New Development, IMG break; Dollar General, Neiman rise; AutoTrader, TransUnion rework deals

By Sara Rosenberg

New York, June 8 - New Development Holdings LLC and IMG Worldwide Inc. both freed up their credit facilities during Tuesday's market hours, and Dollar General Corp. and Neiman Marcus Inc. each saw their term loan debt edge higher following the release of quarterly earnings results.

Over in the primary market, AutoTrader.com came out with some changes to its credit facility, including increasing pricing on all tranches and widening the original issue discount on the term loan B, and TransUnion upped price talk and the discount on its term loan.

Also, Fidelity National Information Services Inc. presented lenders with an amend and extend proposal on its term loan A and revolving credit facility in the morning and revealed price talk on the extended debt.

New Development frees up

New Development Holdings, a subsidiary of Calpine Corp., allocated its credit facility, and the $1.3 billion seven-year amortizing term loan began trading with levels quoted atop its original issue discount price at 99 bid, 99½ offered, according to traders.

Pricing on the term loan is Libor plus 550 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was flexed up from Libor plus 350 bps and the call protection was added.

And, at launch, the term loan was being talked at Libor plus 350 bps or Libor plus 375 bps, depending on where ratings fell out, but once the facility ratings of Ba3/BB- emerged, the initial price talk firmed at Libor plus 350 bps.

New Development lead banks

Credit Suisse, Citigroup and Deutsche Bank are the lead banks on New Development Holdings' $1.4 billion credit facility, which also includes a $100 million revolver.

Proceeds from the credit facility, along with $535 million of corporate cash, will be used to help fund Calpine's purchase of 4,490 MW of power generation assets from Pepco Holdings Inc. for $1.65 billion plus adjustments.

Pro forma net debt to adjusted EBITDA as of Dec. 31 is 4.8 times.

Closing on the acquisition is expected to take place by June 30, subject to customary conditions, approval from the Federal Energy Regulatory Commission and antitrust review under the Hart-Scott-Rodino Act. No shareholder approval is required.

Calpine is a Houston-based power generation company.

IMG Worldwide breaks

Also hitting the secondary market on Tuesday was IMG Worldwide's $250 million five-year term loan B (Ba2/B+), with levels quoted at 97 bid, 97¾ offered, according to a trader.

Pricing on the term loan B is Libor plus 525 bps with a 2% Libor floor, and it was sold at an original issue of 97. There is 101 call protection for two years.

During syndication, the loan was downsized from $300 million, pricing was flexed up from Libor plus 425 bps, then from Libor plus 500 bps and then it firmed at the wide end of the revised Libor plus 500 bps to 525 bps talk. The Libor floor was increased from 1.75%, call protection was added and the discount moved from initial talk of 98½ and then from revised talk of 98.

JPMorgan and Deutsche Bank are the lead banks on the deal that will be used to refinance existing debt and for general corporate purposes.

IMG is a New York-based provider of sports and event marketing and management services.

Dollar General up with numbers

Dollar General's term loans were stronger in trading after the company announced first-quarter numbers that showed a year-over-year improvement in net income and better-than expected sales, according to a trader.

The term loan B-1 was quoted at 96 bid, 97 offered, and the term loan B-2 was quoted at 95½ bid, 96½ offered, with both tranches up three quarters of a point on the day, the trader said.

For the first quarter of fiscal 2010, the company reported net income of $136 million, or $0.39 per diluted share, compared to net income of $83 million, or $0.26 per diluted share, in the first quarter of fiscal 2009.

In addition, sales for the quarter increased 11.9% to $3.11 billion from $2.78 billion in the prior year.

Dollar General revises outlook

Also on Tuesday, Dollar General said that it now expects adjusted diluted earnings per share for the full fiscal year to be $1.62 to $1.69, up from the previous guidance of $1.55 to $1.63, based on weighted average diluted shares of 345 million and a full year 2010 tax rate in the range of 38% to 39%.

And, adjusted operating profit is now expected to increase 18% to 22% over full-year 2009 adjusted operating profit, up from the company's previous guidance of 15% to 20%.

The company continues to expect total sales for the 2010 fiscal year to increase 8% to 10%, including an increase in same-store sales of 4% to 6%.

Dollar General is a Goodlettsville, Tenn.-based discount retailer.

Neiman inches higher

Another company to announce earnings on Tuesday was Neiman Marcus, and its term loan was a little bit stronger with the news, according to traders.

The term loan was quoted by one trader at 92 bid, 93 offered, up from 91¾ bid, 92¾ offered, by a second trader at 91¾ bid, 92¼ offered, up from 91¼ bid, 91¾ offered, and by a third trader at 92 bid, 93 offered, up from 91¾ bid, 92½ offered.

For the third quarter, the Dallas-based high-end specialty retailer reported net earnings of $18.5 million, compared to a net loss of $3.1 million in the prior year.

Total revenues for the quarter were $895.2 million, compared to $810.1 million in the third quarter of fiscal 2009.

And, EBITDA for the quarter was $138.3 million, up 31% from EBITDA of $105.3 million in the previous year.

AutoTrader.com revises pricing

Switching to the primary, AutoTrader.com flexed the spread higher on all tranches under its $525 million credit facility (Ba3/BB+), sweetened some other terms on the B loan and asked for recommitments by the end of the day, according to a market source.

Under the changes, the $325 million term loan B is now priced at Libor plus 450 bps, up from Libor plus 350 bps, and both the $100 million revolver and the $100 million term loan A are now priced at Libor plus 425 bps, up from Libor plus 350 bps as well, the source said.

In addition, the term loan B is bow being sold at an original issue discount of 98, up from 99, and 101 soft call protection for one year was added to the tranche, the source continued.

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

AutoTrader.com readies allocations

Goldman Sachs and Wells Fargo are the lead banks on AutoTrader.com's credit facility, and they are currently hoping to give out allocations on Wednesday.

Proceeds will be used to help fund Providence Equity Partners' acquisition of a 25% interest in the company from Cox Enterprises Inc.

Following completion of the transaction, Cox will maintain majority ownership and operating control of AutoTrader.com.

Closing is expected to take place as soon as all necessary approvals have been obtained.

AutoTrader.com is an Atlanta-based internet automotive shopping and advertising site.

TransUnion tweaks loan

Another deal to make changes on Tuesday was TransUnion, as it widened price talk on its $940 million term loan to Libor plus 475 bps to 500 bps from Libor plus 375 bps to 400 bps, according to a market source.

Furthermore, the original issue discount on the term loan was increased to 98½ from the 99 area and 101 soft call protection for one year was added, the source said.

The 1.75% Libor floor on the term loan was left intact.

The company's $1.19 billion credit facility (Ba3/BB-) also includes a $250 million revolver.

Commitments are due from lenders on Wednesday afternoon.

TransUnion being acquired

Proceeds from TransUnion's credit facility, along with $645 million of senior unsecured notes, will be used to help fund Madison Dearborn Partners LLC's acquisition of a 51% interest in the company from the Pritzker family.

Closing of the transaction is subject to the satisfaction of customary conditions and regulatory approvals.

Deutsche Bank, Bank of America, JPMorgan and Credit Suisse are the lead banks on the credit facility, with Deutsche the left lead.

TransUnion is a Chicago-based provider of credit and information management.

Fidelity National seeks amend/extend

Fidelity National Information Services ended up launching an amendment and extension of its term loan A and revolver on Tuesday morning, and it hopes to launch its proposed new term loan debt at another time, according to sources.

The company is looking to extend the maturity on its term loan A and revolver to July 2014 from Jan. 18, 2012, source said.

Price talk on the extended debt is Libor plus 250 bps. By comparison, as of March 31, the company had about $1.838 billion of term loan A debt priced at Libor plus 75 bps and around $339 million drawn under its revolver (with $555 million of unused capacity) priced at Libor plus 60 bps, according to filings with the Securities and Exchange Commission.

Fidelity National offers fees

Fidelity National is offering lenders a 50 bps extension fee and a 100 bps fee for new commitments.

In addition, the amendment would allow the company to get up to $3.4 billion of new term loan debt and unsecured notes.

As was previously reported, the company plans to incur $2.5 billion of additional term loans and long-term bonds in connection with a leveraged recapitalization plan, under which it will repurchase up to $2.5 billion of its common stock in a modified Dutch auction tender offer.

JPMorgan and Bank of America are the lead banks on the deal.

Commitments are due on June 22.

Fidelity National is a Jacksonville, Fla.-based provider of financial institution core processing and card-issuer and transaction-processing services.

Cincinnati Bell fills out

In other news, talk is that Cincinnati Bell Inc.'s credit facility was fully subscribed at recently revised terms by Tuesday's commitment deadline, according to a market source.

The facility consists of a $760 million seven-year term loan priced at Libor plus 500 bps with a 1.5% Libor floor and 101 soft call protection for one year that was sold at a discount of 97 and a $210 million four-year revolver.

Last Friday, pricing on the term loan was increased from Libor plus 375 bps, the discount widened from talk in the 98 to 99 area and call protection was added.

Bank of America, Morgan Stanley and Barclays are the lead banks on the $970 million senior secured credit facility (Ba3/BB), with Bank of America the left lead.

Cincinnati Bell funding acquisition

Proceeds from Cincinnati Bell's credit facility will be used to fund the $525 million acquisition of CyrusOne, a data center operator, to refinance an existing roughly $200 million term loan and for general corporate purposes.

The existing term loan that is being taken out is priced at Libor plus 150 bps.

Pro forma LTM is 5.1 times.

Closing on the transaction is targeted by the end of the second quarter, subject to customary conditions, including regulatory approvals.

Cincinnati Bell is a Cincinnati, Ohio-based provider of integrated communications services.

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