Cedar Fair bounces around; MGM dips with numbers and market; Triumph, Regal Cinemas set talk

By Sara Rosenberg

New York, May 6 - Cedar Fair Entertainment Co.'s bank debt was mixed in trading on Thursday after the company revealed plans to refinance its existing debt and first-quarter numbers were released.

Also, MGM Mirage's bank debt was weaker as the company reported disappointing numbers, and while Cablevision Systems Corp. and MetroPCS Communications Inc. came out with favorable results, their debt was down as well, most likely due to the secondary market being incredibly heavy.

Over in the primary market, Triumph Group Inc. and Regal Cinemas Corp. released price talk on their new deals as the transactions were presented to lenders during the session.

Additionally, BI-LO LLC made changes to its term loan to sweeten the deal for investors, and Medical Properties Trust Inc. has pushed off the commitment deadline for its term loan.

Cedar Fair sees mixed reaction

Cedar Fair's non-extended term loan was weaker to better, depending on who was asked, while its extended term loan strengthened as the company revealed that is has engaged JPMorgan to evaluate opportunities in the capital markets so as to create a sustainable long-term capital structure, according to traders.

The non-extended term loan was quoted by one trader at 98¾ bid, 99¼ offered, down an eighth of a point on the day, and by a second trader at 98¾ bid, 99¼ offered, up on the bid side from 98¼ bid, 99¼ offered.

As for the extended term loan, that was quoted by the first trader at 99½ bid, par offered, up a quarter of a point.

"After meeting with several banks and carefully considering their proposals, we concluded that JPMorgan brings the experience and perspective we need as we consider a full range of financing arrangements to provide the greatest benefit for Cedar Fair and our unitholders," said Dick Kinzel, chairman, president and chief executive officer, in a news release.

Cedar Fair seeks flexibility

Cedar Fair officials said in a conference call on Thursday that its plan is to assemble a "stable but flexible" capital structure.

The evaluation of the capital structure will focus on creating a plan that would allow for debt reduction, growth of business and introduction of a distribution.

Officials went on to say that the high-yield and the loan market are both very strong right now, and if that continues to be the case, the hope is to move forward with something in the next few months.

Currently, the new structure has not been finalized, but the company will "put together something that makes sense," officials continued.

Cedar Fair debt structure

As of March 28, Cedar Fair had $1.5 billion of term loan debt and $216 million in borrowings under its revolving credit facility.

Of the total term loan debt, $15.5 million is scheduled to mature within the next 12 months.

"In terms of both liquidity and cash flow, we are comfortable with where we ended the first quarter of 2010, given the realities of our current capital structure," said Peter Crage, corporate vice president finance and chief financial officer, in the news release.

"In the past year, we have been able to reduce our debt by over $120 million, and our cash position - together with existing lines of credit, which do not expire until August 2011 - provide sufficient financial flexibility to manage our near-term working capital needs," Crage added.

Cedar Fair releases earnings

Also on Thursday, Cedar Fair came out with first-quarter results, including a net loss of $39.9 million, or $0.72 per diluted limited partner unit, compared to a net loss of $53.3 million, or $0.97 per diluted limited partner unit, in the prior year.

Net revenues for the first quarter increased 3% to $27.3 million, compared with $26.5 million for the first quarter of 2009.

Adjusted EBITDA for the quarter was negative $56.7 million, compared to negative $51.9 million last year.

Meanwhile, for the full year, the company expects to be able to generate revenue growth of 3% to 5% over last year's $916.1 million level, and full-year adjusted EBITDA in the range of $320 million to $340 million.

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

MGM Mirage slides

MGM Mirage's term loans lost some ground on Thursday after the company came out with quarterly numbers that showed a net loss, a drop in revenues and a decline in adjusted property EBIDTA, according to traders.

The extended term loan C was quoted by one trader at 98¾ bid, 99¼ offered, down from 98¼ bid, 99¼ offered.

Meanwhile the non-extended term loan B and D were quoted by the trader at 96½ bid, 97½ offered, down from 97 bid, 98 offered, and by a second trader at 96¼ bid, 97 offered, down a half a point on the day, the trader said.

For the first quarter, MGM Mirage had a net loss of $96.741 million, or $0.22 per share, compared to net income of $105.2 million, or $0.38 per share, last year.

Revenues for the quarter were $1.457 billion, compared to $1.499 billion in the first quarter of 2009.

And, adjusted property EBIDTA attributable to wholly-owned operations for the quarter was $267 million, down 19% excluding insurance recoveries related to the Monte Carlo fire in the prior year.

MGM Mirage repays debt

Following the close of the first quarter, MGM Mirage repaid some borrowings under its revolving credit facility using proceeds from a roughly $380 million tax refund.

In addition, in April, the company issued $1.15 billion of 4.25% convertible senior notes due 2015 for net proceeds of $1.12 billion. After application of these proceeds, the company had $1.48 billion of availability under the revolver, of which $1.12 billion was restricted for use to retire future debt maturities or permanently reduce commitments under the senior credit facility, and approximately $900 million of excess cash in bank.

By comparison, on March 31, the company had $3.8 billion of borrowings outstanding under its senior credit facility, with available borrowing capacity of about $900 million.

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

Cablevision softens with market

Cablevision's term loan headed lower in trading following the release of first-quarter results. The drop, however, was more likely because of the overall weak secondary than the actual news, according to traders.

The extended term loan was quoted by one trader at 99½ bid, par offered, down from 99 5/8 bid, par 1/8 offered, and by a second trader at 99 bid, 99¾ offered, down from 99¼ bid, par offered.

And, the non-extended term loan was quoted by the first trader at 98¼ bid, 98¾ offered, down from 98½ bid, 99 offered, and by the second trader at 97½ bid, 98¼ offered, down from 97¾ bid, 98½ offered.

For the first quarter, Cablevision reported net income of $74.16 million, or $0.25 per share, compared to net income of $21.217 million, or $0.07 per share, in the previous year.

Revenues for the quarter were $1.752 billion, up 5.2% from $1.666 billion in the first quarter of 2009.

Furthermore, the Bethpage, N.Y.-based telecommunications, media and entertainment company said that free cash flow from continuing operations for the quarter was $240.5 million.

MetroPCS also weakens

Another company to post decent numbers but still see a decline in levels was MetroPCS, according to traders.

The term loan was quoted by one trader at 96 7/8 bid, 97 3/8 offered, down from 97 bid, 97 ½ offered, and by a second trader at 96¼ bid, 97¼ offered, down from 96¾ bid, 97½ offered.

For the first quarter, MetroPCS reported net income of $23 million, or $0.06 per diluted share, compared to net income of $44 million, or $0.12 per diluted share, last year.

Total revenues for the quarter were $971 million, up from $795 million in the first quarter of 2009.

And, consolidated adjusted EBITDA for the quarter was $224 million, compared to $199 million in the previous year.

MetroPCS is a Dallas-based provider of unlimited wireless communications service for a flat-rate with no signed contract.

Triumph Group talk emerges

Moving to the primary, Triumph Group Inc. held a bank meeting in New York on Thursday to launch its proposed $300 million senior secured term loan B (Baa3), and in connection with the launch, price talk was announced, according to a market source.

The term loan B is being talked at Libor plus 325 basis points with a 1.5% Libor floor and an original issue discount in the 99 area, the source said.

RBC is the lead bank on the deal that will be used to help fund the acquisition of Vought Aircraft Industries Inc. from the Carlyle Group for cash and stock consideration of $1.44 billion, including the retirement of Vought debt. The purchase consideration to Vought shareholders includes about 7.5 million shares and $525 million of cash.

Triumph Group selling notes

Triumph Group also plans on issuing $400 million of notes, using $189 million in borrowings under its existing revolver and accounts receivable securitization facility, and using $292 million in cash on hand for acquisition financing.

Total leverage will be 3.2 times pro forma adjusted EBITDA.

Closing on the acquisition is expected to take place on July 1, subject to normal regulatory approval and Triumph shareholder approval, which will be sought at a special meeting on May 28.

After closing, the acquired business will operate as Triumph Aerostructures-Vought Aircraft Division LLC.

Triumph is a Wayne, Pa.-based designer, engineer, manufacturer and repairer of aircraft components and accessories. Vought is a Dallas-based manufacturer of aerostructures for commercial, military and business jet aircraft.

Regal Cinemas reveals talk

Another deal to come to market on Thursday was Regal Cinemas' amended and restated senior credit facility (Ba3/BB-), and with the conference call launch, price talk on the term loan surfaced, according to a market source.

The $1.25 billion 61/2-year term loan is being talked at Libor plus 350 bps with a step-up to Libor plus 375 bps when leverage is over 3.0 times, which is in line with pricing on the existing term loan, the source said.

Existing lenders are being offered a 100 bps fee to rollover their commitments.

The $1.335 billion credit facility also includes an $85 million five-year revolver.

Credit Suisse, Barclays, Bank of America and Deutsche Bank are the lead banks on the deal, with Credit Suisse the left lead.

Regal Cinemas refinancing debt

Proceeds from Regal Cinemas' credit facility, along with $250 million of 8.625% senior notes, will be used to refinance existing bank debt, repurchase all of the company's outstanding 9.375% senior subordinated notes due 2012 and for general corporate purposes, which may include the repayment or repurchase of other debt.

Financial covenants under the credit facility include a maximum adjusted consolidated leverage ratio, a maximum consolidated leverage ratio and a minimum interest coverage ratio.

Commitments towards the credit facility are due on May 13, and closing on the loan as well as on the notes is expected to take place on May 17.

Regal Cinemas is a subsidiary of Regal Entertainment Group, a Knoxville, Tenn.-based motion picture exhibitor.

BI-LO reworks term loan

BI-LO LLC revised its $200 million five-year term loan (B2), flexing pricing up to Libor plus 750 bps from Libor plus 425 bps, increasing the original issue discount to 97½ from 99, and adding call protection of 103 in year one, 102 in year two and 101 in year three, according to a market source.

The 2% Libor floor was left unchanged.

Credit Suisse is the lead bank on the deal that will be used, along with a $150 million equity investment from Lone Star Funds, to help fund the company's emergence from Chapter 11.

In addition, the company will be getting a $150 million revolver that is being provided by GE Capital to fund working capital and other normal business needs.

BI-LO, a Greenville, S.C., supermarket operator, expects to exit bankruptcy this month.

Medical Properties delays deadline

Medical Properties Trust pushed back the commitment deadline for its $150 million six-year term loan to Monday from earlier this week, according to a market source.

Price talk on the term loan is Libor plus 350 bps with a 1.5% Libor floor and an original issue discount of 99.

The company's $450 million credit facility (Ba1/BB) also includes a $300 million three-year revolver.

As of April 12, there was already a total of $230 million in commitments towards the revolver from five lenders.

JPMorgan, KeyBank and RBC are the lead banks on the deal that will be used for general corporate purposes, including the repayment of debt and funding future acquisitions and investments.

Medical Properties Trust is a Birmingham, Ala.-based self-advised real estate investment trust focused on net-leased health care facilities.

Phillips-Van Heusen closes

In other news, Phillips-Van Heusen Corp. closed on its $2.35 billion senior secured credit facility (Ba2/BBB), consisting of a $450 million five-year revolver, a $500 million five-year term loan A and a $1.4 billion six-year term loan B.

Pricing on the revolver and the term loan A is Libor plus 300 bps on the U.S. pieces and Euribor plus 325 bps on the foreign pieces, and pricing on the term loan B is Libor plus 300 bps on the $1 billion U.S. piece and Euribor plus 325 bps on the €300 million piece.

The term loan A and the term loan B have a 1.75% Libor floor.

Upfront fees on the revolver and the term loan A were 100 bps on allocation for a $40 million commitment and 50 bps on allocation for a $20 million commitment, and the original issue discount on the term loan B was 991/2.

Phillips-Van Heusen buys Hilfiger

Proceeds from Phillips-Van Heusen's credit facility were used to help fund the acquisition of Tommy Hilfiger BV from Apax Partners LP for €2.2 billion, plus the assumption of €100 million in liabilities, and to refinance Phillips-Van Heusen's $300 million of existing senior unsecured notes due in 2011 and 2013.

Barclays Capital and Deutsche Bank acted as the global debt coordinators and bookrunners on the credit facility, with Barclays the left lead. Other bookrunners were Bank of America, Credit Suisse and RBC Capital Markets.

During syndication, the term loan B was downsized from $1.5 billion because the company's bond and equity offerings were upsized, pricing on the U.S. piece was lowered from initial talk of Libor plus 325 bps to 350 bps, pricing on the euro piece was cut from talk of Euribor plus 350 bps to 375 bps, and the original issue discount was tightened from 99.

New York-based Phillips-Van Heusen and Tommy Hilfiger are apparel companies.

Live Nation wraps deal

Also closing was Live Nation Entertainment Inc.'s $1.2 billion senior secured credit facility (Ba2/BB-), according to a news release, which consists of an $800 million 61/2-year term loan B, a $300 million revolver and a $100 million 51/2-year term loan A.

Pricing on the term loan B is Libor plus 300 bps with a step-down to Libor plus 275 bps when leverage is less than 2.75 times and a 1.5% Libor floor, and the paper was sold at an original issue discount of 991/2. Pricing on the revolver and the term loan A is Libor plus 300 bps and the revolver has a 50 bps commitment fee.

During syndication, pricing on the term loan B was lowered from Libor plus 325 bps with the addition of the step down, and the discount firmed at the tight end of the initial 99 to 99½ guidance.

JPMorgan, Goldman Sachs and Deutsche Bank acted as the lead banks on the deal that was used to help repay the company's existing credit facility and the credit facility of its wholly owned subsidiary, Ticketmaster Entertainment LLC.

Live Nation is a Beverly Hills, Calif.-based producer of live music concerts.

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