RSC up on tender; Calpine better with exchange; Sinclair launches; Language Line readies deal

By Sara Rosenberg

New York, Oct. 13 - RSC Holdings Inc.'s second-lien term loan headed higher in the secondary market after lenders were approached about a tender for a portion of the debt and Calpine Corp.'s first-lien term loan was stronger following news of an exchange offer.

In other news, Sinclair Television Group Inc. launched a new term loan B on Tuesday as well as an amendment and extension of its revolver, and Language Line Holdings Inc. will be coming to market later this week with a new credit facility.

RSC moves up

RSC Holdings' second-lien term loan was stronger on Tuesday following news of a tender offer for $70 million of the loan at a price of 91, according to a market source.

The second-lien loan was quoted at 91 bid, 92 offered as a result of the tender price, up from Friday's levels of 88¼ bid, 89¼ offered, the source said.

Deutsche Bank is leading the tender offer, which expires at noon ET on Thursday.

In late August, the company amended the second-lien term loan to allow for a total of $300 million prepayments at a discount for one year through Dutch auctions.

The amendment required that the Dutch auctions could only take place if the available commitments under the company's senior secured asset-based loan equal or exceed $300 million after giving effect to the prepayment.

Also, the amendment outlined that funds for the prepayment could come from internally generated cash, drawings under the asset-based loan or equity proceeds.

RSC is a Scottsdale, Ariz.-based company involved in the rental of various construction and industrial equipment.

Calpine gains ground

Calpine's first-lien term loan climbed upwards during the trading session as the company announced plans to exchange some of the debt for notes, according to traders.

The first-lien term loan was quoted by one trader at 91 3/8 bid, 91 7/8 offered, up from 90 5/8 bid, 91 5/8 offered on Monday and 90 1/8 bid, 91 offered on Friday.

Meanwhile, a second trader had the term loan quoted at 91¼ bid, 92 offered, up from 90½ bid, 91 offered on Friday.

On Tuesday, Calpine said that it is giving lenders the opportunity to trade in $750 million of their first-lien term loan debt for $750 million of senior secured notes due 2017.

The notes will be guaranteed by the company's current and future subsidiaries that guarantee the existing credit facility and secured by the same assets.

On Aug. 25, the company had amended its credit facility to allow for a notes/loan exchange and for the buyback of debt at a discount using cash on hand.

In addition, the amendment gave the company permission to issue first-lien bonds under the accordion provision of the first-lien credit facility, which previously only permitted the issuance of first-lien term loans.

Calpine is a San Jose, Calif.-based power generation company.

Sinclair marketing term B

Over in the primary market, Sinclair Television held a conference call on Tuesday to launch a new $400 million six-year term loan B (Ba3) that is being talked with a 2% Libor floor and an original issue discount of 98, according to a market source.

JPMorgan is the lead bank on the deal that will be used to refinance a $78.8 million term loan A due in December 2011, a $216.6 million term loan A-1 due in December 2012, and some or all revolver borrowings.

In addition, the company is offering existing revolver lenders the option to extend their commitments until 2013 from June 30, 2011.

The company said in an 8-K filed with the Securities and Exchange Commission that it expects the amended revolver size to be somewhere between $125 million and $175 million and, under the proposed terms, lenders with at least $75 million in commitments are expected to extend their revolver commitments.

Sinclair Television is a wholly owned subsidiary of Sinclair Broadcast Group Inc., a Hunt Valley, Md.-based television broadcasting company.

Language Line sets launch

Language Line is coming to market with a new $575 million refinancing credit facility (Ba3) as it is looking for options that would help it reduce its overall cost of capital, according to a market source.

The facility consists of a $50 million five-year revolver and a $525 million six-year term loan.

Price talk on the revolver and term loan is in the Libor plus 350 basis points context with a 2% Libor floor, the source said, adding that original issue discount guidance is not yet available.

Bank of America is the left lead bank on the deal.

Language Line is a Monterey, Calif.-based provider of language-based services.

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