CMP Susquehanna upsizes, cuts spread; WideOpenWest breaks; Affiliated Computer dips on numbers

By Sara Rosenberg

New York, April 28 - CMP Susquehanna decided to move some funds out of its high-yield bond offering and into its term loan B tranche on Friday, while at the same time lowering pricing on the institutional bank debt.

In the secondary, WideOpenWest Holdings LLC freed for trading, with the first-lien term loan quoted atop par. Also, Affiliated Computer Services Inc. saw its term loan soften during market hours as the company releases weak third-quarter financials.

CMP Susquehanna increased the size of its term loan B during Friday's market hours to compensate for a downsizing of its proposed bond offering, and, in conjunction with the size change, pricing on the term loan B was reverse flexed by 25 basis points, according to a market source.

The term loan B now carries a size of $700 million, up from an original size of $650 million, and pricing on the paper has been trimmed to Libor plus 200 basis points from original price talk at launch of Libor plus 225 basis points, the source said.

On the flip side, CMP Susquehanna's senior subordinated notes offering was reduced to $225 million from $275 million, as price talk of 9¾% to 10% emerged, the source added.

CMP Susquehanna's now $800 million credit facility (B1/B-) - up from $750 million - also contains a $100 million revolver that was left unchanged in terms of size and pricing, which is currently set at Libor plus 225 basis points.

Meanwhile, the CMP KC LLC (Stick LLC) $98 million credit facility (Caa1/CCC+) that is secured by airwaves was also left unchanged. This transaction consists of a $26 million revolver and a $72 million term loan B, with both tranches talked at Libor plus 400 basis points.

Deutsche Bank and Merrill Lynch are the lead banks on both credit facilities, with Deutsche the left lead.

Proceeds from the credit facilities, CMP Susquehanna's bonds and a $50 million proceeds senior discount notes offering by CMP Radio Holdings Corp. will be used to help fund Cumulus Media Partners LLC's acquisition of the radio broadcasting business of Susquehanna Pfaltzgraff Co. for about $1.2 billion.

Cumulus Media Partners was formed by Cumulus Media Inc., Bain Capital, The Blackstone Group and Thomas H. Lee Partner.

Atlanta-based Cumulus Media Inc. is the second-largest radio company in the United States, and York, Pa.-based Susquehanna Radio is the largest privately owned radio broadcasting company in the United States.

WideOpenWest frees to trade

Switching to the secondary, WideOpenWest's new credit facility started trading on Friday, with the $510 million seven-year term loan B (B2) quoted at par ¼ bid, par 5/8 offered, according to a trader.

The term loan B is priced with an interest rate of Libor plus 225 basis points. During syndication, pricing on the paper was reverse flexed from original price talk at launch of Libor plus 275 basis points.

WideOpenWest's $720 million credit facility also contains a $60 million revolver (B2) with an interest rate of Libor plus 225 basis points and a 50 basis point commitment fee, and a $150 million eight-year second-lien term loan (B3) with an interest rate of Libor plus 500 basis points.

Pricing on the second-lien loan was lowered during syndication from original price talk at launch of Libor plus 550 basis points, and pricing on the revolver was lowered during syndication from original price talk at launch of Libor plus 275 basis points.

The second-lien loan contains call protection of 102 in year one and 101 in year two.

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 from Oak Hill Capital Partners and ABRY Partners.

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

Affiliated Computer slips on earnings

Affiliated Computer Services' term loan weakened by about an eighth in trading on Friday as the company posted disappointing third-quarter numbers, according to a trader.

The term loan closed the session quoted at par 5/8 bid, 101 offered, down from previous levels of par ¾ bid, 101 1/8 offered, the trader said.

Late in the day Thursday, Affiliated Computer announced third-quarter fiscal-year 2006 financials that included net income of $77.9 million, or $0.62 per share, down from net income of $114.7 million, or $0.88 per share, in the third quarter of 2005.

Other results included revenues of $1.31 billion, an increase of 24% compared with the third quarter last year, cash flow from operations of about $113 million, or 8.6% of revenues, and free cash flow of negative $8 million.

The company also released fiscal-year 2007 guidance that included expected total revenue growth of at least 10% and expected diluted earnings per share growth of at least 10%.

Movie Gallery settles down

Movie Gallery Inc.'s term loan B finally took a breather on Friday, with levels coming in by about a quarter to a half a point after spending most of the week on the rise, according to a trader.

The company's bank debt was seen closing the session at 92 bid, 93¼ offered, down from Thursday's closing levels of 92½ bid, 93½ offered, the trader said.

Over the past week, Movie Gallery spent every day, other than Friday, heading upwards as positive earnings were released by both Netflix Inc. and Blockbuster Inc.

Furthermore, investors spent the first half of the week celebrating the company's decision to restructure leases at more than 1,100 existing Movie Gallery and Hollywood Video stores.

Movie Gallery is a Dothan, Ala.-based movie rental company.

Charter closes

Charter Communications Inc. closed on its new $5.3 billion credit facility (B2/B) consisting of a $300 million revolver and a $5 billion term loan due 2013 with an interest rate of Libor plus 262.5 basis points and 101 soft call protection.

During syndication, pricing on the new term loan was reverse flexed from original talk at launch of Libor plus 275 basis points with the addition of the soft call premium.

In connection with the new credit facility, the company amended its existing $1.5 billion revolver.

JPMorgan, Bank of America and Citigroup acted as the lead banks on the deal that was used to refinance the existing Charter Communications Operating LLC senior secured credit facility.

Charter is a St. Louis-based broadband communications company.

William Carter closes

The William Carter Co. closed on the repricing of its term loan B, under which the spread dropped to Libor plus 150 basis points from Libor plus 175 basis points, according to an 8-K filed with the Securities and Exchange Commission.

In addition, 101 soft call protection was added to the term loan B tranche.

Bank of America acted as the lead bank on the deal for the Atlanta-based marketer of children's apparel and accessories.

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