Chrysler offers a piece of loan; Husky, Mold-Masters set OIDs; Belfor floats talk; Manor Care breaks

By Sara Rosenberg

New York, Nov. 7 - Chrysler Corp. LLC (Chrysler Auto) only put a portion of its first-lien term loan up for sale at Wednesday's bank meeting and will decide on the final allocation amount based on market demand.

In other news, Husky Injection Molding Systems Ltd. came out with the original issue discount on its term loan as the deal was launched during the session, Belfor announced price talk on its deal as it too was launched to investors, and Mold-Masters increased the original issue discount on its term loan.

Over in the secondary, Manor Care Inc.'s credit facility freed up for trading, with the term loan B quoted right around its discount price, General Motors Corp.'s term loan fell after financial results were released and LCDX dropped with equities.

Chrysler Auto announced at its Wednesday morning bank meeting that approximately $4 billion of its $7.5 billion first-lien term loan (B1/NA/BB+) is being offered at this time, with the final amount sold to be based on demand, according to a market source.

"They will syndicate in phases. No other bank meeting but if the $4 billion gets syndicated now, the other $3.5 billion will come at a later date and those tranches are pari passu," the source said.

The deal had already attracted some interest by midday with "some early orders coming in," the source remarked, adding that there were "no details on the book."

As for the bank meeting itself, the source said that it was a "packed room - couple hundred people here at least and I'm sure a couple hundred on the phone."

"The amount that they've accomplished in the past three months is really impressive," another source said about the company itself. "From the UAW settlement to how the business is performing. [From] liquidity they've got to the management team. The past 90 days are impressive."

The first-lien term loan is being talked at Libor plus 400 basis points, and while the original issue discount is still to be determined, it is being guided in the area of 97 to 971/2.

The loan is non-callable for one year, then at 104 in year two, 102 in year three and 101 in year four.

Commitments are due from lenders on Nov. 19.

The structure on the first-lien loan has changed from the structure that the deal was funded with and from the one that was seen when the deal was in market this summer.

When the loan funded in August, it was documented as a $5 billion first-out term loan (Ba3/BB-) and a $5 billion second-out term loan (B3/B).

And before being pulled from market in July because of primary conditions, it was structured as one $10 billion tranche that was guided at Libor plus 375 bps, after flexing up from original talk at launch of Libor plus 325 bps, with call protection of non-callable for one year then at 101 in year two.

Since funding this summer, $2.5 billion of the original $10 billion amount has been repaid using restricted cash on the balance sheet, which is why the total size of the deal is now $7.5 billion.

JPMorgan, Goldman Sachs, Citigroup, Bear Stearns and Morgan Stanley are the bookrunners on the loan, with JPMorgan, Goldman and Citigroup the joint lead arrangers.

Proceeds from the term loan were used to help fund the acquisition of a majority interest in the company by Cerberus Capital Management, LP from DaimlerChrysler AG.

Chrysler Auto also got a $2 billion delayed-draw seven-year second-lien term loan that was funded by Cerberus - who took down $500 million - and DaimlerChrysler - who took down $1.5 billion - and the agreement was made that this loan would not come back for broad syndication for at least a year from close.

The second-lien term loan is delayed-draw for 12 months and must fund after that time. Originally, the tranche was expected to be funded at close.

Before being taken out of market, the second-lien term loan was being talked at Libor plus 700 bps, up from original talk of Libor plus 600 bps, with call protection of non-callable for one year, then at 103 in year two and 101 in year three.

Chrysler Auto is a producer and seller of Chrysler, Dodge and Jeep vehicles.

Husky OID emerges

Husky Injection Molding Systems held a bank meeting on Wednesday to kick off syndication on its credit facility, and in connection with the launch, it was revealed that the $410 million term loan is being offered to investors with an original issue discount of 991/2, according to a market source.

As was previously reported, price talk on the term loan is Libor plus 325 bps.

The company's $495 million credit facility also includes an $85 million revolver that is talked at Libor plus 325 bps as well.

RBC Capital is the lead bank on the deal.

Proceeds will be used to help fund the buyout of the company by Onex Corp. for C$8.235 for each share held by all shareholders other than Robert and Elizabeth Schad and their holding company and for C$8.10 per share for the shares held by the Schads and their holding company. The total transaction value is about C$960 million.

Husky Injection Molding is a Bolton, Ont., supplier of injection molding equipment and services to the plastics industry.

Belfor sets talk

Also launching with a bank meeting on Wednesday was Belfor, at which time it was announced that its $270 million six-year term loan is being talked at Libor plus 300 bps, according to a fund manager.

As was previously reported, the term loan is being offered to investors with an original issue discount of 99.

Belfor's $345 million senior secured credit facility also includes a $75 million revolver.

JPMorgan is the lead bank on the deal, which will be used to refinance existing debt and to buy out some shareholders.

Belfor is a damage restoration company.

Mold-Masters ups discount

Mold-Masters increased the original issue discount on its $286 million seven-year term loan to 98 from original guidance in the 99 to 99½ area, according to a market source.

Pricing on the term loan was left in line with initial talk at Libor plus 350 bps.

The deal is expected to free up for trading on Thursday, the source added.

Mold-Masters' $317 million credit facility also includes a $31 million six-year revolver that is priced at Libor plus 350 bps as well.

SocGen is the lead bank on the deal, which will be used to help fund the buyout of the company by 3i.

Mold-Masters is a Georgetown, Ont., manufacturer of hot runner systems for the plastic injection molding industry.

Automotive Glass first-lien talk

Automotive Glass & Services Inc.'s $225 million first-lien term loan (BB) was launched with price talk of Libor plus 400 bps to 450 bps, according to a market source.

Prior to the Tuesday bank meeting, pricing guidance on the tranche was just Libor plus 400 bps.

The first-lien term loan is being offered with an original issue discount of 99 and carries call protection of 102 in year one and 101 in year two.

Automotive Glass' $425 million credit facility also includes a $75 million ABL revolver (BB) that's already been placed and a $125 million second-lien term loan (B) that is talked at Libor plus 800 bps.

The second-lien term loan is being offered at a discount of 98½ and carries call protection of 104 in years one and two and 102 in years three and four.

Goldman Sachs is the lead bank on the deal.

Proceeds will be used to help fund Platinum Equity's acquisition of PPG Industries' automotive original equipment manufacture glass and automotive replacement glass and services businesses for approximately $500 million before minority interest.

PPG Auto Glass is a supplier of windshields, rear and side windows, sunroofs and assemblies for auto and truck manufacturers, a supplier and distributor of replacement automotive glass products for use in the aftermarket, and a provider of insurance claim services, glass management software and e-business solutions.

Manor Care frees to trade

Switching to the secondary market, Manor Care's credit facility broke for trading, with the $700 million seven-year term loan B quoted at 96¼ bid, 97 offered, according to a trader.

The term loan B is priced at Libor plus 275 bps and was sold at a discount of 961/4.

During syndication, the discount was revised from the 98 context to the 97 area, before settling at the final discount price.

Manor Care's $900 million senior secured credit facility (Ba3) also includes a $200 million six-year revolver priced at Libor plus 275 bps, with a 50 bps commitment fee.

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

The facility has a senior secured leverage test.

Proceeds will be used to help fund the buyout of the company by the Carlyle Group for $67.00 in cash per share. The transaction is valued at $6.3 billion.

Other buyout financing will come from $1.33 billion in equity and $4.6 billion in CMBS debt that is priced at Libor plus 250 bps.

Manor Care is a Toledo, Ohio, provider of short-term post-acute services and long-term care.

GM falls on numbers

General Motors' term loan slipped lower on Wednesday after the company released financial results for the third quarter that included special charges of $37.4 billion related largely to a previously announced valuation allowance against its deferred tax assets, according to a trader.

The term loan ended the day at 96 bid, 96½ offered, down from 97 bid, 97½ offered, the trader said.

For the quarter, the company reported a net loss of $39 billion, or $68.85 per diluted share, compared with a reported net loss of $147 million, or $0.26 per diluted share, in the year-ago quarter.

Excluding special items, the company had a third-quarter adjusted net loss of $1.6 billion, or $2.80 per diluted share, compared with net income of $497 million, or $0.88 per diluted share, in the year-ago quarter.

General Motors is a Detroit-based developer, producer and marketer of cars, trucks and parts.

LCDX slides with stocks

LCDX and the cash market in general were softer during market hours as equities took a hit, according to traders.

The LCDX 9 went out around 96.55 bid, 96.70 offered, down from 97.30 bid, 97.40 offered, traders said, adding that these are the lowest levels this series has seen so far.

The cash market was down about a half to three-quarters of a point, traders said.

As for stocks, Nasdaq was down 76.42 points, or 2.7%, Dow Jones Industrial Average was down 360.92 points, or 2.64%, S&P 500 was down 44.65 points, or 2.94%, and NYSE was down 272.26 points, or 2.7%.

Station Casinos closes

Fertitta Colony Partners LLC completed its buyout of Station Casinos Inc. for $90.00 per share in cash, according to a news release.

To help fund the transaction, Station Casinos got a new $900 million credit facility (Ba2/BB) consisting of a $650 million revolver and a $250 million term loan.

During syndication, the revolver was upsized from $500 million and the term loan was added to the capital structure.

Deutsche Bank and JPMorgan acted as the joint lead arrangers and joint bookrunners on the deal.

Station Casinos is a Las Vegas-based gaming and entertainment company.

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