Securitization People and Markets

Bank of America is set to lead the syndication of a $1 billion debt package for Precision Castparts Corp. (PCC), according to a company spokesman. The financing will help back the Portland, Ore.-based company's acquisition of SPS Technologies for $729 million. The package will include a $700 million credit with a $300 million term loan and a $400 million revolver, the spokesman said. He added that there is also a $300 million bridge facility included in the debt package.

Bank of New York and CIT Group have jumped in at the agent level to join the $200 million credit for B&G Foods, said executive v.p of finance and cfo, Robert Cantwell. He added that the facility, which is led by Lehman Brothers, was expected to wrap up late last week as LMW went to press. The credit, which will also go toward refinancing $45 million of existing term debt, backs B&G's acquisition of Nestle Prepared Food Co.'s Ortega brand for $116 million. Cantwell said the acquisition will be completed at the close of the bank deal.

Several portfolio managers were left frustrated last week as an amendment for an incremental add-on term loan for Allied Waste Industries' $3.15 billion credit also cemented a provision that allows the company to reprice the credit in the future without existing lender approval. Further irking some of the lenders is the fact that the company only required a 51% approval to pass the amendment, while repricings almost always need 100% lender approval, said one buysider. J.P. Morgan and Citigroup lead the deal with UBS, Credit Suisse First Boston and Deutsche Bank also serving as top tier agents. A J.P. Morgan spokesman and a UBS official declined to comment, while Citi, CSFB and Deutsche Bank bankers did not return calls.

UBS and Credit Suisse First Boston flexed down pricing on Associated Materials' $190 million "B" loan last week after investors heavily oversubscribed to the tranche, a banker said. Pricing was lowered from LIBOR plus 3% to LIBOR plus 23/4% and buysiders were asked to recommit to the deal by noon last Thursday. The banker said allocation was expected to take place by the end of last week.

Wachovia Securities and Bear Stearns are planning to launch syndication after Labor Day of an amended and restated credit for DRS Technologies to partially back its $550 million acquisition of Integrated Defense Technologies (IDT). A banker explained that add-on institutional term debt would be put in place on top of a refinanced credit facility. He did not state the size of the expected add-on debt, as details are still being finalized. DRS' existing credit includes a $125 million revolver priced at LIBOR plus 23/4% and a $213.6 million "B" loan priced at LIBOR plus 3%. A Bear Stearns official declined to comment and a Wachovia Banker did not return calls.

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.

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.