Boise Cascade's $1.225 billion "C" loan has changed hands around par as investors make a yield call play on the tranche, which is expected to be taken out soon, according to traders. Boise's "C" tranche is priced at LIBOR plus 2 1/2% and was only put in place last October to back Madison Dearborn Partners' $3.7 billion acquisition of the business from Boise Cascade Corp., which has since changed its name to OfficeMax.
When the loan allocated it was quoted at 100 3/4-101 1/8 (LMW, 11/1). Now, the private equity firm is selling 2.2 million acres of timberland to Forest Capital Partners for $1.65 billion and the loan is expected to be taken out. The sale is expected to be completed in the first quarter of 2005. The financing is led by J.P. Morgan and also includes a $400 million revolver and a $1.33 billion "B" loan.