Asurion, Petroleum Geo, Resolute Aneth set talk; Hub upsizes, cuts spread; Spirit adds covenants

By Sara Rosenberg

New York, June 7 - Asurion Corp., Petroleum Geo-Services ASA and Resolute Aneth LLC released price talk on their new bank deals as all three of these transactions were launched with bank meetings during Thursday's market hours.

In other primary news, Hub International Ltd. upsized its credit facility while lowering pricing, and Spirit Finance Corp. added some covenants to its term loan and firmed up pricing in line with original guidance.

Meanwhile, in the secondary, LCDX was lower as equities were off and Michaels Stores Inc.'s term loan dropped in trading.

Asurion held a bank meeting on Thursday afternoon to launch its proposed $2.435 billion credit facility, and in connection with the launch, price talk was announced, according to a market source.

The $100 million revolver was presented with talk of Libor plus 200 basis points, the $1.755 billion first-lien term loan was presented with talk of Libor plus 225 bps and the $580 million second-lien PIK toggle term loan was presented with talk of Libor plus 550 bps cash pay, the source said.

If PIK is elected on the second-lien loan, pricing will increase by 75 bps, the source continued.

The second-lien term loan carries call protection of 101 for one year and par thereafter, the source added.

Merrill Lynch, Bank of America and Lehman Brothers are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of a majority stake in the company by Madison Dearborn Partners, Providence Equity Partners and Welsh, Carson, Anderson & Stowe.

Asurion is a Nashville, Tenn., provider of enhanced services to the wireless telecommunication industry.

Petroleum Geo guidance emerges

Continuing on the topic of price talk, Petroleum Geo-Services launched both tranches under its $800 million senior secured credit facility to investors on Thursday with opening talk set at Libor plus 175 bps, according to a market source.

Tranching on the deal is comprised of a $500 million eight-year term loan B and a $300 million five-year revolver.

The bank meeting for the transaction took place in Oslo, Norway.

The credit facility is also being syndicated to U.S. investors but no bank meeting will be held in the United States.

Barclays and UBS are the lead banks on the deal, with Barclays the left lead.

Proceeds will be used to pay a $300 million special dividend and to repay the company's existing credit facility.

Petroleum Geo-Services is a Lysaker, Norway, geophysical company providing a broad range of seismic and reservoir services, including acquisition, processing, interpretation and field evaluation.

Resolute Aneth price talk

Resolute Aneth also came out with price talk on its proposed second-lien term loan as it too launched with a bank meeting during the session, according to a market source.

The $225 million second-lien term loan is being talked at Libor plus 450 bps, with call protection of par in year one, 101 in year two and par thereafter, the source said.

Citigroup is the lead bank on the energy financing deal.

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

Appleseed's sets first-lien talk

Price talk on Appleseed's Topco Inc.'s $335 million first-lien term loan emerged at Libor plus 300 bps, according to a market source.

As was previously reported, the company's $710 million credit facility, which launched with a bank meeting this past Tuesday, also includes a $125 million ABL revolver talked at Libor plus 175 basis points and a $250 million second-lien PIK toggle term loan talked at Libor plus 575 bps cash pay.

If PIK is elected on the second-lien loan, pricing will step up by 75 bps.

UBS and American Capital Strategies are the lead banks on the deal.

Leverage will be 3.8 times through the first-lien and 6.2 times through the second-lien, the source added.

Proceeds will be used to back the already completed acquisition of Blair Corp., a Warren, Pa.-based apparel and home products company, for $42.50 per share in cash.

Appleseed's Topco, a portfolio company of Golden Gate Capital, is a marketer of apparel and home products.

Hub ups term loan, flexes

In more primary happenings, Hub International increased the size of its funded term loan as it downsized it bond offering and lowered pricing on its term loan debt, according to a market source.

The seven-year funded term loan is now sized at $625 million, up from $535 million, and pricing was reverse flexed to Libor plus 250 bps from original talk of Libor plus 275 bps, the source said.

The term loan was upsized because the company decreased the size of its bond offering to $700 million from $790 million.

Pricing on the company's $140 million seven-year final maturity delayed-draw term loan was reduced to Libor plus 250 bps from Libor plus 275 bps as well.

Hub's now $865 million (up from $775 million) senior secured credit facility (B2/B) also includes a $100 million six-year revolver.

Morgan Stanley and Merrill Lynch are joint bookrunners and joint lead arrangers on the deal, with Morgan Stanley the administrative agent and Merrill Lynch the syndication agent.

Proceeds from the credit facility, along with bond proceeds, will be used to help fund the buyout of Hub by Apax Partners and Morgan Stanley Principal Investments for $41.50 per share in cash and to refinance certain existing debt, including $75 million of 6.43% senior notes due April 4, 2016, $7.5 million of 5.71% senior notes due April 4, 2011 and $55 million of 6.16% senior notes due June 15, 2013.

The delayed-draw term loan will be available to, among other things, finance permitted acquisitions and for general corporate purposes.

Hub is a Chicago-based insurance broker.

Spirit adds quarterly covenants

Spirit Finance added quarterly maintenance covenants to its $850 million six-year term loan B (B2/B), according to a market source.

Furthermore, pricing on the loan firmed up at Libor plus 300 bps, in line with original talk at launch, the source added.

Credit Suisse is the lead arranger on the deal.

Proceeds will be used to help fund the buyout of Spirit by a consortium that includes Macquarie Bank Ltd., Kaupthing Bank hf. and other independent equity participants.

Under the transaction agreement, the consortium is buying Spirit in a transaction valued at $3.5 billion, including $1.9 billion of assumed debt. Spirit stockholders will get $14.50 per share in cash.

Spirit is a Scottsdale, Ariz., real estate investment trust focused on single-tenant, operationally essential real estate.

Mackinaw upsizes, trims pricing

Mackinaw Power Holdings LLC upsized its term loan while lowering pricing and adding soft call protection to the tranche, according to a market source.

The term loan (BB-/BB-) is now sized at $147 million, up from $145 million, pricing was reduced to Libor plus 150 bps from original talk at launch of Libor plus 200 bps and the loan now includes 101 soft call protection for one year, the source said.

Allocations on the "well oversubscribed" deal are expected to go out early next week, the source added.

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.

Lake Las Vegas tweaks deal

Lake Las Vegas Resort completely revised its credit facility structure, eliminating the second-lien term loan, upsizing the first-lien term loan, adding a synthetic revolver and modifying pricing, according to a syndicate document.

The 51/2-year first-lien term loan is now sized at $475 million, up from $380 million, and pricing was changed to Libor plus 865 bps, including 515 bps PIK, from previous talk of plus 500 bps, the document said.

In addition, a $65 million 51/2-year synthetic revolver that is priced at Libor plus 865 bps was added to the capital structure, the document continued.

Lastly, the $200 million 51/2-year second-lien PIK loan that was being talked at Libor plus 1,500 bps was removed from the deal, the document added.

Credit Suisse is the lead bank on the now $540 million (down from $580 million) credit facility.

Proceeds will be used to refinance existing debt.

Lake Las Vegas is a Henderson, Nev., residential, golf and resort community.

LCDX weaker

Moving to the secondary market, LCDX was softer in sympathy with equities selling off, according to a trader.

The index went out at 100.43 bid, 100.45 offered, down from 100.53 bid, 100.55 offered at the close of business Wednesday, the trader said.

Michaels trades down

Michaels Stores' term loan headed lower on Thursday, although no credit-specific news was found to be causing the drop, according to a trader.

The term loan ended the day at par 3/8 bid, par 5/8 offered, down from par ½ bid, par ¾ offered, the trader said.

Michaels Stores is an Irving, Texas, specialty retailer of arts, crafts, framing, floral, wall decor and seasonal merchandise for the hobbyist and do-it-yourself home decorator.

Fontainebleau closes

Fontainebleau Las Vegas LLC closed on its new $1.85 billion credit facility (B1/B) consisting of an $800 million five-year revolver priced at Libor plus 275 bps, with a 50 bps unused fee, a $700 million funded term loan B priced at Libor plus 275 bps and a $350 million delayed-draw term loan B priced at Libor plus 275 bps, with a 200 bps unused fee.

During syndication, the revolver was downsized from $1 billion, the delayed-draw term loan B was downsized from $850 million and its unused fee was increased from 175 bps, and the funded term loan was added to the capital structure.

Bank of America, Barclays, Deutsche and Merrill Lynch acted as the lead banks on the deal.

Proceeds are being used to fund the construction of a hotel and casino project in Las Vegas.

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