Commonwealth Brands' $600 million term loan broke in the secondary market at 101 1/3. Deutsche Bank leads the loan, which is priced at LIBOR plus 2 1/4% and has 101 call protection. The deal, which also includes a $20 million revolver, will be used to refinance all of the tobacco company's existing debt.
A trader said the deal actively traded, but would not comment on how much debt exchanged hands. He said it was a difficult deal to allocate because it was oversubscribed and more lenders were introduced into the deal because of its popularity. "The company's cash flows are strong. It is a proven performer. The market for tobacco was smaller three years ago," he said. A Commonwealth Brands official did not return calls.