Search results for

J.P. Morgan Chase is shopping a $200 million revolver for Fort Smith, Ark.-based nursing home operator Beverly Enterprises Inc. that replaces an existing $325 million credit facility set to mature at the end of this year. Morgan Chase is lead arranger and administration agent. Pricing is LIBOR plus 27/8 %, but the maturity and fees could not be determined by press time. Scott Tabakin, cfo of Beverly, who has resigned to join AMERIGROUP Corporation, was travelling and could not be reached. Declining comment on a prospective revolver facility, a spokesman for Beverly noted that the company is issuing $200 million of eight-year senior notes in order to pay down the existing credit.

J.P. Morgan Chase has rounded up $2.25 billion on its $2.5 billion credit for Nashville, Tenn.-based HCA-The Healthcare Company. The credit, which will take out existing debt, was launched for syndication April 4. Sun Trust Bank, Citibank, Deutsche Bank and Bank of Novia Scotia reportedly have joined lead arrangers, J.P. Morgan Chase and Bank of America in committing at least $250 million each to the deal. The other banks that have placed commitments could not be identified.

Nomura Asset Management has just completed warehousing loans and bonds for a $400 million, cash flow collateralized debt obligation and will be pricing the deal in about two weeks, despite what many have described as a tough CDO market. Officials at Nomura declined to comment. Goldman Sachs will underwrite the deal and has reportedly worked with the company for the last six months to get the CDO structured, as it has suffered delays due to challenges Normura reportedly faced finding equity investment. An official at Goldman Sachs declined to comment. Tranche sizes for the deal could not be determined.

Bank of America is close to completing syndication of a E185 million loan to Frigoscandia, the European cold storage business of ProLogis Trust. B of A will hold E31.5 million whileABN Amro will probably hold E46.5 million, according to John Lamb, managing director. The remainder of the loan will be split among Commerzbank, acting as syndication agent, Société Générale, as documentation agent, and Svenska Handelsbanken. ProLogis officials did not return calls.

Buysiders, excited about the $2.6 billion Suiza Foods Corp. deal that will offer an estimated $750 million tranche to institutions, are wondering where the bond piece is on the deal hoping one may surface. The company, says they should not hope too hard. The deal is expected to price at LIBOR plus 3% and investors were quick to note that the deal, rated Ba2 by Moody's Investors Service, is plenty attractive as is. However, they added that a bond piece would be key as it would provide some subordinated cushion. "On a deal this size in this market you expect bonds upfront," noted one buysider. "Bonds would provide extra collateral to senior lenders."

Commerzbank Securities, the U.S. arm of German banking giant Commerzbank, has added seven new staffers to newly created sales, trading and strategy slots in New York, according to a senior bond official. This official says the firm has a headcount of about 265 in the New York fixed-income division, and is looking to move to about 300. Mergers and consolidation, and bulge-bracket hiring freezes, have given second-tier dealers like Commerzbank the opportunity for fast growth, he says, referring to the timing of the move. He adds the firm's is looking to leverage its position in European league tables, and its European institutional client relationships, to an expanded U.S. bond trading presence. He says the focus will be on secondary trading and sales, rather than competition for underwriting mandates.

Weekly Supply & Flows Update

Countrywide Securities is continuing to effect strategic hires in its MBS sales and trading operations (BW, 4/2), according to Countrywide Capital Markets President Ron Kripalani. Over the past three to four weeks, three staffers have been added to its Los Angeles headquarters: Cliff Corrall joined from J.P. Morgan Chase, James George arrived from Credit Suisse First Boston (where he came over from Donaldson, Lufkin & Jenrette), and Brian Sager joined from UBS Warburg (prior to that he was at PaineWebber). Kripalani says all three positions are new, but declined comment on the possibility of additional hires in the near term. On a daily basis, all three will report to L.A. sales manager Mac Humphries. A senior official with the firm reasons that additional hires are likely "given the amount talent available because of consolidation on Street [MBS] secondary desks" over the past year, as well as the record refinancing (and thus origination) volumes seen at parent Countrywide Credit Industries.

Market sources say Del Monte Corp. held a conference call last week with lead arranger Bank of America and other existing lenders on its six-year, $730 million credit in an effort to refinance the deal and pay down outstanding debt. The existing credit comprises a $350 million revolving credit priced at LIBOR plus 2 1/4%; a $200 million term loan "A" also priced at LIBOR plus 2 1/4%; and a $180 million term loan "B" priced at LIBOR plus 3%, according to Capital DATA Loanware. Officials at Del Monte and Bank of America did not return calls by press time.

Poland is seen as the next big Emu convergence story, which is having a predictably beneficial impact on international appetite for Eurozloty bonds. Interest has not reached fever pitch yet, but Poland's interest rate environment has much to offer for investors in search of some capital gain. Laurence Knight reports.

Russian issuers look set to re-enter the markets just as most of the rest of central and eastern Europe finishes its beginning of year financing rush. The number of fund managers that are preparing once more to look at Russian risk is relatively limited, but there is likely to be no shortage of supply from corporate issuers. Outside Russia, leading EU convergence plays such as Poland are beginning to trade more and more like credits inside the EU, with investor interest shifting to the second wave. Laurence Knight reports.