High Yield Calendar: $4.990 billion and €183 million deals being marketed

WEEK OF MAY 14

MUELLER WATER PRODUCTS INC.: $350 million senior subordinated notes due 2017 (B3/B); Banc of America Securities LLC, JP Morgan; Rule 144A with registration rights/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; price talk 7 3/8% to 7½%; pricing Wednesday afternoon.

DYNEGY HOLDINGS INC.: $1.1 billion senior unsecured notes due 2019 (revised from 2017) (B2/B-); JP Morgan, Citigroup, Credit Suisse; Rule 144A with registration rights/Regulation S; non-callable; to repay a portion of the approximately $1.8 billion of net debt of the entities acquired in connection with the LS Power combination; Houston-based producer and marketer of electric energy; investor call 11 a.m. ET Wednesday.

RITE-AID CORP.: $1.22 billion senior unsecured notes (Caa1/CCC+) in two tranches: due December 2015, non-callable for four years and due 2017, non-callable for five years; Citigroup (books), Wachovia (co); Rule 144A/Regulation S; to help fund the acquisition of the Brooks and Eckerd drugstore chains; Camp Hill, Pa., drugstore chain; investor call 11 a.m. Wednesday, pricing May 14 week.

HAYES LEMMERZ FINANCE LUXEMBOURG SA: €115 million senior unsecured notes due 2015 (Caa2/CCC+); Deutsche Bank Securities, Citigroup, UBS Investment Bank; Rule 144A/Regulation S; non-callable for four years; to refinance bank debt; European subsidiary of Northville, Mich., automotive parts supplier; roadshow started May 15 in London, pricing later in May 14 week.

WEEK OF MAY 21

CLAIRE'S STORES INC. $935 million notes: $535 million senior unsecured toggle notes due 2015 (Caa1/CCC+), non-callable for four years, and $400 million senior subordinated notes due 2017 (Caa2/CCC+), non-callable for five years; Bear Stearns, Credit Suisse, Lehman Brothers; also $1.65 billion credit facility; to fund LBO by Apollo Management, LP; Pembroke Pines, Fla., specialty retailer; roadshow started May 14; pricing expected May 22.

FONTAINEBLEAU LAS VEGAS: $675 million second-mortgage notes due 2015 (Caa1/CCC+); 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 (B2): $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 started 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

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.

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.

MYLAN LABORATORIES INC.: New bonds and bank debt to help fund acquisition of Merck KgaA's generic business, expected to close in the second half of 2007; Merrill Lynch, Citigroup, Goldman Sachs lead banks on the debt financing; Mylan is a Canonsburg, Pa., pharmaceutical company.

SOURCE INTERLINK COS. INC.: High-yield bonds and bank debt to fund acquisition of Primedia Inc.'s Enthusiast Media division, expected to close mid-summer; single-B credit ratings expected, 9% area expected interest rate on bonds; Bonita Springs, Fla., provider of merchandising and fulfillment services for home entertainment products.

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

ENERGY XXI GULF COAST INC.: $700 million senior notes senior notes due 2013; Jefferies & Co., BNP Paribas, RBS Greenwich Capital (joint lead placement agents); Regulation D/Regulation S; non-callable for three years; to finance the purchase of the Pogo properties and repay second-lien revolver; subsidiary of Houston-based Energy XXI (Bermuda) Ltd.; roadshow May 14-May 23.

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 LLC, JP Morgan

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

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

Started May 14: CLAIRE'S STORES INC. $935 million notes; Bear Stearns, Credit Suisse, Lehman Brothers

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

Started May 15: HAYES LEMMERZ FINANCE LUXEMBOURG SA €115 million; Deutsche Bank Securities, Citigroup, UBS Investment Bank

© 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.