds from a $325 million unsecured high-yield bond offering, will be used to help fund Dubai Aerospace Enterprises Ltd.'s acquisition of Standard Aero Holdings Inc. and Piedmont Hawthorne Holdings Inc. from the Carlyle Group.

Dubai is putting in a 40% equity check toward the transaction.

Total leverage is 7.4 times, dropping down to 6.8 times following the asset sale, and senior secured leverage is 5.5 times, dropping down to 4.1 times following the asset sale.

The asset-sale loan is expected to be repaid within 12 months.

DAE Aviation is a provider of maintenance, repair and overhaul of business and regional jet engines and certain military engines; component and airframe repairs; large business jet completions and modifications; and engineering services.

Illinois River Energy wraps syndication

Illinois River Energy LLC completed syndication of its $140 million credit facility, with the deal around 1½ times oversubscribed, according to a market source.

The facility consists of a $10 million revolver and a $130 million term loan, with both tranches priced at Libor plus 350 bps, the source said.

WestLB is the lead arranger on the deal.

Proceeds are being used for the expansion of the existing Rochelle, Ill.-based ethanol plant.

LCDX trades up, cash unchanged to lower

Moving to the secondary market, LCDX managed to regain some ground on Tuesday, for no specific reason, while cash continued to be unchanged to softer, depending on the name, according to a trader.

The index ended the session at 94.70 bid, 94.90 offered, up from Monday's closing levels of 94.15 bid, 94.35 offered, the trader said.

"LCDX opened at 94.50 bid, 94.70 offered and then it bounced around throughout the day," the trader added.

Meanwhile, the cash market had a weaker tone, although whether actual levels traded down or not seemed to be more name dependant than anything else.

For example, Georgia-Pacific Corp., an Atlanta-based manufacturer and marketer of tissue, packaging, paper, building products and related chemicals, saw its term loan B end the day at 96¾ bid, 97¼ offered, down from 97 5/8 bid, 98 1/8 offered, the trader said.

Aramark Corp., a Philadelphia-based professional services company that provides food, hospitality, facility management services and uniform and work apparel, saw its term loan B head down to 96¼ bid, 96¾ offered from previous levels of 96¾ bid, 97¼ offered, the trader continued.

However, Kinder Morgan Inc., a Houston-based energy infrastructure provider, saw its term loan B end the day at 98 bid, 98½ offered, up a touch from Monday's levels of 97 5/8 bid, 98 1/8 offered, the trader added.

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