MGM ticks higher; Texas Competitive, First Data rise; Hawker bid up; Affinia firms timing

By Sara Rosenberg

New York, Aug. 4 - MGM Mirage's term loan continued to inch its way to better ground on the back of earnings news and in an overall firmer market - the strength of which is evidenced by the recent and still going run-up in names like Texas Competitive Electric Holdings Co. LLC and First Data Corp.

Also in the secondary market, Hawker Beechcraft Acquisition Co. LLC was higher with earnings and the LCDX 12 index was stronger in sympathy with the positive momentum in cash and equities.

On the new deal front, Affinia Group Inc. came out with specific timing on the bank meeting that will take place to officially launch its proposed ABL revolving credit facility into syndication.

MGM Mirage up some more

MGM Mirage's term loan was once again higher on Tuesday in follow through on the company's recent second-quarter earnings results and the general strength in the secondary market, according to a trader.

The term loan was quoted at 84¼ bid, 85¾ offered, up from around 84 bid, 85½ offered, the trader said. During the previous session, the loan had traded up from around 82 bid, 83½ offered after numbers came out.

On Monday, the company said that for the second quarter it had a net loss of $212.6 million, or $0.60 per diluted share, compared to net income of $113.1 million, or $0.40 per diluted share, in the prior year second quarter.

Revenues for the quarter were $1.494 billion, down 17% from $1.896 billion in the previous year.

In addition, EBITDA for the quarter was $305.5 million, compared to $531 million last year and property EBITDA for the quarter was $357 million, a 34% decrease from the 2008 second quarter.

At June 30, the company had about $4.1 billion of borrowings outstanding under its senior credit facility with available borrowings of $1.5 billion. Total long-term debt was $12.3 billion, down $1.1 billion from Dec. 31, 2008. And, the company's cash balance was $411 million at June 30.

MGM Mirage is a Las Vegas-based gaming, hospitality and entertainment company.

Texas Competitive, First Data post gains

Texas Competitive and First Data were also stronger during the trading session as "cash is still coming in through the door," pushing everything higher, according to a trader.

Texas Competitive's term loan B-2 was quoted at 78 bid, 78¾ offered, up about a quarter of a point on the day, the trader said.

And First Data, a Greenwood Village, Colo.-based provider of electronic commerce and payment services, saw its term loan B quoted at 86½ bid, 87 offered, also up about a quarter of a point, the trader continued.

Texas Competitive seeks amendment

Texas Competitive revealed in a 10-Q filed with the Securities and Exchange Commission on Tuesday that it is working on amending its credit facility.

The amendment, if approved, would allow the company to extend the maturity of individual loans.

This amendment is intended to provide the company with additional financial flexibility.

The company launched the amendment in late July "to take advantage of favorable market conditions," the filing said.

Texas Competitive is a Dallas-based energy company.

Hawker up on numbers

Hawker Beechcraft's strip of term loan and letter-of-credit facility debt was better bid during market hours following the company's release of second-quarter results, according to a trader.

The strip of bank debt was quoted at 72 bid, up from 71 bid on Monday, the trader said.

For the second quarter, the company reported net after-tax of $172.2 million, compared to net after-tax income of $24.9 million for the same period last year.

Operating income for the quarter was $39.4 million, compared to an operating income of $86.4 million in the prior year.

Net sales for the quarter were $816.3 million, a decrease of $212.4 million compared to the second quarter of 2008.

The company attributed the decline in operating income and sales to adverse market conditions, which caused sharply reduced business and general aviation deliveries.

Hawker Beechcraft is a Wichita, Kan., manufacturer of business, special-mission and trainer aircraft.

LCDX rises

The LCDX 12 index was better on Tuesday as well as cash was up and so were stocks, according to a trader.

The index was quoted at 94.75 bid, 95.05 offered, up from 94.55 bid, 94.85 offered, the trader said.

As for equities, Nasdaq closed up 2.7 points, or 0.13%, Dow Jones Industrial Average closed up 33.63 points, or 0.36%, S&P 500 closed up 3.02 points, or 0.3%, and NYSE closed up 3.49 points, or 0.05%.

Affinia timing surfaces

Moving to new deal happenings, Affinia Group set timing on the launch of its $315 million ABL revolving credit facility as a bank meeting has been scheduled to take place on Monday, according to a market source.

Previously, timing on the deal had been labeled as either later this week or early next week.

Price talk on the revolver has already been circulating around the market at Libor plus 400 basis points.

The undrawn fee on the deal will range from 75 bps to 100 bps.

Bank of America Merrill Lynch, Barclays, Wells Fargo, JPMorgan and Deutsche Bank are the lead banks on the deal.

Affinia refinancing existing loan

Proceeds from Affinia Group's ABL revolver will be used to help refinance the company's existing term loan, revolver and accounts receivable securitization facility.

Also helping in the refinancing is a $225 million senior secured notes offering that was announced on Monday.

Security on the revolver is a first lien on all current assets and a second lien on everything else, while security on the bonds is a second lien on current assets and a first lien on everything else.

Affinia Group is an Ann Arbor, Mich.-based on- and off-highway replacement products and services company.

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