Search results for

Bear Stearns has priced the notes for Denali Capital's third collateralized loan obligation, the $425 million Denali Capital CLO III, which will target middle-market loans, a rarely tapped area in the CLO universe. Though the vehicle will primarily tap the broadly syndicated loan market--deals over $250 million--Denali will aim for a meaningful level of middle-market loans as they offer better spreads, higher initial fees and better credit packages (LMW, 5/4). Greg Cooper, managing director and partner, declined to comment. Calls to a Bear Stearns banker were not returned by press time.

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.

Credit Suisse First Boston is set to price the notes for Credit Suisse Asset Management's $350 million CSAM Funding III collateralized debt obligation. The CDO is significantly ramped up and includes mostly par assets, a source explained. The source mentioned that if CSAM were to begin ramping up now, in light of the declining interest rate spreads in the current loan market, the deal would have been tougher to complete. But the firm does not foresee a problem in ramping up the remaining assets to complete the deal, he added. Price talk on the $255 million AAA tranche is LIBOR plus 55 basis points, according to another source, who added that the BBB tranche is likely to be in the LIBOR plus 300 basis points region. An official at CSAM declined to comment and a CSFB banker did not return calls.

Fitch Ratings has upgraded Del Monte Foods' senior secured bank debt ratings from BB- to BB on account of the company's improved credit metrics and stabilized cash flow following its acquisition of businesses from H.J. Heinz. The acquired businesses complement Del Monte's portfolio, Fitch states, adding that the manufacturer of branded canned fruit and vegetables has already paid down $150 million on its bank facilities since the closing of the transaction. Del Monte assumed $1.1 billion in debt and issued shares valued at $1.8 billion in order to finance the acquisition. The upgrade affects about $882 million in outstanding Del Monte debt.

GenTek's bank debt got a boost after the company filed its plan of reorganization and disclosure statement with the bankruptcy court last Monday. Traders quoted the "C" piece at 611/2 64 and the pro rata, which includes the "B" piece, was quoted in the 641/2 66 range. Across the board, the bank debt is about two points higher. One buysider suggested that the name was ticking up as the company gets closer to emergence and the market perceives a resolution to a few hang-ups in the case.

Global Crossing held its ground in the 213/4 221/2 range after a bankruptcy court judge approved the company's bid to extend its period of exclusivity and approve an amendment to the company's purchase agreement with Singapore Technologies Telemedia. Global Crossing and ST Telemedia now have a binding agreement until Oct. 14, which neither party can break without the threat of penalty. J.P. Morgan, the administrative agent to the lenders, objected to these motions along with XO Communications and IDT Corp. The two companies are looking for an opportunity to bid for the company. A Global Crossing spokeswoman declined to comment.

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.

Edmund Kearns, v.p. and loan sales manager at Goldman Sachs, is set to leave the firm. After 16 years with Goldman, Kearns is said to be retiring for personal reasons. One buysider said he has "nothing but good things" to say about Kearns. Goldman has yet to find a replacement for Kearns, and it could not be determined if the firm would look to fill the spot internally or externally. Kearns declined to comment. A Goldman spokesman did not return calls.

Rockwood Specialties Group is refinancing debt with $535 million in new credit facilities that will reduce pressures caused by debt maturities over the intermediate term under the existing bank agreement. Equity sponsor Kohlberg Kravis Roberts & Co., which has contributed $312 million of capital since Rockwood's recapitalization from Laporte LLC in September 2000, will contribute an additional $25 million of equity to Rockwood. Stable earnings and cash flow, combined with high leverage of 6.5 times debt-to-EBITDA, has led Moody's Investors Service to assign a B1 rating and Standard & Poor's to assign a B+ rating to Rockwood's new credit facility. Officials at Rockwood declined comment.

Another deal led by Credit Suisse First Boston that is said to be close to pricing is the $300 million Chiron CLO on behalf of Rabobank International. E.A. Kratzman, formerly one of three co-founders and head of portfolio management for Institutional Debt Management, was brought on board by Rabo last year to manage loan assets (LMW, 3/16). At IDM, Kratzman was responsible for the execution and portfolio investment strategies, managing the ELC funds as well as Apex and Tryon--seven funds totaling approximately $3.5 billion in assets. A banker said the deal is likely to price in the coming weeks. Kratzman and CSFB bankers did not return calls.

Aurora Foods traded all the way up to 981/2 from the 91-92 level after the company announced that it is pursuing a prepackaged bankruptcy that includes paying back the bank lenders in full and a $200 million equity injection from J.W. Childs Associates. Lenders under the restructuring will receive $458 million in cash and about $197 million in new 10-year, senior secured notes.

An original lender to Mirant Corp., with exposure to the Mirant Americas Generation (MAG) credit facility and one of the corporate credit facilities, sold off $87 million of the company's paper two weeks ago. A $64 million piece of the Mirant Corp. paper traded in the 711/2 range and a $23 million piece of the MAG loan changed hands in the 88 range. The buyers of the paper could not be determined. Market players said the paper traded in front of good news that boosted Mirant's debt. The corporate facilities expiring this month and in 2004 were quoted in the 72-74 range late last week.