Lyondell CAM rises; MGM Studios softens; RedPrairie tweaks deal; Affinion sets launch

By Sara Rosenberg

New York, March 24 - LyondellBasell Industries' pre-petition CAM headed higher during Wednesday's trading hours as the company's exit financing was approved, and Metro-Goldwyn-Mayer Inc.'s (MGM Studios) term loan retreated after a lender call took place.

Meanwhile, over in the primary market, RedPrairie Holding Inc. came out with some changes to its term loan, including tightening the original issue discount and adding a step-down in pricing based on leverage.

Also, Affinion Group Inc. is getting ready to launch a new credit facility that has a good-sized institutional piece, and HHI Holdings LLC is expected to allocate its credit facility early next week.

Furthermore, rumor has it that Styron will be getting a new credit facility for its buyout by Bain Capital Partners from Dow Chemical Co., and there is some speculation on which bank may be leading the transaction.

Lyondell CAM trades up

LyondellBasell's pre-petition CAM gained some ground in trading with news of the court approval of the exit financing at its subsidiary, Lyondell Chemical Co., according to traders.

The CAM was quoted by one trader at 74 bid, 75 offered, up from 73 bid, 74 offered, and by a second trader at 73¾ bid, 74¾ offered, up from 73 bid, 74 offered.

"Maybe it looks cheap to the exit. Maybe just technicals," the first trader said regarding the positive momentum in the CAM.

As was previously reported, Lyondell Chemical's exit financing includes a $500 million six-year senior secured term loan B (Ba3) priced at Libor plus 425 basis points with a 2% Libor floor and an original issue discount of 99, and a $1.75 billion ABL revolver priced at Libor plus 375 bps with a 2% Libor floor.

The company is also getting $2.25 billion and €375 million of 8% secured notes, a new European securitization facility and a $2.8 billion rights offering.

LyondellBasell is a Netherlands-based polymer, petrochemicals and fuels company.

MGM Studios slides

MGM Studios' term loan headed lower on Wednesday as the company held a lender call, according to traders.

The term loan was quoted by one trader at 47¾ bid, 48½ offered, down from 50 bid, 51 offered, and by a second trader at 4 ¾ bid, 48¾ offered, down from 50¼ bid, 51¼ offered.

The first trader said that the lender call was to discuss an extension of the company's forbearance agreement related to missed interest payments on its credit facility.

MGM Studios is a Los Angeles-based motion picture, television, home video and theatrical production and distribution company.

BWIC well received

Market chatter was that the $145 million loan Bid Wanted In Competition (BWIC) saw good interest from investors on Wednesday, according to a trader.

Bids towards the BWIC were due at 2 p.m. ET.

The BWIC had a mix of names, including $11 million of Infor Global Solutions, $6 million of CDW Corp., $5 million of Realogy Corp., $2 million of Cengage Learning and $1 million of First Data Corp., the trader said.

Talk was that of the roughly 30 issuers in the portfolio, everything traded except for four names, the trader continued.

RedPrairie cuts OID

Switching to new deal happenings, RedPrairie revised its $240 million term loan, lowering the original issue discount to 99½ from 99, according to a market source.

Additionally, while pricing was left at Libor plus 400 basis points, a step-down was added to Libor plus 375 bps when leverage is less than 3.0 times, the source said.

As before, the loan carries a 2% Libor floor.

Credit Suisse and RBC are the lead banks on the $270 million credit facility, which also includes a $30 million revolver.

Recommitments were due from lenders at 2 p.m. ET.

Proceeds were used to help fund the buyout of the company by New Mountain Capital LLC from Francisco Partners, the completion of which was announced on Wednesday.

RedPrairie is a Waukesha, Wis.-based productivity services provider.

Affinion launching Thursday

Affinion Group has scheduled a bank meeting for Thursday to kick off syndication on a proposed $1 billion credit facility, according to a market source.

Tranching on the deal is comprised of a $125 million five-year revolver and an $875 million 61/2-year term loan B, the source said.

Price talk is not yet available, but is expected to come out at the launch, the source added.

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

Proceeds will be used to refinance existing debt and for general corporate purposes, including acquisitions.

Affinion is a Norwalk, Conn.-based provider of marketing services and loyalty programs.

HHI allocating shortly

HHI Holdings' proposed credit facility is anticipated to allocate and free up for trading on Monday, being that comments are due from lenders on Friday, a market source told Prospect News.

Books on the deal closed on Tuesday, and with that, pricing on the $200 million term loan B (B3/B+) firmed in line with initial talk at Libor plus 750 bps and an original issue discount of 97. The Libor floor on the loan is set at 3%, the wide end of initial guidance of 2.5% to 3%, the source added.

When the deal was first talked about last month, it was expected that the term loan B would be sized at $240 million. However, investors were later told that the term loan would likely be smaller than that originally anticipated amount.

HHI lead banks

Bank of America and Credit Suisse are the lead banks on HHI's $340 million credit facility, which also includes a $140 million ABL revolver.

Proceeds will be used to refinance existing debt and to fund a dividend payment.

HHI is a Royal Oak, Mich.-based supplier of highly engineered metal forgings and machined components, wheel bearings, and powdered metal engine and transmission components for automotive and industrial customers.

Styron may bring deal

Market rumor is that Styron will be approaching lenders with a new credit facility to help fund its acquisition by Bain Capital from Dow Chemical for $1.63 billion, according to sources.

And, talk is that Deutsche Bank may be the lead bank on the deal, the sources remarked.

Confirmation of this chatter was unattainable prior to press time.

As part of the buyout agreement, Dow Chemical has an option to receive up to 15% of the equity of Styron as part of the sale consideration.

The transaction is expected to close by August, subject to completion of customary conditions and regulatory approvals.

Styron is a diversified chemicals and plastics company that is expected to have $3.5 billion in revenue based on 2009.

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