Securitization People and Markets

Wachovia Securities is expected to come to market with a $125 million refinancing deal for propane marketer Suburban Propane Partners. The credit will include a $75 million revolver and a $50 million term loan, according to a buysider, who could not provide details on pricing or the timing of the deal. The Whippany, N.J.-based company faces a maturing revolver for the same amount that expires May 31 and carries pricing in the range of LIBOR plus 11/2%. Lenders on the maturing deal include FleetBoston Securities, Bank of New York and ABN Amro.

Credit Suisse First Boston and Scotia Capital's $85 million add-on "D" loan for Weight Watchers International (WWI) filled up quickly last week as investors oversubscribed the loan before the March 17 bank meeting. A banker familiar with the situation said "it was a joke" how quickly the deal went, declining to specify the level of oversubscription. He would not comment if there were plans to flex down pricing on the six-year loan from its present LIBOR plus 21/2% level.

Neptune's $220 million refinancing credit oversubscribed last week. Lead bank UBS Warburg pitched a seven-year, $190 million "B" loan priced around LIBOR plus 41/4% and a five-year, $30 million revolver priced in the LIBOR plus 31/2% range. The credit refinances the Tallassee, Ala.-based company's $190 million credit that backed Investcorp's buyout of Neptune from Schlumberger in 2001. This deal included a $125 million "B" piece priced at LIBOR plus 31/2%.

J.P. Morgan, Citibank and UBS Warburg threw an eleventh-hour wrinkle into Constellation Brands' $1.6 billion acquisition credit, revamping the security and pricing terms with an inventive twist. A springing lien, to be triggered by rating downgrades, was changed to permanently fall away if the company raises $450 million in equity to take out a bridge piece or if its leverage falls below four times, explained Thomas Roberts, treasurer of Constellation. The lien applies to receivables, inventory and trademarks. Some investors griped about the changes--and a few walked away--but the deal still closed 100% oversubscribed.

Gaylord Entertainment's $225 million credit was fully committed and scheduled for allocation last Friday. A banker familiar with the deal said it includes a three-year, $150 million "B" loan and a $25 million revolver priced at LIBOR plus 31/2%, as well as a $50 million mezzanine tranche with a spread of 8% over LIBOR.

Banc of America Securities has hired Ron Juster, a longtime agency trader, according to people close to the situation. Juster was dismissed from J.P. Morgan Securities last summer for allegedly mis-marking the firm's book of callable agencies (BW, 8,11). Reached at his residence, Juster confirmed the move, but declined further comment. Calls to Kurt Harrison and Brain Edmonds, the coheads of the U.S. Treasury and agency desks at the firm, were not returned by press time last Friday. Juster will report to Frank Keen, head of the agency trading desk. He will be a flow trader in callable agencies, according to an individual familiar with the situation.

Deutsche Bank has hired Mike Reisman from Morgan Stanley to run its U.S. government bond repurchase trading desk. It's a new position. Reisman, who will start after his non-compete expires on March 27, will report to short-term trading head Joe Randozzo. Reisman, reached at his residence, said, "I left for a hell of an opportunity and wish Morgan only the best." He declined to discuss the move further. A Deutsche Bank govvies official familiar with the move says Reisman's hire comes at a time when the repo market is suffering from "sticker shock," relating to the low yields across the curve. As a function of this, one of Reisman's jobs will be to expand the customer side of Deutsche Bank's business, as it makes a grab for increased market share. He will also coordinate the repo desk's actions with other desks, such as Treasury trading and swaps.

Jay Durkin has left Lehman Brothers, where he was a managing director in high-yield sales based in New York. High-yield buy-siders say Durkin simply wanted to take some time off after a number of years in the business. He had spent eight years at Lehman, prior to which time he sold high-yield bonds at Kidder, Peabody & Co. Durkin declined comment when reached at his residence. A call to Tom Humphrey, global head of credit sales at Lehman, was not returned.

Williams Companies is a Tulsa, Okla.-based energy concern. A long-time investment-grade company, Williams was downgraded to junk last July. It had $13.9 billion in total debt at the end of 2002. The company priced its first high-yield deal on March 4, a $175 million 144a transaction through its subsidiary Northwest Pipeline Corp.