Search results for

BNP Paribas is shopping a $2 billion, one-year commercial paper backstop for Zurich Capital Markets, an increase on the current $1.25 billion facility. A banker noted pricing on the investment-grade credit is similar to the last deal at LIBOR plus 22.5 basis points, though there are slightly better up-front fees and enhanced support from the parent company Zurich Capital. Last year the BNP-led facility blew out to $2 billion despite the light up-front fees of less than 3 basis points for commitments up to $200 million, with bankers citing ZCM as a key relationship account for lenders and the double-A rating.

The $275 million bank deal for CommScope led by CIBC World Markets and Citibank has been nixed after investors refused to bite on the richly priced and discounted "B" term loan and the company reworked its' acquisition plans. Phil Armstrong, director of investor relations for CommScope, would not confirm the bank deal has been cancelled, but said difficulties in the financing market were among a list of reasons why CommScope is scaling back its investment in Lucent Technologies fiber-optic cable business. As part of the new joint venture CommScope is investing $203 million in cash and equity to buy the business and Furukawa Electric will pay over $2 billion in cash. A source familiar with the deal said the banks may come back with a rejiggered credit.

Credit Suisse First Boston and BNP Paribas launched the underwriting phase of the $600 million Teco Tricon project loan last Thursday. A banker familiar with the deal said 12 banks have been approached for $75 million commitments. The spread on the deal is LIBOR plus 13/ 4%, but fees were not disclosed. Underwriting on the credit is expected to close by year-end, he added.

Mark Grotevant, one of the co-heads of high-yield research atCredit Suisse First Boston, and the firm's sole remaining senior telecom analyst, plans to leave the firm by year-end. His departure set off a series of rumors across Street high-yield desks, most of which centered on the possibility that Grotevant was a victim of CSFB's high-profile compensation renegotiation activities. Bennett Goodman, CSFB's global head of leveraged finance, dismisses this out of hand, saying that Grotevant is retiring from the sell-side and notes that, "He's going to have a very big bonus, and hopefully he'll go to the buyside and be a client." Sam DeRosa-Farag, global strategist, and Tom Klamka, who covers industrials, had shared high-yield research management responsibilities with Grotevant, and will stay on as co-heads, according to Cristina von Bargen, a firm spokeswoman.

The defensive nature of the healthcare industry pushed up Dade Behring's levels to 89-90 last week in an auction. Deutsche Bank was rumored to be the buyer of the $5 million chunk, although officials there would not confirm the transaction. Another $5 million piece traded after the auction in the same range. Levels are up from the 85-86 context late last month (LMW, 10/30). "It's been getting bid up," said a market player. "In general, health care is a safer bet in a bad environment. Dade is in diagnostics, which is also good." Dade Behring, based in Deerfield, Ill., makes diagnostic equipment which tests how blood coagulates. Calls to John Duffey, cfo, were referred to Pattie Overstreet-Miller, v.p. of corporate communications, who did not return calls.

American Tower's levels continue to hover in the low 90s range as $10 million of the bank debt traded last week at 91 1/2. Dealers said they expect the credit will soften further as tower companies begin to feel the effects of a weak telecommunications industry.Joseph Winn, cfo, said, the company has seen good strength in the paper and solid demand on its towers. "The tower companies have been reporting strong organic growth." Winn said. "Concerns around this paper have been due to leverage or debt. We've been supported for a long time in this marketplace, and we're going to do just fine."

Applebee's International, the developer and operator of franchise restaurants, waited for a three-year prepayment penalty on its old term loan to end before switching to a cheaper $150 million, three-year revolving credit facility led by BANK ONE. Carol DiRaimo, director of investor relations, explained the old $225 million loan was arranged in 1998 when Applebee's financed Rio Bravo, another concept requiring significant capital expenditure and restricting cash flow. The term-loan component had a minimal amortization schedule and higher rates of LIBOR plus 21/ 4%, she explained. It was led by BANK ONE with Merrill Lynch as the arranger, she noted. Rio Bravo was sold off in 1999, improving cash flow, reducing capital expenditure and changing the borrowing requirements. The old term loan was not set to mature until 2006, she noted.