Yellowstone cuts term B spread; DeCrane tweaks term loan sizes, pricing; Delphi revolver trades up

By Sara Rosenberg

New York, Sept. 15 - Yellowstone Club reverse flexed its term loan B as the deal was met with strong enough demand to warrant a pricing change within a week of launching. In addition, DeCrane Aircraft Holdings Inc. modified term loan tranching under its in-market credit facility, while also changing spreads on all tranches.

In secondary doings, Delphi Corp.'s revolver continued to post gains during Thursday's session as news of a potential investment in the company hit the market and investors remained pleased with the recent perfection of security liens.

Yellowstone Club reduced pricing on its $330 million five-year term loan B as the deal was quickly oversubscribed after just launching last week.

The term loan B pricing has been lowered to Libor plus 237.5 basis points from initial price talk of Libor plus 250 to 275 basis points, according to a syndicate document.

The launch was kind of a two-day event as participants were invited to have dinner on Sept. 7 at the Yellowstone Club, with the actual bank meeting following on Sept. 8.

Credit Suisse First Boston is the lead arranger on the deal that will be used for a recapitalization.

Yellowstone Club is a Big Sky, Mont., private ski and golf community.

DeCrane tweaks deal

DeCrane Aircraft increased the overall size of its credit facility through an upsizing of its term loan B that outweighed the company's downsizing of its second-lien term loan. Furthermore, pricing on the revolver and term loan B was reduced, while pricing on the second-lien loan was increased.

The three-year term loan B is now sized at $116.5 million, compared to an original size of $100 million, and pricing on the tranche was reduced to Libor plus 425 basis points from original price talk of Libor plus 450 basis points, according to a syndicate document.

Meanwhile, the three-year second-lien term loan is now sized at $76 million, compared to an original size of $85 million, and pricing on the tranche was increased to 11% from original price talk of 10.5%, the document said.

As for the $15 million three-year revolver, the size was left unchanged but pricing was lowered to Libor plus 425 basis points from original price talk of Libor plus 450 basis points, the document added.

Credit Suisse First Boston is the lead on the now $207.5 million credit facility - up from $200 million - that will be used to refinance existing debt.

DeCrane is a Columbus, Ohio, aircraft parts and equipment manufacturer.

Cendant firms up timing

Cendant Marketing finalized timing on the launch of its proposed $885 million credit facility, with the scheduling of a bank meeting for Monday, according to a syndicate document.

Previously it was known that the deal would be launching next week and that the syndicate was targeting a Monday meeting, but nothing was definitively set.

Credit Suisse First Boston and Deutsche Bank are the joint lead arrangers on the deal.

The facility consists of a $125 million six-year revolver and a $760 million seven-year term loan B.

Proceeds will be used to help fund Apollo Management LP's acquisition of Cendant Corp.'s Marketing Services Division for about $1.83 billion.

Under the acquisition agreement, Affinity Acquisition, an affiliate of Apollo, will pay about $1.7 billion of cash, net of estimated closing adjustments, with the remaining $125 million to come in the form of newly issued preferred stock of the purchaser.

The transaction, which is expected to close in the fall, is subject to certain closing conditions, including receipt of financing and regulatory approvals.

Cendant's Marketing Services Division is a Norwalk, Conn., direct marketer of membership clubs and insurance products.

Delphi revolver stronger

Delphi's revolver headed higher on Thursday as news of a potential investment in the struggling company floated around the market and investors remained pleased with the security package's recent completion.

The revolver was quoted at 98 bid, 98½ offered, compared to previous levels of 96¾ bid, 97¼ offered, according to a trader.

"Today there was news out there that Wilbur Ross may be interested in investing in the company," the trader explained.

"And, yesterday, the lien was perfected," the trader added.

The loan was completed in June of this year. Being that it takes 90 days to perfect the lien, the event just took place on Wednesday.

Delphi is looking to former corporate parent General Motors Corp. for some sort of financial bailout and has warned that it could be forced into Chapter 11 if it does not get concessions from the United Auto Workers union and help from GM.

The company has warned that a filing could come before Oct. 17 when federal bankruptcy laws will change, becoming less friendly to debtor companies.

Delphi is a Troy, Mich., supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology to vehicle manufacturers.

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