Bear Stearns Pitches Bond-Like Magnequench

Bear Stearns is in the market with a $175 million "B" loan for magnet supplier Magnequench that has a bond-like covenant package.

  • 21 May 2004
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Bear Stearns is in the market with a $175 million "B" loan for magnet supplier Magnequench that has a bond-like covenant package. "It gives the company the flexibility you get with a bond deal, but the company generates a tremendous amount of free cash flow and there is a fair amount of stated amortization," a source familiar with the deal said. "It gives you the prepayability of a bank deal with the flexibility that you get with a bond financial covenant package."

The first-lien term loan hit the market two weeks ago at LIBOR plus 6%. One buyside source said the deal is progressing well, and some institutions have already signed on. Levels of commitments could not be determined. Todd Boney, Magnequench's cfo, referred calls to Bear Stearns bankers, who declined comment.

Meanwhile, the Bear Stearns and UBS-led $375 million refinancing for Appleton Papers is moving along well. Associated Bank, LaSalle Bank and US Bank signed onto the deal as agents and took pieces of both the $125 revolver and $250 million "B" loan. Both tranches are being offered at LIBOR plus 2 1/2%. UBS bankers, US Bank bankers and an Associated Bank spokesman declined comment. LaSalle bankers did not return calls.

  • 21 May 2004

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 3,691 11 20.70
2 Morgan Stanley 2,420 6 13.57
3 Goldman Sachs 2,096 5 11.75
4 BNP Paribas 1,686 6 9.45
5 Barclays 1,565 4 8.78

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 40,734.72 129 11.55%
2 JPMorgan 32,938.92 93 9.34%
3 Wells Fargo Securities 30,371.96 86 8.61%
4 Bank of America Merrill Lynch 27,582.56 87 7.82%
5 Credit Suisse 22,692.50 70 6.44%