Ford up with numbers; Regal dips, Charter rises with paydowns; UCI, Compass guidance emerges

By Sara Rosenberg

New York, Jan. 4 - Ford Motor Co.'s bank debt headed higher on Tuesday as the company released monthly and full-year sales numbers, and Regal Entertainment Group and Charter Communications Inc. moved around on repayment news.

Over in the primary market, UCI International Inc. and Compass Diversified Holdings began circulating price talk on their loans ahead of their bank meetings, and National Surgical Hospitals Inc. and SourceMedia Inc. surfaced with plans to bring new deals to market this week.

Also, Encompass Digital Media Inc. and Attachmate Corp. have narrowed down timing on the launches of their credit facilities, although firm dates have yet to be established.

Ford gains ground

Ford's term loans were stronger in trading as the company announced sales result for the month of December and for all of 2010 that showed strong improvements from the previous year, according to traders.

The Dearborn, Mich.-based automotive company's term loan B-1 was quoted by one trader at par 1/8 bid, par 3/8 offered, up from par bid, par ¼ offered and by a second trader at par 1/8 bid, par 3/8 offered, up a quarter of a point on the day.

Meanwhile, the company's term loan B-2 was quoted by one trader at 99 7/8 bid, par 1/8 offered, up from 99 ¾ bid, par offered, and by a second trader pretty much flat on the day at around 99¾ bid, par ¼ offered.

Ford sales results

For the month of December, Ford's total sales were 190,976, up 6.7% from 179,017 in December 2009, and for the full year, total sales were about 1.935 million, up 19.4% from about 1.621 million last year.

Total car sales for December were 64,858, up 6% from 61,195, while total car sales for the year were 696,918, up 17% from 595,671.

And, total truck sales for December were 72,529, up 12.9% from 64,216, while total truck sales for the year were 723,304, up 27.1% from 569,030.

Regal softens

Regal Entertainment's term loan was a little weaker on Tuesday after the company revealed plans to repay a portion of the debt with notes proceeds, according to traders.

The term loan was quoted by one trader at par ½ bid, par ¾ offered, down from par 5/8 bid, 101 offered and by a second trader at par 5/8 bid, 101 offered, down from par 7/8 bid, 101 1/8 offered.

Early in the morning, the company said that it would be selling $100 million of 9 1/8% senior notes to pay down its term loan. Then, later in the day, the notes offering was upsized to $150 million.

Regal Entertainment is a Knoxville, Tenn.-based motion picture exhibitor.

Charter strengthens

Charter Communications also disclosed plans for a bank debt repayment. Unlike Regal, however, its term loans moved higher on the news, according to traders.

Specifically, the St. Louis-based broadband communications company said on Tuesday morning that it would be selling $750 million of senior notes to repay term loan borrowings and for general corporate purposes. The offering was later upsized to $1.1 billion.

Following the announcement, the old term loan B-1 was quoted by one trader at 99¾ bid, par ¼ offered, up from 99 bid, 99½ offered and by a second trader at 99¾ bid, par 1/8 offered, up from 99½ bid, 99 7/8 offered.

The extended term loan was quoted by the first trader at 99¾ bid, par ¼ offered, up from 99 3/8 bid, 99 7/8 offered and by the second trader at 99½ bid, par offered, up from 99 3/8 bid, 99 7/8 offered.

And, the third-lien loan was quoted by the first trader at 97¾ bid, 98¾ offered, up from 97½ bid, 98½ offered.

UCI sets talk

Switching to the primary, UCI International revealed price talk on its $450 million term loan as the company is getting ready to launch the deal with a bank meeting in New York on Thursday, according to a market source.

The term loan is being guided at Libor plus 450 basis points with a 1.75% Libor floor and an original issue discount of 99, the source said.

In addition, the term loan contains 101 soft call protection for one year.

The company's $525 million senior secured credit facility (Ba3/B) also includes a $75 million revolver.

Credit Suisse, HSBC and Nomura are the lead banks on the deal, with Credit Suisse the left lead.

UCI being acquired

Proceeds from UCI's credit facility will be used to help fund its buyout by Rank Group Ltd. The cash purchase price is $375 million, and there is also about $605 million of UCI net debt.

Other funds for the transaction will come from $250 million of new senior unsecured debt, an equity contribution of roughly $320 million and cash available on the balance sheet.

Closing is expected to take place in the first quarter, subject to regulatory approvals.

UCI is an Evansville, Ind.-based supplier to the light- and heavy-duty vehicle aftermarket for replacement parts, including filtration, fuel delivery systems, vehicle electronics and cooling systems products.

Compass floats guidance

Compass Diversified Holdings disclosed preliminary price talk on its $525 million senior secured credit facility, with official talk expected to be announced at the Jan. 11 bank meeting, according to a market source.

The $325 million five-year revolver is being guided at Libor plus 325 bps, subject to a leverage grid, with no Libor floor and upfront fees based on commitment size, the source said.

And, the $200 million six-year last-out term loan B is being guided at Libor plus 425 bps to 475 bps with a 1.5% Libor floor and an original issue discount of 981/2, the source added.

TD Securities, BMO and SunTrust are the lead arrangers on the deal that will be used to refinance existing debt and for general corporate purposes, with TD the sole bookrunner.

Compass Diversified is a Westport, Conn.-based investment firm specializing in acquiring controlling stakes in small- to middle-market companies.

National Surgical bringing deal

National Surgical Hospitals has scheduled a bank meeting for Friday to launch a proposed $220 million senior secured credit facility that is being led by Jefferies, according to a market source.

The facility consists of a $20 million five-year revolver, a $170 million six-year term loan and a $30 million six-year delayed-draw term loan, the source said, adding that price talk is not yet available.

Proceeds will be used to help fund the buyout of the company by Irving Place Capital.

At close, senior and total leverage will be about 4.0 times.

National Surgical Hospital is a Chicago-based owner, operator and developer of surgical hospitals and surgery centers in partnership with local physicians.

SourceMedia coming Wednesday

SourceMedia Inc. is set to hold a bank meeting on Wednesday to launch a proposed $170 million credit facility that consists of a $25 million revolver and a $145 million term loan, according to a market source.

Citigroup, GE Capital and BMO are the lead banks on the deal, with Citi the left lead.

Proceeds will be used to refinance existing debt.

SourceMedia is a New York-based provider of news, analysis, research, data and insights for members of the financial services community, and related fields in professional services and technology.

Encompass readies launch

Encompass Digital Media has started to zero in on timing for its proposed senior secured credit facility, as a bank meeting is expected to take place during the week of Jan. 17, a market source said. Before, the deal was simply being labeled as January business.

Also, it is now known that the deal will include a $20 million revolver in addition to the previously disclosed $175 million term loan.

Macquarie Capital is the lead bank on the $195 million deal that will be used to fund the acquisition of the content distribution business of Ascent Media Corp. for total consideration of about $120 million, including about $113 million in cash and the assumption of certain debt and obligations totaling roughly $7 million.

Encompass rolling some debt

In connection with Encompass' purchase of the Ascent Media business, Tennenbaum Capital Partners, a current lender and equity holder in the company, will roll over its debt into a second-lien loan.

In addition, Encompass has received a commitment from lenders under its existing secured credit facility for an amendment that would support the consummation of the acquisition.

Closing on the transaction is expected in February, subject to approval by Ascent shareholders, regulatory clearances and the transfer of certain FCC licenses.

Encompass is a Los Angeles-based digital media services provider.

Attachmate expected next week

Attachmate's proposed $1.09 billion senior secured credit facility is now anticipated to launch with a bank meeting next week and possibly as early as Monday, a market source said, whereas, previously, it was just described as January business.

The facility consists of a $40 million revolver, an $825 million first-lien term loan and a $225 million second-lien term loan, according to filings with the Securities and Exchange Commission.

Credit Suisse, RBC, Goldman Sachs and Citadel are the lead banks on the deal that will be used, along with $425 million of equity, to fund the acquisition of Novell Inc., a Waltham, Mass.-based enterprise software company, for $6.10 per share in cash in a transaction valued at $2.2 billion.

Closing on the acquisition is expected to occur in the first quarter, subject to, among other things, regulatory approvals and stockholder approval.

Attachmate is a Seattle-based provider of access and integration software for legacy systems.

MDA Info closes

In other news, TPG Capital completed its acquisition of MDA Info Products, a provider of property information to insurance companies, lenders and legal professionals, from MacDonald, Dettwiler and Associates Ltd. for about $850 million, according to a news release.

To help fund the transaction, MDA Info got a new $400 million credit facility (Ba3/B+) comprised of a $50 million revolver and a $350 million term loan priced at Libor plus 550 bps with a 1.5% Libor floor that was sold at an original issue discount of 981/2. The term loan has 101 soft call protection for one year.

During syndication, pricing on the term loan was flexed up from talk of Libor plus 450 bps to 475 bps, and the discount firmed at the wide end of the 98½ to 99 guidance.

Bank of America, RBC and BMO acted as the lead banks on the deal.

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