Alliant Sets Acquisition Loan Rate; Learfield Prices LBO Debt

Alliant Techsystems Inc. (ATK) set the rate on $1.86 billion of loans it’s seeking to support its purchase of Bushnell Group Holdings Inc., while Learfield Communications Inc. priced $300 million in bank debt backing its leveraged buyout by Providence Equity Partners Inc.

The world’s largest ammunition maker will pay interest at 2 percentage points more than the London Interbank offered rate on a $1.01 billion portion, and 2.75 percentage points to 3 percentage points more than Libor on a $250 million slice, with a 0.75 percent minimum on the lending benchmark, according to a lender presentation in a regulatory filing yesterday.

The deal, which supports the $985 million purchase of binocular-maker Bushnell from MidOcean Partners, includes a $600 million revolving line of credit that will pay interest at 2 percentage points more than Libor.

A $215 million term loan due in seven years for Learfield, a provider of sports and news radio programming, will pay interest at 4 percentage points more than Libor, with a 1 percent minimum on the lending benchmark, according to a person with knowledge of the transaction who asked not to be identified because terms are private. An $85 million piece due in eight years will pay interest at 7.75 percentage points more than Libor, with a 1 percent minimum on the lending benchmark.

Excelitas Technologies Corp., an electronic products provider owned by Veritas Capital, set a bank meeting for tomorrow at 2 p.m. in New York to discuss $945 million in loans to support the acquisition of Qioptiq, according to a person with knowledge of the deal.

KKR Purchase

The financing includes a $620 million first-lien loan due in seven years, of which $40 million is delayed draw, that will pay 5 percentage points to 5.25 percentage points more than Libor, with a 1 percent minimum on the lending benchmark, said the person who asked not to be identified because terms aren’t set. The debt is offered to lenders at 98.5 cents on the dollar. There’s also a $285 million second-lien piece, which a unit of KKR & Co. is buying, and a $40 million revolver.

CityCenter Holdings LLC, a joint venture of MGM Resorts International (MGM) and Infinity World Development Corp. with properties on the Las Vegas strip, priced a $1.7 billion loan at 4 percentage points more than Libor, with a 1 percent minimum on the lending benchmark, according to a person with knowledge of the transaction. The borrowings, proceeds of which will be used to refinance debt, was offered to lenders at 99 cents on the dollar.

Prices of U.S. leveraged loans fell 0.01 cent to 97.5 cents on the dollar today, according to the Standard & Poor’s/LSTA Leveraged Loan 100 Index. In Europe, loan prices climbed to a more-than five-year high, to 94.22 cents on the euro today, the highest since Jan. 10, 2008, when prices reached 94.43 cents, according to S&P European Leveraged Loan Index.

First-lien debt is repaid first in a bankruptcy or liquidation, second-lien debt is repaid next. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.

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