Millennium Radio floats talk; CharterMac, SPI increase talk; HVHC breaks; Kodak, PanAmSat trade up

By Sara Rosenberg

New York, Aug. 2 - Millennium Radio price talk started to get whispered around the market ahead of its Thursday bank meeting, CharterMac officially approached potential lenders on Wednesday with an upward revision to its term loan spread guidance and SPI Petroleum LLC also increased pricing guidance on its term loan.

In secondary happenings, HVHC Inc. freed for trading with the term loan B quoted atop par, and Eastman Kodak Co. and PanAmSat Holding Corp. saw a bit of pop on market technicals.

Millennium Radio price talk began floating around on Wednesday as investors are getting ready for the deal's official launch into syndication via a Thursday bank meeting in New York, according to a market source.

The $15 million six-year revolver and the $120 million six-year first-lien term loan B are both expected to be launched with opening price talk of Libor plus 275 basis points, and the $40 million seven-year second-lien term loan is expected to be launched with opening talk of Libor plus 550 to 600 basis points, the source said.

UBS and The Bank of New York are joint lead arrangers on the $175 million senior secured credit facility, with UBS the left lead.

Proceeds will be used to fund a recapitalization plan, which includes a refinancing of all of the company's outstanding debt and a distribution to equity holders.

Millennium Radio is a Lawrenceville, N.J., privately held radio broadcasting company.

CharterMac lifts price talk

CharterMac officially started calling investors on Wednesday to let them know that price talk on its $350 million six-year term loan has been revised to Libor plus 225 to 250 basis points from original price talk at launch of Libor plus 200 basis points, according to a market source.

It had previously been rumored that this type of flex could be in the works since the loan was heard to be getting a lot of tickets in that Libor plus 225 to 250 basis points range creating the expectation that the spread would need to be increased to meet that demand.

CharterMac's $500 million credit facility (Ba3/BB) also contains a $150 million three-year revolver that is being talked at Libor plus 175 basis points. There was no word on whether revolver pricing would undergo any revisions, the source added.

UBS and Bank of America are the lead banks on the deal.

Proceeds from the term loan will be used to fund the acquisition of ARCap Investors, LLC in a transaction valued at $284.5 million.

The revolver will replace the company's existing tax credit warehouse facility and will be used for general corporate purposes.

CharterMac is a New York-based full-service real estate finance company. ARCap is a Dallas-based fund manager specializing in the acquisition, management and servicing of high-yield commercial mortgage-backed securities and high-yield direct real estate loans.

SPI boosts spread guidance

SPI Petroleum increased price talk on its $155 million term loan (B2/B) to Libor plus 350 to 400 basis points, compared to original talk at launch of Libor plus 275 basis points, according to a market source.

The company's $340 million credit facility also includes a $185 million ABL revolver that is well oversubscribed at original talk of Libor plus 112.5 basis points.

JPMorgan and PNC are the lead banks on the deal, with JPMorgan the left lead on the term loan and PNC the left lead on the revolver.

Proceeds will be used to finance acquisitions.

SPI is an Oklahoma City-based marketer of petroleum products.

HVHC frees to trade

Moving to the secondary, HVHC's credit facility broke for trading with the $155 million seven-year term loan B quoted at par 3/8 bid, par 7/8 offered in light activity, according to a trader.

The term loan B is priced with an interest rate of Libor plus 225 basis points.

HVHC's $180 million credit facility (Ba3/BB) also contains a $25 million five-year revolver with an interest rate of Libor plus 225 basis points.

Citigroup and PNC acted as the lead banks on the deal, with Citi the left lead.

Proceeds from the credit facility were used to help fund the acquisition of Eye Care Centers of America Inc., the completion of which was announced Wednesday, and to refinance existing bank debt.

HVHC is a provider of vision services and seller of related merchandise.

Kodak, PanAmSat head higher

Kodak and PanAmSat saw some buyers stepping in for their bank debt during Wednesday's market hours, giving things a small boost, according to a trader.

Kodak's bank debt closed the day quoted at par bid, par ¼ offered, up from Tuesday's levels of 99 7/8 bid, par 1/8 offered, the trader said.

Some attention has been redirected to Kodak recently because of the release of second-quarter financials on Tuesday, and although it's really not apparent by looking at the bank debt performance, those numbers weren't exactly stellar.

For the second quarter, sales totaled $3.36 billion, a decrease of 9% from $3.686 billion in the second quarter of 2005, and net loss was $282 million, or $0.98 per share, compared with a net loss of $155 million, or $0.54 per share, in the year-ago period.

The company also reaffirmed its 2006 goals, including the expectation that net cash provided by operating activities will be $800 million to $1 billion and that loss from continuing operations will be $500 million to $850 million.

Kodak is a Rochester, N.Y.-based digital imaging products, services and solutions company.

Meanwhile, PanAmSat saw its term loan B levels improve by a quarter of a point to par ¾ bid, 101 offered on better buyers Wednesday, the trader continued.

PanAmSat is a Wilton, Conn.-based satellite company.

Infor closes

Infor Global Solutions closed on its new $2.4 billion euro- and dollar-denominated credit facility (B2/B) consisting of a $150 million six-year revolver and a $2.25 billion seven-year term loan B, according to a company news release.

The term loan B is priced with an interest rate of Libor plus 375 basis points and contains 101 call protection for one year. The revolver has a 50 basis point commitment fee.

During syndication, the term loan B was upsized from $2 billion with the company's bridge loan downsized by the equivalent amount to $1.425 billion, and pricing was flexed up from original talk at launch of Libor plus 325 basis points to guidance of Libor plus 350 to 375 basis points before settling in at the wide end of talk.

The bridge loan is intended to be refinanced with high-yield notes.

JPMorgan, Credit Suisse and Merrill Lynch acted as the lead arrangers and bookrunners on the deal, with JPMorgan the left lead. Goldman, Wells Fargo Foothill, General Electric Capital Corp. and Barclays Bank acted as co-documentation agents.

Proceeds from the new credit facility were used to help fund the acquisitions of Systems Union Group and SSA Global, finance the combination of Infor and Extensity - which are both currently Golden Gate Capital portfolio companies - and to refinance debt at all four companies.

Under the SSA acquisition agreement, Infor paid $19.50 per share in cash to SSA Global's shareholders, and, under the Systems Union agreement, Extensity paid 215p per share in cash to Systems Union stockholders.

Infor is an Alpharetta, Ga.-based software provider focused on the manufacturing and distribution industries. Extensity is an Atlanta-based financial performance management company focused on the needs of finance professionals. SSA Global is a Chicago-based provider of enterprise software applications for manufacturing, distribution, retail, services and public organizations. Systems Union is a U.K.-based financial management, reporting and performance management solutions company.

Made2Manage closes

Made2Manage Systems Inc. completed its acquisition of Onyx Software Corp. for $4.80 per share, or about $92 million, according to a company news release.

To fund the transaction Made2Manage got a new $180 million credit facility consisting of a $15 million revolver (B2/B-) at Libor plus 400 basis points, a $100 million term loan B (B2/B-) at Libor plus 400 basis points and a $65 million second-lien term loan (Caa1/CCC) at Libor plus 725 basis points with call protection of 102 in year one and 101 in year two.

During syndication, once ratings emerged, pricing on the revolver and the term loan B was increased from initial talk at launch of Libor plus 325 basis points and pricing on the second-lien term loan was increased from original talk at launch of Libor plus 675 basis points.

BMO Capital acted as the lead bank on the deal.

Indianapolis-based Made2Manage is the primary asset of M2M Holdings Inc., a holding company jointly owned by Battery Ventures VI, LP and Thoma Cressey Equity Partners.

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