High Yield Calendar: $3.835 billion and €68 million deals being marketed

WEEK OF MAY 14

CITIC RESOURCES HOLDINGS LTD.: $1 billion senior unsecured notes due 2014 (Ba2); Bear Stearns; Morgan Stanley; Rule 144A/Regulation S; to finance acquisition of 50% interests of Nations Energy Co. Ltd. and for working capital; Hong Kong-listed base metals producer; pricing May 14.

MUELLER WATER PRODUCTS INC.: $350 million senior subordinated notes due 2017 (B); Banc of America Securities LLC, JP Morgan; Rule 144A/Regulation S; non-callable for five years; also $1.09 billion credit facility; to fund tender for 10% senior subordinated notes due 2012 and 14¾% senior subordinated discount notes due 2014; Atlanta-based manufacturer and marketer of infrastructure and flow control products; roadshow May 14-16; pricing expected May 16.

DYNEGY HOLDINGS INC.: $1.1 billion minimum senior unsecured notes; Rule 144A/Regulation S; to repay a portion of the approximate $1.8 billion of net debt (debt less restricted cash and investments) of the entities acquired by Dynegy Inc. on April 2 in connection with the LS Power combination; also $650 million of incremental bank debt via JP Morgan and Citigroup, to launch May 14; Houston-based producer and marketer of electric energy.

WEEK OF MAY 21

FONTAINEBLEAU LAS VEGAS: $675 million second-mortgage notes due 2015; Banc of America Securities LLC, Barclays Capital, Deutsche Bank Securities, Merrill Lynch & Co.; non-callable for four years; to repay debt and fund the design, development, construction and opening of the Fontainebleau Las Vegas; destination resort; May 15-23.

UHS MERGER SUB INC. (UNIVERSAL HOSPITAL SERVICES INC.) $460 million second-lien senior secured notes due 2015: $230 million floating-rate notes, non-callable for two years, and $230 million fixed-rate PIK toggle notes, non-callable for four years; Merrill Lynch & Co., Bear Stearns & Co., Wachovia Securities (joint); Rule 144A/Regulation S; part of the financing backing acquisition by UHS Holdco, Inc. an affiliate of Bear Stearns Merchant Banking; Edina, Minn.-based provider of medical equipment lifecycle services; issuing entity is a subsidiary of UHS Holdco, Inc., will be merged with and into UHS; roadshow starts May 14, investor call May 17; pricing expected May 23.

NEFF CORP.: $250 million senior unsecured notes due 2015 (Caa2/B-); Banc of America Securities LLC, CIBC World Markets, UBS Investment Bank; non-callable for four years; also $600 million credit facility; to help fund acquisition by Lightyear Capital LLC from Odyssey Investment Partners; Miami-based construction equipment rental company; roadshow May 14-22.

EUROFINS SCIENTIFIC: €68 million perpetual securities; Dresdner Kleinwort, HSBC; non-callable for seven years; for general corporate purposes; Brussels-based life sciences company.

EXPECTED SECOND QUARTER BUSINESS

RITE-AID CORP.: $1.22 billion notes (Caa1/CCC+) backed by $1.72 bridge facility from Citigroup; also $1.105 billion tranche 2 term loans and additional draw on revolver; related to acquisition of The Jean Coutu Group; Camp Hill, Pa., drugstore chain; expected May business.

CLAIRE'S STORES INC. $935 million notes: $535 million senior unsecured notes (Caa1/CCC+) and $400 million senior subordinated notes (Caa2/CCC+); Bear Stearns, Credit Suisse, Lehman Brothers; also $1.65 billion credit facility; to fund LBO by Apollo Management, LP; Pembroke Pines, Fla., specialty retailer; expected third quarter of 2007.

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.

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.

THE SERVICEMASTER CO.: $1.15 billion high-yield bonds; Banc of America Securities LLC, Citigroup, JP Morgan; also $3.35 billion credit facility; to fund the LBO of the company by Clayton, Dubilier & Rice, Inc., total enterprise value is $5.5 billion; expected late second-quarter business.

PSYCHIATRIC SOLUTIONS INC.: $200 million senior subordinated debt; also $225 million term loan B add-on, $50 million draw under existing revolver, via Citigroup and Merrill Lynch, bank meeting May 9; to help fund the acquisition of Horizon Health Corp. and fund tender for the Psychiatric Solutions 10 5/8% senior subordinated Notes due 2013; Franklin, Tenn., behavioral health services provider.

ON THE HORIZON

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.

BIOMET INC.: $2.565 billion in senior unsecured and/or senior subordinated unsecured high-yield notes, also $4.35 billion senior secured credit facility; financing to be led by Bank of America, Goldman Sachs, Bear Stearns, Lehman Brothers, Merrill Lynch and Wachovia; to finance LBO by Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts & Co. and TPG in a transaction with a total equity value of about $10.9 billion, expected to be completed by Oct. 31, 2007; Biomet is a Warsaw, Ind., designer and manufacturer of musculoskeletal medical products.

CATALINA MARKETING CORP.: $490 million high-yield bonds and $760 million credit facility in LBO financing via Morgan Stanley, Bear Stearns & Co., Goldman Sachs & Co.; Catalina, St. Petersburg, Fla., provider of behavior-based promotional messaging, loyalty programs and direct-to-patient information, is being acquired by Hellman & Friedman Capital Partners VI, LP for $1.7 billion, in transaction expected to be completed during third quarter of 2007.

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.

COMMUNITY HEALTH SYSTEMS INC.: $3.365 billion unsecured notes; Credit Suisse, Wachovia Securities, backed by $3.365 billion bridge loan; also $6.95 billion credit facility; to help fund acquisition of Triad Hospitals Inc.; Nashville operator of general acute care hospitals in non-urban communities; expected in market during second or third quarter of 2007.

CONSUMER SOURCE INC.: $150 million second-lien loan and/or notes; to fund dividend to Primedia Inc., which Primedia will use to extinguish all existing bank debt; Consumer Source is a New York-based publisher and distributor of free real estate and automobile guides.

DOLLAR GENERAL CORP. $2.1 billion bonds: $1.45 billion senior unsecured notes, $650 million senior subordinated notes, backed up by $2.1 billion bridge loans via Goldman Sachs, Citigroup, Lehman Brothers, Wachovia ; also $3.5 billion credit facility; to help fund LBO, expected to close third quarter of 2007; Goodlettsville, Tenn., discount retailer.

HARMAN INTERNATIONAL INDUSTRIES INC.: $1.74 billion high-yield bonds; also new credit facility; Banc of America Securities LLC, Credit Suisse, Goldman Sachs & Co., Lehman Brothers; part of financing for LBO by Kohlberg Kravis Roberts & Co. LP and GS Capital Partners, expected in the third quarter; manufacturer of high fidelity audio products.

HAYES LEMMERZ INTERNATIONAL INC. (via European subsidiary): $150 million equivalent senior unsecured notes; Rule 144A/Regulation S; proceeds, together with $495 million credit facilities (via Citigroup and Deutsche Bank), to refinance bank debt; Northville, Mich., supplier of automotive wheels, brakes, powertrain, suspension, structural and other lightweight components.

HUB INTERNATIONAL LTD. $590 million: $340 million senior unsecured notes and $250 million of senior subordinated notes backed by bridge loans provided by Morgan Stanley and Merrill Lynch; also $795 million credit facility; to help fund LBO by Apax Partners and Morgan Stanley Principal Investments, expected to close late 2007 second quarter; Chicago-based insurance broker.

INTEGRA TELECOM INC.: $215 million senior notes; Deutsche Bank and CIBC have provided the company with the commitment letter to purchase the notes; also $965 million revolver via Deutsche Bank, Morgan Stanley and CIBC; to help fund the acquisition of Minneapolis-based Eschelon Telecom, Inc. and repay Eschelon debt; transaction expected to close in third quarter of 2007; Integra is a Portland, Ore.-based provider of telecommunications and internet services for businesses.

INVERNESS MEDICAL INNOVATIONS INC.: $317.5 million senior subordinated notes (decreased from $450 million) backed by bridge from UBS and General Electric Capital Corp.; also $1.3 billion credit facility; financing for acquisition of Biosite Inc.; Inverness is a Waltham, Mass.-based diagnostic devices company.

LAUREATE EDUCATION INC. $1.05 billion: $725 million senior unsecured notes and $325 million senior subordinated notes, also $1.15 billion credit facility; financing led by Goldman Sachs, Citigroup; to help fund LBO expected to close in June; Baltimore-based provider of higher education.

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, with a combined fleet of 11 satellites and four additional satellites to be launched over the next three years.

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.

PRIVATE PLACEMENT

U.S. CORRUGATED INC.: $125 million senior secured notes due 2013 (B3); Jefferies & Co. (placement agent); Regulation D; Kennesaw, Ga. packaging manufacturer; to price May 14 week.

INCOME DEPOSIT SECURITIES

OTELCO INC. 3 million income deposit securities representing 3 million shares of class A common stock and $22.5 million 13% senior subordinated notes due 2019; CIBC World Markets, UBS Investment Bank, Raymond James; to pay down term loan that matures on July 3, 2011; Oneonta, Ala., traditional wireline telephone services provider in several rural communities in Alabama, Maine and Missouri.

ROADSHOWS

May 14-16: MUELLER WATER PRODUCTS INC. $350 million; Banc of America Securities, JP Morgan

May 14-22: NEFF CORP. $250 million; Banc of America Securities LLC, CIBC World Markets, UBS Investment Bank

Starts May 14: UHS MERGER SUB INC. (UNIVERSAL HOSPITAL SERVICES INC.) $460 million; Merrill Lynch & Co., Bear Stearns & Co., Wachovia Securities

May 15-23: FONTAINEBLEAU LAS VEGAS $675 million; Banc of America Securities LLC, Barclays Capital, Deutsche Bank Securities, Merrill Lynch & Co.

© 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.