Search results for

Le Nature's originally proposed $200 million bank facility led by Wachovia Bank was shaved down to $150 million during syndication with structural changes, including a second lien loan being introduced before closing. At the time of launch, the credit comprised a $40 million revolver, a $125 million "A" loan, and a $35 million capital expenditure facility, all priced at 41/2% over LIBOR. John Higbee, Le Nature's cfo, said it did not make sense for the company to pay commitment fees on a line that it did not need at this time. "We'd be spending unnecessarily," he added, explaining the reason for the reduction in the size of the credit. Higbee noted Latrobe, Pa.-based Le Nature's would continue with plans to expand the beverage company's plants, but with internally generated funds.

The bank debt for Levi Strauss & Co. slipped after two former employees filed a lawsuit against the company alleging that the San Francisco-based clothing maker had booked income and tax deductions incorrectly, thereby inflating profit. The company adamantly denies that there is any cause for the concern. "There's no fraud," said Joseph Mauer, Levi v.p. and treasurer. "This is a wrongful termination lawsuit. We take great offense that anyone would think the company accounted for things inappropriately." Mauer emphasized that accounting issues brought forth in the suit were approved by the company's former auditors, Arthur Andersen, as well as its new auditors, KPMG International.

TMP Worldwide has opted for a new $100 million credit facility that is not asset-based, as previous deals have been under lead GMAC Commercial Finance, in order to enhance relationships with banks that can do more non-loan business with the company. Dave Trapani, TMP's treasurer, said the company is interested in tapping other services such as treasury management and foreign currency transactions from new lead lender Fleet National Bank and agent level banks The Royal Bank of Scotland and LaSalle Bank.

A $14 million auction of AMR Corp.'s American Airlines bank debt went off in the 57 range a week ago last Friday, according to dealers. The loan had been quoted in the low 50s range and traded up ahead of a deadline for the company's unions to ratify an agreement that will allow the airline to avert $1.8 billion in costs annually and stave off bankruptcy. Last Wednesday, American Airlines received union approval for the cost-cutting measures. Traders were unsure if more of the American Airlines paper will trade given the loan's relative illiquidity. The piece that traded came from the company's $834 million revolver that expires in December 2005. According to a recent company filing, the revolver is fully drawn.

Deutsche Bank and UBS Warburg filled out the $500 million "B" loan for Amphenol less than a week after launch despite some grumblings from investors that the deal would need higher pricing and more than stock-security to sell the credit. The seven-year term loan is priced at LIBOR plus 21/2%. "People did raise [the security] as an issue, [but] people got over it," said a banker familiar with the deal. He said a chunk of buysiders did shy away from the deal, but there was still a good amount that invested.

Ethyl Corp.'s $115 million "B" term loan oversubscribed last week after Credit Suisse First Boston and UBS Warburg increased the spread from LIBOR plus 4% to LIBOR plus 41/2%. A banker said syndication had been moving somewhat slowly after launching on April 2, with investors raising concerns over both security and pricing. But after the pricing boost and some added amortization, about 20 investors were expected to sign onto the credit. One source said BlackRock and Conseco were close to investing in the credit, but officials at both firms declined comment. The deal includes a $50 million revolver with a spread of 31/2% over LIBOR. The banker said the revolver was still waiting on more commitments, but he expected it to fill out this week. Bankers at CSFB and UBS declined comment.

Manor Care, a long-term healthcare provider, has switched its focus to short-stay patients from custodial-type patients, creating more profitability and reducing competition from other assisted living centers, according to Moody's Investors Service. But while the successful transition of the business model is a factor in the Ba1 rating of Manor Care's $200 million unsecured credit, Moody's also considers that the company has subsequently taken on more risk through increased dependence on Medicare patients.

C&D Technologies is talking to banks about the refinancing of a $220 million credit facility that expires in March 2004. Bank of America leads C&D's current deal, but Stephen Markert, C&D cfo, said he did not know if the bank would remain as the lead on a new facility. C&D is shopping the loan and is being approached by other banks. He explained that C&D is looking for a lead that will not only form a good relationship, but also bring the best proposal. "Clearly, pricing will be very important," he said. Markert declined to comment on the banks that the company is considering. A B of A spokeswoman declined comment.

Lyon Capital Management, an arm of Credit Lyonnais that manages loan assets in structured vehicles, is in the market with a new collateralized loan obligation. Goldman Sachs and Credit Lyonnais are joint underwriters for the $325 million cash-flow arbitrage vehicle called LCM Limited Partnership I, said a source. Krishna Chauhan, an official at Lyon, declined comment. A CDO banker at Goldman Sachs and officials within Credit Lyonnais' asset securitization group did not return calls. The firm also completed its $400 million Lyon Capital CLO last year, brought to market via Goldman Sachs.

Australia BHP Billiton priced an $850m SEC registered bond on Monday, prompting Australia's domestic secondary market to rally for the first time in two weeks.

Australia Royal&SunAlliance's efforts to sell its Australian and New Zealand operations Promina in an Australian IPO are likely to succeed, according to observers in Sydney and Melbourne.

John Fairfax Holdings raised A$305m from local and overseas institutional investors on Monday to help fund its A$1.19bn acquisition of more than 80 New Zealand-based publishing titles. The capital raising was priced at A$2.77 a share, a discount of 8.6% to the closing price for the stock in Sydney last Friday. That was close to the lower end of the discount range of 5%-10% during marketing.