ATP to launch $1.6 billion with Tuesday call; LCDX closes slightly higher; TXU trades up in secondary

By Paul A. Harris

St. Louis, June 9 - ATP Oil & Gas Corp. put some energy in the bank loan primary market with news that it will launch a $1.6 billion debt refinancing credit facility with a Tuesday conference call.

Meanwhile an investor from a loan fund spotted the LCDX was up slightly, closing the day at 98.85 bid, 98.95 offered.

This source had the index going out last Friday at 98.8 bid, 98.9 offered.

A trader from a mutual fund also saw the LCDX closing Monday at 98.85 bid, and said that it might have been as high as 99 bid, during the morning.

"We saw better buyers today," the trader added, noting that the bank loan paper of TXU Corp. was up ¼ to ½ point, closing at 94½ bid, 95 offered.

ATP bringing $1.6 billion

Monday's session generated some news in the new issue market.

ATP Oil & Gas will launch a $1.6 billion debt refinancing credit facility with a Tuesday conference call.

Credit Suisse is leading the refinancing deal which will be comprised of a $1 billion five-year term loan and a $600 million 2.5-year asset sale bridge loan.

Proceeds will be used to refinance the Houston-based company's existing credit facility and to repay $230 million of senior unsecured debt.

B/E Aerospace plans $1.35 billion

Looking at business further in the future, B/E Aerospace, Inc. announced it will put in place a new $1.35 billion senior secured credit facility in order to help finance its $1.05 billion acquisition of Honeywell International Inc.'s Consumables Solutions distribution business.

JPMorgan, Credit Suisse and UBS Investment Bank are the underwriters.

The facility will be comprised of an undrawn $350 million revolver and a $1 billion term loan B.

The financing will include $800 million in cash plus $250 million which will be paid in B/E Aerospace common stock or cash, at the company's option, although in no event will less than 6 million shares be issued if the value of the stock component is less than $250 million.

As part of the transaction B/E Aerospace will enter into a 30-year contract to become Honeywell's exclusive licensee with respect to the sale to the global aerospace industry of Honeywell proprietary fasteners, seals, gaskets and electrical components associated with such products as Honeywell's Engines, APU's, avionics, and wheels and brakes.

B/E Aerospace will also become the exclusive supplier of such consumable products, as well as standard fasteners and consumables to support Honeywell's internal manufacturing needs.

Hologic $600 million term loan

Hologic, Inc. also disclosed plans to finance an acquisition in the bank loan market.

The Bedford, Mass.-based medical diagnostics company, which specializes in the healthcare needs of women, plans to obtain a new $600 million term loan as funding for its acquisition of Third Wave Technologies, Inc.

Goldman Sachs & Co. is leading the deal.

Hologic is acquiring Third Wave Technologies for $11.25 per share in a transaction valued at approximately $580 million.

The new bank loan will have terms "substantially consistent" with the company's existing credit facility.

Third Wave Technologies is a Madison, Wis., developer of molecular diagnostic reagents for DNA and RNA analysis applications relating to conditions which include cystic fibrosis and hepatitis.

Learning Care oversubscribed

An investor said that the Learning Care Group $215 million credit facility (Ba3) is oversubscribed, and going pretty well.

"It will probably clear as structured," the source commented, adding that the deal likely benefited from having been pre-marketed.

"A lot of people seem to have spent some time on it, and are coming into the book," the source said.

Learning Care's deal, which is being led by Barclays, consists of a $40 million revolver, which will be undrawn at close, and a $175 million term loan, with both tranches talked at Libor plus 450 bps.

The term loan has a 3.5% Libor floor and will be offered to investors at an original issue discount of 96.

Proceeds will be used to help fund Morgan Stanley Private Equity's purchase of a 60% interest in the company from A.B.C. Learning Centres.

Dex closes

Meanwhile Dex Media West, LLC closed on a $1.17 billion credit facility via JPMorgan and Bank of America. The loan includes a $90 million revolver due Oct. 24, 2013 at Libor plus 375 bps with a 50 bps commitment fee and a 3% Libor floor, sold at a price of 981/2, a $130 million term A due Oct. 24, 2013 at Libor plus 375 bps, also with a 3% Libor floor and sold at 981/2, and a $950 million term B due Oct. 24, 2014 at Libor plus 400 bps with a 3% Libor floor, a 101 soft call and talked with an original issue discount in the 97 area. Interest on the revolver and term loan A steps down to Libor plus 350 bps if leverage is less than 3:1.

The tranches were reduced slightly from a planned $100 million revolver and $140 million term loan A.

The facility has a $400 million accordion feature.

Proceeds were used to refinance existing credit facility.

Dex is a subsidiary of R.H. Donnelley Corp., a Cary, N.C., publisher of Yellow Pages and White Pages directories.

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