Securitization People and Markets

Owens-Illinois is bringing a $1.5 billion refinancing deal to the market and senior managing agent-level lenders are looking at the credit. A banker familiar with the situation could not confirm structural details at this point. However, a company conference call stated that the facility would include a revolver and "B" piece in the amount that the market would accept. The call noted that the glass container company would do whatever else it needed to refinance the $2.45 billion debt load, for example an additional high-yield offering in dollars or Euros. The refinancing plans are targeted to be complete by the first half of this year. Owens-Illinois refinanced $1.6 billion of its debt in 2002, primarily through bonds.

CenterPoint Energy is looking for an extension on its $3.85 billion loan facility, maturing this fall, and also wants to delay and reduce two $600 million payments due this year that are required under the current deal, according to sister publication Power, Finance & Risk. With the first $600 million due at the end of this week, the Houston player will likely be right up against deadline, say lenders poring over the paperwork. "It'll be tough to make the deadline," said one banker. Leticia Lowe, a spokeswoman for CenterPoint, said the company is not commenting on the talks with banks.

Bank of America is reworking its $350 million credit for Central Parking because bad news and executive changes at the company have banks calling for a pricing increase and changes in the deal's collateral package. Hiram Cox, cfo of the company, resigned Feb. 14, the same day the company announced an invoicing error that reduced fiscal first-quarter earnings and prompted a stock price decline. The company has said Cox's resignation and the invoicing problem are not related. Lenders are concerned because their deal is secured by the company's stock. A bank meeting was set for Friday afternoon, after LMW went to press, to address possible changes that include a switch to a direct collateral deal and a price hike.

Charles Kinzer, a top Credit Suisse First Boston mortgage-backed securities salesman, and one of the high-profile "group of 40" who almost left for Barclays Capital in 2001, has taken a leave of absence from the firm, said residential MBS group chief Matt Ruppell. Calls to Kinzer's Manhattan residence were not returned. Ruppell says that a decision on replacing him "is a difficult one since he was such a big part of things here. We're trying to come up with a solution as we talk." He acknowledged that Kinzer covered Freddie Mac for the firm, an account that many firm veterans peg as likely the firm's largest MBS revenue producer. Ruppell says the Freddie account had not been reassigned as of last Thursday.

Bear Stearns and Merrill Lynch closed the books on Penn National's $800 million acquisition credit, with about 55 accounts signing onto the deal. A banker familiar with the facility said a Feb. 10 price flex as well as some other credit changes led more investors to buy into the facility. The "B" piece was half filled before the changes. Pricing ended up at LIBOR plus 4% on the $600 million "B" piece and LIBOR plus 31/4% on the $100 million revolver and "A" piece for the same amount. There was a 50 basis point commitment fee for pro rata retail commitments above $10 million, while a 12.5 basis point upfront fee was being offered on the "B" loan (LMW, 2/17).

ABN AMRO is creating a new U.S. asset securitization group and has nabbed Jim Moore, who was a v.p. of non financial institutions at J.P. Morgan Securities, to run the group out of New York. Moore, who started last week, will oversee term asset-backed securities, asset-backed commercial paper and mortgage-backed securities. He reports to John Mullen, global head of structured credit markets in London, who declined to comment on the move. Patrick Phalon, a spokesman at ABN AMRO, also declined to comment and Moore could not be reached for comment.

Credit Suisse First Boston and Deutsche Bank are launching this Wednesday a $365 million deal backing plans by Amy Acquisition Corp.-- a Welsh, Carson, Anderson & Stowe company-- to acquire cancer diagnostics provider AmeriPath. The bank duo will be shopping a $290 million "B" piece at LIBOR plus 33/4% and a $75 million revolver. Pricing on the revolver could not be ascertained. The transaction is valued at $839.4 million, including AmeriPath's 2002 debt and an estimated $65.1 million in assumed contingent obligations (LMW, 12/16). CSFB and Deutsche Bank bankers did not return calls.

Five banks pitched Dole Food Company's $1.15 billion acquisition financing package to senior managing agents last Thursday with price talk in the LIBOR plus 3-33/4% range. A $600 million "B" piece is being offered to buysiders, joining the parade of hefty institutional pieces that have flooded the loan market this year. Officials familiar with the deal quoted the "B" spread in the 33/4% over LIBOR range. A pro rata $300 million revolver and $250 million "A" piece will also price between LIBOR plus 3-31/2%, according to a banker. One investor noted that the deal is collateralized by real estate (LMW, 1/6). Deutsche Bank, Scotia Capital, Bank of America, Société Générale and FleetBoston Financial are shopping the deal.

Barclays Capital has hired Adam Barrett, who formerly headed financial institutions fixed-income sales at Goldman Sachs in London. A Barclays spokeswoman says he will be managing director and European head of wholesale solutions and client coverage, including transitions management. A spokeswoman at Goldman says Barrett left the firm late last year. Barrett could not be reached for comment.