RCS Capital falls as Cole acquisition terminated; Media General breaks; Bluestem revised

By Sara Rosenberg

New York, Nov. 3 – RCS Capital Corp.’s first-lien term loan dropped in trading on Monday after news came out that the company canceled its agreement to purchase Cole Capital, and Media General Inc.’s new B-2 loan emerged in the secondary market.

Moving to the primary, Bluestem Brands Inc. widened the spread and original issue discount on its term loan, shortened the maturity and sweetened amortization and the excess cash flow sweep.

Additionally, Lonestar Generation LLC released details on its loan transaction, Endemol set original issue discount talk on its add-on debt, and Total Merchant Services Inc. and Parq Resort & Casino (Parq Ltd. Holdings Partnership) joined this week’s calendar.

RCS Capital’s first-lien term loan sank in the secondary market on Monday to 96½ bid, 98½ offered from 98¼ bid, 99½ offered following the announcement that the company terminated its plans to acquire Cole Capital Partners LLC and Cole Capital Advisors Inc. from American Realty Capital Properties Inc., according to a trader.

The acquisition of the Phoenix, Ariz.-based private capital business was valued at $700 million, split between $200 million of cash, $300 million of seller debt, and $200 million of class A common stock.

RCS did not give a reason for the termination of the purchase agreement.

In response, American Realty issued a statement claiming that RCS has no basis for the termination and is therefore in breach of the agreement.

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