Search results for

UBS launched syndication last week of a $175 million asset-based revolver for Broder Bros. backing the sportswear distributor's acquisition of Alpha Shirt Company for $360 million. A banker familiar with the deal said CIT Commercial Services came into the deal ahead of the bank meeting as a collateral agent, while Bank One joined as a syndication agent. Pricing on the revolver is LIBOR plus 21/2% with a 50 basis point undrawn fee, he added. About $80 million of the revolver is expected to be drawn upon closing, he also noted. There is a senior notes deal emerging in relation to the transaction. The bond deal should come out either this week or the next, the banker said.

A slew of big-name managers are seeking to raise debt for collateralized loan obligations, not letting tightening spreads on loans deter them from taking advantage of an improving credit environment and low-cost financing for the liabilities. The Blackstone Group, INVESCO and Sankaty Advisors have all entered the pipeline in the last few weeks, joining a list of blue-chip names raising debt that includes The Carlyle Group, Octagon Credit Investors and Eaton Vance, according to analysts and investors.

INVESCO and Blackstone Debt Advisors are both raising debt for new collateralized loan obligations. A loan manager said the INVESCO vehicle is called Sagamore CLO and is being underwritten by J.P. Morgan. INVESCO, which has over $5 billion in loan assets under management, last completed a CLO in the fall with Saratoga CLO 1 (LMW, 9/1). The loan team is led by Anthony Clemente, managing director and head of the high-yield investments group, who declined comment. Pricing on the notes and the amount of collateral required could not be ascertained. Officials within J.P. Morgan's CDO group did not return calls.

ABN Amro and UBS' $275 million refinancing deal for EaglePicher was headed toward full subscription late last week. The $125 million revolver was fully subscribed ahead of the bank meeting on July 17, while tickets for the $150 million "B" loan rolled in throughout the week, bankers said. The "B" piece is priced at LIBOR plus 4% and the revolver has a spread of 31/2% over LIBOR. UBS is also leading a concurrent $220 million bond deal, the bankers noted, adding that the road show kicked off last Wednesday. The bond deal will go toward a cash tender offer for the Phoenix-based company's 93/8% senior subordinated notes due 2008.

Refinancing and repricing deals have caught on like wildfire as companies are seizing issuer-friendly opportunities to capture better pricing on their credits while they still have the chance. Last week, DirecTV and National Waterworks tapped investors for tighter pricing on credits that were completed less than nine months ago. DirecTV's $1.675 billion deal was originally completed last March, while National Waterworks was done last November. DirecTV is seeking to tighten its "B" loan, while National Waterworks seeks to ease some of the concessions that lead banks J.P. Morgan, Goldman Sachs and UBS had to ante up in order to get the deal done late last year (LMW, 11/18).

Jacuzzi Brands has recently completed a $200 million asset-based revolver, a $65 million second-lien term loan and has issued $380 million in new notes, allowing the company to achieve interest rate savings and extend out maturities, said Diana Burton, v.p. of investor relations. The interest rate on the West Palm Beach, Fla.-based company's $403.2 million in bank facilities was set to accelerate in July, with the 63/4% over LIBOR spread targeted to increase by 1/2% each quarter until the October 2004 maturity date.

Kinetic Concept's recapitalization will add extra debt to the company's profile, but it will help the company to address some liquidity and maturity issues, said Jordan Grant, Standard & Poor's analyst. The company's recapitalization package includes a $480 million, seven-year term loan; a $100 million, six-year revolving credit; a $205 million senior subordinated notes offering and $270 million in convertible redeemable preferred stock. S&P assigned a BB- rating to the new credit and a B rating to the new notes.

Mirant Corp.'s efforts to restrict the trading of its creditor claims to preserve certain tax benefits is causing confusion in the loan market as to which firms are affected by the measure. Traders said the bank debt has virtually stopped trading but some shops believe they can trade the name freely. "We're not going to let that slow us down," said one dealer. But others are more cautious. Investors do not want to trade paper and then find out that the trade will be broken because they are at the end of a chain, which started with a restricted party, another dealer explained.

J.P. Morgan and Bank of America were set to pitch a $1.125 billion "B" loan for Insight Communications' Insight Midwest arm last Thursday, according to senior v.p. and cfo of the company, Dinni Jain. Insight Midwest currently has a $900 million "B" loan, however the tranche will be refinanced with $225 million more in capacity in order to help refinance all of the indebtedness of Insight's Ohio operating subsidiary, Jain said. The entire credit will now total $1.975 billion. The deal also has a $425 million revolver and a $425 million "A" loan. Insight, the ninth largest cable operator in the U.S., will refinance the Ohio subsidiary's $140 million of 10% senior notes due 2006, $55.9 million of 127/8% senior discount notes due 2008 and a $22.5 million credit facility.

Barclays Capital is marketing Gulf Stream II, a $400 million collateralized loan obligation for Charlotte, N.C.-based Gulf Stream Asset Management, according to a source. This will be Gulf Stream's second CLO after Barclays priced the $300 million Compass CLO 2002-1 last year (LMW, 12/15). Price talk on the $310 million triple-A tranche is LIBOR plus 55 basis points and the deal is expected to price next month, a different source added. The CLO is substantially warehoused with loans in the BB range, he said.

Native American tribe United Auburn Indian Community was able to fill out a $92.5 million term loan after receiving a ruling that non-bank entities are allowed to lend to tribes in California. Glenn Christenson, cfo, executive v.p., treasurer and director of Station Casinos, which is the management partner for the federally recognized tribe, said the bank deal was pitched to lenders last fall and raised $142.5 million for the credit from solely bank lenders. Until the ruling was passed, non-bank entities were not allowed to lend to tribes, he said.

Cinram International will use $1.2 billion in bank facilities led by Citigroup and Merrill Lynch to fund the $1.05 billion acquisition of the DVD and CD manufacturing and physical distribution businesses from AOL Time Warner, said Cinram CFO Lewis Ritchie. Merrill advised on the deal. The credit comprises a $150 million revolver and $1.05 billion in term loans with an average tenor of 5.9 years. The revolver will be undrawn when the acquisition closes in the fall, said Ritchie. Citi and Merrill bankers did not return calls.