Midcontinent breaks; First Data up; Harrah's dips; Bourland tweaks deal; Sinclair sets launch

By Sara Rosenberg

New York, Aug. 4 - Midcontinent Communications saw its credit facility free up for trading during Wednesday's market hours, with the term loan quoted above its original issue discount price.

In more trading happenings, First Data Corp.'s bank debt was stronger on news of an amendment proposal that would allow for the sale of notes for the repayment of term loans, Harrah's Entertainment Inc.'s loans were softer with numbers, and Graham Packaging Co. Inc.'s term debt was steady following its earnings release.

Over in the primary market, Bourland & Leverich Supply Co. LLC came out with changes to its term loan, including narrowing down price talk, increasing the original issue discount and sweetening call premiums.

Also, Sinclair Television Group Inc. announced plans to refinance and amend a portion of its credit facility with a new term loan B that is launching shortly.

Midcontinent starts trading

Midcontinent Communications credit facility hit the secondary market with its $350 million 61/2-year term loan B quoted by one source at 99¾ bid, par ¼ offered on the open and then moving up to par bid, par 3/8 offered, and by a second source at par bid, par ½ offered on the open and then moving up to par 1/8 bid, par 1/2.

Pricing on the term loan B is Libor plus 450 basis points with a step-down to Libor plus 425 bps once leverage falls below 3.5 times. There is a 1.75% Libor floor.

The term loan B was sold to investors at an original issue discount of 981/2.

There is also 101 soft call protection for one year under the tranche.

During syndication, pricing on the oversubscribed term loan B firmed at the tight end of the initial Libor plus 450 bps to 475 bps talk, and the step-down was added.

Midcontinent pro rata details

Midcontinent Communications' $675 million senior secured credit facility (B1/B+) also includes a $125 million 51/2-year revolver and a $200 million 51/2-year term loan A, with both of these tranches priced at Libor plus 400 bps. The revolver has a 50 bps unused fee.

The revolver and term loan A were fully subscribed before the term loan B launch even took place.

SunTrust, Wells Fargo, US Bank and RBC are the joint bookrunners on the deal, with SunTrust the left lead. CoBank and Bank of America have signed on as agents.

Proceeds will be used to fund a $320 million distribution to the partnership, refinance about $230 million of debt and for general corporate purposes.

Midcontinent Communications is a Minneapolis-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.

First Data trades up

First Data's term loans headed higher in trading after the company announced plans for an amendment to its credit facility that would result in a paydown and then launched that amendment to investors in the afternoon, according to traders.

One trader had the term loan B-1 quoted at 87 5/8 bid, 88 1/8 offered, up from 87 bid, 87½ offered, the term loan B-2 quoted at 87½ bid, 88 offered, up from 87 bid, 87 3/8 offered, the term loan B-3 quoted at 87½ bid, 88 offered, up from 87 bid, 87 3/8 offered, and the delayed-draw term loan quoted at 87½ bid, 88½ offered, up from 85½ bid, 87½ offered.

A second trader had the term loan B-1 quoted at 87 7/8 bid, 88¼ offered, up from 87 bid, 87 3/8 offered, the term loan B-2 quoted at 87 7/8 bid, 88¼ offered, up from 86 7/8 bid, 87¼ offered, and the term loan B-3 quoted at 87 7/8 bid, 88¼ offered, up from 86 7/8 bid, 87¼ offered.

The second trader also remarked that the term loan B-1, B-2 and B-3 were seen as high as 89 bid, 89½ offered right after the news hit, but then came back in a bit.

First Data amendment details

Under the proposed amendment, First Data would gain permission to issue secured notes as long as all of the proceeds are used to repay term loans at par, and the amendment would only become effective if the company sells at least $500 million of notes within 90 days of execution.

The amendment would also set the cap of allowable junior debt at $3.5 billion, and proceeds from this financing would be used to redeem or repay senior or senior subordinated notes or other debt.

Also, the amendment would:

• Allow for the extension of revolver or term loan commitments at a later date, with any extended debt able to have higher pricing or other modified terms compared to the non-extended debt;

• Cut the accordion feature to $1 billion from $1.5 billion; and

• Exclude certain junior debt from the calculation of consolidated senior secured debt.

Consents are due on Tuesday and lenders are being offered a 10 bps amendment fee.

Credit Suisse, Citigroup and KKR Capital Markets are the joint lead arrangers on the amendment.

First Data is a Greenwood Village, Colo.-based provider of electronic commerce and payment services.

Harrah's retreats with earnings

Harrah's term loan B-1 and term loan B-2 weakened on Wednesday as the company revealed second-quarter results that showed a decline in income, revenues and EBITDA on a year-over-year basis, according to a trader.

The term loan B-1 was quoted at 85 7/8 bid, 86 3/8 offered, down from 86 bid, 86½ offered, and the term loan B-2 was quoted at 86 1/8 bid, 86 5/8 offered, down from 86 3/8 bid, 86 7/8 offered, the trader said. However, the term loan B-3 held relatively steady at 85 7/8 bid, 86 3/8 offered versus 85¾ bid, 86 3/8 offered on Tuesday, the trader added.

For the quarter, the Las Vegas-based provider of branded casino entertainment reported a net loss of $274 million, compared to net income of $2.29 billion in the prior year.

Net revenues for the quarter were $2.22 billion, compared to $2.27 billion in the second quarter of 2009.

And, adjusted EBITDA for the quarter was $459.9 million, compared to $565.6 million in the previous year.

Graham steady with numbers

Graham Packaging's term loan B held firm at 99½ bid, 99 7/8 offered, and its term loan B held at 101 bid, 101 3/8 offered after the company came out with earnings results, according to a trader.

For the second quarter, the company reported income from operations of $37.8 million versus $34.6 million in the previous year.

Net sales for the quarter were $652.8 million, up 11.5% from $585.7 million in the second quarter of 2009.

And, adjusted EBITDA for the quarter was $133.7 million, compared with $130.2 million last year. For fiscal year 2010, the company expects adjusted EBITDA to be $478 million.

The company also said on Wednesday that it plans to refinance its term loan B due in 2011 either this year or next year.

Graham Packaging is a York, Pa.-based designer, manufacturer and seller of technology-based, customized blow molded plastic containers.

BWIC bids due Friday

A $101 million cash Bid Wanted In Competition (BWIC) emerged on Wednesday, and bids are being asked for by noon ET on Friday, according to a market source.

Some of the names in the portfolio include Advanced Lighting Technologies. Inc., Fenwal Inc., Coleman Natural Foods LLC, Einstein Noah Restaurant Group Inc. and Centaur LLC.

Bourland & Leverich revises loan

Moving to the primary, Bourland & Leverich updated/modified price talk and call protection on its $125 million five-year term loan (B+), and there is so much demand at the new terms that the commitment deadline was accelerated to noon ET on Friday from Tuesday, according to a market source.

The term loan is now being talked at Libor plus 900 bps, instead of at Libor plus 850 bps to 900 bps. There is still a 2% Libor floor.

Also, the original issue discount is now guided at 95, as opposed to in the 97 to 98 area, the source said.

And, the loan is now non-callable for two years, then at 105½ in year three, 102¾ in year four and par in year five, the source continued, whereas, previously, it was non-callable for one year, then at 102 in year two and 101 in year three.

Bourland amortization unchanged

Left intact by Bourland & Leverich was the original amortization schedule on its term loan, which is 5% in year one, 7.5% in year two and 10% per year thereafter, the source said.

Furthermore, the loan still provides for a 75% excess cash flow sweep.

The company's $200 million senior secured credit facility also includes a $75 million four-year ABL revolver that will be partially funded at closing.

Jefferies Finance is the lead arranger on the deal that will be used to help fund the acquisition of the company by Jefferies Capital Partners.

Pro forma leverage is 2.9 times and equity will comprise 42% of capitalization.

Bourland & Leverich is a Pampa, Texas-based distributor of oil country tubular goods serving U.S. onshore oil and gas producing regions.

Sinclair readies launch

Sinclair Television Group has scheduled a conference call for Thursday to launch its proposed $270 million term loan B due October 2015, according to a market source.

JPMorgan is the lead bank on the deal that will be used, along with cash and/or revolver borrowings, to repay the company's existing $305 million term loan B that also matures in October 2015.

The purpose of the new term loan is to provide more incremental loan capacity, more flexible terms for usage of cash and revolver debt, and improved pricing, company officials said in a conference call on Wednesday.

Sinclair is a Hunt Valley, Md.-based television broadcasting company.

inVentiv closes

In other news, the buyout of inVentiv Health Inc. by Thomas H. Lee Partners LP for $26.05 per share in cash was completed, according to a news release.

To help fund the transaction, inVentiv got a $600 million senior secured credit facility (Ba3/BB-), consisting of a $75 million revolver and a $525 million term loan B.

Pricing on the term loan B is Libor plus 475 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 981/2. There is 101 soft call protection for one year.

During syndication, pricing on the B loan was lowered from Libor plus 500 bps and the discount was tightened from 98.

Citigroup and Bank of America acted the joint lead arrangers and bookrunners on the deal, with Credit Suisse and Deutsche Bank bookrunners as well.

inVentiv is a Somerset, N.J.-based provider of end-to-end clinical development, launch and commercialization services to the pharmaceutical and health care industries.

SoftLayer wraps buyout

The acquisition of SoftLayer Technologies Inc. by GI Partners and management was completed on Wednesday, according to a news release.

To fund the transaction, SoftLayer originally came to market with a $230 million credit facility (B2/B), consisting of a $20 million revolver, a $20 million delayed-draw term loan and a $190 million term loan.

Initial price talk on the term loans had been Libor plus 525 bps to 550 bps with a 1.75% Libor floor and an original issue discount of 99. It was later heard, however, that changes would be made.

In the end, a "stripped down version of [the bank] deal occurred," but specifics are not being given out, a source remarked.

Deutsche Bank and SunTrust acted as the lead banks on the deal for the Plano, Texas-based provider of on-demand data center and hosting services.

Savvis completes facility

Savvis Inc. closed on its $625 million senior secured credit facility (B1/B), consisting of a $75 million revolver due in 2014 and a $550 million term loan due in 2016, according to a news release.

Pricing on the revolver is Libor plus 475 bps, and pricing on the term loan is Libor plus 500 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was flexed up from Libor plus 475 bps, and the discount firmed at the wide end of the initial 97 to 98 guidance.

Bank of America, Morgan Stanley, Credit Suisse and SunTrust acted as the lead banks on the deal that was used to help repay existing debt, including outstanding bank borrowings and the repurchase of about $345 million of the company's 3% convertible senior notes due May 2012.

Savvis is a Town & Country, Mo.-based provider of cloud infrastructure and hosted IT services.

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