Summit Materials price talk emerges; Spansion, Great Point Power, Carmike ready launches

By Sara Rosenberg

New York, Jan. 8 - Summit Materials LLC came out with price talk on its credit facility as syndication on the acquisition financing transaction officially kicked off with a Friday morning bank meeting.

In other news, Spansion Inc. is getting ready to launch an exit financing facility early in the Jan. 11 week, and Great Point Power LLC and Carmike Cinemas Inc. also announced that they, too, will be approaching the market with new deals during that week.

Summit Materials reveals talk

Summit Materials held a bank meeting on Friday morning to present its $173.4 million credit facility (B2) to lenders, and in connection with the launch, price talk was announced, according to a market source.

Both the $37 million three-year revolver and the $136.4 million 31/2-year term loan are being talked at Libor plus 500 basis points with a Libor floor that is still to be determined, the source said.

The revolver is being offered at an original issue discount of 98 and the term loan is being offered at an original issue discount of 99, the source continued.

Summit Materials met well

After the bank meeting, market chatter was that the Summit Materials' credit facility was already going well, the source remarked.

Citigroup, UBS and Jefferies are the lead banks on the deal, with Citi the left lead.

Proceeds will be used to fund the acquisition of Hinkle Contracting Corp., a Paris, Ky.-based construction company.

Summit Materials is a Washington D.C.-based company that was formed in early 2009 to acquire and grow companies in the aggregates and heavy-side building materials industry.

Spansion sets launch

News emerged on Friday that Spansion will be holding a bank meeting on Tuesday morning in New York to launch its proposed $450 million five-year term loan, according to a market source.

Price talk on the term loan is not yet available.

Barclays and Morgan Stanley are the lead banks on the deal, with Barclays the left lead.

Proceeds will be used to help fund the company's exit from Chapter 11.

In addition, the company will be getting a new $65 million ABL revolver for exit financing as well, the source added.

Spansion reorganization details

Under its plan of reorganization, Spansion will distribute substantially all of the equity interests in the reorganized company to unsecured creditors.

Holders of the company's floating-rate notes will receive cash, $237.5 million of new senior notes and $237.5 million of new convertible notes.

The plan also gives the company the option to conduct a rights offering under which some unsecured creditors can get new common stock and additional debt, and proceeds from this offering would be used to reduce the new senior notes and the new convertibles.

If the company receives enough proceeds from the rights offering, the floating-rate noteholders would be paid in full in cash instead of receiving the new notes.

Spansion is a Sunnyvale, Calif.-based maker of flash memory products.

Great Point coming soon

Also announcing a new deal on Friday was Great Point Power, as the company scheduled a bank meeting for Thursday to launch its $210 million seven-year term loan, according to a market source.

Price talk on the term loan is still to be determined, the source remarked.

Barclays and Bank of America are the lead banks on the deal that will be used to fund the acquisition of four power generation plants and one transmission facility from Energy Investors Funds.

Great Point Power is a newly formed portfolio company of ArcLight Capital Partners LLC.

Carmike to launch refinancing

Carmike Cinemas has set a conference call for Tuesday to launch its refinancing credit facility that the company announced in a press release late Thursday, according to sources.

The proposed $305 million credit facility consists of a $275 million term loan B and a $30 million revolver due January 2013.

As was previously reported, both the term loan B and the revolver are being talked at Libor plus 400 bps with a 2% Libor floor.

And, market buzz is that the term loan B will be presented with an original issue discount in the 98 to 99 context, sources remarked.

Carmike lead banks

Carmike Cinemas' credit facility has as joint lead arrangers and joint bookrunners JPMorgan, Citigroup and Macquarie Capital.

The bank debt that is being refinanced includes a $250.8 million term loan due in May 2012 and a $50 million revolver due in May 2010.

Closing on the transaction is expected by late January/early February.

Carmike is a Columbus, Ga.-based digital cinema and 3D motion picture exhibitor.

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