Securitization People and Markets

J.P. Morgan and Morgan Stanley launched syndication last Tuesday of an amended and increased facility for wireless communications company Crown Castle International Corp. The new $1.2 billion credit includes increased pricing and a longer maturity on the "B" loan, confirmed Jay Brown, v.p. of finance. The "B" tranche is furthermore being increased from $399 million to $1 billion, with pricing increased from LIBOR plus 23/4% to LIBOR plus 31/4%. Maturity on the institutional piece will be extended from March 2008 to September 2010.

GE Corporate Financial Services' global sponsor finance division has entered into strategic relationships with both Morgan Stanley and Lehman Brothers in order to provide one-stop financing solutions. Stuart Aronson, managing director and head of GE global sponsor finance, said the partnership links GE's balance sheet and coverage force with the high-yield underwriting expertise and large-cap universe of the two investment banks. Michael Hart, head of the global loan products group at Morgan Stanley, said "Morgan Stanley enjoys an excellent working relationship with GE and we look forward to strengthening that relationship in this important area of financial sponsors." Robert Redmond, Lehman's head of leveraged finance, and a Lehman spokeswoman did not return calls by press time.

The Pantry, a Sanford, N.C.-based convenience store retailer, is adding on first-lien and second-lien debt to its existing credit, which was completed last April. Wachovia Securities is shopping a $60 million addition for the "B" loan and $30 million in new money for the second-lien piece. Proceeds from the new debt will back the company's acquisition of the Golden Gallon convenience store chain from Ahold, USA. The credit currently includes a $52 million revolver, a $249 million "B" term loan and a $50 million second-lien loan. Pricing is at LIBOR plus 41/4% for the first-lien debt, while the second-lien piece has a coupon of 61/2% over LIBOR. The add-ons are priced the same as the existing debt. Dan Kelly, cfo, and a Wachovia banker, did not return calls.

Euramax International, a Norcross, Ga.-based manufacturer of aluminum, steel, vinyl and fiberglass, is refinancing its $110 million credit facility. A bank meeting for a new $145 million credit is scheduled for this Wednesday. Wachovia Securities is leading the deal, which includes a $110 million revolver priced at LIBOR plus 21/2%, down 25 basis points from the previous credit. A $35 million term loan "A" is also priced at LIBOR plus 21/2%. Scott Vansant, Euramax's cfo, declined to comment.

Dobson Communications Corp.'s $700 million refinancing is scheduled to launch for syndication tomorrow, according to bankers familiar with the deal. The credit, led by Lehman Brothers and Bear Stearns, includes a $150 million revolver and a $550 million "B" loan. Price talk is in the LIBOR plus 31/2% range for the institutional piece, and in the LIBOR plus 3% context for the revolver, the banker noted.

SunTrust Bank and Credit Suisse First Boston are leading a $300 million facility for Overnite Transportation Co., a Richmond, Va.-based less-than-truckload hauling company that announced its spin-off from parent Union Pacific Corp. in August. CSFB and Morgan Stanley will underwrite the company's proposed IPO. The credit, which will be pitched at a Sept. 22 bank meeting, will include a $175 million revolver and a $125 million term loan, with five-year tenors.

The strength and visibility of the defense industry has enabled a stream of acquisitions in the leveraged defense sector and the acquisition activity is expected to continue with U.S. defense spending growing substantially. "Defense companies have access to the capital markets, which is giving them the currency with which to do acquisitions," said Tom Gallagher, managing director and group head of defense and aerospace investment banking for Wachovia Capital Markets.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.