Ford term loan rises; Idearc B loan stabilizes; SugarHouse allocations still to come

By Sara Rosenberg

New York, Aug. 28 - Ford Motor Co.'s term loan gained some ground during Friday's trading session as the company is expecting August sales numbers to show an improvement from last year and from last month's results.

Also in trading, Idearc Inc.'s term loan B was seen as steady to slightly stronger, depending on who was asked, after falling off during the previous day on news of a private lender call.

Over in the primary market, allocations on SugarHouse Casino's credit facility are now expected to go out during the week of Aug. 31 as the company is still in the process of posting credit documents.

Ford heads higher

Ford's term loan was stronger in trading as reports surfaced that the company expects to report a rise in sales for the month of August when compared to last year, according to traders.

The Dearborn, Mich.-based automaker's term loan was quoted at 87 bid, 87½ offered, up from 86¾ bid, 87¼ offered, the traders said.

August sales results will be revealed on Tuesday and are anticipated to be better than last year largely because of the government's Cash for Clunkers program.

Ford adding shifts

In more recent Ford news, the company announced on Thursday that it is adding third-production shifts at its Dearborn Truck Plant and Kansas City Assembly Plant's sport utility line to help meet strong demand for Ford F-150 pickups and Escape utility vehicles.

In August, Ford expects to post its first monthly year-over-year sales increase for F-Series trucks since October 2006, as well as another record-setting sales month for Escape.

Ford went on to say that it had a solid July sales month and it's headed toward an even stronger August.

On Aug. 3, Ford came out with July sales numbers in which total sales were 165,279, up 2.3% from 161,530 in the comparable period last year.

Idearc steadies

Idearc's term loan B stabilized on Friday after experiencing a drop and then a slight rebound on Thursday in response to the company holding a private lender call, according to traders.

The term loan B was quoted by one trader at 46 bid, 46¾ offered, compared to 46 bid, 47 offered at the end of the day Thursday. The debt had hit a low of 43½ bid, 45½ offered on Thursday, the trader added, and had closed out on Wednesday at 49 7/8 bid, 50¼ offered.

A second trader, however, had the term loan B a little higher on the day, putting levels at 46¼ bid, 47¼ offered, versus 45¾ bid, 46¾ offered at the close on Thursday. This trader said the loan hit a low of 44½ bid, 46½ offered on Thursday and closed out on Wednesday at 49¼ bid, 50 offered.

"Still have no idea what [Thursday's] lender call was about, but [the loan] seems to be rebounding a little," the second trader remarked.

Idearc is a Dallas-based provider of yellow and white page directories and related advertising products.

SugarHouse hoping to allocate soon

Switching to new deal happenings, SugarHouse Casino is anticipating allocating its $180 million credit facility (B-) during the week of Aug. 31 after missing its targeted date of Friday as a result of the ongoing documentation process, according to a market source.

Initially it was thought that allocations could have gone out as early as the end of the week of Aug. 17. However, timing on wrapping up documentation and allocations has been fluid since there's no real urgency to close the transaction.

The current guess on specific timing for allocations is this coming Tuesday, the source added.

SugarHouse loan details

SugarHouse Casino's credit facility consists of a $10 million revolver, a $20 million delayed-draw term loan and a $150 million funded term loan.

Pricing on the delayed-draw and funded term loan is Libor plus 825 basis points with a 3% Libor floor and an original issue discount of 96.

The credit facility was oversubscribed during the syndication process and pricing on the deal is anticipated to finalize in line with the original talk.

Credit Suisse and Jefferies are the lead banks on the deal that will be used to fund the construction of the SugarHouse Casino on the Delaware River in Philadelphia by HSP Gaming, LP.

Spectrum Brands closes

Spectrum Brands Inc. closed on its new $242 million three-year senior secured asset-based revolving exit facility on Friday in connection with its emergence from Chapter 11, according to a news release.

GE Capital acted as the lead bank on the deal.

The facility consists of a $197 million revolver priced at Libor plus 400 bps with a 2.5% Libor floor, and a $45 million first-in, last-out supplemental revolver priced at Libor plus 1,450 bps with a 3% Libor floor.

Spectrum Brands is an Atlanta-based consumer products company and supplier of batteries, lawn and garden products, pet supplies, shaving and grooming products, household insect control products, personal care products and portable lighting.

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