Lamar Media, Securus Technologies break; Harrah's dips with numbers; SRAM trims OID

By Sara Rosenberg

New York, April 27 - Lamar Media Corp. and Securus Technologies Inc. saw their credit facilities allocate and free up for trading during Tuesday's market hours, with both companies' term loans quoted above their original issue discount prices.

Also in trading, Harrah's Operating Co. Inc.'s term loans were softer after the company came out with earnings results, while Celanese Corp., UAL Corp., US Airways Group Inc. and Ford Motor Co. were quoted all over the place following their first-quarter numbers.

One trader explained that the market in general felt lower, so it was hard for anything to rally even with strong earnings.

Moving to the primary market, SRAM Corp. lowered the original issue discount on its term loan and added a pricing step-down, and Atrium Cos. Inc. wrapped syndication on its fully subscribed term loan on Tuesday, and the expectation is that allocations will go out in the next couple of days.

Lamar frees to trade

Lamar Media's credit facility hit the secondary market, with the $575 million term loan B quoted at par 1/8 bid, par 5/8 offered on the break and then moving up to par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan B is Libor plus 300 basis points with a step-down to Libor plus 275 bps when leverage is less than 2.5 times. There is a 1.25% Libor floor and the paper was sold at an original issue discount of 991/2.

During syndication, pricing on the term loan was reverse flexed from Libor plus 325 bps with the addition of the step down, and the Libor floor was cut from 1.5%.

The company's $1.125 billion credit facility (Baa3/BB) also includes a $250 million revolver and a $300 million term loan A, with both tranches priced at Libor plus 300 bps.

JPMorgan, Wells Fargo and SunTrust are the lead banks on the deal that will be used to refinance existing debt.

Lamar is a Baton Rouge, La.-based provider of outdoor advertising services.

Securus starts trading

Also freeing up for trading on Tuesday was Securus Technologies' credit facility, with the $185 million term loan quoted at 99¾ bid, par ¾ offered on the break and then moving up to par bid, 101 offered, according to a trader.

The term loan is priced at Libor plus 600 basis points with a 2% Libor floor, and it was sold at an original issue discount of 98. There is soft call protection of 102 in year one and 101 in year two.

Jefferies is the lead bank on the $220 million credit facility (B), which also includes a $35 million revolver.

During syndication, the term loan was upsized from $170 million as a result of strong oversubscription, and the soft call protection was added, and the revolver was downsized from $40 million.

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

Securus is a Dallas-based provider of inmate communications services and offender and case management software design.

Harrah's slides

Harrah's Operating's term loans were weaker on Tuesday as the company and its parent, Harrah's Entertainment Inc., announced first-quarter numbers that showed a larger net loss, a drop in revenues and a decline in adjusted EBITDA on a year-over-year basis, according to traders.

The term loan B-1 was quoted by one trader at 87¼ bid, 88¼ offered, down from 88 1/8 bid, 88½ offered, and by a second trader at 87 7/8 bid, 88 3/8 offered, down a quarter of a point.

The term loan B-2 was quoted by the first trader at 87¼ bid, 88¼ offered, down from 88 1/8 bid, 88½ offered, and by the second trader at 88 1/8 bid, 88 5/8 offered, down an eighth of a point.

In addition, the term loan B-3 was quoted by the first trader at 87 bid, 88 offered, down from 87 5/8 bid, 88¼ offered, and by the second trader at 87 5/8 bid, 88 1/8 offered, down a quarter of a point.

Harrah's net loss widens

For the first quarter, Harrah's Entertainment reported a net loss of $195.6 million, down 47.4% from $132.7 million in the first quarter of 2009, while Harrah's Operating saw a net loss of $165.1 million, down 24.3% from $132.8 million last year.

Net revenues for the quarter were $2.188 billion for Harrah's Entertainment, down 2.9% from $2.255 billion in the previous year, while Harrah's Operating's revenues were $1.711 billion, down 2.4% from $1.753 billion.

And, Harrah's Entertainment's adjusted EBITDA for the quarter was $481.6 million, down 12% from $547.3 million last year, while Harrah's Operating's adjusted EBITDA was $383.1 million, down 5.9% from $407.3 million.

Harrah's is a Las Vegas-based provider of branded casino entertainment.

Celanese lower to flat

Celanese also posted numbers on Tuesday, and its term loan B was unchanged to weaker following the announcement even though earnings, sales and operating EBITDA improved from last year, according to traders.

The term loan B was quoted by one trader at 97 5/8 bid, 98 1/8 offered, down from 97 7/8 bid, 98 3/8 offered, by a second trader at 98¼ bid, 98¾ offered, flat on the day, and by a third trader at 98¾ bid, 99¼ offered, also unchanged.

For the first quarter, Celanese reported net earnings of $18 million, or $0.10 per diluted share, compared to a net loss of $20 million, or $0.16 per diluted share, in the previous year.

Net sales for the quarter were $1.388 billion, compared to $1.146 billion, in the first quarter of 2009.

And, operating EBITDA for the quarter was $246 million, compared to $136 million last year.

Celanese sees better outlook

Celanese also said on Tuesday that it expects growth in 2010 to be more than $250 million of operating EBITDA compared with 2009, up from the prior expectation of about $200 million due to the impact of the accelerating pace of the global economic recovery and the continued success in implementing strategies to enhance earnings power.

"We saw improved global demand across most of our businesses and expect this trend to continue into the second quarter, particularly in Advanced Engineered Materials," said David Weidman, chairman and chief executive officer, in a news release.

"The plans that we have in place to drive improved earnings are on track and continue to add to our near-term performance. With our advantaged portfolio, leading technologies, continual productivity and profitable innovation, we remain confident in our ability to deliver improved earnings in 2010 and beyond," Weidman added.

Celanese is a Dallas-based chemical company.

UAL steady to up

UAL's term loan, meanwhile, was unchanged to stronger in trading after the company released its first-quarter earnings that showed a significant decrease in net loss from the prior year, according to traders.

The Chicago-based airline company's term loan was quoted by one trader at 92 bid, 93 offered, up from 91½ bid, 92 offered, and by a second trader at 91 bid, 92 offered, in line with previous levels. The second trader remarked that the paper had popped up to 92 bid, 93 offered, but then it faded as the day went on.

For the first quarter, UAL posted a net loss of $82 million, or $0.49 per basic share, compared to a net loss of $382 million, or $2.64 per share, last year.

Operating revenues for the quarter were $4.241 billion, up $14.9% from $3.691 billion in the first quarter of 2009.

And, the company ended the quarter with a total cash balance of $3.8 billion, including an unrestricted cash balance of more than $3.5 billion and restricted cash of nearly $300 million. As of April 26, unrestricted cash increased to $4.5 billion, including $700 million in secured debt offering proceeds received in April.

US Airways bounces around

US Airways term loan was anywhere from lower to higher on the day, depending on which trader was asked, after its numbers came out.

The Tempe, Ariz.-based airline company's term loan was quoted by one trader at 81 bid, 82 offered, down from 81½ bid, 82½ offered, and by a second trader at 81¾ bid, 82¾ offered, up a quarter of a point on the day.

For the first quarter, US Airways had a net loss of $45 million, or $0.28 per share, compared to a net loss of $103 million, or $0.90 per share, in the prior year.

Total operating revenues for the quarter were $2.651 billion, up 7.9% from $2.455 billion in the 2009 first quarter.

Furthermore, at March 31, total cash and investments was $2.0 billion, of which $400 million was restricted. The company's unrestricted cash position increased by $100 million to $1.6 billion as compared to Dec. 31.

Ford direction unclear

Like US Airways, Ford's bank debt was seen stronger by some and weaker by others after its earnings news, with not a lot of action seen in the name.

The term loan B-1 was quoted by one trader at 96¾ bid, 97 1/8 offered, bid up from 961/2, but unchanged on the offer side, by a second trader at 96¼ bid, 97 offered, down on the bid side from 961/2, and also unchanged on the offer side, and by a third trader at 96¼ bid, 97 1/8 offered, versus 96¾ bid, 97 offered.

The term loan B-2 was quoted by the second trader at 95½ bid, 96½ offered, down from 96¼ bid, 96¾ offered.

Ford income improves

For the first quarter, Ford reported net income of $2.085 billion, or $0.50 per share, compared to a net loss of $1.427 billion, or $0.60 per share, in the previous year.

Revenue for the quarter totaled $28.1 billion, a $3.7 billion improvement from $24.4 billion in the first quarter of 2009.

And, the company finished the first quarter with $25.3 billion in automotive gross cash, an increase of $400 million since year end.

The company also said that on April 6, it repaid $3 billion of the drawn amount under its revolving credit facility.

Ford provides outlook

Ford went on to reveal that based on its improving performance, the gradually strengthening economy and its present assumptions, it now expects to deliver solid profits this year with positive automotive operating-related cash flow.

Also, the company expects full-year 2010 U.S. industry sales will be in the range of 11.5 million to 12.5 million, consistent with the guidance previously communicated by the company.

And, in Europe, Ford now expects full-year industry volume will be in the 14 million to 15 million range, which is somewhat higher than the previous guidance.

Ford is a Dearborn, Mich.-based manufacturer and distributor of automobiles.

SRAM tweaks deal

Moving to the primary, SRAM came out with some changes to its $290 million term loan, including reducing the original issue discount to 99 3/8 from 99, according to a market source.

In addition, while pricing on the term loan was left at Libor plus 350 bps, a step-down to Libor plus 325 bps was added when corporate ratings are B1/B+, the source said.

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

Recommitments were due on Tuesday.

The $315 million credit facility (Ba3/BB-) also includes a $25 million revolver that is priced at Libor plus 350 bps with a 1.5% Libor floor.

GE Capital is the lead bank on the deal that will be used to refinance existing debt. Mizuho signed on as syndication agent and JPMorgan signed on as documentation agent.

SRAM is a Chicago-based bike components company.

Atrium shuts down

Atrium closed the books on its $185 million six-year term loan (B3) on Tuesday, and the filled-out deal, which is anticipated to stay at initial terms, should allocate sometime in the next few days, according to a market source.

The term loan is priced at Libor plus 500 bps with a 2% Libor floor, and it was sold at an original issue discount of 981/2.

Security on the loan is a first-priority lien on all non-ABL assets.

Proceeds will be used to refinance existing debt in connection with the company's exit from Chapter 11.

Atrium is a Dallas-based vinyl and aluminum window company.

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