Mapco adds step down; Cellnet at wide end of talk; Trident upsizes, cuts spread; FIS up on prepayment

By Sara Rosenberg

New York, April 21 - Mapco Express Inc. added a step down in pricing to its term loan B on Thursday being that the deal was nicely oversubscribed. Cellnet, on the other hand, firmed up pricing at the wide end of talk on both its first- and second-lien term loans and beefed up call protection provisions on the second-lien tranche. Also, Trident Exploration Corp. increased the size of its second-lien term loan while, at the same time, reducing pricing on the tranche.

In the secondary, Fidelity National Information Services Inc.'s (FIS) term loan B was stronger on news of a planned prepayment, and Masonite International Inc. and The Goodyear Tire & Rubber Co. were up in tune with the rest of the market.

Mapco's two-times-plus oversubscribed $165 million six-year term loan saw pricing left unchanged at Libor plus 275 basis points but a step down provision was added to the tranche under which pricing can come down to Libor plus 250 basis points if leverage is less than or equal to 31/2x, according to a fund manager.

The $205 million credit facility (B2/B+) also contains a $40 million five-year revolver with an interest rate of Libor plus 225 basis points.

Lehman is the sole lead bank on the deal. Bank Leumi and SunTrust joined on as agents.

Proceeds will be used to refinance existing debt and to fund a small dividend to the parent company.

Mapco is a Franklin, Tenn., convenience store and wholesale petroleum distribution company.

Cellnet sets pricing

Cellnet firmed up pricing on its term loans at the high end of talk, with the $250 million seven-year term loan B (B2/B-) coming at Libor plus 300 basis points, compared to previously revised price talk of Libor plus 275 basis points to Libor plus 300 basis points, and the $100 million eight-year second-lien term loan (B3/CCC) coming at Libor plus 675 basis points, compared to previously revised price talk of Libor plus 650 to 675 basis points, according to a market source.

Furthermore, call protection on Cellnet's second-lien term loan was changed to 103 in year one, 102 in year two and 101 in year three from the 102 in year one and 101 in year two premiums that were part of the deal since launch.

Earlier this week, Cellnet made its first round of changes to the term loans, increasing the size of the first-lien term loan to $250 million from $200 million and decreasing the size of the second-lien term loan to $100 million from $150 million.

At the time of the sizing tweaks, price talk on the two tranches was also revised. Price talk on the first-lien term loan B was widened out to Libor plus 275 to 300 basis points from original talk of just Libor plus 275 basis points, and price talk on the second-lien term loan went up to Libor plus 650 to 675 basis points from original talk of Libor plus 500 basis points, the source said.

Cellnet's $380 million credit facility also contains a $30 million revolver (B2/B-) with an interest rate of Libor plus 225 basis points, unchanged since launch.

Both term loans are being offered to investors at par. The upfront fee on the revolver is 75 basis points for any size commitment.

Morgan Stanley and Goldman Sachs are the lead banks on the dividend recapitalization deal, with Morgan Stanley the left lead.

Cellnet is an Atlanta provider of automated meter reading and distribution automation solutions to the utility industry that was purchased by management and GTCR Golder Rauner LLC in July 2004.

Trident upsizes, cuts pricing

Trident Exploration increased the size of its 51/4-year second-lien term loan to $175 million from $125 million and reverse flexed pricing to Libor plus 700 basis points from Libor plus 750 basis points, according to a syndicate document.

Credit Suisse First Boston and TD Securities are joint lead arrangers on the deal, with CSFB the left lead.

Proceeds from the second-lien loan will be to finance exploration and drilling.

Trident Exploration is a Calgary-based company focused on the discovery and commercial development of natural gas in coal resources in the Western Canadian Sedimentary Basin.

FIS up on paydown

Fidelity National Information Services' term loan B was higher by about three quarters of a point to a full point on Thursday as news that the company plans on prepaying $150 million of term loan B debt at par floated around the marketplace, according to a trader.

The term loan B was quoted at 99¾ bid, par offered, the trader added.

Fidelity National is a Jacksonville, Fla., provider of technology solutions, processing services and information services to the financial services and real estate industries.

Goodyear, Masonite up

Meanwhile, the secondary loan market in general felt better on Thursday with names like Goodyear and Masonite mentioned as some of the big traders and prime examples of a stronger session.

Goodyear's bank debt was up about half a point across the board, with the first-lien paper quoted at par ¼ bid, par ¾ offered, the second-lien paper quoted at 99¾ bid, par ¼ offered and the third-lien paper quoted at 96½ bid, 97½ offered, according to a trader.

Masonite was also up a little in very active trading with levels closing out the day at par 1/8 bid, par 3/8 offered, the trader added.

Goodyear is an Akron, Ohio-based tire company. Masonite is a Mississauga, Ont.-based building products company.

Werner up on recap news

Werner Ladder Co.'s bank debt was better bid on Thursday as information surfaced that the company would be seeking a new $100 million 41/2-year second-lien term loan to pay down its first-lien debt.

"I saw a bid for 97 but I think it might even be as high as 98. It was right around the 96 level before," a trader said.

The company plans on holding a bank meeting on Monday to launch the new second-lien loan with opening pricing currently set at Libor plus 1,000 basis points.

Credit Suisse First Boston and Morgan Stanley are joint lead arrangers on the recapitalization deal, with CSFB the left lead.

Werner Ladder is a Greenville, Pa., manufacturer and distributor of fiberglass, aluminum and wooden climbing products.

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