Kinder Morgan sets meeting for $8.6 billion deal; Advanced Medical Optics breaks higher

By Paul A. Harris

St. Louis, April 10 - The forward calendar built meaningfully on Tuesday as Kinder Morgan Inc. set a Thursday bank meeting for its $8.6 billion deal and TRW Automotive Inc. unveiled an approximately $2.5 billion credit facility.

Meanwhile traders reported an active session in the secondary market as an upsized Advanced Medical Optics term loan broke higher in spite of a 25 basis points downward pricing flex.

Kinder Morgan sets timing

Kinder Morgan Inc. will hold a bank meeting on Thursday for its $8.6 billion credit facility (B2).

Goldman Sachs, Citigroup, Deutsche Bank, Wachovia and Merrill Lynch are joint bookrunners on the deal, with Goldman the left lead.

The facility is comprised of a $2.0 billion 6.5-year term loan A, a $2.1 billion seven-year term loan B, a $1.5 billion seven-year term loan C, a $2.0 billion three-year term loan D and a $1.0 billion six-year revolver.

Proceeds will be used to help fund the Houston-based energy infrastructure provider's public-to-private buyout by management and equity investors.

TRW announces $2.5 billion

TRW Automotive Inc. announced that it plans to launch credit facilities totaling approximately $2.5 billion during the second quarter.

JP Morgan and Banc of America Securities LLC will be the arrangers for the facility, which includes a $1.4 billion revolver, a $600 million term loan A and a $500 million term loan B.

Proceeds will be used to refinance the Livonia, Mich., automotive supplier's existing facilities.

Venoco planning second-lien loan

Elsewhere Denver-based independent energy company, Venoco, Inc., announced that it will launch a second-lien term loan of up to $500 million on Thursday via bookrunner Credit Suisse.

Proceeds from the loan will be used to refinance Venoco's existing term loan which was syndicated in order to fund the $456 million acquisition of TexCal Energy in March 2006, and to fund other recently announced acquisitions.

Fleetcor working on dividend deal

Fleetcor Technologies, Inc., is in the market with a $350 million credit facility that is expected to launch this week.

JP Morgan is leading the dividend-funding deal which is comprised of a $50 million revolver and a $300 million term loan.

Fleetcor provides management services for business fleets. Summit Partners and Bain Capital together own a majority interest in the Georgia-based company.

Local TV to meet Thursday

Local TV LLC will hold a bank meeting on Thursday to launch its $305 million of new credit facilities.

The deal, which is being led by UBS and Deutsche Bank, is comprised of a $30 million six-year revolver and a $275 million six-year term loan.

Proceeds will be used to back Local TV's purchase of substantially all of the television stations and related assets of the New York Times Broadcast Media Group.

Advanced Medical on the break

In the secondary market a trader said that the Advanced Medical Optics term loan had traded up on the break, and spotted it at 100.50 bid, 100.75 offered.

Later an informed source confirmed those levels, and added that the Ba1/BB rated deal had previously been upsized to $450 million from $400 million, while pricing had been flexed lower, to Libor plus 175 basis points from Libor plus 200 basis points.

The source said that as a result of the upsizing leverage on the company is 1.8 times. He added that despite the tighter pricing the deal had been significantly oversubscribed.

Elsewhere in the secondary market a trader said that the Baldor Electric Co. term loan continues to be active in a 100.375 bid, 100.625 context.

Meanwhile the term loans of HCA, Inc. traded higher on Tuesday, according to a source, who attributed the move to technical strength.

Late Tuesday morning this trader spotted the HCA term loan A at 100.75 bid, 100.875 offered, while the term loan B was 100.875 bid, 101 offered - both up 1/8 to ¼ point.

Realogy closes

In follow-up news, Realogy Corp. said it completed its acquisition by Apollo Management, LP, a transaction that was partly funded by a $4.445 billion senior secured credit facility (Ba3/BB).

JPMorgan, Credit Suisse, Bear Stearns and Citigroup were joint leads for the loan, with JPMorgan on the left.

The facility includes a $1.95 billion term loan due 2014 at Libor plus 300 bps, a $1.22 billion delayed-draw term loan due 2014 that is available to fund purchases of the company's notes if necessary, $525 million 61/2-year synthetic letter-of-credit facility at Libor plus 300 bps and a $750 million revolver due 2013 at Libor plus 225 bps.

Realogy is a Parsippany, N.J., real estate franchisor.

Visteon wraps add on

Visteon Corp. said it completed a $500 million term loan add-on (Ba3/B+) due December 2013.

The tranche was talked at Libor plus 300 bps and brought to market by lead arrangers JPMorgan and Citigroup.

The Van Buren Township, Mich., automotive parts supplier said the extra bank debt enhanced its liquidity. It described the deal as "taking advantage of favorable market conditions."

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