Grande Communications tweaks deal; Huntsman firm on acquisition news; American Axle steady

By Sara Rosenberg

New York, Aug. 31 - In the world of new deal happenings, Grande Communications revised the credit facility it is getting as part of a recapitalization agreement it has entered into with ABRY Partners by downsizing the revolver amount.

Over in the secondary market, Huntsman Corp.'s term loan held steady following word that the company is working on purchasing some assets from Tronox Inc. and American Axle & Manufacturing Holdings Inc.'s term loan was firm on news of a waiver extension.

Grande Communications trims revolver

Grande Communications modified its proposed credit facility by reducing the revolver size to $18.7 million from an originally anticipated amount of $25 million, according to a market source.

The company's now $122.5 million credit facility also includes a $103.8 million term loan.

Pricing on the facility is Libor plus 675 basis points with a 3% Libor floor and an original issue discount of 97.

Societe Generale and SunTrust are the lead banks on the deal.

The facility is being obtained in connection with a recapitalization under which ABRY Partners will purchase a majority stake in the company.

Proceeds from the facility, along with equity, will be used to redeem all of the company's outstanding 14% senior secured notes due 2011 and to pay off certain outstanding capital lease obligations.

Of the total revolver amount, up to about $1 million may be drawn at closing.

Grande Communications is a San Marcos, Texas-based provider of high-speed internet, local and long-distance telephone and digital cable services.

Huntsman unfazed by acquisition

Switching to the secondary, Huntsman's term loan held in line with previous levels after the company announced that it has signed a "stalking horse" asset and equity purchase agreement to buy some of Tronox's assets, according to traders.

Two traders had the term loan quoted at 92½ bid, 93½ offered, another trader had it 93 bid, 93¾ offered and a different trader had it at 93 bid, 94 offered. However, all traders agreed that levels were unchanged on the day.

Under the purchase agreement, Huntsman bid about $415 million, including working capital, for Tronox's dioxide facilities in The Netherlands and the United States, a 50% joint venture interest in another titanium dioxide facility in Australia and associated mining and other operations, and Electrolytic production facilities in the United States.

Huntsman planning new debt

Huntsman said on Monday that about 50% of the acquisition costs are expected to be funded with new debt financing.

Details on what type of debt will be used are still being worked out as the company is still looking at options, a company spokesman told Prospect News.

The transaction is subject to, among other things, approval from the U.S. Bankruptcy Court.

Tronox filed voluntary petitions for reorganization under Chapter 11 on Jan. 12.

Huntsman is a Salt Lake City, Utah-based manufacturer and marketer of differentiated chemicals.

American Axle unchanged

American Axle's term loan was steady on Monday as the company obtained an extension of the waiver under its credit facility until Sept. 15, according to a trader.

The term loan was quoted at 88½ bid, 89½ offered, flat when compared to Friday's levels, the trader said.

The waiver, which was previously set to expire on Monday, covers financial covenants relating to secured debt leverage and interest coverage and the collateral coverage requirement.

Under the extension, the company is required to maintain a daily minimum liquidity of $75 million.

The purpose of the extension is to give the company more time to work with key stakeholders on various commercial agreements and financing arrangements that would result in a comprehensive long-term solution outside of bankruptcy.

American Axle is a Detroit-based producer of driveline and drivetrain systems and related components and chassis modules for the automotive industry.

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