Apptis breaks for trading with upper par bids; New deals pile on to launch this week

By Sara Rosenberg

New York, Jan. 3 - Apptis Inc. allocated its $130 million credit facility (B2/B+) on Monday, with the term loan B opening up for trading bid in the high par context. Meanwhile, the primary took no time at all to heat up after the New Year as more than a handful of deals have already been scheduled to launch this week.

Apptis' $100 million five-year term loan B hit the secondary on Monday, although little trading activity was seen in the name as the paper was quoted at par 7/8 bid with no offers on the open and basically sat at that bid level throughout the session, according to a fund manager.

Allocations on the institutional tranche were "okay," the fund manager said, adding that he got about 75% of what he put in for.

The term loan B is priced with an interest rate of Libor plus 325 basis points and was originally issued to investors at par during syndication.

Apptis' facility, which is being led by Wachovia, also contains a $30 million five-year revolver.

Proceeds will be used by the company to help finance the acquisition of SETA Corp., a McLean, Va.-based information technology services company supporting the Department of Defense, Department of Homeland Security and other agencies of the federal government.

Apptis is a Chantilly, Va.-based provider of information technology to federal government agencies and commercial clients.

Levi active

Levi Strauss & Co. saw some activity in its bank debt in the secondary market on Monday, with trading taking place in the 108¾ bid, 109½ offered context - unchanged from previous levels, according to a trader.

The San Francisco-based apparel maker is in market with a tender offer for its 7% notes due 2006 that if completely tendered would have implications on the credit agreement since it would change the call structure of the company's bank debt, the trader explained.

The early tender deadline for the bonds was recently pushed out to midnight ET on Jan. 12 from 5 p.m. ET on Dec. 29.

Prior to extending the tender deadline, Levi decided to increase the size of its cash tender offer to $450 million - the amount of the notes currently outstanding - from $375 million. One day before increasing the tender offer, the company priced a $450 million offering of new 9¾% senior notes due 2015, which was upsized from $375 million.

Calendar building fast

The primary market seems to be picking up exactly where it left off last year, with new deals a plenty scheduled to launch during this first week back from vacation, including Isle of Capri Casinos Inc., Del Laboratories Inc., Intelsat, Enterprise NewsMedia LLC, Accuride Corp. and Chesapeake Energy Corp.

Isle of Capri is slated to launch its proposed $650 million senior secured credit facility (BB-) on Wednesday via sole bookrunner and administrative agent CIBC.

The facility consists of a $400 million five-year revolver and a $250 million six-year term loan B that will be used to refinance existing bank debt and for general corporate purposes.

Isle of Capri is a Biloxi, Miss., developer, owner and operator of branded gaming facilities and related lodging and entertainment facilities.

Del Laboratories is slated to launch its proposed $260 million senior secured credit facility on Thursday via joint lead arrangers and joint bookrunners JPMorgan and Bear Stearns. Deutsche Bank is documentation agent.

The facility consists of a $210 million term loan B that will be used to help fund the acquisition of Del Laboratories by DLI Holding Corp., a company owned by affiliates of Kelso & Co., and a $50 million revolver that will be used to fund continuing operations and other general corporate purposes.

Del Laboratories is a Uniondale, N.Y., manufacturer, marketer and distributor of cosmetics and proprietary over-the-counter pharmaceuticals.

Intelsat is also slated to launch its proposed $650 million credit facility on Thursday via lead banks Deutsche Bank, Credit Suisse First Boston and Lehman Brothers.

The facility consists of a $300 million revolver and a $350 million term loan B that will be used to help fund Zeus Holdings Ltd.'s - a consortium of funds advised by Apax Partners, Apollo Management, Madison Dearborn Partners and Permira - acquisition of Intelsat, a Pembroke, Bermuda-based satellite communications company.

Another deal slated for Thursday is Enterprise NewsMedia's proposed $100 million credit facility via Wachovia.

The facility consists of a $25 million six-year revolver with an interest rate of Libor plus 300 basis points and a $75 million 71/2-year term loan B with an interest rate of Libor plus 325 basis points and will be used to refinance existing debt.

Enterprise NewsMedia is a Quincy, Mass.-based owner and operator of community newspapers located in the South of Boston region.

And also set to launch Thursday is Accuride's proposed $740 million credit facility via joint lead arrangers Citigroup Global Markets Inc. and Lehman Brothers Inc. UBS Securities LLC is documentation agent.

The facility, which is being obtained in connection with the acquisition of Transportation Technologies Industries Inc., consists of a $125 million five-year revolver with price talk of Libor plus 250 basis points and a $615 million seven-year term loan B with price talk of Libor plus 250 basis points.

Proceeds will be used to refinance both companies' senior bank debt and Transportation Technologies' subordinated debt.

Accuride is an Evansville, Ind., manufacturer and supplier of wheels for heavy and medium trucks and trailers. Transportation Technologies is a Chicago manufacturer of truck components for the heavy and medium-duty trucking industry.

Then on Friday, Chesapeake Energy is slated to launch its proposed $1 billion revolving credit facility via lead arrangers and joint bookrunners Union Bank of California and Bank of America.

Basically, through this deal, the company is increasing its revolver size to $1 billion from $600 million and extending the maturity to 2010.

The expanded revolver is being obtained in connection with Chesapeake's acquisition of BRG Petroleum Corp. Borrowings under the proposed expanded credit facility and cash on hand will be used to fund the $325 million cash acquisition, which is expected to close on Feb. 1.

Chesapeake Energy is an Oklahoma City natural gas producer.

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