Securitization People and Markets

Market players were aghast last week over talk about Del Monte Foods' plan to refinance its $1.245 billion credit without shelling out the call protection premiums attached to the deal. The credit's $750 million "B" loan has call protection 102 in the first year of maturity and call protection 101 in the second year. But an investor explained that the new term loan could be fashioned as an identical "C" loan and the paydown of the "B" piece will be classified as a mandatory pre-payment, as opposed to a non-mandatory prepayment that would trip call protection fees. "If they have a non-mandatory prepayment, they pay two points and if they have a mandatory payment they pay par," he explained. A Del Monte spokeswoman said the company is considering its refinancing alternatives but it has not made a final decision yet. She declined to comment further.

Deutsche Bank will be shopping a five-year, $230 million credit facility for Magellan Health Services sometime after the Labor Day holiday. The credit will be effective upon Magellan's exit from bankruptcy, expected to take place next month. The facility will include a $100 million "B" loan, an $80 million synthetic term loan and a $50 million revolver, said a banker familiar with the deal. He did not comment on price talk and a Magellan spokeswoman said more pricing details are expected to emerge in filings released this week.

The $176 million term loan and $25 million second-lien loan backing The Cypress Group's $433 million acquisition of J.W. Childs-owned The Meow Mix Company is oversubscribed and lead banks are accepting more tickets for the $231 million credit through this Wednesday, a banker said. UBS and CIBC World Markets are shopping the credit along with a $30 million revolver. Pricing is at LIBOR plus 31/2% on the first-lien debt, while the second-lien piece is priced at LIBOR plus 61/2%, the banker confirmed. A UBS official declined to comment and a CIBC banker could not be reached.

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.

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.