Delta moves around; Radio One, Farley break; Ameristar, Golden Nugget, Ernest ready deals

By Sara Rosenberg

New York, March 29 - Delta Air Lines Inc.'s old bank debt headed higher during the trading session following news that the debt will be refinanced with a new credit facility, while the new term loan, which is not being repaid, was softer as a seller emerged.

Also, Radio One Inc.'s credit facility freed up for trading, with levels on the term loan B quoted well above its original issue discount price, and Farley's & Sathers Candy Co. Inc. hit the secondary market as well.

In more loan happenings, Ameristar Casinos Inc. came out with the timing and structure on its credit facility that is in connection with a share repurchase, and Landry's Golden Nugget Atlantic City and Ernest Health Inc. surfaced with plans for new loans.

Additionally, UniTek Global Services Inc. upsized its credit facility while revising pricing, Grede Holdings LLC increased the spread and original issue discount talk on its term loan B, and Spitzer Industries Inc. pulled its deal for a second time.

Furthermore, syndication of Surgery Center Holdings Inc.'s credit facility has gone well, with the deal oversubscribed by the time books were closed on Tuesday.

Delta old trades up

Delta Air Lines' old first-lien synthetic revolver/term loan, old revolver and old second-lien term loan moved up towards par as the company is looking to repay these borrowings with new loans, according to traders.

One trader had all of the old debt quoted at 99½ bid, par offered following the refinancing announcement. By comparison, on Monday, he was quoting the first-lien synthetic revolver/term loan at 98¾ bid, 99½ offered, the revolver at 98 bid, 99 offered and the second-lien term loan at 97¼ bid, 97¾ offered.

A second trader, meanwhile, was quoting the first-lien synthetic revolver/term loan at 99¾ bid, par 1/8 offered, up from 99¼ bid, 99¾ offered, and the second-lien term loan at 98¾ bid, 99¾ offered, up from 97¼ bid, 98¼ offered.

Delta new slides

As for Delta's new $250 million term loan that was obtained earlier this month, levels were quoted at 99¼ bid, 99¾ offered, down from 99½ bid, par offered because of a seller entering the market, a trader remarked.

This new term loan, priced at Libor plus 300 basis points with a 1.25% Libor floor, is not being taken out with the upcoming refinancing deal. The loan had been sold at an original issue discount of 99½ and includes 101 soft call protection for one year.

Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. led this term loan that was used to refinance/reprice a $246.8 million term loan, which carried pricing of Libor plus 675 bps with a 2% Libor floor.

Delta sets call

To kick start its plans, Delta has scheduled a conference call for Thursday to launch the proposed $2.6 billion credit facility that will be used to replace the old first-lien synthetic revolver/term loan, old revolver and old second-lien term loan.

The new facility consists of a $1.225 billion five-year revolver and a $1.375 billion six-year term loan B, the source said. Price talk has not been announced as of yet.

J.P. Morgan Securities LLC is the lead bank on the deal.

Delta is an Atlanta-based airline company.

Radio One starts trading

Radio One's credit facility made its way into the secondary market on Tuesday, with the $386 million five-year term loan B (B2/B) quoted by one trader at par ½ bid, 101 offered and by a second trader at par ½ bid, 101½ offered.

Pricing on the B loan is Libor plus 600 bps with a 1.5% Libor floor, and it was sold at an original issue discount of 98. There is call protection of 103 in year one, 102 in years two and three and 101 in year four.

During syndication, the discount widened from 99 and the call protection was changed from just 101 soft call for one year.

The Lanham, Md.-based urban-oriented multi-media company's $411 million credit facility also includes a $25 million four-year revolver (B1/B+) priced at Libor plus 550 bps.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are the lead banks on the deal that will be used to refinance existing debt.

Farley's & Sathers breaks

Farley's & Sathers Candy's credit facility also freed up for trading, with the $170 million seven-year term loan B quoted at 99½ bid, according to a trader.

Pricing on the term loan B is Libor plus 500 bps with a 1.5% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

During syndication, the loan was downsized from $185 million, pricing was raised from Libor plus 425 bps and the discount firmed at the wide end of the 99 to 99½ talk.

The company's $230 million credit facility (B1/B+), which also includes a $60 million five-year revolver, will be used to refinance existing debt.

Bank of America Merrill Lynch, GE Capital Markets and RBS Securities Inc. are the lead banks on the deal for the Round Lake, Minn.-based manufacturer and distributor of confectionary and gum products.

BWIC bids due Wednesday

Also in the secondary market, a roughly $216.5 million Bid-Wanted-In-Competition surfaced, with the seller asking for bids by 11 a.m. ET on Wednesday, according to a market source.

There are 60 issuers included in the portfolio, including Charter Communications, Community Health Systems, First Data Corp., Level 3, NBTY Inc., Reynolds and Reynolds, Thomson Learning, Visteon Corp. and Weather Channel.

Ameristar timing, structure

Back over in the primary, Ameristar Casinos has scheduled a bank meeting for 2 p.m. ET on Wednesday at the Le Parker Meridien in New York to launch a proposed $1.4 billion credit facility, according to sources.

The facility consists of a $200 million five-year term loan A, a $500 million five-year revolver and a $700 million seven-year term loan B, sources said, adding that price talk is not yet available.

Proceeds will be used to help retire $1.5 billion of existing senior credit facility borrowings and senior notes, to fund a share repurchase and for general working capital purposes.

The company is buying 26.15 million shares of its common stock held by the Craig H. Neilsen Estate at a price of $17.50 per share, for a total price of roughly $457.6 million. These shares represent about 45% of Ameristar's outstanding shares and 83% of the Neilsen Estate's current ownership in the company.

Ameristar lead banks

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the lead banks on Ameristar Casinos' credit facility.

The company also plans on approaching the high-yield market with an $800 million senior unsecured notes offering.

In February, the company has said that it would get $2.1 billion of new debt to fund the refinancing and share buyback, but specifics on the breakdown of that debt had not been released.

Closing on the transaction is expected in the second quarter, subject to financing and customary conditions, including receipt of any necessary gaming and other regulatory approvals.

Ameristar is a Las Vegas-based gaming and entertainment company.

Golden Nugget readies deal

Also announcing a new deal was Landry's Golden Nugget Atlantic City, with the company setting a bank meeting for 1 p.m. ET on Thursday in New York to launch a proposed $110 million five-year senior secured credit facility, according to a market source, who said that there has already been a lot of interest for the upcoming meeting.

The facility consists of a $10 million revolver and a $100 million term loan, the source said. Price talk has not yet been disclosed.

Jefferies & Co. is the lead bank on the deal that will be used to fund the purchase, renovation and rebranding of the Trump Marina Hotel and Casino in Atlantic City by Tilman J. Fertitta, chairman, president, chief executive officer and owner of Landry's Inc., a full service restaurant, hospitality and entertainment company.

Ernest Health coming soon

Ernest Health was another company to join the forward calendar, scheduling a bank meeting for Thursday to launch a proposed $204 million credit facility that is being led by CIT Group, according to a market source.

The facility consists of a $30 million five-year revolver and a $120 million five-year first-lien term loan, both talked at Libor plus 475 bps with a 1.5% Libor floor, and a $54 million six-year second-lien term loan talked at Libor plus 800 bps with a 1.75% Libor floor, the source said. Original issue discount guidance is expected to be announced at the bank meeting.

Proceeds will be used by the Albuquerque, N.M.-based developer and operator of inpatient rehabilitation and related post-acute health care services to refinance existing debt.

Leverage through the first-lien is 3.5 times and through the second-lien is 5 times.

UniTek reworks deal

In other news, UniTek Global Services upsized its term loan and increased pricing on the tranche, while at the same time lowering pricing on its ABL revolver, according to sources who said that allocations are hoped to go out early next week

The term loan (B3/B) is now $100 million, up from $85 million. Pricing was lifted to Libor plus 750 bps from Libor plus 725 bps, the original issue discount widened to 97 from 98½ and soft call protection of 102 in year one and 101 in year two was added, sources said. The 1.5% Libor floor was left intact.

Meanwhile, the $75 million ABL revolver (Ba2/BB), size unchanged, was flexed to Libor plus 250 bps from Libor plus 300 bps and the undrawn fee moved to 37.5 bps from 62.5 bps, sources continued.

UniTek cutting ABL drawings

As a result of the term loan upsizing, UniTek is reducing the amount of funds it will draw on the new ABL revolver to about $5 million from around $20 million, sources explained.

Proceeds from the $175 million credit facility, up from $160 million, will be used to refinance existing debt.

FBR Capital Markets is leading the deal.

UniTek is a Blue Bell, Pa.-based provider of engineering, construction management and installation fulfillment services to the telecommunications, broadband cable and satellite industries.

Grede ups pricing

Grede Holdings lifted price talk on its $175 million term loan B (B1/B+) to Libor plus 600 bps from Libor plus 550 bps and increased the original issue discount to 98½ from 99, while leaving the 1.5% Libor floor and 101 soft call protection for one year unchanged, according to a market source.

The company's $265 million senior secured deal also includes a $90 million ABL revolver.

Bank of America Merrill Lynch and GE Capital Markets are the lead banks on the deal that will be used to fund the acquisition of two foundries in Mexico from Grupo Proeza and to pay a shareholder distribution.

The acquisition is pending Mexican regulatory approval and is expected to close by the end of the first quarter.

Grede is a Southfield, Mich.-based designer, developer and manufacturer of cast, machined and assembled components for the transportation and industrial markets.

Spitzer withdrawn again

Spitzer Industries, a Houston-based fabricator of specialized equipment and systems, pressure vessels and other custom weldments for the oil and gas industry, removed its dividend recapitalization deal from market for a second time, according to an informed source.

The company had first approached the loan market in February with its refinancing and dividend plans, but that transaction failed to get done as well. The original structure had called for a $120 million term loan talked at Libor plus 425 bps with a 1.5% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, and a $25 million revolver.

After pulling the first transaction, the company decided to try again with a smaller facility, a smaller dividend and higher pricing.

The latest failed deal consisted of a $15 million revolver provided by Amegy, and a $70 million term loan led by Credit Suisse Securities (USA) LLC that was talked at Libor plus 525 bps with a 1.5% Libor floor, an original issue discount of 981/2, and 101 soft call protection for one year.

Surgery Center well met

Surgery Center's $257.5 million senior secured credit facility (Ba3/B+) has seen a strong amount of investor interest, leading to oversubscription of the transaction before Tuesday's commitment deadline hit, according to a market source.

The facility, comprised of a $20 million revolver and a $237.5 million term loan, is being talked at Libor plus 525 bps with a 1.5% Libor floor and an original issue discount of 99.

By comparison, earlier filings with the Securities and Exchange Commission had the deal sized at $250 million, consisting of a $230 million 53/4-year term loan and a $20 million five-year revolver, with both tranches expected at Libor plus 525 bps with a 1.75% Libor floor.

Jefferies & Co. is the lead bank on the deal.

Surgery buying NovaMed

Proceeds from Surgery Center's credit facility, along with roughly $54 million of mezzanine financing from THL Credit Inc., will be used to fund the acquisition of NovaMed Inc. for $13.25 per share in cash. The transaction is valued at about $214 million, including the assumption or repayment of $105 million of debt.

Leverage is 3.7 times through the bank deal and 4.6 times through the mezzanine.

The acquisition is expected to close in the second quarter, subject to customary conditions, including antitrust and regulatory approvals and stockholder approval.

Surgery Partners is a Tampa, Fla.-based acquirer, developer and manager of free-standing ambulatory surgical centers. NovaMed is a Chicago-based operator, developer and acquirer of ambulatory surgery centers.

NuSil launches

NuSil Technology held a bank meeting on Tuesday at the Le Parker Meridien in New York to launch its proposed $305 million senior secured credit facility that consists of a $10 million five-year revolver and a $295 million six-year covenant-light term loan B, according to market sources.

As was previously reported, price talk on the term loan B is Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 99.

Credit Suisse Securities (USA) LLC and Jefferies & Co. are the lead banks on the deal that will be used, along with $264 million of equity, to help fund the buyout of the company by New Mountain Capital from Quad-C Management Inc. and to refinance existing debt.

Total and senior leverage for the transaction is 4.5 times.

NuSil is a Carpinteria, Calif.-based manufacturer of silicone-based materials for the health care, aerospace, electronics and photonics industries.

Isle of Capri closes

Isle of Capri Casinos Inc. said in a news release on Tuesday that it completed its $800 million credit facility (Ba3/BB-), comprised of a $300 million five-year revolver and a $500 million six-year term loan B.

Pricing on the revolver is Libor plus 350 bps, and pricing on the term loan B is Libor plus 350 bps with a 1.25% Libor floor. The B loan was sold at par and includes 101 soft call protection for one year.

During syndication, the revolver was downsized from $325 million.

Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. acted as the lead banks on the deal that was used, along with $300 million of 7 7/8% senior notes, to refinance existing bank debt.

Isle of Capri is a St Louis-based owner and operator of gaming, lodging and entertainment facilities.

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