Time Warner, Boart, Sheridan, California Check, Renfro talk; Chesapeake pulls deal; Movie Gallery drops

By Sara Rosenberg

New York, Sept. 12 - Time Warner Telecom Holdings Inc., Boart Longyear Co., Sheridan Healthcare Inc. and California Check Cashing Stores released price talk on their credit facilities as the deals were launched to investors with bank meetings during the Tuesday session. Furthermore, Renfro Corp. set price talk on its already in-market term loan B now that ratings on the tranche have emerged.

In other primary news, Chesapeake Corp. pulled its multi-currency refinancing credit facility due to market conditions.

Meanwhile, in the secondary, Movie Gallery Inc.'s term loan B weakened on Tuesday as news emerged that Apple Computer Inc.'s new iPod can be used to download movies.

Time Warner Telecom came out with opening price talk of Libor plus 250 basis points on all tranches under its proposed $700 million secured credit facility (Ba2) as the deal was launched into syndication on Tuesday, according to a market source.

Tranching on the facility is comprised of a $100 million revolver and a $600 million term loan B.

Wachovia is the lead bank on the deal.

Proceeds from the term loan will be used to refinance $440 million of secured debt and partially finance the cash portion of the consideration for the acquisition of Xspedius Communications, LLC.

Revolver borrowings will be available for general corporate purposes.

Following the closing of the term loan, the company intends to call for redemption the entire $240 million principal amount of second-lien floating-rate notes due 2001.

Time Warner Telecom is a Littleton, Colo., provider of managed network services.

Boart spread talk

Boart Longyear was another borrower that announced opening price talk levels as its $1.395 billion credit facility officially launched during Tuesday's market hours as well, according to a market source.

The $125 million five-year revolver, $320 million 18-month first-lien term loan and $650 million six-year first-lien term loan B were all launched with talk of Libor plus 325 basis points, the source said.

Meanwhile, the $300 million seven-year second-lien term loan was launched with talk of Libor plus 700 basis points, and call premiums of 102 in year one and 101 in year two, the source continued.

Late last week, it was heard that the first-lien debt was being talked at Libor plus 275 to 300 basis points and the second-lien debt was being talked at Libor plus 650 basis points; however, this price talk was inaccurate, the source added.

Credit Suisse is bookrunner on the deal that will be used to help fund the acquisition of a majority interest in Boart Longyear by an investor group led by Macquarie Bank Ltd.

Macquarie's investor group will own a 51% stake in the business, while existing sponsors Advent International, Bain Capital and management will roll over $200-plus million and retain a 49% stake in the company.

Concurrently, Boart Longyear is acquiring two businesses, Northwest Drilling and Drillcorp, increasing Sept. 30 last-12-month EBITDA to $225 million.

Leverage will be around 4.4 times through the first lien and around 5.7 times through the second lien.

Pro forma for the paydown of the 18-month facility, leverage would drop to 2.8 times through the first lien and 4.2 times through the second lien.

Boart Longyear is a Salt Lake City-based drilling-services provider.

Sheridan Healthcare guidance

Continuing on the price talk front, Sheridan Healthcare presented its $458 million first- and second-lien credit facility to lenders Tuesday and at the same time revealed spread guidance on the various tranches, according to a market source.

The $50 million revolver (B2), $233 million term loan B (B2) and $40 million delayed-draw term loan (B2) were all launched with talk of Libor plus 275 to 300 basis points, the source said.

As for the $135 million second-lien term loan (Caa1), that was launched with opening talk of Libor plus 700 basis points, the source added.

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

Proceeds will be used to refinance existing debt.

Sheridan Healthcare is a Sunrise, Fla., physician practice management company.

California Check Cashing price talk

California Check Cashing launched its $85 million credit facility Tuesday, with price talk on the $10 million six-year revolver and $60 million six-year first-lien term loan set at Libor plus 350 basis points and price talk on the $15 million seven-year second-lien term loan set at Libor plus 725 basis points, according to a market source.

UBS is the lead bank on the deal.

Proceeds will be used to help fund Golden Gate Capital's leveraged buyout of the company.

California Check Cashing is an Oakland, Calif., retailer of alternative financial services including check cashing, short-term consumer loans, wire transfers via Western Union and bill payment services.

Renfro term B talk

Renfro went out to accounts with price talk of Libor plus 300 basis points on its $145 million term loan B during market hours on the heels of B2/B ratings for the tranche surfacing on Monday, according to a market source.

Of the total term loan B amount, $35 million is delayed draw for 18 months. This delayed-draw piece will carry an unused fee of 100 basis points initially that will then step up every six months, the source said.

Bear Stearns is the lead bank on the term loan B.

Renfro's $205 million credit facility, which was launched with a bank meeting this past Friday, also includes a $60 million ABL revolver that is being led by Wachovia.

Proceeds from the credit facility, along with about $57 million in equity, will be used to help fund Kelso & Co.'s leveraged buyout of the company.

Total leverage will be inside of 4 times.

Renfro is a Mt. Airy, N.C., manufacturer of socks for the Fruit of the Loom, Fit First, Vassarette, Ducks Unlimited and Odor-Eaters brands, among others.

Chesapeake cancels deal

Chesapeake has decided not to go ahead with its credit facility that had been launched to investors with a bank meeting on Aug. 9 as "market conditions and negotiations with proposed lenders...do not justify proceeding with the refinancing at this time," according to an 8-K filed with the Securities and Exchange Commission Tuesday.

The facility consisted of a $125 million five-year revolver (Ba3/BB-), a £75 million seven-year final maturity, delayed-draw term loan (Ba3/BB-) and a £70 million seven-year funded term loan (Ba3/BB-).

Wachovia and Bank of America were acting as joint lead arrangers on the deal, with Wachovia as the bookrunner.

Proceeds were going to be used to refinance the company's existing $250 million revolver and allow for the redemption of its 10 3/8% sterling subordinated debt in the fourth quarter.

According to the 8-K, the company expects that its current $250 million credit facility, which expires in February 2009, will provide adequate debt capacity for the foreseeable future, including financing the possible redemption of a portion of its 10 3/8% sterling subordinated debt.

Chesapeake "will continue to monitor market conditions and to evaluate attractive opportunities for refinancing its revolving credit facility," the 8-K added.

Chesapeake is a Richmond, Va., supplier of specialty paperboard and plastic packaging.

Movie Gallery falls on iPod news

Movie Gallery's bank debt headed lower during Tuesday's market hours after Apple announced that its iTunes Store now features over 75 Hollywood movies that can be downloaded onto the new iPod, with each download taking about 30 minutes, according to a trader.

Movie Gallery's term loan B closed the day at 93¼ bid, 94¼ offered, down about a point when compared to previous levels, the trader said.

Movie Gallery is a Dothan, Ala.-based video and game rental company.

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