Search results for

Grand Rapids, Mich.-based Steel Case Inc., the world's largest manufacturer of office furniture, closed a $400 million credit facility this month with Citigroup as the lead arranger. Perry Grueber, director of investor relations, explained that following the acquisition of a 100% interest in Strasbourg, France-based Strafor, an office furniture maker with which Steel Case had a joint venture, two credit facilities of roughly $200 million each were in operation. The Michigan company wanted to consolidate to finance future acquisitions.

Moody's Investors Service assigned a Ba3 rating to Superior Energy Services' $50 million senior secured term loan and its $70 million senior secured revolving credit based on the company's aggressive growth strategy. According to Helen Cavelli, senior analyst and v.p., it's a strategy the company continues to pursue. "They were very small five years ago and have grown very rapidly through acquisitions," she said.

A $10 million piece of Triad Hospitals' bank debt traded around 101 last week, as dealers reported growing investor interest in using health care credits to round out their portfolios. "Institutional lenders need health care exposure and have been all over this name," noted a dealer. "It was a sector that got crushed over the last couple of years and as a result a lot of credits filed and lenders sold. Additionally, there were virtually no new issues during this time so institutional portfolios are light. The sector is rebounding nicely as lenders are looking for more exposure and there is not much paper out there." Calls to a company spokeswoman were not returned.

News last week that the Federal Communications Communication gave approval to Deutsche Telekom to buy VoiceStream Wireless sent bids for the latter company's "B" tranche up to 99 1/2. Dealers last week said the announcement, which was touted as a major step in a long-running drama, would spark trading. Earlier in the week, just prior to the announcement, Voicestream "B" traded at 99 1/4.

Xerox Corp.'s bank debt inched up to 79 last week from its last trade 72 six weeks earlier. Dealers reported a $25 million trade, but said overall there's been little activity in the name. While traders say the company's efforts to improve its finances by selling assets and cutting costs have helped, one cautioned that "they're not out of the woods." A company spokesman declined to comment on Xerox's trading, but did say the company has made progress in increasing liquidity. "We're at $2.8 billion at end of first quarter, which is up from $1 billion," he said. "We're on track and ahead of schedule with our turnaround plan." The company has sold $2 billion in assets.

Playtex Products has tapped Credit Suisse First Boston for a $625 million refinancing credit. The deal comprises a $150 million, six-year revolver, and a six-year $150 million term loan "A," both priced at LIBOR plus 2 3/4 %. The "B" term is a $325 million tranche, priced at 3 1/4 %. Officials at Playtex declined to comment on the loan. CSFB is lead arranger, book manager and administrator. The Westport, Conn.-based manufacturers personal care products that include Diaper Genie, Mr. Bubble, Playtex tampons and Banana Boat.

Nextel Communications bank debt has slid about four points to the 92 1/2 range. Triad Hospitals' term loan "B" is trading at 101, with dealers noting the healthcare industry is in demand. Market appetite for energy credits has pushed up trading levels for Dresser Inc.'s term loan "A" too 100 3/8. FCC approval today of Deutsche Telekom's buyout of VoiceStream Wireless has dealers predicting levels will reach par. VoiceStream last traded at 99 1/4 and is now expected to benefit off of Deutsche Telekom's investment grade status.

Atmos Energy is considering purchasing heating degree day put options in order to hedge against the possibility of warm weather next winter. Laurie Sherwood, v.p., treasurer in Dallas, said the natural gas distribution company's success with hdd options last winter is spurring its shopping for similar coverage for next winter. She declined to elaborate on the precise positions Atmos is eyeing for next winter.

Bank of America in Seoul has hired a five-strong team of fixed income cash and derivatives professionals fromJ.P. Morgan Chase. "We're building our capabilities in a number of markets in Asia," said Gordon Sangster, managing director, head of global markets group Asia at BofA in Hong Kong. "There are a lot of good opportunities in Korea. We were looking to hire a good team and this one was available. They should fit well," he continued.

CDC IXIS Capital Markets is setting up an alternative risk transfer desk to trade weather, catastrophe, life and automobile insurance risk. Michel Queruel, head of alternative risk structuring in Paris, said the bank is ready to trade weather risk via insurance and derivatives products, but it will take a couple of months to start trading the other types of risk.

Volumes have shot up in the Czech interest-rate derivatives market over the last month as macroeconomic changes have created disagreement over the direction of interest rates there, according to traders in London, Frankfurt and Prague. Simon Stuart-Smith, eastern European currencies derivatives trader at Bankgesellschaft Berlin in London, said he now trades six to seven Czech swaps a day compared to one or two earlier in the year.