Dollar Thrifty, Mackinaw set talk; Wynn retranches; Hamilton, Omnova flex; Bucyrus breaks

By Sara Rosenberg

New York, May 21 - Dollar Thrifty Automotive Group Inc. and Mackinaw Power Holdings LLC came out with price talk on their new loans as both transactions were launched with bank meetings during Monday's market hours.

In other primary news, Wynn Resorts Ltd. reworked the tranching under its credit facility, and Hamilton Beach Inc. and Omnova Solutions Inc. reduced pricing on their term loans.

Meanwhile, in the secondary, Bucyrus International Inc.'s credit facility freed up for trading, with the U.S. term loan B quoted atop par.

Dollar Thrifty Automotive held a bank meeting at 2 p.m. ET on Monday to kick off syndication on its proposed $600 million credit facility (B1/BB-) and, in connection with the launch, price talk on the deal emerged, according to a market source.

The $350 million revolver was launched with talk of Libor plus 200 basis points and the $250 million term loan B was launched with talk of Libor plus 225 bps, the source said.

Deutsche Bank and Bank of Nova Scotia are the lead banks on the deal, with Deutsche the left lead.

Proceeds from the revolver will be used to refinance the company's existing $300 million revolver, and proceeds from the term loan B will be used to repay asset-backed vehicle debt.

Dollar Thrifty is a Tulsa, Okla., vehicle rental company.

Mackinaw price talk

Another deal to release price talk was Mackinaw Power, as it too launched its loan with a bank meeting at 2 p.m. ET on Monday, according to a market source.

The $143 million term loan (BB-) was presented to lenders with opening price talk of Libor plus 200 bps, the source said.

Lehman and Citigroup are the lead banks on the deal, with Lehman the left lead.

Proceeds from the term loan will be used to help fund ArcLight Capital Partners, LLC's acquisition of Progress Energy's natural gas-fired generation assets in Georgia.

The assets include Effingham County Power, LLC, Monroe Power Co. Generating, LLC, Walton County Power, LLC and Washington County Power, LLC and certain power-supply contracts.

Other financing for the transaction will come from senior notes that will be issued by a different borrower and will be more along the lines of investment grade.

Wynn revises tranches

In other primary happenings, Wynn Resorts made some changes to the structure of its credit facility, including upsizing its revolver, upsizing the funded Hong Kong term loan, eliminating the delayed-draw Hong Kong term loan and downsizing the U.S. funded term loan, according to a market source.

More specifically, the five-year revolver is now sized at $1 billion equivalent, up from $500 million equivalent; the seven-year funded Hong Kong term loan is now sized at $425 million equivalent, up from $250 million equivalent; the seven-year U.S. dollar funded term loan is now sized at $125 million, down from $250 million; and the $250 million equivalent Hong Kong dollar delayed-draw term loan was removed from the capital structure, the source said.

Pricing on the revolver, Hong Kong term loan and U.S. term loan was left unchanged at Libor plus 175 bps, the source added.

Bank of America, Deutsche Bank and Soc Gen are global coordinating lead arrangers on the now $1.55 billion equivalent (up from $1.25 billion equivalent) senior secured credit facility.

Proceeds will be used to develop the Wynn Macau.

Wynn is a Las Vegas-based developer, owner and operator of destination casino resorts.

Hamilton cuts pricing

Hamilton Beach reverse flexed pricing on its oversubscribed $125 million senior secured term loan (B1/B) to Libor plus 225 bps from original talk at launch of Libor plus 250 bps, according to a market source.

UBS Securities LLC and Wachovia Securities LLC are the lead banks on the deal, with UBS the left lead.

The loan will require quarterly principal payments in an amount equal to 1% per year for the term of the loan, with the remaining balance to be paid in 2013.

Financial covenants include, among other things, limitations on additional debt, investments and dividends, a maximum total leverage ratio and a minimum fixed-charge coverage ratio.

Security will be a first lien on all of the company's existing and after-acquired assets and a second lien on all of the collateral securing its obligations under an existing asset-based revolving credit facility.

The existing $115 million asset-based revolver will be amended in connection with this transaction to allow for the new term loan.

Proceeds from the term loan will be used to fund a $110 million special cash dividend to Nacco Industries Inc. in connection with Hamilton's spinoff from Nacco.

Under the transaction, which is expected to be completed by the end of June, Nacco is spinning off its Hamilton Beach/Proctor-Silex business to Nacco stockholders.

The spinoff will establish this Glen Allen, Va.-based company, which will be known as Hamilton Beach, Inc., as an independent public company in the small electric household and commercial appliance industries.

Hamilton Beach's capital structure will have two classes of stock. Nacco class A and class B stockholders will receive one half of one share of Hamilton Beach class A common stock and one half of one share of Hamilton Beach class B common stock for each share of Nacco class A and class B common stock they own.

Omnova trims spread

Omnova Solutions lowered pricing on its $150 million term loan B (B2/B+) to Libor plus 250 bps from original talk at launch of Libor plus 275 bps, according to a market source.

The company's $230 million credit facility also includes an $80 million ABL revolver.

Deutsche Bank is the bookrunner on the term loan B, and JPMorgan is the bookrunner on the ABL revolver.

Proceeds will be used to help fund a cash tender offer for the company's $165 million of 11¼% secured notes due 2010.

The tender offer is scheduled to expire on Tuesday and is conditioned on the company getting the new term loan.

Omnova is a Fairlawn, Ohio, provider of emulsion polymers and specialty chemicals and decorative and functional surfaces for various commercial, industrial and residential end uses.

KIK tweaks deal

KIK Custom Products Inc. revised its credit facility by increasing the size of its first-lien term loan while lowering pricing on the tranche and reducing the size of its second-lien term loan, according to a market source.

The first-lien term loan (B1/B-) is now sized at $410 million, up from $400 million, and pricing was reverse flexed to Libor plus 225 bps from original talk of Libor plus 250 bps, the source said.

Meanwhile, the second-lien term loan (Caa1/CCC) is now sized at $235 million, down from $240 million, the source added.

Pricing on the second-lien term loan was left unchanged at Libor plus 500 bps and the paper is still non-callable for one year, then at 102 in year two and 101 in year three.

KIK Custom Products' now $700 million (up from $695 million) credit facility also includes a $55 million revolver (B1/B-).

JPMorgan, Credit Suisse and UBS are the lead banks on the deal, which will be used to help fund Caxton-Iseman Capital, Inc.'s acquisition of KCP Income Fund for C$804 million.

Concord, Ont.-based KCP, through its operating subsidiaries KIK Holdco Co. and KIK Operating Partnership, is a manufacturer of consumer products in the laundry, household cleaners, personal care, over-the-counter medicated and pharmaceutical categories.

Bucyrus frees to trade

Moving to the secondary market, Bucyrus' credit facility allocated and freed up for trading on Monday, with the $400 million U.S. term loan B quoted at par ¼ bid, par ½ offered, according to a trader.

The U.S. term loan B is priced at Libor plus 150 bps.

During syndication, pricing on the U.S. term loan B was flexed down from original talk at launch of Libor plus 175 bps to 200 bps and the loan was downsized from $725 million as a result of the company selling 4.614 million shares of class A common stock at $66.35 per share, for net proceeds of about $292.3 million, and an additional 692,100 shares of class A common stock to the underwriters at the same price, for proceeds of roughly $44 million.

Bucyrus' approximately $980 million credit facility (Ba3/BB-) also includes a $400 million revolver priced at Libor plus 175 bps with step downs tied to leverage, a €75 million term loan B priced at Euribor plus 175 bps and a €65 million German revolver priced at Libor plus 175 bps with step downs tied to a leverage grid.

During syndication, the German revolver was upsized from €50 million.

Lehman Brothers is the lead bank on the deal, which is being used to help fund the already completed acquisition of Lunen, Germany-based DBT GmbH, a subsidiary of RAG Coal International, for $710 million in cash and 471,476 shares of stock.

Bucyrus is a South Milwaukee, Wis., designer and manufacturer of walking draglines, electric rope mining shovels and rotary blasthole drills used by the surface mining industry.

Boulder closes

Boulder Specialty Brands, Inc. completed its acquisition of GFA Holdings, Inc., the maker of Smart Balance and Earth Balance heart-healthy food products and other established brands, according to a news release.

To help fund the transaction, Boulder got a new $180 million credit facility consisting of a $20 million six-year revolver (B2/B-), a $120 million seven-year term loan (B2/B-) and a $40 million 71/2-year second-lien term loan (Caa2/CCC).

Bank of America acted as the lead bank on the deal.

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

Boulder is a Longmont, Colo., blank check company that was formed to serve as a vehicle for the acquisition of an operating business and/or brand in the consumer food and beverage industry.

The combined company has adopted the name Smart Balance, Inc. and will be headquartered in New Jersey.

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