Graton ups loan, breaks; Momentive, Revel slide; Mediacom, ROC, Fairway, CPM tweak deals

By Sara Rosenberg

New York, Aug. 14 - Graton Resort & Casino increased the size of its term loan B, allocated and made its way into the secondary market, with the institutional debt quoted well above par.

Additionally, in trading, Momentive Performance Materials Inc.'s term loans dropped on the back of a ratings downgrade, and Revel Entertainment Group LLC's term loan continued to dip on recent monthly revenue numbers.

Moving back to the new deal front, Mediacom Broadband Group added a consent fee for existing lenders to its proposed term loan G, and Rock Ohio Caesars (ROC Finance LLC) modified the offer price on its term loans so that they are now being sold at a premium instead of at a discount.

Also on the topic of changes, Fairway Group Acquisition Co. flexed lower while tightening the original issue discount on its term loan, Allison Transmission Inc. upsized its loan and added a pricing step-down, and CPM Holdings Inc. reworked tranching and firmed the first-lien spread at the low end of talk.

Meanwhile, in more primary news, Live Nation Entertainment Inc. released original issue discount guidance on its incremental term loan B as the deal was presented to lenders during market hours.

Graton tops OID

Graton Resort & Casino's raised its six-year term loan B to $375 million from $350 million and then it broke for trading with levels seen at par ½ bid, 101¼ offered, according to a market source.

Pricing on the loan is Libor plus 750 basis points with a 1.5% Libor floor, and it sold at a discount of 98. It is non-callable for two years, then at 103 in year three, 102 in year four and 101 in year five.

Earlier in the syndication process, the coupon was lifted from the Libor plus 700 bps area and call protection was revised from non-callable for one and a half years, then at 102 and 101.

The company's $400 million credit facility also provides for a $25 million five-year revolver that is priced at Libor plus 475 bps with no Libor floor.

Wells Fargo Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies & Co. are leading the deal that will be used to back the development of the casino in Sonoma County, Calif.

Momentive trades down

Momentive Performance Materials' term loans B1 and B-3 weakened in trading as Standard & Poor's announced on Monday evening that it downgraded the company's ratings, according to a trader.

The term loans B-1 and B-3 were quoted at 92 bid, 93 offered, down from 93¾ bid, 94¾ offered in the prior session, the trader said, adding that the debt had even been as low as 91½ bid, 92½ offered early Tuesday morning with the news.

S&P lowered Momentive's corporate credit rating to CCC from B- and all of the other company's ratings by two notches as well. The outlook is negative.

"The likelihood that earnings and cash flow will remain very weak for the next several quarters prompted the downgrade. In our view, leverage is unsustainably high, with total adjusted debt to EBITDA above 15 times as of June 30, 2012," explained credit analyst Cynthia Werneth in the ratings release.

Momentive is a Columbus, Ohio-based producer of thermoset resins.

Revel falls more

Revel Entertainment's term loan B softened to 76 bid, 77 offered, from 78 bid, 79 offered, as investors continued to react to the recently announced July revenue results, according to a trader. At the end of last week, the loan was quoted at 79 bid, 81 offered.

The company had total revenue of $17.54 million for the month of July and revenue of $60 million year to date, according to the New Jersey Division of Gaming Enforcement.

In June, the company had total revenue of $14.93 million.

Revel, a gaming and entertainment company, commenced operations on March 28 and opened to the public on April 2.

Mediacom adds fee

Mediacom Broadband Group is now offering existing lenders a 5 bps consent fee in connection with the syndication of a proposed $200 million term loan G due January 2020, according to a market source.

The term loan G, which launched last Wednesday, is talked at Libor plus 300 bps with a 1% Libor floor, an original issue discount of 97½ to 98 and 101 soft call protection for one year.

Commitments were due on Tuesday.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the joint lead arrangers and bookrunners on the deal. Other bookrunners include Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and RBC Capital Markets LLC.

Mediacom plans notes

In addition to the term loan G, Mediacom is getting $300 million of senior notes, which was announced in the morning, a second source remarked.

Proceeds from the term loan G will be used to repay revolver borrowings and for general corporate purposes, while the notes will be used to fund a tender for 8½% notes and for general corporate purposes.

Mediacom is a Middletown, N.Y.-based cable operator.

ROC coming at premium

Rock Ohio Caesars' $150 million of new term loan debt due August 2017 is now being offered to investors at a premium of par 1/2, revised from the initially proposed original issue discount of 99, according to a market source.

The debt for the casino operator in the Midwest consists of a $110 million first-lien incremental term loan and a $40 million delayed-draw term loan, both priced at Libor plus 700 bps with a 1.5% Libor floor, and both non-callable through August 2013, then at 102 for a year and at 101 for another year. The delayed-draw loan has a 225 bps ticking fee.

Lead banks, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC, were asking for recommitments by 5 p.m. ET on Tuesday, the source said.

The company's $160 million deal (B1/BB-), which also includes a $10 million add-on revolver, will be used to finance the gaming facility at the Thistledown Racetrack.

Fairway flexes

Fairway made changes too, cutting the coupon on its $260 million six-year first-lien term loan to Libor plus 675 bps from Libor plus 700 bps and tightening the original issue discount to 98½ from 98, a market source said. The loan still has a 1.5% Libor floor and 101 repricing protection for one year.

In addition, the company lowered pricing on its $40 million five-year revolver to Libor plus 675 bps from Libor plus 700 bps, the source remarked.

Lead bank, Credit Suisse Securities (USA) LLC, was seeking recommitments by 5 p.m. ET on Tuesday.

Proceeds from the $300 million credit facility will be used to refinance existing debt and add cash to the balance sheet, and pro forma for the transaction, net leverage will be 5.3 times.

Fairway is a supermarket chain with locations in New York, New Jersey and Connecticut.

Allison upsizes

Allison Transmission raised its term loan (Ba3/BB-/BB) due 2019 to $850 million from $500 million and added a pricing step-down to Libor plus 300 bps when total leverage is less than 3¼ times, according to a market source.

As before, the loan is priced at Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99 and includes 101 soft call protection for one year, the source said.

Commitments were due at 5 p.m. ET on Tuesday, and allocations are expected on Wednesday.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Barclays Capital Inc. are leading the deal that will be used to repay some non-extended term loan borrowings.

Allison is an Indianapolis-based automatic transmission company.

CPM restructures

CPM Holdings also revised its credit facility, increasing the size of the first-lien term loan and setting the coupon at the tight end of guidance. The company also downsized the second-lien term loan, according to a market source.

The first-lien term loan is now $285 million, up from $275 million, and pricing is Libor plus 500 bps, versus prior talk of Libor plus 500 bps to 525 bps. There is still a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Meanwhile, the second-lien term loan is now $100 million, down from $185 million, the source continued. Pricing remained at Libor plus 900 bps with a 1.25% Libor floor and an original issue discount of 98, and there is still call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $425 million credit facility, down from $500 million, also includes a $40 million revolver.

CPM leverage multiples

With the changes to sizes, CPM's first-lien leverage moved to about 2.9 times from 2.4 times, and total leverage moved to around 3.9 times from 4.8 times, the source added.

Proceeds will be used to refinance existing high-yield bonds and to fund a distribution to shareholders, the size of which was reduced as a result of the downsizing to the total loan amount.

Jefferies & Co. is leading the deal that is target to allocate on Thursday.

CPM is a Waterloo, Iowa-based supplier of process equipment used for oilseed processing and animal feed production.

Live Nation OID talk

In other news, Live Nation Entertainment held a conference call on Tuesday morning to kick off syndication on its proposed $100 million incremental term loan B due November 2016, and shortly ahead of the call, original issue discount guidance was announced, according to a market source.

The incremental loan is being shopped with a discount of 99 to 991/2, the source said.

As was previously reported, pricing on the new debt matches the existing term loan B at Libor plus 300 bps with a 1.5% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will be used to redeem some 10¾% senior unsecured notes due 2016 at Ticketmaster.

Live Nation is a West Hollywood, Calif.-based provider of live music concerts and live entertainment ticketing sales and marketing services.

Select Medical closes

Select Medical Corp. closed on its $275 million incremental term loan B (Ba3/BB-) due June 1, 2018 that is priced at Libor plus 375 bps with a 1.75% Libor floor, according to an 8-K filed with the Securities and Exchange Commission.

The loan, which was upsized during syndication from $150 million, was sold at an original issue discount of 97 and has 101 soft call protection through June 1, 2013.

J.P. Morgan Securities LLC, Goldman Sachs & Co., Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., Wells Fargo Securities LLC and RBC Capital Markets led the deal that is being used to repay a portion of the company's 7 5/8% senior subordinated notes due 2015.

Select Medical is a Mechanicsburg, Pa.-based operator of specialty hospitals and outpatient rehabilitation clinics.

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