Amsted frees to trade; GM steers lower; WideOpenWest sets second-lien call premium;

By Sara Rosenberg

New York, April 5 - Amsted Industries Inc.'s credit facility broke for trading during Wednesday's market hours, with the term loan B quoted atop 101 and the delayed-draw term loan B quoted right around the par context.

Also in trading, General Motors Corp.'s revolver softened up, driven by refinancing speculation that has some doubting whether a new deal could be successfully pulled off.

In the primary, WideOpenWest Holdings LLC came out with call protection provisions on its second-lien term loan as syndication officially kicked off with the holding of a bank meeting.

Amsted Industries allocated its credit facility on Wednesday, with the $225 million term loan B tranche freeing for trading at 101 bid, 101½ offered and remaining in that context throughout the session, according to a trader.

In addition, the $200 million delayed-draw term loan B tranche was seen freeing for trading at 99¾ bid, par ¼ offered, and levels remained in that area throughout the day, the trader said.

The funded seven-year term loan B is priced with an interest rate of Libor plus 200 basis points and once the delayed-draw piece is funded it will carry that same interest rate.

During syndication, the delayed-draw tranche was downsized by $25 million from $225 million.

Amsted's $725 million senior secured credit facility (B1/BB-) also contains a $300 million five-year revolver with an interest rate of Libor plus 200 basis points. This tranche was upsized by $50 million from $250 million during syndication - resulting in a $25 million increase in the total credit facility size.

Citigroup Global Markets Inc. is acting as lead arranger, and Citigroup, Banc of America Securities LLC and General Electric Capital Corp. are joint bookrunners. Citigroup is also acting as administrative agent and Bank of America is syndication agent.

Proceeds will be used to refinance the company's existing bank debt, to provide financing for ongoing working capital needs and for general corporate purposes, and to finance a potential tender for or call of the company's 10¼% senior notes at or prior to their first optional redemption date on Oct. 15, 2007.

Amsted is a Chicago-based diversified manufacturing company serving the railroad, vehicular and construction markets.

GM trades down

GM's revolver fell by about a point during Wednesday's session as investors continued to speculate over a possible refinancing and whether such a deal would prove successful, according to a trader.

The Detroit-based automotive company's revolver closed the day quoted at 94½ bid, 95½ offered, down from previous levels of 95½ bid, 97 offered, the trader said.

Refinancing rumors have been all over the place since the company revealed last week that it is unsure as to whether lenders would allow any borrowings under the facility due to the recent restatement of prior financial statements.

Some believe that with GM's recent agreement to sell its 51% stake in its financing arm General Motors Acceptance Corp., a refinancing is not as necessary right now since there is ample near-term liquidity being generated from the sale.

On the other hand, some believe that a company as big as GM needs to be able to draw on a line of credit even with the receipt of about $14 billion (to be paid out over three years) from the GMAC sale.

Now, it appears as if the market chatter has turned to whether or not GM could get a new bank deal done, creating a weakening in trading levels, the trader explained.

"It's all market technicals and speculation," the trader added.

WideOpenWest sets call protection

WideOpenWest announced call protection of 102 in year one and 101 in year two on its $150 million second-lien term loan (B3) as the deal was presented to lenders via a bank meeting on Wednesday, according to a market source.

As was previously reported, the second-lien term loan is talked at Libor plus 550 basis points.

WideOpenWest's $720 million credit facility also contains a $60 million revolver (B2) talked at Libor plus 275 basis points and a $510 million term loan B (B2) talked at Libor plus 275 basis points.

Credit Suisse is the lead bank on the deal that will be used to help fund the leveraged buyout of WideOpenWest by Avista Capital Partners.

Avista Capital is purchasing WideOpenWest from Oak Hill Capital Partners and ABRY Partners. The transaction is expected to close in the first half of 2006.

WideOpenWest is an Englewood, Colo., provider of cable television, high-speed internet and telephone services.

Golden Gate downsizes

Golden Gate National Senior Care Holdings LLC (Beverly Enterprises Inc.) reduced the size of its second-lien term loan, resulting in an overall smaller credit facility, due to excess liquidity, according to a market source.

The 51/2-year second-lien term loan is now sized at $100 million, compared to an original size of $125 million, the source said. Price talk on the tranche was left unchanged at Libor plus 800 basis points.

Golden Gate's $500 million credit facility (down from $525 million) also contains a $50 million five-year asset-based revolver talked at Libor plus 325 basis points and a $350 million five-year term loan B talked at Libor plus 325 basis points.

Both the first-lien term loan B and the second-lien term loan tranches are heavily oversubscribed at this point, the market source added.

Credit Suisse is the lead arranger on the deal.

Proceeds are being used for LBO financing. On March 14, Beverly successfully completed its merger with Pearl Senior Care, an affiliate of Fillmore Capital Partners. As a result of the merger, each outstanding share of Beverly common stock was canceled and converted into the right to receive $12.50 per share in cash, without interest.

Golden Gate National Senior Care is a Fort Smith, Ark., provider of health care services.

UICI closes

UICI closed on its new $575 million credit facility consisting of a $75 million five-year unsecured revolver and a $500 million six-year unsecured term loan, with both tranches priced at Libor plus 100 basis points.

JPMorgan, Morgan Stanley and Goldman Sachs acted as the lead banks on the deal.

Proceeds from the term loan, along with $975 million in equity and $100 million of trust preferred securities issued in a private placement, were used to help fund the buyout of UICI by The Blackstone Group, Goldman Sachs Capital Partners and DLJ Merchant Banking Partners for about $1.6 billion.

UICI is a North Richland Hills, Texas, provider of insurance to niche consumer and institutional markets.

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