Helix Energy Solutions' $840 million term loan and Del Monte Corp.'s $645 million add-on term loan both broke in the secondary market at 100 1/2 last week. A trader said he expected the deals to break at this level given the tight coupons on the loans. Helix Energy's loan is priced at LIBOR plus 2%, while Del Monte's add-on is priced at LIBOR plus 1 3/4%. The trader said he thought both deals broke well given the low trading levels several new deals have broken at recently.
Bank of America leads both financings. Helix's credit facility, which includes a $250 million revolver, backs the company's acquisition of Remington Oil and Gas Corp., a deepwater exploration and production company. Del Monte's add-on loan backs its acquisition of Meow Mix Co. and the Milk-Bone pet treat business. Officials at Del Monte did not return calls. Wade Pursell, cfo of Helix, was traveling and could not be reached for comment.