VTR Globalcom breaks; HCA bridge loan allocates; Dura seesaws in trading; Evergreen downsizes

By Sara Rosenberg

New York, Sept. 15 - VTR Globalcom SA's credit facility freed for trading with the term loan B seen in the upper-99 context, HCA Inc. allocated its bridge loan facility and Dura Automotive Systems Inc.'s second-lien term bounced around on continued bankruptcy speculation.

Meanwhile, in the primary market, Evergreen International Aviation, Inc. reduced the sizes of its first-lien tranches and added an original issue discount to its first-lien term loan B.

VTR Globalcom allocated its credit facility on Friday, with the $475 million U.S. eight-year term loan B seen quoted in the secondary at 99½ bid, par offered in somewhat light trading, according to a trader.

The term loan B is priced with an interest rate of Libor plus 300 basis points.

The company's $700 million equivalent credit facility (B1/B) also includes a $200 million equivalent in Chilean peso seven-year term loan A and a $25 million equivalent 61/2-year revolver, with both of these tranches priced at Libor plus 250 basis points.

Citigroup, TD Securities, BNP Paribas and Santander are the lead banks on the term loan B, with TD acting as the administrative agent.

Citigroup and Santander are the lead banks on the term loan A and revolver.

Proceeds from the credit facility will be used to refinance existing debt, for general corporate purposes and for capital expenditures.

VTR GlobalCom, a subsidiary of Liberty Global Inc., is Chile's largest multi-channel television and high-speed internet access provider.

HCA bridge allocates

Also allocating on Friday was HCA's $5.7 billion bridge loan that carries an initial interest rate of Libor plus 400 basis points, according to a trader.

The trader went on to say that a market had not really been made in the secondary for the debt and, therefore, was unable to give any bid/offer levels.

The bridge loan is part of a financing package that will be used to help back the leveraged buyout of HCA by Bain Capital, Kohlberg Kravis Roberts & Co., Merrill Lynch Global Private Equity and company founder Thomas F. Frist Jr.

It is anticipated that the bridge loan will be taken out with $5.7 billion of senior secured second-lien notes that sources have previously said would come to market sometime during the fourth quarter.

HCA will also be getting a $16.8 billion senior secured credit facility for LBO financing consisting of a $2.25 billion six-year term loan A, a $9.3 billion seven-year term loan B, a $1.25 billion seven-year European term loan, a $2 billion six-year asset-based revolver and a $2 billion six-year senior secured revolver.

Bank of America, JPMorgan, Citigroup, Merrill Lynch, Deutsche and Wachovia are the lead banks on the $16.8 billion credit facility, with Bank of America the left lead.

A bank meeting for senior managing agents on the credit facility was held in August. Timing on the retail syndication bank meeting has yet to be announced.

Under the LBO agreement, the consortium will acquire HCA for $51 in cash for each share. The transaction is valued at about $33 billion, including the assumption or repayment of about $11.7 billion of debt.

The consortium is anticipated to contribute somewhere in the ballpark of $5.5 billion in equity for LBO financing as well.

HCA is a Nashville, Tenn., health care services company.

Dura bounces around

Dura Automotive's second-lien term loan was all over the place on Friday as a lot of opinions and rumors are circulating on a potential bankruptcy filing as well as on what would happen in a bankruptcy scenario, according to a trader.

The second-lien loan closed the day quoted at 96¾ bid, 98 offered, wider and slightly lower when compared to Thursday's closing levels of 97½ bid, 98¼ offered, the trader said.

During Friday's market hours, trades on the paper were seen going off at 97 and 971/4, the trader added. By comparison, on Thursday, the bank debt traded as high as 98 but as low as 961/2.

"Different people are taking different views on what's going to happen. That's why this has been all over the place," the trader remarked.

Dura Automotive is a Rochester Hills, Mich.-based designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the automotive industry.

Evergreen cuts tranche sizes

Evergreen International Aviation made some changes to its in-market credit facility, downsizing both its revolver and first-lien term loan B and formally adding an original issue discount to the first-lien term loan tranche, according to a market source.

The five-year revolver (B1/B+) is now sized at $30 million, down from an original size of $50 million, the source said. Pricing on this tranche is set at Libor plus 325 basis points after flexing up from original talk at launch of Libor plus 275 basis points in early August.

Meanwhile, the five-year first-lien term loan B (B1/B+) is now sized at $240 million, down from a most recent size of $250 million and from an original size at launch of $300 million, the source said. Pricing on this tranche is also set at Libor plus 325 basis points after flexing up from original talk at launch of Libor plus 275 basis points in early August.

In addition, the first-lien term loan B is now being offered to investors with an original issue discount of 991/2, the source continued. The discount has been discussed for a while but has now become a formal addition to the deal.

Evergreen's $370 million credit facility (down from $400 million) also contains a $100 million 61/2-year second-lien term loan (Caa1/CCC+) with an interest rate of Libor plus 750 basis points and call premiums of 102 in year one and 101 in year two. This second-lien term loan was upsized in early August from $50 million at the time of the term loan B's first reduction in size. Pricing and call protection on the second lien have remained in line with original talk during the entire syndication process.

Credit Suisse is the lead bank on the deal that will be used to fund a tender offer for any and all of the company's outstanding 12% senior second secured notes due 2010.

Allocations on the credit facility are expected to go out during the week of Sept. 18, with the deal scheduled to close and fund on Sept. 22.

Evergreen is a McMinnville, Ore.-based portfolio of five diverse aviation companies.

California Coastal closes

California Coastal Communities, Inc. closed on its new $225 million credit facility, according to a news release, consisting of a $100 million three-year revolving construction loan at Libor plus 200 basis points and a $125 million five-year term loan at Libor plus 275 basis points.

KeyBank acted as the lead bank on the deal.

Proceeds from the term loan are being used to fund a special $12.50 per share dividend payment, and proceeds from the construction loan are being used for the company's 356-home Brightwater project on the Bolsa Chica mesa.

California Coastal is an Irvine, Calif., residential land development and homebuilding company.

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