Aquilex breaks; LyondellBasell up again; Open Mobile revolver talk emerges; MSCI attracts agents

By Sara Rosenberg

New York, March 26 - Aquilex Holdings LLC's credit facility allocated and freed up for trading on Friday, and LyondellBasell Industries' pre-petition CAM continued to track higher as demand for the paper appears to have increased while supply seems to have faded away.

Over in the primary market, pricing guidance on Open Mobile's proposed revolving credit facility started making its way around the market, while price talk on the company's term loan had already been floating around.

Also, MSCI Inc. has received commitments from two banks towards its acquisition financing credit facility and, in return, those banks were given agent titles, and news surfaced that 24 Hour Fitness Worldwide Inc. and CF Industries Holdings Inc. are getting ready to launch new deals.

Additionally, the commitment deadline on Prime Healthcare Services Inc.'s credit facility is possibly slipping into early during the week of March 29 as some investors requested a little bit more time to work on the transaction.

Aquilex frees to trade

Aquilex's credit facility hit the secondary market on Friday, with the $185 million term loan quoted at 99½ bid, par½ offered on the break and then moving up to par 3/8 bid, 101 1/8 offered, according to a trader.

Pricing on the term loan is Libor plus 400 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 99.

During syndication, the Libor floor was lowered from 2% and the discount tightened from 981/2.

Morgan Stanley and RBC are the lead banks on the $235 million senior secured deal (BB-) that also includes a $50 million revolver priced at Libor plus 400 bps.

Proceeds will be used to refinance the company's existing credit facility.

Aquilex is an Atlanta-based provider of maintenance, repair and industrial cleaning services for the energy industry.

LyondellBasell CAM rises some more

LyondellBasell's pre-petition CAM managed to sustain its recent positive momentum as levels moved up by another few points during market hours, according to traders.

The Netherlands-based polymer, petrochemicals and fuels company's CAM was quoted by one trader at 77 bid, 78 offered up from 75 bid, 76 offered, and by a second trader at 77½ bid, 78½ offered, up from 75½ bid, 76½ offered.

Friday's gain was just a continuation of the trend that has been seen in this name over the past couple of days. For example, on Wednesday, the CAM was quoted around 73¾ bid, 74¾ offered context and on Tuesday it was at 73 bid, 74 offered.

LyondellBasell in demand

One trader explained that LyondellBasell's CAM has been on the move primarily because strong interest in the paper has been created by a couple of factors.

First, the trader said that there were fewer sellers in the name lately, although he wasn't sure why. One possibility thrown out there was that people were away for Barclays Capital's conference in Arizona, causing supply to dry up this week.

Second, according to the trader, there are a lot of distressed players who have a lot of money to put to work. He explained that guys who already own the CAM may be buying some more, and as people see it moving higher, they start to give it attention, creating even more demand.

Lastly, speculation is that the company could be out of bankruptcy in six weeks. If there's a $10 billion market cap, a lot of equity guys could get involved, the trader said.

The CAM is getting equity. People are buying the debt with the expectation that the equity they're going to get will have a pretty strong bid, the trader added.

MGM Studios inches up

Metro-Goldwyn-Mayer Inc.'s (MGM Studios) term loan was a little stronger in trading as the current levels seem to be attracting some buyers, according to traders.

The term loan was quoted by one trader at 47 7/8 bid, 48¾ offered, up from 47½ bid, 48½ offered, and by a second trader at 47¾ bid, 48½ offered, up from 47¼ bid, 48¼ offered.

On Wednesday the paper dropped from around the 50¼ bid, 51¼ offered context as the company held a lender call to discuss an extension of its forbearance agreement related to missed interest payments on its credit facility, but on Thursday things started to turn around and that trend continued into Friday.

MGM Studios is a Los Angeles-based motion picture, television, home video and theatrical production and distribution company.

Open Mobile revolver talk

Open Mobile revealed price talk on its proposed $15 million four-year revolving credit facility after already circulating guidance on its $160 million six-year term loan during Thursday's market hours, according to a market source.

The revolver is being guided in the Libor plus 375 bps to 400 bps area, the source said, which is just inside of the term loan price talk.

As was previously reported, the term loan is being talked in the Libor plus 400 bps to 425 bps area with a 2% Libor floor and an original issue discount in the 98½ to 99 context.

Open Mobile lead banks

Morgan Stanley and SunTrust are the joint bookrunners on the $175 million senior secured deal, with Morgan Stanley on the left.

A bank meeting to launch the deal into syndication is scheduled to take place in New York on Monday.

Open Mobile is a provider of pre-paid wireless service in Puerto Rico. It is owned primarily by MC Venture Partners, Columbia Capital and Leap Wireless.

MSCI gets agents

MSCI has engaged Credit Suisse as the syndication agent and Bank of America as the documentation agent on its proposed $1.375 billion senior secured credit facility (Ba2/BB+), according to an 8-K filed with the Securities and Exchange Commission on Friday.

As part of signing on to the agent roles, each of the banks has committed to provide $127.5 million of the term loan and $10 million of the revolver.

Morgan Stanley is still acting as the lead arranger and bookrunner on the deal.

Tranching on the facility is comprised of a $100 million five-year revolver, which is expected to be undrawn at closing, and a $1.275 billion six-year term loan B, with both tranches expected to be priced at Libor plus 350 basis points with a 1.5% Libor floor, according to previous filings with the Securities and Exchange Commission.

The revolver is expected to have a 75 bps unused fee.

Covenants include a minimum interest coverage ratio and a maximum total leverage ratio.

MSCI funding acquisition

Proceeds from MSCI's credit facility, along with $642 million of existing cash, will be used to finance the acquisition of RiskMetrics Group Inc., to refinance existing senior secured credit facilities at MSCI and RiskMetrics and to fund the ongoing working capital needs of the company.

MSCI is buying RiskMetrics in a cash and stock transaction valued at $21.75 per share, based on MSCI's closing price of $29.98 per share on Feb. 26, or $1.55 billion. The offer consists of $16.35 in cash and 0.1802 shares of MSCI per RiskMetrics share.

Net debt to 2009 adjusted EBITDA will be 3.6 times, and net debt to 2009 adjusted EBITDA plus run-rate synergies will be 3.1 times.

Closing is expected to take place sometime in the June/July timeframe, subject to approval of RiskMetrics shareholders, anti-trust clearance and receipt of financing.

MSCI is a New York-based provider of investment decision support tools to investment institutions. RiskMetrics is a New York-based provider of risk management and corporate governance products and services to the financial community.

24 Hour Fitness sets launch

24 Hour Fitness has scheduled a bank meeting for Tuesday to launch a proposed $675 million credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of a $75 million five-year revolver and a $600 million six-year term loan B, the source said, adding that price talk is not yet available.

JPMorgan is the lead bank on the deal.

24 Hour Fitness is a San Ramon, Calif., fitness center company.

CF Industries launching Monday

Another new deal that's coming up is CF Industries' up to $2.3 billion credit facility, which has been set to launch with a bank meeting on Monday, according to a market source.

The facility consists of an up to $2 billion five-year term loan B and a $300 million five-year revolver, with both tranches expected to be priced at Libor plus 350 bps with a 2% Libor floor and an original issue discount of 981/2, according to recent filings with the SEC.

The revolver has a 75 bps commitment fee, and the term loan has a 75 bps ticking fee.

Financial covenants include a minimum interest coverage ratio and a maximum leverage ratio.

Morgan Stanley and the Bank of Tokyo-Mitsubishi UFJ are the lead banks on the deal, with Morgan Stanley the administrative agent.

CF Industries gets bridge commitment

In addition to the credit facility, CF Industries has also received a commitment for an up to $1.75 billion one-year bridge loan priced initially at Libor plus 800 bps with a 2% Libor floor. After 30 days, the spread will increase by 100 bps, and by an additional 100 bps each 30 days thereafter.

The company plans to do a roughly $1 billion shares offering to reduce amounts under the bridge loan and/or the term loan B, and the company may sell senior unsecured notes to refinance the bridge loan as well.

Proceeds from the financing will be used to fund the acquisition of Terra Industries Inc. for $37.15 in cash and 0.0953 of a share of its common stock per Terra share, to repay any outstanding amounts under CF Holdings' existing credit facility and to repurchase Terra's existing notes.

The revolver will be used for general corporate purposes.

CF Industries is a Deerfield, Ill.-based producer and distributor of nitrogen and phosphate fertilizer products. Terra is a Sioux City, Iowa-based producer and marketer of nitrogen and methanol products.

Prime Healthcare still working

Chatter is that the banks on Prime Healthcare Services' $290 million credit facility (B1) may be accepting some orders past Friday's commitment deadline since some people asked for a couple of more days to work on the deal, according to a market source.

The source said that more time was needed by a few investors since there are a lot of deals in the market right now, and the expectation is that syndication should wrap during the earlier part of the week of March 29.

RBC is the lead bank on the credit facility.

Proceeds will be used to refinance existing debt, make certain investments and for general corporate purposes.

Prime Healthcare details

Prime Healthcare's facility consists of a $40 million four-year revolver priced at Libor plus 400 bps, a $50 million four-year term loan A priced at Libor plus 425 bps with an original issue discount of 981/2, and a $200 million five-year term loan B priced at Libor plus 525 bps with an original issue discount of 971/2.

All tranches include a 2% Libor floor.

Earlier in the syndication process, the deal had been reworked, eliminating a $250 million six-year term loan tranche that was talked at Libor plus 400 bps with a 2% Libor floor and creating the term loan A and term loan B tranches, shortening the tenor on the revolver from five years, adding an excess cash flow sweep to the agreement and placing further limitations on distributions.

The revisions were attributed to Moody's Investors Service's rating coming in lower than expected and the decision not to get a rating from Standard & Poor's.

Prime Healthcare is an Ontario, Calif.-based owner and operator of acute care hospitals.

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