Nextel term loan A trades higher again as market technicals continue to prop up paper

By Sara Rosenberg

New York, June 13 - Nextel Communications Inc. once again moved higher in the secondary bank loan market as a trade took place on the term loan A at 961/2, up from a previous trading level of around 961/4, 96 3/8, according to a trader.

The Reston Va. wireless company's bank debt has performed well all week. As a point of reference, the term loan A started the week at about 95¼ bid, 96 offered.

This strong performance is basically being attributed to market technicals, in which demand is outweighing supply.

As for the primary, price talk and timing emerged on Wackenhut Corrections Corp.'s upcoming $150 million credit facility. The bank meeting is expected to take place on June 18, according to sources. BNP Paribas is the lead bank on the deal.

The facility consists of a $100 million term loan that is being talked at Libor plus 375 basis points and a $50 million revolver, sources said.

Proceeds will be used by the Palm Beach Gardens, Fla. correctional and detention facilities company to repurchase all common stock held by Group 4 Falck A/S.

Packaged Ice Inc.'s $170 million credit facility, which is expected to launch on June 19, is currently being talked at Libor plus 400 basis points, according to market sources. Credit Suisse First Boston, Bear Stearns and CIBC are the lead banks on the deal.

The facility consists of a $35 million revolver and a $135 million term loan B.

Proceeds will be used to help fund the leveraged buyout of the Dallas packaged ice company by Trimaran Capital Partners and Bear Stearns Merchant Banking.

In follow-up news, Pacer International Inc. closed on a new $330 million credit facility (BB-/B1), consisting of a $75 million five-year revolver with an interest rate of Libor plus 325 basis points and a $255 million seven-year delayed draw term loan with an interest rate of Libor plus 325 basis points. Deutsche Bank was the lead bank on the deal.

Proceeds from the term loan were used to repay the existing bank term loan of $91.2 million and will also be used to redeem the company's $150 million of outstanding 11.75% senior subordinated notes due 2007.

The revolver has a $25 million sub-limit for the issuance of letters of credit. The facility will be used for working capital and general corporate purposes.

Based upon the current variable interest rate of the new senior credit facility, the Concord, Calif. logistics provider estimates that its pro forma yearly interest expense will decrease by $10 million after redemption of the senior subordinated notes, according to a news release.

"As a result of our robust cash flow characteristics we were able to complete this refinancing, which will bring additional significant savings to our bottom line," said Don Orris, chairman and chief executive officer, in the release.

Triton PCS Inc. closed on a new $100 million five-year revolver (BB-) with an interest rate of Libor plus 275 basis points and a commitment fee of 50 basis points. Lehman Brothers acted as the lead arranger and administrative agent, and Citigroup was a co-lead arranger as well.

Furthermore, the company used proceeds from an issuance of $725 million of 8½% senior notes due 2013 to repay all outstanding borrowings and to terminate the existing senior secured credit facility.

The new revolver will be used by the Berwyn, Pa. wireless communications services provider for general corporate and working capital purposes.

Oxford Industries Inc. closed on a new $275 million five-year senior secured revolver. SunTrust Capital Markets Inc. and Merrill Lynch Capital acted as the joint lead arrangers on the deal.

A portion of the revolver proceeds, combined with proceeds from an issuance of $200 million of senior notes and cash on hand, were used to help fund the acquisition of all of the outstanding capital stock of Viewpoint International Inc., owner of the Tommy Bahama brand, in a transaction valued at up to $325 million consisting of $240 million in cash, $10 million in Oxford stock and up to $75 million in contingent payments.

The credit facility was originally expected to be sized at $295 million and the bond deal was originally anticipated at $175 million.

Oxford Industries is an Atlanta manufacturer and marketer of branded and private label apparel. Viewpoint is a Seattle designer and marketer of relaxed sportswear.

NationsRent Inc. closed on a new $150 million four-year exit financing senior secured revolver in conjunction with its emergence from the Chapter 11 reorganization process. Wachovia and GECC acted as co-arrangers on the deal. Wachovia was also the administrative agent and bookrunner and GECC was the syndication agent.

The Fort Lauderdale, Fla. rental company's revolver is secured by basically all assets and is being used to refinance debt, for capital expenditures and for working capital needs.

As a result of the plan of reorganization, NationsRent is now a privately held company controlled by Baupost and Phoenix Rental Partners, LLC.

"Our emergence from Chapter 11 reorganization marks the birth of a new NationsRent, a feat due in large part to the dedication of our employees, our vendors, and our alliance partners to persevere and succeed through what has been a difficult economic period. This team will continue to provide superior service to our growing customer base. This restructuring has enabled us to put our financial house in order, significantly reducing debt and increasing our capital base, said Jeff Putman, the newly elected chief executive officer, in a news release.

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