First Data slides on numbers; Renal Advantage, Telx, Tenneco set talk; Wendy's tweaks deal

By Sara Rosenberg

New York, May 14 - First Data Corp.'s term loan debt headed lower in trading on Friday as the company announced first-quarter numbers that showed a larger year-over-year net loss and a drop in adjusted EBITDA.

Over in the primary market, Renal Advantage Inc., Telx Group Inc. and Tenneco Inc. came out with price talk on their new bank deals as the transactions were presented to lenders during the session, and Wendy's/Arby's Restaurants LLC firmed the spread on its term loan at the wide end of talk while lowering the original issue discount.

Also, RCN Metro Fiber's term loan has been met with strong interest, resulting in it being oversubscribed ahead of the Friday commitment deadline, and RCN Cable's term loan is tracking well since its launch a week ago.

Furthermore, Citgo Petroleum Corp.'s term loan has attracted a number of orders, with a good portion of the book already full.

First Data softens

First Data's term loan debt lost some ground in trading as the company released first-quarter results, according to traders.

The term loan B-1 was quoted by one trader at 85 5/8 bid, 86 3/8 offered, down from 87¼ bid, 88 offered, by a second trader at 86 3/8 bid, 86 7/8 offered, down from 88 bid, 88½ offered, and by a third trader at 86 1/8 bid, 86½ offered, down from 87¾ bid, 88¼ offered.

The term loan B-2 was quoted by the first trader at 85¾ bid, 86½ offered, down from 87 3/8 bid, 88 1/8 offered, by the second trader at 86¼ bid, 86¾ offered, down from 87¾ bid, 88¼ offered, and by the third trader at 86 bid, 86 3/8 offered, down from 87 5/8 bid, 88 1/8 offered.

And, the term loan B-3 was quoted by the first trader at 85¾ bid, 86½ offered, down from 87 3/8 bid, 88 1/8 offered, by the second trader at 86 1/8 bid, 86¾ offered, down from 87¾ bid, 88¼ offered, and by the third trader at 86 bid, 86 3/8 offered, down from 87 5/8 bid, 88 1/8 offered.

First Data results

For the first quarter, First Data reported a net loss of $240 million, compared to a net loss of $231 million in the prior year.

Adjusted EBITDA for the quarter was $424 million, compared with $472 million for the first quarter of 2009

Revenues for the quarter, however, were up 16% at $2.4 billion versus $2.1 billion in the comparable period last year.

Also, as of March 31, the company had about $293 million outstanding under its revolving credit facility, compared to having nothing drawn at Dec. 31, and during the quarter, the company made $32.1 million of principal payments on its U.S. and euro term loans.

First Data is a Greenwood Village, Colo.-based provider of electronic commerce and payment services.

Renal Advantage talk emerges

Moving to the primary, Renal Advantage held a bank meeting at 10 a.m. ET on Friday to kick off syndication on its proposed $305 million credit facility, and in connection with the launch, price talk was announced, according to a market source.

Both the $60 million revolver and the $245 million six-year term loan B are being talked at Libor plus 450 basis points, the source said.

The term loan B includes a 1.5% Libor floor, while the revolver has no Libor floor, and the term loan B is being offered at an original issue discount of 99, the source added.

Deutsche Bank, Barclays, Bank of America and GE Capital are the lead banks on the deal that will be used to refinance existing debt.

Renal Advantage is a Brentwood, Tenn.-based provider of outpatient dialysis services.

Telx reveals guidance

Another deal to launch with a bank meeting on Friday was Telx Group, and, at that time, talk on its $150 million term loan B was released, according to a market source.

The term loan B is being guided at Libor plus 550 bps to 600 bps with a 2% Libor floor and an original issue discount of 98, the source said.

Goldman Sachs, Deutsche Bank, RBC and SunTrust are the lead banks on the $175 million senior secured credit facility (B1/B-), which also includes a $25 million revolver.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Telx is a New York-based provider of network neutral, global interconnection and colocation services.

Tenneco sets B loan talk

Also launching was Tenneco's $150 million six-year term loan B, and it was presented to lenders with talk of Libor plus 475 bps with no Libor floor and an original issue discount of 99, according to sources.

"I think there is going to be good demand for it, so it might flex. That's my hunch. Could be wrong, but I wouldn't be surprised," one buyside source remarked.

The term loan B maturity will be accelerated to April 15, 2013 if the company's senior secured notes are not refinanced by that date. Also, it will be accelerated to Aug. 16, 2014 if the company's senior subordinated notes are not refinanced by that date.

JPMorgan is the lead bank on the deal.

Proceeds will be used to refinance the company's existing $128 million term loan A due in March 2012.

Tenneco extending revolver

In addition to the new term loan B, Tenneco is looking to extend the maturity of all or a significant portion of its $550 million revolving credit facility to May 2014 from March 2012.

However, the revolver will mature on April 15, 2013 if the company's senior secured notes are not refinanced by that date and on Dec. 14, 2013 if the tranche B-1 letter of credit/revolver is not refinanced by that date.

Closing on the transaction is expected to occur in the second quarter.

Tenneco is a Lake Forest, Ill.-based designer, manufacturer and marketer of emission control and ride control products and systems for the automotive original equipment market and the aftermarket.

AWAS launches

AWAS' $530 million six-year term loan was yet one more deal that launched with a bank meeting on Friday, but price talk on the loan is not expected to come out until Monday, according to a market source.

Ratings on the loan came in Ba2/BBB- and the corporate rating is Ba3/BB, the source said.

Goldman Sachs and Credit Agricole are the lead banks on the deal that will be used to refinance existing debt.

AWAS is a Dublin-based aircraft leasing company.

Wendy's/Arby's sets spread, cuts OID

Wendy's/Arby's finalized pricing on its $500 million seven-year term loan at Libor plus 350 bps, the high end of the initial Libor plus 325 bps to 350 bps talk, according to a market source.

Furthermore, the original issue discount was tightened to 99½ from 99 and 101 soft call protection for one year was added to the tranche.

As before, the term loan includes a 1.5% Libor floor.

Wendy's/Arby's $650 million senior secured credit facility (Ba2/BB) also includes a $150 million five-year revolver.

Bank of America and Citigroup are the lead banks on the deal that will be used to refinance the company's existing credit facility, redeem $200 million of Wendy's International Inc. 6.25% senior notes due 2011 and for general corporate purposes.

Wendy's/Arby's is an Atlanta-based quick-service restaurant company.

RCN Metro Fiber oversubscribed

RCN Metro Fiber closed the books on its $265 million credit facility (B2/B) on Friday, and prior to the deadline, the $240 million six-year term loan was already two times oversubscribed, according to a market source.

Price talk on the term loan is Libor plus 450 bps with a 2% Libor floor and an original issue discount of 981/2.

SunTrust, GE Capital and Société Générale are the lead banks on the deal that also includes a $25 million five-year revolver, with SunTrust the left lead and the administrative agent.

Proceeds from the Metro Fiber credit facility, along with a $600 million credit facility (B1/B) at RCN Cable and equity, will be used to fund the buyout of RCN by ABRY Partners in a transaction valued at $1.2 billion, including the assumption of debt. RCN stockholders will be receiving $15 per share.

RCN Cable attracting orders

Meanwhile, the RCN Cable credit facility, which launched on May 7 - a week after the RCN Metro Fiber bank meeting - has seen very strong interest to date from lenders, the source remarked.

The $40 million five-year revolver and the $560 million six-year term B are both talked at Libor plus 375 bps with a 1.75% Libor floor. The term loan B is being offered at a discount of 99.

Prior to launch, the term loan B was reduced from $580 million as a result of increased cash flow at RCN coupled with fewer shares to purchase than was originally thought in the buyout of the company.

SunTrust, GE Capital and Société Générale are leading this deal as well.

Closing on the buyout is expected in the second half of this year, subject to receipt of stockholder approval, which will be sought at a special meeting on May 19, regulatory approvals and satisfaction of other customary conditions. The acquisition is not subject to any financing condition.

RCN is a Herndon, Va.-based broadband services provider.

Citgo filling out

Citgo's $300 million five-year term loan is "going extremely well" since launching this past Tuesday, with over "two thirds of the book already filled," according to a market source.

Unofficial talk on the loan has been circulating at Libor plus 350 bps with a 1.75% Libor floor and an original issue discount of 981/2.

In addition to the term loan, the company is getting a new $700 million revolver that is already fully circled.

BNP Paribas, RBS and UBS are the lead banks on the deal that will be used, along with $1.5 billion of bonds, to refinance existing debt. As a condition of the deal, the company must raise at least $1 billion between the term loan and the new bonds.

Citgo is a Houston-based refiner and marketer of transportation fuels, lubricants, petrochemicals and other industrial products.

TransUnion pre-marketing deal

In other news, TransUnion began pre-marketing its proposed $1.19 billion credit facility a few days ago, while timing on the general syndication launch is still to be determined, according to a market source.

It is currently thought that the general syndication bank meeting is still a couple of weeks away, the source added.

The facility consists of a $250 million revolver and a $940 million term loan, with price talk not yet available.

Deutsche Bank, Bank of America and JPMorgan are the lead banks on the deal that will be used to help fund Madison Dearborn Partners LLC's acquisition of a 51% interest in the company from the Pritzker family, which is subject to satisfaction of customary conditions and regulatory approvals.

TransUnion is a Chicago-based provider of credit and information management.

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