Global Tel*Link breaks; Harrah's dips; Revlon, ILFC set talk; Cinemark tweaks amendment

By Sara Rosenberg

New York, Feb. 25 - Global Tel*Link Corp.'s credit facility freed up for trading on Thursday, and Harrah's Entertainment Inc.'s term loan B debt was weaker following the release of quarterly earnings.

Moving to the primary market, Revlon Consumer Products Corp. and International Lease Finance Corp. (ILFC) came out with price talk on their bank deals as both transactions were launched during the session.

Also, Prime Healthcare Services Inc. launched its credit facility to investors, but is keeping quiet on original issue discount guidance until probably next week, as the company is awaiting ratings.

In other news, Cinemark Holdings Inc. came out with some revisions to its credit facility amend and extend proposal, including increasing pricing on the proposed extended debt, since the transaction failed to pass at initial terms.

Global Tel*Link frees up

Global Tel*Link's credit facility allocated and freed up for trading, with the strip of funded term loan and delayed-draw term loan debt quoted around par, according to a trader.

Specifically, the strip of debt was seen at 99¾ bid, par ¼ offered on the break and then the bid inched up so that levels were quoted at par bid, par ¼ offered, the trader said.

The $185 million term loan and the $40 million delayed-draw term loan are priced at Libor plus 400 basis points with a 2% Libor floor.

The funded term loan was sold at an original issue discount of 99 and the delayed-draw term loan was sold at 981/2.

And, lenders on the delayed-draw term loan got 50 bps paid on allocation that is not refundable.

Global Tel*Link getting revolver

Global Tel*Link's $245 million credit facility (B1/BB-) also includes a $20 million revolver priced at Libor plus 400 bps with a 2% Libor floor as well.

During syndication, pricing on all tranches was lowered from initial talk at launch of Libor plus 425 bps.

Credit Suisse and UBS are the lead banks on the deal, which will be used to refinance existing debt.

The term loan amortized at a rate of 1% per year, with the rest due at maturity.

Additionally, the term loan includes a springing maturity. If the company's senior subordinated notes are not refinanced, the term loan will mature 61 days prior to the notes' 2016 maturity.

Global Tel*Link is a Mobile, Ala.-based correctional communications technology company.

Harrah's slides with numbers

Harrah's saw its term loan B's head lower in trading on Thursday after fourth-quarter financial results were announced, according to trader.

The term loan B-2 was quoted by one trader at 80¾ bid, 81¼ offered, down from 81½ bid, 82 offered, by a second trader at 80 3/8 bid, 80 7/8 offered, down from 81 bid, 81½ offered, and by a third trader at 80½ bid, 81 offered, down from 81 1/8 bid, 81 5/8 offered.

Furthermore, one trader had the term loan B-1 and B-3 quoted at 80 1/8 bid, 80¾ offered, down from 80 7/8 bid, 81 3/8 offered, while another trader had the B-1 quoted at 80 3/8 bid, 80 7/8 offered, down from 81 bid, 81½ offered and the B-3 quoted at 80¼ bid, 80¾ offered, down from 80 7/8 bid, 81 3/8 offered.

Lastly, the term loan B-4 was quoted by one trader at 99¼ bid, par bid, down from 99¾ bid, par ¼ offered, and by a second trader at 99 bid, 99¾ offered, down from 99 5/8 bid, par 1/8 offered.

Harrah's revenues decline

For the quarter, Harrah's reported net revenues of $2.01 billion, down 7.9% from $2.28 billion in the fourth quarter of 2008.

Income from operations for the quarter was $150.7 million, compared with a loss from operations of $5.35 billion in the prior year.

And, adjusted EBITDA in the quarter was 418.6 million, down 7.7% from 453.6 million in the previous year.

Harrah's is a Las Vegas-based provider of branded casino entertainment.

Revlon talk emerges

Over in the primary, Revlon Consumer Products held a bank meeting on Thursday at 2:30 p.m. ET to launch its proposed $940 million credit facility into syndication, and, at that time, price talk was revealed to lenders, according to a market source.

The $800 million seven-year term loan is being talked at Libor plus 400 bps with a 2% Libor floor and an original issue discount of 99, the source said.

And, the $140 million four-year asset-based revolver is being talked at Libor plus 300 bps with a 75 bps commitment fee, and no Libor floor.

Amortization on the term loan is 0.25% per quarter with the balance due at maturity.

Financial covenants under the term loan include a maximum senior first-lien secured leverage ratio of 4.0 to 1.0, while financial covenants under the revolver include a springing fixed charge coverage ratio of 1.0 to 1.0 if excess availability is less than $20 million.

Revlon refinancing debt

Proceeds from Revlon's credit facility will be used to refinance an existing credit facility, which, at Dec. 31, had $815 million outstanding under the term loan and zero drawn under the revolver.

The refinancing is a leverage neutral transaction. Total first-lien secured debt for fiscal year 2009 adjusted EBITDA is 3.1 times and total debt to fiscal year 2009 adjusted EBITDA is 4.8 times.

Citigroup is the left lead bank on the deal.

Revlon is a New York-based cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirants/deodorants and beauty care products company.

ILFC reveals guidance

Another company to hold a bank meeting on Tuesday afternoon was International Lease Finance Corp., and it, too, announced price talk in connection with the launch, according to a market source.

The $750 million senior secured term loan (Ba2/BBB) was presented to lenders with talk of Libor plus 475 bps to 500 bps with a 2% Libor floor and an original issue discount of 98, the source said.

The term loan, which is secured by a portfolio of selected aircraft and related leases, includes 101 soft call protection for one year, the source continued.

Bank of America and Goldman Sachs are the lead banks on the deal that will be used to repay a portion of the company's outstanding debt.

International Lease is a Los Angeles-based leaser and remarketer of advanced technology commercial jet aircraft to airlines.

Prime Healthcare discount undecided

Prime Healthcare Services launched its proposed $290 million credit facility with a bank meeting on Thursday, but declined to discuss original issue discount until ratings are finalized in about a week, according to an informed source.

The facility consists of a $40 million five-year revolver and a $250 million six-year term loan.

As was disclosed when the deal was announced this past Monday, price talk on both tranches is Libor plus 400 bps with a 2% Libor floor.

RBC is the lead bank on the facility that will be used to refinance existing debt, make certain investments and for general corporate purposes.

Total leverage is 1.4 times.

Prime Healthcare is an Ontario, Calif.-based owner and operator of acute care hospitals.

Cinemark ups pricing

Cinemark raised pricing on its proposed extended term loan and revolving credit facility to entice investors to sign on to the deal, according to a market source.

Under the amendment proposal, the company is looking to extend its term loan to April 2016 and its revolver to March 2015.

With the changes, pricing on the extended term loan would now be Libor plus 325 bps as opposed to Libor plus 275 bps, and pricing on the non-extended term loan would remain at Libor plus 175 bps, the source said.

In addition, pricing on the extended revolver would now be Libor plus 300 bps, as opposed to Libor plus 250 bps, and pricing on the non-extended revolver would remain at Libor plus 200 bps.

Cinemark adds soft call

On top of increasing pricing, Cinemark added 101 soft call protection for one year to the proposed extended term loan tranche, the source added.

The company is still offering its credit facility lenders a 10 bps fee for their approvals.

Because of the modifications to the amendment, the commitment deadline was extended to the end of the day on Thursday from Wednesday.

Completion of the amendment, which is being led by Barclays, is expected to take place in early March.

Cinemark is a Plano, Texas-based motion picture exhibitor.

© 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.