Calpine dips on numbers; Las Vegas Sands softens, Venetian Macao up; Universal Orlando tightens

By Sara Rosenberg

New York, Oct. 30 - Calpine Corp.'s first-lien term loan lost some ground during Friday's trading session as the company released quarterly earnings, and Las Vegas Sands Corp. was lower, while Venetian Macao was better on the back of earnings and reports that the company's Hong Kong initial public offering was approved.

Also in the secondary market, Universal Orlando's term loan B saw levels narrow during its first full day of trading after freeing up late during the previous session, Texas Competitive Electric Holdings Co. LLC's bank debt was unchanged to stronger with its earnings news and the Manitowoc Co.'s term loan B held firm on its third-quarter results.

Calpine first-lien slides

Calpine's first-lien term loan dropped in trading following the company's announcement of third-quarter earnings that fell short of estimates, according to traders.

The first-lien term loan was quoted by one trader at 91¾ bid, 92¼ offered, down seven-eighths of a point on the day, and by a second trader at 91¾ bid, 92¾ offered, down from 92 bid, 93 offered.

For the third quarter, Calpine had net income of $238 million, or $0.49 per share, compared to net income of $136 million, or $0.28 per share, in the 2008 quarter.

Operating revenues for the quarter were $1.847 billion, compared to $3.19 billion last year.

Adjusted EBITDA for the quarter was $586 million, down from $594 million in the prior year period.

And, liquidity during the third quarter was over $2.2 billion.

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

Las Vegas Sands weakens

Las Vegas Sands' strip of institutional bank debt came in a little on Friday on the heels of the release of numbers that showed a greater net loss when compared to last year's results, according to traders.

The strip of delayed-draw term loan and term loan B debt was quoted by one trader at 80¼ bid, 81¼ offered, down a quarter of a point on the day, and by a second trader at 81 bid, 82 offered, down from 81½ bid, 82½ offered.

Late Thursday, the company revealed that for the quarter ended Sept. 30, net loss attributable to common stockholders was $123 million, or $0.19 per diluted share, compared to a loss of $32.2 million, or $0.09 per diluted share, last year.

Net revenue for the quarter was $1.14 billion, an increase of 3.2% from $1.11 billion in the third quarter of 2008.

Consolidated adjusted property EBITDAR in the quarter increased 11.7% to $272.3 million, compared to $243.8 million in the year-ago period.

As of Sept. 30, total debt outstanding, including the current portion, was $11.76 billion. Scheduled principal payments required for the remainder of 2009 total $35.6 million and in 2010 total $191.4 million.

Venetian Macao strengthens

Also late Thursday, Las Vegas Sands announced earnings for its subsidiary, Venetian Macao, and on Friday, news reports emerged that Las Vegas Sands won approval for an initial public offering of its Macau operations on the Hong Kong Stock Exchange.

On the back of the news, Venetian Macao's term loan was quoted at 92¼ bid, 93¼ offered, up a half a point on the day, one trader said, while a second trader was seeing the loan at 92 bid, 93 offered, versus 91¾ bid, 93 offered during the previous session.

For the third quarter, Venetian Macao had net revenues of $493.6 million, down 5.5% from $522.4 in the comparable period last year.

Operating income for the quarter was $95.6 million, up 17.2% from $81.6 in the previous year.

And, adjusted property EBITDAR for the quarter was $150.4 million, up 10.8% from $135.7 million in the 2008 third quarter.

Las Vegas Sands is a Las Vegas-based developer of multi-use integrated resorts.

Universal Orlando bid up

Universal Orlando saw the bid on its term loan B inch up and the offer inch down on Friday when compared to levels that were seen on the break late Thursday, according to a market source.

The term loan B was quoted at par 3/8 bid, par 5/8 offered, the source said. By comparison, on the break, levels were quoted at par ¼ bid, par ¾ offered.

The $900 million five-year term loan B is priced at Libor plus 425 basis points with a 2.25% Libor floor and was sold at an original issue discount of 981/2.

On Thursday, the original issue discount on the term loan B was decreased from 98 and the Libor floor was lowered from 2.5%.

Universal Orlando also getting revolver

In addition to the term loan B, Universal Orlando is also obtaining a $75 million four-year revolver that is priced at Libor plus 425 bps with a 2.25% Libor floor as well.

The Libor floor on the revolver was also reduced from 2.5% during syndication.

JPMorgan and Bank of America are the joint lead arrangers and bookrunners on the $975 million deal (Ba2/B+), and Barclays, Deutsche Bank, Goldman Sachs and Morgan Stanley are also bookrunners.

Proceeds will be used to help fund the redemption of the company's 11¾% senior notes due in 2010, 8 3/8% senior notes due in 2010 and floating-rate senior notes due in 2010.

Other funds for the redemptions will come from $400 million of senior unsecured notes and $225 million of senior subordinated notes.

Universal Orlando is an Orlando, Fla.-based owner and operator of theme parks.

Texas Competitive flat to higher

Texas Competitive's bank debt was unchanged to better in trading as the company's parent, Energy Future Holdings Corp., revealed third-quarter results that were pretty much in line with expectations, according to traders.

One trader was quoting the term loan B-1 and B-2 at 77 1/8 bid, 77 5/8 offered, unchanged on the day, the term loan B-3 at 76 1/8 bid, 76 5/8 offered, unchanged on the day, and the delayed-draw term loan at 75¾ bid, 76¼ offered, up a quarter of a point on the day.

A second trader, however, was quoting the term loan B-1 and B-2 at 77 bid, 78 offered, up from 76¾ bid, 77¾ offered, the term loan B-3 at 76¼ bid, 77¼ offered, unchanged on the day, and the delayed-draw term loan at 76 bid, 77 offered, unchanged on the day.

For the third quarter, Energy Future reported a consolidated net loss of $80 million, compared to reported net income of $3.617 billion for the third quarter 2008.

Adjusted net earnings for the quarter were $10 million, compared to a net loss of $21 million last year.

And, operating revenues for the quarter were $2.885 billion, compared to $3.695 billion in the third quarter of 2008.

Texas Competitive is a Dallas-based energy company.

Manitowoc holds steady

Manitowoc's term loan B stayed firm on Friday following the company's release of earnings late Thursday, according to a trader.

The term loan B was quoted at 98¾ bid, 99¾ offered, flat on the day, the trader said.

For the third quarter, the company reported a loss of $17.7 million, or $0.14 per diluted share, versus a net loss of $26.1 million, or $0.20 per share, last year.

Excluding unusual items, the adjusted loss from continuing operations was $4.9 million, or $0.04 per share, compared adjusted earnings of $92.7 million, or $0.71 per share, in the prior year.

Sales for the quarter were $881.5 million, down 20% from $1.107 billion in the third quarter of 2008.

Manitowoc lowers debt

Manitowoc also said that its cash flow from operations in the third quarter was $198 million, enabling it to reduce debt.

During the quarter, debt was lowered by about $140 million.

With year-to-date debt reduction of $262 million, Manitowoc continues to target full-year debt reduction of $450 million.

In addition, adjusted EBITDA for the quarter was $96 million, bringing trailing 12-month adjusted EBITDA to $455 million.

Manitowoc is a Manitowoc, Wis.-based multi-industry, capital goods manufacturer.

Warner Chilcott closes

In other news, Warner Chilcott plc closed on its $3.2 billion credit facility (B1/BB+), consisting of a $250 million five-year revolver, a $1 billion five-year term loan A, a $1.6 billion 51/2-year term loan B and a $350 million delayed-draw term loan B, according to a news release.

Pricing on the revolver and term loan A is Libor plus 325 bps, and pricing on the term loan B and delayed-draw is Libor plus 350 bps. All tranches have a 2.25% Libor floor and the original issue discount was 99. The delayed-draw commitment fee is 175 bps.

During syndication, the term loan B was upsized to $1.95 billion, including the delayed draw, from $1.5 billion, pricing on the term loan A was reduced from initial talk of Libor plus 350 bps, pricing on the term loan B was reduced from initial talk of Libor plus 375 bps, the Libor floor was cut from 2.5% and the discount was set at the tight end of the 98 to 99 talk.

The term loan B upsizing eliminated the need for a bond offering.

Bank of America and Credit Suisse acted as the co-lead arrangers on the deal. Bookrunners were Bank of America, Credit Suisse, Barclays, Citigroup, JPMorgan and Morgan Stanley. Credit Suisse is the administrative agent.

Proceeds were used to fund the acquisition of Procter & Gamble Co.'s pharmaceuticals business.

Warner Chilcott is a Rockaway, N.J.-based specialty pharmaceutical company.

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