High Yield Calendar: $5.250 billion and €250 million deals being marketed

WEEK OF OCT. 29

UNITED TEST & ASSEMBLY CENTER/GLOBAL A&T ELECTRONICS LTD.: $475 million equivalent senior second-lien notes due 2015 (B2/B-) in dollar-denominated and euro-denominated tranches; ABN Amro, JPMorgan, Merrill Lynch & Co.; non-callable for four years; to fund the buyout of the company by TPG Capital and Affinity Equity Partners; Singapore-based semiconductor testing and assembly company; roadshow in Asia, Europe and United States until Oct. 29 week; pricing expected Nov. 2.

ACE CASH EXPRESS INC.: $45 million add-on to 10¼% senior notes due Oct. 1, 2014 (existing ratings Caa1/B-); Bear Stearns; callable on Oct. 1, 2010 at 105.125; to repay warehouse its line and fund acquisitions original $175 million issue priced at par on Sept. 26, 2006; Dallas-based provider of retail check-cashing services.

MELROSE RESOURCES PLC: €250 million senior subordinated notes due 2015 (CCC+); Merrill Lynch & Co. (books), HBOS (joint lead); non-callable for four years; to refinance debt and provide working capital for projected exploration and development program; U.K.-based oil and gas exploration and development company; price talk 10% to 10¼%.

GUITAR CENTER INC.: $750 million: $375 million senior notes due 2015 (Caa1/CCC), non-callable for four years, and $375 million senior PIK notes due 2015 (Caa2/CCC), non-callable for four years, three-year PIK; JPMorgan; to fund $2.1 billion LBO by Bain Capital Partners LLC (also $605 million sponsor equity), expected fourth quarter; Westlake Village, Calif., retailer of musical instruments and recording equipment.

WEEK OF NOV. 5

NOVAMERICAN STEEL FINCO INC.: $315 million senior secured notes due 2015 (B3/B-); JPMorgan, CIBC World Markets; Rule 144A with registration rights/Regulation S; non-callable for four years; to help finance the acquisition of Novamerican Steel Inc. by Symmetry Holdings Inc.; steel service center, processor and tubing manufacturer with headquarters in Lasalle, Quebec; roadshow started Oct. 30; pricing expected Nov. 8.

ENERGY AND INDUSTRIAL UTILITIES CO. LLC (DTE ENERGY CO.): $275 million senior notes due 2017 (B2/B); Morgan Stanley, Barclays Capital; Rule 144A/Regulation S; also concurrent $375 million term loan and $50 million revolver; to repay intercompany debt, reimburse DTE Energy Services Inc. (DTEES) pre-formation expenses, pay a dividend to DTEES; Detroit-based diversified energy company; roadshow started Oct. 31; pricing Nov. 5 week.

REABLE THERAPEUTICS INC.: $575 million senior unsecured notes due 2015 (Caa1/CCC+); Credit Suisse, Banc of America Securities LLC; Rule 144A; non-callable for four years; to help fund acquisition of DJO Inc.; ReAble is an Austin, Texas, medical device company focused on rehabilitation, pain management, physical therapy and orthopedics; expected to price late Oct. 5 week.

UNITED RENTALS INC. $2.55 billion second-priority senior secured notes due 2014; Credit Suisse, Banc of America Securities LLC, Lehman Brothers, Morgan Stanley (joint); Rule 144A with registration rights; non-callable for four years; three-year 35% equity clawback; 101.0 change of control; to fund a portion of the acquisition of the company by Cerberus Capital Management, LP, and refinance existing debt; Greenwich, Conn., equipment rental company; expected to price late Nov. 5 week.

APRIA HEALTHCARE GROUP INC.: $265 million senior subordinated notes due 2017; Goldman Sachs & Co., Banc of America Securities LLC (joint); Rule 144A/Regulation S with registration rights; non-callable for five years; to pay for acquisition costs; Lake Forest, Calif., home health care services provider; roadshow starts Nov. 5; expected to price Nov. 9.

EXPECTED NOVEMBER BUSINESS

AVAYA INC. $1.45 billion senior unsecured notes (CCC+): $700 million cash-pay notes and $750 million PIK toggle notes; Morgan Stanley, Citigroup, JPMorgan; also $4.335 billion credit facilities, bank meeting expected to take place during November 2007; to fund LBO by Silver Lake and TPG Capital; Basking Ridge, N.J., provider of communication systems, applications and services.

CATALINA MARKETING CORP.: $490 million notes (Caa1/B-): $330 million senior PIK toggle notes and $160 million senior subordinated notes; Bear Stearns, Goldman Sachs & Co., Merrill Lynch & Co., Morgan Stanley; Rule 144A; to fund the acquisition of the company by Hellman & Friedman Capital partners VI; St. Petersburg, Fla., provider of promotional marketing services; expected to price mid- to late fourth quarter.

CDW CORP. $1.96 billion: $1.04 billion senior notes and $920 million senior subordinated notes; JPMorgan, Lehman Brothers, Deutsche Bank Securities, Morgan Stanley; also $2.9 billion senior secured credit facility and $2.403 billion of equity; to help fund LBO by Madison Dearborn Partners, LLC and Providence Equity Partners Inc.; Vernon Hills, Ill., provider of technology products and services; expected late October or early November.

LAUREATE EDUCATION INC.: $995 million notes: $685 million senior unsecured notes due 2015 and $310 million senior subordinated notes due 2016; Goldman Sachs & Co., Citigroup (joints), JPMorgan, Credit Suisse (co's); to help fund LBO expected to close in June; Baltimore-based provider of higher education; bridge loan funded in August; possible October business.

MYLAN LABORATORIES INC.: $2.85 billion senior notes; Merrill Lynch, Citigroup, Goldman Sachs & Co.; also $4.85 billion credit facility; to help fund acquisition of Merck KGaA's generic business, expected to close in the second half of 2007; Canonsburg, Pa., pharmaceutical company; expected October business.

SEQUA CORP.: $700 million senior unsecured notes which could be issued as PIK notes at the issuer's discretion; also $1.35 billion credit facility; Lehman Brothers, Citigroup, JPMorgan leading debt financing; to help fund $2.7 LBO by The Carlyle Group, expected to close in the fourth quarter; New York-based diversified industrial company; possible late October business.

TELESAT: $900 million senior notes and $2.2 billion credit facility; Morgan Stanley, UBS Investment Bank to lead financing; to help fund acquisition of Telesat by a joint venture company formed by Loral Space & Communications Inc. and the Public Sector Pension Investment Board, expected to close by mid-2007; new company will be one of the world's largest operators of telecommunications satellites; expected October business.

ON THE HORIZON

3COM CORP.: $400 million one-year bridge loan; also $800 million credit facility via Citibank Hong Kong Branch, UBS Singapore Branch, HSBC, ABN Amro and Bank of China; to fund LBO by affiliates of Bain Capital (financing includes $1.416 billion of equity) expected to close first quarter of 2008; Marlborough, Mass., network services company.

ALLIANCE DATA SYSTEMS CORP.: $2.21 billion bonds: $1.8 billion senior unsecured notes and $410 million senior subordinated notes; also $4.4 billion credit facility; Credit Suisse lead bank on financing; to help fund $7.8 billion LBO by The Blackstone Group expected to close by end of 2007; Dallas-based provider of marketing, loyalty and transaction services.

ALLTEL COMMUNICATIONS/ALLTEL COMMUNICATIONS FINANCE INC. $7.7 billion bond/bridge debt: $5.2 billion senior unsecured debt consisting of senior unsecured cash pay notes and senior unsecured cash pay bridge credit facilities, also up to $2.5 billion senior unsecured PIK debt (all or a portion of which may take the form of senior unsecured PIK option bridge credit facilities); Citigroup, Goldman Sachs, Barclays, RBS Securities; Rule 144A/Regulation S; to help fund merger, expected to close in fourth quarter of 2007; Little Rock, Ark., provider of wireless voice and data communications services.

AFFILIATED COMPUTER SERVICES INC.: $2.515 billion of high-yield notes and $4.05 billion senior secured credit facility; to help finance public-to-private bid by Darwin Deason, founder and chairman, and Cerberus Capital Management LP for about $8.2 billion; Citigroup has provided the bidders with a "highly confident" letter regarding its ability to raise the necessary debt; investment partners are prepared to enter into negotiations with the company immediately and are ready to move quickly to complete the transaction; Dallas-based provider of business process outsourcing and information.

ALTRA NEBRASKA LLC: $130 million senior secured notes due 2018 (B); Morgan Stanley; to fund a portion of the cost to construct a 100 million gallon per year nameplate capacity, dry-mill ethanol plant in Carleton, Neb.; wholly owned subsidiary of Altra Inc., a California-based developer of renewable fuel projects.

BASELL: $7 billion senior secured second-lien notes and/or senior unsecured notes via Rule 144A or other private placement; backed by up to $7 billion or the euro equivalent senior secured second-lien bridge loan; also $14 billion credit facility; Citigroup, Goldman Sachs, Merrill Lynch, ABN Amro global coordinators for bonds, joint lead arrangers, bookrunners and global coordinators on the credit facility; to finance acquisition of Houston-based Lyondell Chemical Co.; Basell is a Netherlands-based producer of polypropylene and polyethylene; expected to close during remainder of 2007 or early 2008.

BCE INC. C$11.3 billion U.S. dollar equivalent bonds: Up to $7.5 billion senior notes and $3.8 billion subordinated notes; also C$23.05 billion credit facility; Citigroup, Deutsche Bank, RBS Securities, TD Securities lead banks on financing; to fund LBO by Teachers Private Capital, Providence Equity Partners Inc. and Madison Dearborn Partners, LLC, expected to be completed first quarter of 2008; Montreal-based communications company.

CCS INCOME TRUST: C$600 million senior unsecured notes due 2015 (B-); Goldman Sachs & Co., Deutsche Bank Securities; also $1.9 billion credit facility, bank meeting Oct. 22; to help fund LBO of the company; Calgary, Alta.-based services provider to upstream and downstream oil and gas companies in Canada and the United States.

CLEAR CHANNEL COMMUNICATIONS INC.: $2.6 billion high-yield bonds (decreased from $4.1 billion) and $19.525 billion credit facility (upsized from $17.375 billion); Citigroup, Deutsche Bank, Morgan Stanley, Credit Suisse, RBS Greenwich Capital and Wachovia are lead banks on the debt financing; to help back its leveraged buyout by Thomas H. Lee Partners, LP and Bain Capital Partners, LLC, expected to be completed by the end of 2007; also $3.44 billion sponsor equity; San Antonio media and entertainment company.

DRIVETIME AUTOMOTIVE GROUP INC.: $160 million senior notes due 2013 (B2/B); to replace the company's existing $80 million issue of senior unsecured notes due 2010; Phoenix-based company sells and finances used cars to subprime niche.

THE FINISH LINE INC.: $700 million unsecured senior notes; also $1.14 billion credit facility led by UBS; to finance the acquisition of Nashville specialty retailer Genesco Inc., expected to close in the fall (at close leverage is expected to be mid-five times area); Finish Line is an Indianapolis mall-based specialty retailer.

GREAT ATLANTIC & PACIFIC TEA CO. INC.: $780 million senior secured high-yield bonds; Banc of America Securities LLC, Lehman Brothers, also $600 million ABL revolver; to help fund its purchase of Pathmark Stores Inc. for $1.3 billion in cash, stock and debt assumption or retirement, expected to be completed during the second half of A&P's fiscal 2007 year, structure of financing and timing pending market conditions; A&P is a Montvale, N.J.-based supermarket chain.

HARRAH'S ENTERTAINMENT INC.: $6.025 billion senior unsecured bridge loans; also $9 billion credit facility via Bank of America, Deutsche Bank, Citigroup, Credit Suisse, JPMorgan and Merrill Lynch; to help fund LBO by Texas Pacific Group and Apollo Management, LP; Las Vegas-based provider of branded casino entertainment.

INTELSAT HOLDINGS LTD.: $5.11 billion expected in two approximately equal-sized tranches; Credit Suisse, Banc of America Securities LLC, Morgan Stanley; to help fund LBO by BC Partners and certain other investors, including about $860 million of existing debt at Intelsat (Bermuda), Ltd. and to defease or retire the $400 million Intelsat, Ltd. 5¼% senior notes due 2008, expected to close between November 2007 and February 2008; Pembroke, Bermuda, provider of fixed satellite services.

MCMORAN EXPLOARTION CO.: Long-term notes and equity and/or equity-linked securities; to repay the $800 million bridge loan; New Orleans-based oil and gas exploration, development and production company; shelf registration filed in October 2007.

PENN NATIONAL GAMING INC.: High-yield bonds and new credit facility via Deutsche Bank Securities and Wachovia Securities; to fund LBO by Fortress Investment Group LLC and Centerbridge Partners LP, valued at about $8.9 billion, including repayment of $2.8 billion of outstanding Penn National debt; Wyomissing, Pa., gaming company.

RADIATION THERAPY SERVICES INC.: $165 million in unsecured senior subordinated notes; and $410 million credit facility; Wachovia to lead debt financing; to fund LBO of Radiation Therapy by Vestar Capital Partners, expected to close first quarter of 2008; Fort Myers, Fla., radiation therapy services provider.

RCN CORP.: $250 million unsecured debt and term loans; Deutsche Bank Securities; to help fund its acquisition of NEON Communications Group Inc., expected to close in fourth quarter of 2007; RCN is a Herndon, Va.-based provider of video, data and voice services.

RIVERDEEP INTERACTIVE LEARNING USA: $820 million senior subordinated notes; Credit Suisse, Citigroup (joint); proceeds along with $1.87 billion senior bank debt, $750 million mezzanine debt and $1.5 billion equity to fund the acquisition of Houghton Mifflin by Riverdeep from Thomas H. Lee Partners, Bain Capital Partners, LLC and Blackstone Group for $3.4 billion; Riverdeep, based in Dublin, Ireland, is a publisher of interactive products for the consumer and school markets.

TELEFLEX INC.: New notes, bank loan and convertibles to fund acquisition of Arrow International Inc., expected to close in fourth quarter of 2007; financing commitments from Bank of America, JPMorgan; Teleflex is a Limerick, Pa., designer, manufacturer and distributor of engineered products and services for the commercial, medical and aerospace markets.

TRIBUNE CO.: $2.1 billion senior notes or senior subordinated notes backed up by $2.1 billion bridge via Merrill Lynch, JPMorgan, Citigroup and Bank of America; also $10.133 billion credit facility; to help finance public-to-private transaction; Chicago-based media company; expected to be completed by end of 2007.

UNIVAR NV: $600 million senior subordinated notes; also $1.375 billion credit facility via Bank of America and Deutsche Bank; to fund the acquisition of the company by CVC Capital Partners; to help fund the acquisition of Univar; Netherlands-based distributor of industrial chemicals and provider of related specialty services.

ROADSHOWS

Started Oct. 22: GUITAR CENTER INC. $750 million; JPMorgan

Started Aug. 22 week: UNITED TEST & ASSEMBLY CENTER $475 million; ABN Amro, JPMorgan, Merrill Lynch

Ends 31: CII CARBON LLC/CII CARBON CORP. (RAIN CALCINING): $235 million; Citigroup Asia and Europe roadshow were held during early Oct. 22 week

Started Oct. 30: NOVAMERICAN STEEL FINCO INC. $315 million; JPMorgan, CIBC World Markets

Started Oct. 31: ENERGY AND INDUSTRIAL UTILITIES CO. LLC (DTE ENERGY CO.) $275 million; Morgan Stanley, Barclays Capital

Started Oct. 31: REABLE THERAPEUTICS INC. $575 million; Credit Suisse, Banc of America Securities LLC

Launched Oct. 31: UNITED RENTALS INC. $2.55 billion; Credit Suisse, Banc of America Securities LLC, Lehman Brothers, Morgan Stanley

Starts Nov. 5: APRIA HEALTHCARE GROUP INC. $265 million; Goldman Sachs & Co., Banc of America Securities LLC

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.