Search results for

Credit Suisse First Boston was set to cut off commitments on a drive by $580 million facility for utility company Aquila last Friday after it oversubscribed more than three times one day after launch. The proceeds are for certain obligations and will refinance the company's debt maturing on April 11. The deal includes two "B" loans-- a one-year, $150 million piece and a three-year, $430 million loan. The one-year loan is callable at par and starts pricing at LIBOR plus 4%. The rate steps up 200 basis points every 90 days, according to a banker familiar with the deal. The three-year piece is priced at LIBOR plus 53/4% and is secured by first mortgage bonds against the Michigan and Nebraska utilities with a first lien on the Canadian utilities. The larger loan also has a second lien on IPP assets and it must, in best efforts, further collateralize with first mortgage bonds on the U.S. assets, the banker added. Once this is completed to a predetermined ratio, the rate will step down to LIBOR plus 5% on the piece. He said the company did not collateralize with the U.S. first mortgage bonds right away because of delays in regulatory approval. "This is a mechanism for collateral substitution," he explained. The three-year piece may be called at Treasuries plus 50. There is also a 3% LIBOR floor on both loans.

Credit Suisse First Boston and Deutsche Bank closed out AmeriPath's $290 million credit last week. A banker familiar with the situation said no further changes were made to the deal after some tweaks to the bond and bank debt occurred earlier this month (LMW, 3/17). The deal includes a $225 million "B" loan priced at LIBOR plus 41/2% with an original issue discount of 1%. There is also a $65 million revolver priced at LIBOR plus 31/2%. The credit backs plans by Amy Acquisition Corp., a Welsh, Carson, Anderson & Stowe company, to acquire the cancer diagnostics provider for $839.4 million, which includes AmeriPath's 2002 debt and about $65.1 million in contingent obligations. The B+/B1-rated credit accompanies a $275 million bond deal that also backs the transaction.

Fleet Capital has amended Dixie Group's senior credit line, reducing its size from $150 million to $128.3 million but increasing the amount the company can access. Gary Harmon, Dixie's cfo, said the amendment was done in order to increase the term loan by $4.5 million and allow for an additional $10 million availability under the revolver's borrowing base. The closing of the refinanced facility also involved a bank shuffle with Foothill Capital stepping into the group, which continues to include Congress Financial and La Salle Business Credit. General Electric Capital Corp. and Transamerica Business Capital are no longer part of the Fleet-led deal.

Credit Suisse First Boston and UBS Warburg will be pitching a $165 million refinancing deal for Ethyl Corp. this Wednesday. The credit includes a six-year, $115 million "B" loan with pricing that has yet to be determined. There is also a five-year, $50 million revolver. The facility will refinance the petroleum-additive company's existing credit that is currently priced in the LIBOR plus 3% range. The Richmond, Va.-based company received a one-year extension earlier this month on a $205 million loan originally scheduled to mature today. Bank of America leads the existing deal. CSFB and UBS bankers did not return calls.

PNC Bank and National City Bank have completed a $120 million credit for Fairmount Minerals, a deal that was oversubscribed by over 100% and includes 14 banks. The Chardon, Ohio-based industrial sand provider used some of the credit to distribute dividends to shareholders and also to refinance debt. There were no requirements at this time to do so, noted Jenniffer Deckard, cfo at Faimount. "It was just good timing for the company," she said.

Fleming Companies' term loan "B" slumped back down with pieces trading in the low-to-mid-80s from the low 90s. The company was said to have hosted a bank meeting a week last Friday that was not as optimistic as a bank call the week before. Toward the end of last week, Fleming's "B" piece was quoted in the 82 5/8 85 1/2 level and the market for the revolver was 81 1/3 85, according to LoanX. Fleming's 101/8% notes also fell from the high 40s context, trading as low as 28 15/16. The company has a $17.7 million interest payment for its 101/8% notes due on April 1, but market players are mixed on whether or not the company will make the coupon. Calls to Mark Shapiro, senior v.p. of finance and operations control, were not returned by press time.

Goodyear Tire & Rubber Company's proposed refinancing will extend debt maturities, improve liquidity and provide a timeframe for turning around the sputtering North American Tire segment. The secured credit facilities have been assigned a prospective Ba2 rating by Moody's Investors Service, reflecting the favorable position created by collateral packages granted to lenders. "The company is moving from unsecured borrowing to collateral-base borrowing and that necessitates changes in its current ratings," said George Meyers, v.p. and senior credit officer at Moody's.

Deutsche Bank and BNP Paribas dropped a $50 million "B" loan for Town Sports International last week. The initial $100 million facility now only comprises a $50 million revolver priced at LIBOR plus 4%, which was also the pitched rate on the "B" loan. Town Sports, an owner and operator of 130 health clubs in cities from Washington to New England, decided it would get better execution in the bond market, a banker familiar with the situation said, declining to discuss details of the impending bond deal. The loan was almost fully distributed before it was pulled, she noted. A Deutsche Bank official declined to comment, while a BNP banker did not return calls.

ABN Amro has snatched Soh Hang Kwang back from Citigroup/SSB as the new head of Singapore client coverage this week, and brought Ricor da Silveira over from Miami as the head of cash and payments sales and working capital country head. As such da Silveira heads a new team for the region.

AUSTRALASIA Australia

Stephen Long has returned to JP Morgan to head up the ratings advisory practice once again. Long began as a vice president on Monday. He briefly worked as a ratings adviser at BNP Paribas.

Morgan Stanley has taken Andrew Hines, one of Australia's best known and highest rated telecommunications analysts from ABN Amro. Hines was in the spotlight recently for correctly predicting Telstra's stock price falls last year. He will start in May and replace telecoms analyst Scott Brixen, who is leaving to go on sabbatical.