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.

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.

Hedge fund Silver Point Capital is stepping up to provide an $80 million second lien piece for bed and auto cushioning production company Foamex International, the latest twist on alternative financing options for needy borrowers. The loan was sought after the company's assets could not cover all of its debt in an asset-based credit, a banker explained. "It's a story credit," he noted. Silver Point is also leading a second lien piece for Fleet Securities' $65 million deal for Jacuzzi Brands that is set to close next week. The two second lien loans are Silver Point's first two stand alone deals, according to market players, and other hedge funds are looking to get in on the act.

The $360 million "B" loan backing the acquisition of TransDigm Holding Company by members of senior management and an affiliate of private equity firm Warburg Pincus was nearing oversubscription late last week. Credit Suisse First Boston and Bank of America are leading the $440 million deal that was pitched to investors last Tuesday. The seven-year "B" loan is priced at LIBOR plus 33/4%, while the credit's six-year, $80 million revolver is priced at LIBOR plus 31/2% and includes a 50 basis point up-front fee. GE Capital and UBS Warburg have also signed onto the facility as co-documentation agents, a banker said. There is a $300 million notes deal tied to the transaction.

BNP Paribas and Credit Suisse First Boston will be launching syndication this Wednesday of the $290 million recapitalization credit for Oriental Trading. The credit for the direct marketer of novelties, toys, party supplies and other related products includes a $250 million, six-year "B" loan and a $40 million, six-year revolver. BNP leads the company's existing $180 million credit, which was put in place last August and includes a $150 million "B" term loan and a $30 million revolver. Pricing on the new credit was not disclosed as of last week, but the existing institutional piece is priced at LIBOR plus 23/4%, while the revolver carries a spread of 2% over LIBOR with a 50 basis point commitment fee.

Noveon's ballpark $575 million refinancing term loan, led by Deutsche Bank and Credit Suisse First Boston, was fully subscribed and the company was working to decide on the loan's breakdown between U.S. dollars and Euros last week, said a banker. The original "B" loan was also split between the two currencies. The banker added that there was talk of taking out the company's existing "A" loan with the newly raised debt, but it could not be determined late last week if this is definite.

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