Securitization People and Markets

Lehman Brothers and Bank One were scheduled to launch syndication last week of a $187 million credit facility for Day International, according to cfo, Thomas Koenig. Because of power outages in New York it could not be determined if the deal actually hit the market. The deal includes a five-year, $20 million revolver; a six-year, $30 million "A" loan; a six-year, $105 million "B" piece; and a five-year, $32 million delayed-draw term loan to fund a potential acquisition, he said, declining to elaborate on the acquisition plans.

Del Monte Foods and its lead banks scrapped their mark-to-market refinancing plans last week, backing down to the investor uproar over plans to evade paying the call protection premiums attached to the deal (LMW, 8/11). Leads Bank of America and Morgan Stanley were fashioning the amended deal so that Del Monte would not have to pay the 102 call premium included in the first year of the deal. "We are not going to pursue a refinancing at this time," a company spokeswoman confirmed, declining to comment on the situation further. B of A and Morgan Stanley were also planning to shop the $1.245 billion credit's $750 million "B" loan in the LIBOR plus 21/2-23/4% range down from the original pricing of LIBOR plus 33/4%. One market player, not involved in the refinancing talks, did feel that the company's deal warranted a lower coupon. But the call protection should have been honored, he said. B of A and Morgan Stanley bankers did not return calls.

The long awaited $2.215 billion Dex Media West leveraged buyout credit hit the ground running last week, with investors consuming the $1.2 billion "B" piece soon after the bank meeting last Monday. The "B" loan was increased from $1.05 billion by $150 million after the concurrent bond deal backing the company's leveraged buyout was decreased by the same amount late last week. A banker said there was also talk of institutional investors possibly jumping into the $960 million "A" piece, but this could not be confirmed by press time. J.P. Morgan, Bank of America, Deutsche Bank, Lehman Brothers and Wachovia Securities are shopping the credit.

Lehman Brothers launched syndication last week of a $200 million credit to help back B&G Foods' acquisition of Nestle Prepared Food Co.'s Ortega brand for an undisclosed amount. A banker said the credit includes a six-year, $150 million "B" loan priced at LIBOR plus 31/2% and a five-year, $50 million revolver priced at LIBOR plus 31/4%. The deal will also go toward refinancing existing debt, he added. The existing $280 million credit includes a $70 million "A" loan, a $150 million "B" piece and a $60 million revolver. Lehman also leads this deal, which helped back B&G's acquisition in 1999 of The Heritage Portfolio of Brands from The Pillsbury Co., Indivined B.V. and IC Acquisition Corp. for $192 million. A Lehman official declined to comment.

Wachovia Securities and Bank of America launched syndication last Thursday of a $175 million refinancing credit for Atlanta-based Per-Se Technologies. The credit includes a $125 million, five-year "B" loan and a $50 million, three-year revolver. Proceeds from the deal will go toward refinancing $160 million of outstanding 91/2% senior notes. Exact pricing could not be confirmed on the facility, but the company said in a release that it expects that the new debt will have interest rates in the 5-6% range. In April of 2001, Per-Se completed a $50 million revolver led by GE Capital, priced at LIBOR plus 21/2%. Wachovia and B of A bankers did not return calls.

GE Capital and Lehman Brothers wrapped up a $270 million recapitalization credit for subsidiaries of Tempur World Holdings last week after introducing a pricing grid to the deal. A banker explained that the six-year, $135 million "B" loan is still priced at LIBOR plus 31/2%, as it was when syndication launched. But pricing can step down to LIBOR plus 31/4% if leverage goes below 3.5 times and pricing can go to LIBOR plus 3% if leverage goes below three times, he explained. The mattress and pillow manufacturer presently has debt-to-EBITDA multiples of about four times, he noted.

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.