OneLink Communications breaks, trades higher; AMC talks term loan A; LCDX index trades lower

By Paul A. Harris

Portland, Ore., June 9 - In the bank loan primary, OneLink Communications priced the first- and second-lien tranches of its $520 million credit facility, and both tranches traded higher.

AMC Entertainment Holdings Inc. gave the spread talk for its $1.16 billion six-year term loan A (Ba2/BB+) at Libor plus 275 basis points to 300 bps with a 1% Libor floor.

Discount talk is 99.5.

Thursday's session saw the LCDX 16 bank loan index finish wrapped around 98, down 3/8 of a point on the day, according to a bank loan trader.

As to cash loans, prices have come off a little, the trader conceded.

"You get the feeling that it's Street-led rather than buyside-led," the source added. "The Street is reducing risk and reducing inventories.

"New issues are holding in, but you're not seeing the point to point-and-a-half pop that you were seeing a couple of weeks ago," the source said.

Earlier in the afternoon, a syndicate banker spotted the index trading at 98 1/16 bid, 98 5/16 offered.

49 straight weekly inflows

Meanwhile, weekly flows to the bank loan mutual funds remained well north of the balk line, although less robust than those of recent weeks.

The funds saw $187 million of inflows for the week to Wednesday, a debt capital markets banker said, citing a weekly report from Lipper-AMG

The consecutive streak of inflows continues to creep ever closer to the one-year mark; it now stands at 49 consecutive weeks of positive flows, during which time the bank loan funds have taken in a whopping $23.4 billion.

The latest week's $187 million inflow extends year-to-date flows to $15.8 billion, the banker added.

However, the junk bond market was a different story during the most recent week.

The high-yield mutual funds sustained $671.3 million of outflows for the week to Wednesday.

OneLink allocates, higher

The OneLink Communications first- and second-lien term loans priced and allocated on Thursday.

The $150 million Libor plus seven-year second-lien term loan (Caa2/CCC+) priced with a spread of Libor plus 850 basis points and a 1.5% Libor floor at 98, then traded to par ½ bid, a market source said.

The second-lien tranche priced on top of spread talk, which had widened from earlier talk of Libor plus 650 bps to 700 bps, and the discount increased to 98 from 99.

The $345 million six-year first-lien term loan (B2/B+) priced at Libor plus 450 bps with a 1.5% Libor floor at 99, then traded to 99 ¼ bid, par offered.

The company's $520 million credit facility also includes a $25 million five-year revolver (B2/B+).

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. Inc. were the lead banks for the debt-refinancing and dividend-funding deal.

Rentech downsizes

Elsewhere, Rentech Energy Midwest Corp. priced its downsized $150 million six-year term loan with a Libor spread of 850 basis points, and a 1.5% Libor floor.

The deal first came into the market sized at $170 million with guidance of Libor plus 650 bps, according to an earlier report in Prospect News.

The reoffer price was 98.

Credit Suisse Securities (USA) LLC was the lead bank.

The loan includes call protection of 102 in year one and 101 in year two.

Proceeds will be used to refinance the company's 2010 senior secured credit facility and fund a dividend.

AMC talks term loan A

AMC Entertainment Holdings' (Rainbow Media Holdings LLC) $2.225 billion facility also features a $500 million five-year revolver, and a $565 million seven-year term loan B.

Commitments are due on June 21.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the lead banks on the deal, with JPMorgan as the left lead.

The facility, along with an expected $700 million senior notes offering, are being done in connection with Rainbow's spinoff from Cablevision Systems and will be used to refinance all existing debt at Rainbow Media as well as to repay $1.25 billion of Cablevision and/or CSC Holdings LLC debt. The revolver will also be available for general corporate purposes.

Husky talks term loan

Husky International Ltd. has set price talk for its $1.03 billion credit facility.

A $920 million covenant-light term B is talked with a Libor spread of 425 basis points to 450 bps, including a 1.25% Libor floor.

Discount talk has the deal pricing at 99 to 99.5.

The facility also includes a $110 million Libor plus 400 bps revolver with a 101 soft call in year one.

Goldman Sachs & Co., Morgan Stanley & Co. Inc., RBC Capital Markets LLC and TD Securities (USA) LLC are the lead banks.

Proceeds will be used to help fund the buyout of the company by Berkshire Partners LLC and Omers Private Equity Inc. from Onex Corp. for $2.1 billion.

Calpine sets price talk

Calpine Corp. talked its $360 million Libor plus 325 basis points first-lien senior secured term loan B-2 with a reoffer price in the 99.25 area.

The deal is set to allocate on Friday.

Terms will mirror the existing $1.3 billion covenant-light term loan B-1 that was obtained in March at pricing of Libor plus 325 basis points with a 1.25% Libor floor. There is 101 soft call protection for one year.

Morgan Stanley & Co. Inc. is the lead bank on the deal.

Proceeds will be used to refinance existing debt.

Van Wagner ups pricing

Van Wagner Communications LLC increased the Libor spread talk on its $180 million covenant-light term loan to 575 basis points from previous talk of 425 bps to 450 bps.

Price talk remains unchanged at 99.

The 1.5% Libor floor and 101 soft call in year one also remain unchanged.

The facility also features a$25 million revolver.

GE Capital Markets is the lead arranger for the debt refinancing deal.

El Pollo Loco talks facility

El Pollo Loco set price talk for its $172.5 million senior secured credit facility.

The deal, which consists of a $12.5 million five-year revolver and a $160 million six-year first-lien term loan, is talked with a Libor spread of 600 basis points to 650 bps and a 1.5% Libor floor at an issue price of 98.

Jefferies & Co. is the lead arranger and bookrunner for the debt refinancing.

Avantor launches $220 million

Avantor Performance Materials Holdings, SA launched a $220 million credit facility at a Thursday bank meeting.

Credit Suisse Securities (USA) LLC is leading the deal.

The facility features a $185 million six-year term loan and a $35 million revolver.

The Phillipsburg, N.J.-base chemical company plans to use the proceeds to refinance debt and fund an acquisition.

Avantor, formerly Mallinckrodt Baker, was acquired from Covidien in August 2010 by an affiliate of New Mountain Capital.

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