Citadel dips on refi; forward calendar builds; Renal overfills; tw extending most of term loan

By Sara Rosenberg

New York, Nov. 24 - Citadel Broadcasting Corp.'s term loan headed lower in light trading on Wednesday after news emerged that the company will be approaching the market in the week ahead with a refinancing transaction.

And, Citadel wasn't the only company to announce a new deal. Orleans Homebuilders Inc., ResCare Inc., Decision Resources Inc. and Bentley Systems Inc. joined the calendar for the week of Nov. 29, which has built to a large amount and is expected to grow even more with additional new deal announcements anticipated to hit shortly after the Thanksgiving holiday.

Also on the primary side, Renal Advantage's credit facility has been extremely well received by the market over the course of the past week, so much so that it has already filled out, and lenders still have until the end of the week ahead to place their orders.

In other news, it appears as if a significant portion of tw telecom holdings inc. term loan debt will end up being extended as a good amount of lenders have been throwing in commitments since a pricing change was announced a few days ago.

Citadel slides

Citadel Broadcasting's term loan moved lower to 104¼ bid, 105¾ offered, down from 105 bid, 105½ offered as plans for a refinancing were announced, according to a market source.

The company is scheduled to hold a bank meeting at 2 p.m. ET on Monday to launch a new credit facility for the loan refinancing.

JPMorgan is the lead bank on the deal for which details have not yet been released, the source said.

In June, the company emerged from Chapter 11 with a $762.5 million term loan led by JPMorgan that is priced at Libor plus 800 basis points with a 3% Libor floor. The loan includes call protection of 105 in year one and 102 in year two against optional repayments.

Citadel is a Las Vegas-based pure play radio company.

Orleans coming soon

Another deal that will be launching on Monday is Orleans Homebuilders' proposed $125 million exit financing term loan, according to a market source.

Price talk on the term loan is Libor plus 650 bps with a 2% Libor floor and an original issue discount of 98, the source said.

JPMorgan is the lead bank on the deal.

Orleans Homebuilders is a Bensalem, Pa.-based developer, builder and marketer of single-family homes, townhouses and condominiums.

ResCare deal surfaces

And, ResCare is also holding a bank meeting on Monday, as it plans to launch a $190 million term loan B that is being led by JPMorgan and Bank of America, with JPMorgan the left lead, according to sources.

Proceeds will be used to help refinance existing debt, repay a portion of the amounts used to purchase the company's common shares in the tender offer by Onex Rescare Acquisition LLC, and fund the purchase of any remaining ResCare shares by Onex through a second-step share exchange.

Including the term loan B, the company intends to raise up to $390 million in new debt for the refinancing/buyout.

ResCare is a Louisville, Ky.-based provider of home care to the elderly and persons with disabilities.

Decision Resources plans loan

Decision Resources emerged with news that it intends to hold a bank meeting on Tuesday to launch a proposed $245 million credit facility. Proceeds will go to refinance existing debt and to fund a dividend, according to a market source.

The facility consists of a $25 million revolver, a $170 million first-lien term loan and a $50 million second-lien term loan, the source said, adding that price talk is not yet available.

GE Capital and Credit Suisse are the lead banks on the deal, with GE the left lead.

Decision Resources is a Burlington, Mass.-based research and advisory firms focused on healthcare insights and analysis.

Bentley launching loan

Bentley Systems is scheduled to hold a bank meeting on Dec. 1 to launch a proposed $210 million term loan that is being talked at Libor plus 450 bps with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

JPMorgan is the lead bank on the deal that will be used to fund a tender offer for shares.

Bentley is an Exton, Pa.-based provider of software to architects, engineers, constructors and owner-operators.

Syniverse targets coming week

Also, chatter is that Syniverse Technologies is looking at Dec. 2 to launch its proposed $1.175 billion senior secured credit facility, although timing will not firm up until early in the week, according to a market source.

The credit facility, as outlined in a recent filing with the Securities and Exchange Commission, consists of a $150 million revolver and a $1.025 billion term loan.

Barclays Capital, Credit Suisse and Goldman Sachs are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by the Carlyle Group for $31 per share. The transaction is valued at $2.6 billion.

Syniverse selling notes

Other funds for Syniverse's buyout are expected to come from the sale of $475 million of senior unsecured notes, as well as from up to $1.245 billion of equity.

Closing on the transaction is expected in the first quarter of 2011, subject to customary conditions, including stockholder approval and various regulatory organizations. It is not subject to financing.

Syniverse is a Tampa, Fla.-based provider of technology and business services for the telecommunications industry.

Calendar keeps growing

The list of credit facilities that are slated for next week's business has been growing tremendously and sources expect even more bank meeting announcements to surface shortly, with one person saying that he believes the calendar will have more than $7 billion on it just for that week alone.

On Monday, aside from Citadel, Orleans Homebuilders and ResCare, there is also a $655 million dividend recapitalization/buyout credit facility for Sunquest Information Systems.

Then, on Tuesday, in addition to Decision Resources, there is a $250 million dividend recapitalization credit facility for Earthbound Farm, a $215 million dividend recapitalization facility for Flexera Software Inc., a $300 million dividend recapitalization facility for iHealth Technologies Inc., a $245 million dividend recapitalization facility for TARGUSinfo, and a $1.45 billion refinancing facility for Swift Holdings Corp.

As for Dec. 1, aside from Bentley Systems, Aventine Renewable Energy Holdings Inc. is expected to bring its $200 million refinancing term loan, Transtar Industries Inc. will launch its $425 million buyout financing credit facility, and UTEX Industries Inc. will launch its $190 million buyout deal.

Renal sees strong demand

Among new deals in the market, Renal Advantage's $400 million credit facility (Ba3) is going well with the transaction already oversubscribed since its Nov. 16 launch - even though the commitment deadline is not until Dec. 3, according to a market source.

The facility consists of a $50 million revolver and a $350 million term loan. Price talk on both tranches is Libor plus 450 bps with a 1.5% Libor floor.

In addition, the term loan is being offered to lenders at an original issue discount of 981/2.

Barclays and Bank of America are the lead banks on the credit facility, with Barclays the left lead.

Renal funding merger

Proceeds from Renal Advantage's credit facility, along with $206 million of mezzanine debt, will be used to help fund the company's merger with Liberty Dialysis.

The transaction is expected to be completed by Dec. 31.

Following the close, leverage through the first-lien will be 3.6 times and net leverage through the mezzanine debt will be 5.6 times.

Brentwood, Tenn.-based Renal Advantage and Mercer Island, Wash.-based Liberty Dialysis are providers of dialysis services.

tw telecom gets orders

In more loan happenings, tw telecom's amend and extend proposal saw a pick up in momentum after the company increased pricing on its extended term loan to Libor plus 325 bps from talk of Libor plus 275 bps on Monday, according to a market source.

And, as of Wednesday morning, it appeared as if about 80% of the $577.5 million term loan would be extended to December 2016, the source said, adding that final numbers were still being worked on.

Currently, the company's term loan debt matures in January 2013 and is priced at Libor plus 175 bps. The company was looking to extend at least 50% of the loan.

tw telecom extending revolver

In addition to the term loan extension, tw telecom wants to push out the maturity on its $80 million revolver to December 2014 from October 2011, and revolver lenders are being offered a 50 bps fee for extended commitments.

The amendment would also conform term loan covenants to the covenants in the company's 8% senior notes due 2018.

Lenders are being offered a 10 bps amendment fee.

Wells Fargo, Morgan Stanley and Credit Suisse are the lead banks on the deal that is expected to be completed late this month or early next month.

tw telecom is a Littleton, Colo.-based ethernet service provider.

Rural/Metro closes

Also on Wednesday, Rural/Metro Corp. announced that it completed its $355 million secured credit facility (B1/B+) comprised of a $270 million term loan and an $85 million revolver.

Pricing on the term loan is Libor plus 425 bps with a 1.75% Libor floor and it was sold at an original issue discount of 991/2, and pricing on the revolver priced is Libor plus 450 bps with a 75 bps unused fee and it was offered with a 100 bps upfront fee.

During syndication, the term loan was upsized from $75 million as the decision was made not to move forward with a $200 million senior notes offering, the spread firmed from talk of Libor plus 425 bps to 450 bps and the discount firmed from talk of 99 to 991/2.

Also, the revolver was downsized from $100 million, pricing firmed from talk of Libor plus 425 bps to 450 bps and the upfront fee was increased from 75 bps.

Rural/Metro refinanced debt

Proceeds from Rural/Metro's credit facility were used to repay its existing senior secured revolver, term loan and letter-of-credit facilities, to fund a tender offer for its senior discount notes and to pay off cash collateralized letters of credit.

Remaining proceeds from the facility will be used for working capital and general corporate purposes.

Total and senior leverage is 3.75 times, or 3.25 times net. Under the original financing plans, including the canceled bond offering, senior leverage was going to be 1.1 times and total leverage was going to be 3.9 times.

Rural/Metro is a Scottsdale, Ariz.-based provider of medical ambulance response services.

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