Orbitz upsizes, lifts spreads; Tower Auto flexes, adds OIDs; LCDX, cash market tumble

By Sara Rosenberg

New York, July 20 - Orbitz Worldwide Inc. increased the size of its credit facility while at the same time flexing pricing higher on all tranches, and Tower Automotive Inc. lifted pricing on its credit facility, added original issue discounts and adjusted call protection.

Over in trading, LCDX and the cash market dropped off fairly significantly during Friday's market hours as investors continue to sell, sell, sell.

Orbitz upsized its credit facility, through an increase to the revolver tranche, and lifted pricing across the board by 50 basis points, according to a market source.

The six-year revolver is now sized at $85 million, up from $75 million, the source said.

Pricing on the revolver, the $125 million six-year synthetic letter-of-credit facility and the $600 million seven-year term loan was flexed up to Libor plus 300 bps from original talk at launch of Libor plus 250 bps, the source added.

UBS and Credit Suisse are the lead banks on the now $810 million (up from $800 million) senior secured credit facility (B1/BB-), with UBS the left lead.

The deal is being done in connection with the company's initial public offering of 34 million shares of common stock, which priced on Thursday at $15 per share.

Proceeds from the credit facility, along with IPO proceeds, will be used to fund a dividend to parent company Travelport Ltd.

Travelport plans to use the proceeds from the payment to repay a portion of its senior credit facility debt.

The completion of the IPO is scheduled for July 25.

Orbitz is a Chicago-based online travel company.

Tower Automotive tweaks deal

Tower Automotive made some changes to its credit facility, including flexing pricing higher, adding original issue discounts to the first- and second-lien term loans and revisiting call premiums, according to a buyside source.

The $60 million synthetic letter-of-credit facility, the $275 million six-year first-lien term loan and the $235 million euro first-lien term loan are now priced at Libor/Euribor plus 400 bps, up from previous talk of Libor plus 325 bps to 350 bps, the source said.

In addition, the first-lien term loans are now being sold at a discount of 981/2, as opposed to at par, and carry 101 soft call protection for one year, the source continued.

Meanwhile, the $75 million seven-year second-lien term loan and the $50 million euro second-lien term loan are now both priced at Libor/Euribor plus 750 bps, up from previous talk of Libor/Euribor plus 625 bps to 650 bps, the source remarked.

Furthermore, the second-lien term loans are now being sold at a discount of 98, as opposed to at par, and call protection was changed to 104 in year one, 102 in year two and 101 in year three from just 102 in year one and 101 in year two, the source added.

Tower Automotive's $895 million credit facility also includes a $200 million five-year asset-based revolver.

The credit agreement contains a net senior leverage test, which was added to the deal earlier on in syndication.

JPMorgan and Goldman Sachs are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Tower by Cerberus Capital Management LP for about $1 billion.

Tower Automotive is a Novi, Mich.-based auto parts maker.

National Grid wraps after flex up

National Grid Wireless US completed syndication of its $250 million credit facility after increasing pricing on its first-lien debt, according to a market source.

The $20 million revolver, the $152 million first-lien term loan and the $35 million delayed-draw term loan are now all priced at Libor plus 275 bps, up from original talk at launch of Libor plus 225 bps, the source said.

The delayed-draw term loan is delayed draw for 12 months and has an undrawn fee of 50 bps.

Pricing on the company's $43 million second-lien term loan ended up in line with initial talk at Libor plus 550 bps, the source added.

GE Capital is the lead arranger and bookrunner on the deal.

Proceeds are being used to help fund the acquisition of the company by M/C Venture Partners and Wachovia Capital Partners from National Grid plc.

National Grid Wireless US is a Boxborough, Mass., full-service provider of turnkey wireless infrastructure, fiber networks and wireless services.

LCDX, cash plummet

Switching to the secondary market, LCDX and the cash market in general fell off considerably during a very active Friday in which market players continued to assess their risk and sell their paper, according to sources.

The LCDX index ended the session at 94.50 bid, 94.75 offered, down from 95.35 bid, 95.45 offered on Thursday, a trader said.

And, the index traded as low as 94.20 during the session, the trader added.

Meanwhile, the cash market was down about a point to two points depending on the name, according to a market source.

"Everything was down today. Not the best day out there," the source continued.

"All the liquid large deals that people could get out of easily traded down significantly," the trader remarked.

For example, Georgia-Pacific Corp., an Atlanta-based manufacturer and marketer of tissue, packaging, paper, building products and related chemicals, saw its term loan B end the day at 97¾ bid, 98¼ offered, down from Thursday's levels of 98¾ bid, 99 1/8 offered, the trader said.

Kinder Morgan Inc., a Houston-based energy infrastructure provider, saw its term loan B end the day at 98 bid, 98½ offered, down from 98 3/8 bid, 98 7/8 offered on Thursday, the trader added.

Some other names that were down on Friday included Generac Power Systems Inc. and Movie Gallery Inc.

Generac, a Waukesha, Wis., manufacturer of standby power products, saw its first-lien term loan end up at 94 bid, 95 offered, down about a point to two points from previous levels, a second trader said.

Movie Gallery, a Dothan, Ala.-based video rental company, saw its first-lien term loan B end up at 93½ bid, 94½ offered, down from 94 bid, 95 offered on Thursday, the second trader added.

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