JPMorgan Partners pursues funding for Quiznos stake
JPMorgan Partners LLC will meet today with potential lenders for $925 million to help fund its purchase of almost 50 percent of Denver-based Quiznos, the second-biggest U.S. sandwich chain, said a person involved in the deal.
JPMorgan Partners, the private-equity arm of JPMorgan Chase & Co., wants a $600 million term loan paying interest at a proposed 2.5 percentage points over the London interbank offered rate, said the person, who declined to be named.
The private-equity firm, which manages about $10 billion in assets, is also seeking a $250 million second-lien term loan with interest proposed at LIBOR plus 6 percentage points and a $75 million revolving credit line, the person said.
Closely held Quiznos said in March that JPMorgan Partners will buy a “significant” stake in the company. Quiznos has more than 4,500 stores worldwide and is the No. 2 sandwich chain in the U.S. after Subway Restaurants.
Three-month LIBOR, an average of rates set daily by banks and used as a borrowing benchmark, is 5.08 percent. The second-lien loan will rank behind the first-lien debt in the event of a bankruptcy and pay a higher interest rate to compensate investors for the added risk.
LAKEWOOD
Casinos roll 4% rise in March revenues
Colorado’s mountain casinos posted a 4 percent increase in revenue in March compared with the same month a year ago, according to figures released Tuesday.
The state’s 46 casinos reported adjusted gross proceeds – total wagers minus payouts – of $66.6 million in March, up from $64 million in March 2005. Black Hawk’s 21 casinos posted revenue of $47.8 million, up from $45.7 million. Cripple Creek’s 19 casinos had $12.9 million, up from $11.9 million. Central City’s six casinos’ revenue dropped to $5.9 million from $6.4 million.
ASPEN
$23 million in projects planned for 4 resorts
Aspen Skiing Co. plans to spend more than $23 million on capital improvements at its four ski resorts for the 2006-07 season, the company announced Tuesday.
Improvements include $13 million for the new Elk Camp Gondola at Snowmass and $8 million for new cabins for the Silver Queen Gondola at Aspen Mountain.
Aspen Skiing also said preliminary data show that skier visits for the 2005-06 season were up more than 6 percent over last winter, when it saw roughly 1.37 million skier visits.
DENVER
88% say transit strike “inconvenient” in poll
A member survey released Tuesday by the Downtown Denver Partnership found that the recent RTD transit strike was considered “inconvenient” by 88.3 percent of respondents.
The largest inconvenience was the shutdown of the 16th Street Mall Shuttle, with 87.1 percent saying they used it regularly.
DENVER
Report: MediaNews pursuing 4 papers
Denver-based ap, the publisher of The Denver Post and 40 other newspapers nationwide, is in “advanced talks” to purchase four newspapers from Sacramento, Calif.-based newspaper chain McClatchy Co., according to a Reuters report.
The report, which cited unnamed sources, said Media News was the lead candidate to buy the San Jose Mercury News, the Contra Costa Times and The Monterey County Herald in northern California. Media News also might purchase Minnesota’s St. Paul Pioneer Press, the report said. MediaNews officials on Tuesday declined to comment on the report.
DENVER
Cook’sMart prepares to hold its final sale
The Cook’sMart store in Cherry Creek is closed in preparation for a going-out-of-business sale. The store will reopen Thursday morning and will remain open until the merchandise is sold.
Store owner Merrillyn Shroads has operated the store for 25 years. She said she plans to travel and relax after the store is closed.
ARAPAHOE COUNTY
IRC to acquire gold royalty in Australia
International Royalty Corp. of Arapahoe County announced Tuesday it has agreed to acquire a producing western Australian gold royalty.
IRC will pay $10 million in cash to Resource Capital Fund III LP, a mining-focused private- equity fund, for the royalty interest, which is a 1.5 percent net smelter return and applies to more than 3.1 million acres.
CENTENNIAL
Raytheon employee apparently lost at sea
Raytheon Polar Services Co. of Centennial announced Tuesday that a crew member aboard the National Science Foundation research vessel Laurence M. Gould is missing and presumed dead after apparently falling overboard in Antarctic waters.
The crew member was discovered missing Monday afternoon while the ship was en route to its home port of Punta Arenas, Chile. The NSF is not identifying the missing person until next of kin have been notified.
DENVER
Colo. gas, oil permits likely to set record
Colorado is on pace to issue a record 4,650 permits for new oil and gas wells this year, up 6.5 percent from the record set last year.
The Colorado Oil and Gas Conservation Commission issued 1,327 drilling permits through Friday. It projected the state will produce a record 3.37 billion cubic feet of natural gas a day by year-end, 6 percent more than last year.
HOUSTON
Prosecutor keeps Skilling on short leash
Former Enron Corp. chief executive Jeff Skilling sparred with a prosecutor Tuesday when challenged about whether the company used fraudulent financial structures and other means to fudge its numbers in the years before it collapsed into bankruptcy proceedings.
Skilling occasionally answered with sarcasm or tried to give lengthy explanations, only to have prosecutor Sean Berkowitz demand a “yes,” “no” or otherwise concise statement, to which Skilling would say, “OK.”
Skilling’s co-defendant, Enron founder Ken Lay, is expected to begin testifying next week, after Skilling wraps up his testimony and other defense witnesses take the stand.
ELK GROVE VILLAGE, Ill.
UAL names Ted exec to new customer post
United Airlines parent UAL Corp. on Tuesday named Sean Donohue, who has been overseeing its discount carrier Ted, to the new post of vice president for the customer experience.
Donohue, who was once United Airlines’ top executive in Denver, has been vice president of operational services for United Express and Ted.
