Crum & Forster, Mobile Mini deals price; American Tower, Six Flags seen up

By Paul Deckelman and Paul A. Harris

New York, April 23 - Crum & Forster Holdings Corp. and Mobile Mini Inc. priced upsized quick-to-market issues Monday as what had been a mostly dormant drive-by deal market darted into play during the opening session of April 2007's final full week.

Secondary traders said the new Crum & Forster bonds were up more than a point in the aftermarket.

Out along the investor roadshow circuit, Swiss petroleum refiner and marketer, Petroplus Finance Ltd., set price talk for its $1.20 billion two-part deal - the biggest offering presently in the market.

And Local TV Finance, LLC brought up the lights on its $190 million LBO offering.

Among the established issues American Tower Corp. - which announced plans to raise nearly $2 billion by securitizing revenues from its communications antenna towers as well as plans to tender for some of its outstanding notes - was seen higher on the session.

So was Six Flags Inc., which also had positive financing news to announce.

On the downside, Tribune Corp. - whose bonds had tumbled on Friday on investor jitters about the Chicago-based media giant's upcoming buyout - continued to move lower, even as Moody's Investors Service downgraded its ratings.

A high yield syndicate official said that the broad market had been quiet and flat on Monday, but added, shortly after the session's close, that junk had had "a little better feel."

Crum & Forster well received

New Jersey-based insurance and financial services company Crum & Forster priced an upsized $330 million issue of 10-year senior notes (Ba3/BB) at par to yield 7¾% on Monday.

The Merrill Lynch-led the quick-to-market debt refinancing deal was increased from $300 million and came on top of the price talk.

An informed source told Prospect News that the deal had been well received.

Mobile Mini upsized

Elsewhere an informed source told Prospect News that Mobile Mini's upsized $150 million issue of new 6 7/8% senior notes due 2015 (B1/BB-) played to a book containing in excess of $400 million of orders.

The notes, which also came in a drive-by transaction, priced at 99.548 to yield 6.95%, within the 6 7/8% to 7% price talk.

Deutsche Bank Securities and CIBC World Markets were joint bookrunners for the debt refinancing from the Phoenix-based provider of portable storage.

Petroplus sets talk

News surfaced Monday on the biggest deal presently on the high yield road.

Swiss refiner Petroplus set price talk for its $1.20 billion two-part offering of senior notes (BB-).

The company talked its tranche of seven-year notes at 7¾% to 8% and its tranche of 10-year notes to price an eighth of a point to a quarter of a point behind the seven-year notes.

The books close at noon ET on Tuesday. Pricing is expected on Wednesday morning.

Morgan Stanley is the lead bookrunner for the acquisition financing and debt refinancing deal.

Local TV LBO deal

Finally, the forward calendar grew somewhat during the opening session of the April 23 to 27 week.

Local TV disclosed that it will start a roadshow on Wednesday for its $190 million offering of eight-year senior toggle notes - an offering that is expected to price on May 2.

UBS Investment Bank is the left bookrunner. Deutsche Bank Securities is the joint bookrunner.

Proceeds will be used to partially fund Oak Hill Capital Partners' acquisition of nine local TV stations formerly owned by the New York Times Broadcast Media Group.

New Crum & Forster bonds higher

When the new Crum & Forster 7¾% senior notes due 2017 were freed for secondary dealings, a trader saw those bonds push up to the par bid, 100.5 offered area from their par issue price earlier in the session.

The Mobile Mini 6 7/8% notes due 2015 were seen to have priced too late in the session for any meaningful aftermarket activity.

Among other recently priced issues, KAR Holdings Inc.'s new 10% notes due 2015, which priced at par on April 13 and then proceeded to move up solidly, added another 1½ points to end at 104.

Iasis Healthcare Corp.'s holdco senior PIK loan, which priced last Monday, was stronger a week later in active trading, with no specific reason seen behind the momentum, according to a trader.

The Franklin, Tenn.-based hospital owner and operator's PIK loan ended the day at 100.25 bid, 100.75 offered, up about ¼ to ½ point from Friday's levels, the trader said.

American Tower up on tender news

Back among the established issues, a trader saw American Tower's bonds better on the news that the Boston-based communications antenna tower operator plans to tender for its $325.1 million of 7¼% senior subordinated notes due 2011.

That news "created a bit of a rally in those bonds," a trader said, pushing them up ¾ point to 103.75 bid, 104.25 offered.

At another desk, its 7 1/8% notes due 2012 were also seen better, up ¼ point at 104.25.

Besides announcing the offer to tender for the 71/4s, while also seeking approval from the note holders to eliminate most of the restrictive covenants and certain events of default, the company separately announced plans to plans to securitize the revenue from its nearly 5,300 broadcast and wireless communication towers through the sale of $1.75 billion in commercial mortgage pass-through certificates.

The company plans to use the proceeds to repay debt, including funding the tender for the 7¼% notes and $755 million in secured debt at its SpectraSite Communications LLC unit.

Six Flags up on funding plans

Financing plans were meanwhile the catalyst behind some upside movement in Six Flags debt, a trader said, quoting the New York-based amusement- and theme-park operator's bonds about a point higher. He saw its 9¾% notes due 2013 at 99 bid, 99.25 offered.

"They announced a new credit deal, and that was good for the bonds," he said.

Another market source called the company's 8 7/8% notes due 2010 about ¼ point higher at 102 bid. The 93/4s were seen unchanged at 99.25 bid, 99.75 offered.

However, yet another market source had a decidedly different view of things, indicating that the 93/4s were actually down by nearly a point on the day at the 99.25 level.

Six Flags announced Monday morning that it had lined up a new $1.1 billion credit facility and will use the funds to refinance existing debt, including $637 million of term loan B debt, a $300 million revolving credit line and an $82.5 million multi-currency facility.

The new facility, from an underwriting syndicate led by J.P. Morgan Securities Inc., Credit Suisse Securities (USA) LLC and Lehman Commercial Paper Inc., will consist of an $800 million term loan B maturing in April 2015 and a $300 million revolving credit facility maturing in March 2013.

Any funds left over after repayment of the specified debt will be used for working capital and general corporate purposes.

Market broadly firmer

Most other issues that moved were seen to have headed to the upside, although trading was quiet; one trader said that General Motors Corp.'s flagship 8 3/8% notes due 2033 were up about ½ point at 91 bid, while arch-rival Ford Motor Co.'s 7.45% notes due 2031 were at least steady at 78.5, but added "I don't think anything else really traded. To call this a pretty boring day is right."

Another trader saw some upside movement in Pep Boys - Manny, Moe and Jack's 7½% notes due 2014, which he saw as up ¾ points on the day at 97.25 bid, 98.25 offered. He cited "possible change-of-control or buyout rumors" about the Philadelphia-based auto service chain and parts retailer.

He also saw Salt Lake City, Utah-based cookie and cake maker Mrs. Fields' 11½% notes "continuing to move upward," gaining a point to 88.5 bid, 89.5 offered, though on "no news."

Tribune tumble continues

On the downside, Tribune Co.'s 4 7/8% notes due 2010 were seen down nearly a point at 94.25.

That followed a slide of nearly 4 points seen Friday in its 5¼% notes due 2015, which tumbled down to about the 82 bid level.

Moody's on Monday lowered Tribune's corporate family rating two notches to Ba3 and slashed its senior unsecured ratings a full four notches to B2, both from Ba1 previously.

The ratings agency cited the "significant" leverage that will be added to the company's balance sheet as a result of its pending leveraged buyout.

The company - publisher of the eponymous Chicago Tribune, the Los Angeles Times, the New York-area suburban daily Newsday and the Baltimore Sun, and operator of 23 television stations and the Chicago Cubs baseball team - is being taken private by billionaire media mogul Sam Zell in a $34 per share buyout offer.

The buyout deal is being funded with some $13 billion of debt, including a $2.1 billion issue of new junk-rated senior or senior subordinated notes, backed up by $2.1 billion of bridge financing.

Sara Rosenberg contributed to this report.

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