Insight Midwest; Wenner Media, First American Payment, Wesco Aircraft set talk

By Sara Rosenberg

New York, Sept. 13 - Insight Midwest, Wenner Media LLC and First American Payment Systems LP came out with price talk on their credit facilities as the deals were launched with bank meetings on Wednesday.

Also announcing price talk during the session was Wesco Aircraft Hardware Corp. as a rating from Moody's Investors Service emerged.

Insight Midwest released guidance on its proposed $2.575 billion credit facility as the transaction was presented to potential lenders during Wednesday's market hours, according to a source.

The $350 million revolver and $500 million term loan A are being talked at Libor plus 150 basis points, and the $1.725 billion term loan B is being talked at Libor plus 200 basis points, the source said.

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

Proceeds will be used to refinance existing debt, including the company's 10½% senior notes due Nov. 1, 2010 and a portion of its 9¾% senior notes due Oct. 1, 2009.

Closing is expected to occur in early October.

Insight Midwest is a subsidiary of Insight Communications Co. Inc., a New York-based cable television system operator.

Wenner Media price talk

Wenner Media held a bank meeting on Wednesday morning, launching its proposed $300 million term loan B to investors with opening price talk of Libor plus 200 basis points, according to a market source.

The company's $325 million senior secured credit facility also includes a $25 million revolver.

JPMorgan is the lead bank on the deal that will be used to help fund Wenner Media's purchase of the 50% of Us Weekly magazine it currently does not own from Walt Disney Co.

Wenner Media is a New York-based magazine publisher.

First American guidance

First American Payment Systems also held a bank meeting on Wednesday to officially kick off syndication on its deal, and at that time it was revealed that the company's proposed $125 million term loan B is being talked at Libor plus 250 to 275 basis points, according to a market source.

The company's $150 million credit facility also includes a $25 million revolver.

JPMorgan is the lead bank on the deal that will be used to refinance existing debt and fund a dividend payment to Lindsay Goldberg & Bessemer.

First American Payment Systems is a Fort Worth, Texas, merchant acquirer that provides comprehensive electronic transaction processing services.

Wesco talk surfaces with rating

Wesco Aircraft released price talk on its already launched first- and second-lien $675 million credit facility as ratings from Moody's were publicly announced, according to a market source.

The $75 million six-year revolver (Ba3) and $435 million seven-year term loan B (Ba3) are both being talked at Libor plus 250 basis points, while the $165 million 71/2-year second-lien term loan (Caa1) is being talked at Libor plus 650 basis points, the source said.

Lehman Brothers and Bank of America are the lead banks on the facility, which launched with a bank meeting this past Tuesday morning, with Lehman the left lead.

Proceeds will be used to help fund leveraged buyout of Wesco Aircraft by The Carlyle Group.

Wesco Aircraft is Valencia, Calif., distributor of aerospace hardware and provider of inventory management services.

Sedgwick closes

Sedgwick CMS Holdings, Inc. completed its acquisition of Security Capital Corp., parent company of CompManagement, Inc., for $16.46 in cash per share of Security Capital common stock and class A common stock, according to a company news release.

To help fund the transaction, Sedgwick got a $150 million term loan B add-on (B1/B+) that is priced with an interest rate of Libor plus 225 basis points.

In addition, the company raised pricing on its $300 million of existing term loan B debt to Libor plus 225 basis points from Libor plus 200 basis points in connection with the incremental loan.

Bank of America and Wachovia acted as the lead banks on the deal.

Sedgwick is a Memphis provider of outsourced insurance claims management services to large corporate and public sector entities. Security Capital is a Greenwich, Conn., provider of claims management and cost control services to businesses.

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