Securitization People and Markets

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

Last week, Bank of America was set to allocate Westlake Chemical Corp.'s $100 million, fixed asset-secured term loan after attracting more than $400 million in commitments to the tranche. The hybrid loan kicks off the petrochemical and plastics producing company's refinancing efforts, which also include a $400 million senior unsecured notes deal and a $200 million senior secured asset-based revolver. A banker familiar with the transactions said the bonds will be priced this week. The term loan is priced in the LIBOR plus 4-41/2% range. The revolver is scheduled to hit the market in the beginning of August, the banker noted, adding that pricing is set at LIBOR plus 21/2% for the tranche. A B of A official declined to comment.

Barclays Bank launched syndication last Thursday for the $180 million credit backing the acquisition of InfraSource by private equity firms GFI Energy Ventures and Oaktree Capital Management for $280 million. The deal has already received some tickets, said Ian Schapiro, founding principal of GFI. He did not cite specific investors. The credit includes a $140 million "B" loan priced at LIBOR plus 4% and a $40 million revolver priced at LIBOR plus 31/2%, Schapiro confirmed. A banker noted that senior and total leverage is 2.5 times. Schapiro said the firm was still waiting on the ratings for the credit, expected this week. Positive ratings could potentially lower the pricing, he said. "We are hoping it will oversubscribe substantially," Schapiro added. A Barclays official declined comment.

The California Public Employees' Retirement System (CalPERS) has joined the $240 million asset-based deal for Foamex International, according to a banker familiar with the credit. Bank One and Congress Financial also joined at the agent level after GE Capital signed on as a co-lead with original lead Bank of America, the banker added.

Morgan Stanley and Credit Suisse First Boston hit the market last week with a $580 million recapitalization credit for medical device company Kinetic Concepts. An investor said the deal was not blowing out, but it should get completed. The credit includes a seven-year, $480 million "B" loan priced at LIBOR plus 23/4% and a six-year, $100 million revolver priced at LIBOR plus 21/2%. There is also a 50 basis point commitment fee on the revolver. Proceeds from the deal will be used in part to pay off the company's existing facility and to redeem Kinetic's 95/8% senior subordinated notes.

FleetBoston Financial has launched syndication of a $175 million refinancing deal for Moran Transportation. The credit includes a six-year, $125 million term loan priced at LIBOR plus 31/4% and a five-year, $50 million revolver priced at LIBOR plus 21/2%. The credit will refinance the Greenwich, Conn.-based company's existing $78.6 million term loan priced at LIBOR plus 31/2%, $40 million "A" loan priced at LIBOR plus 3% and $60 million revolver also priced at LIBOR plus 3%. A Fleet official declined comment.

BNP Paribas and Citigroup are slated to lead a $2.2 billion financing package for Intelsat in conjunction with the satellite system operator's purchase of six satellites from now bankrupt Loral Space & Communications for up to $1.1 billion (see story, page 1).

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.