Rockwood Specialties Group's $225 million add-on loan broke at 100 3/4-101 1/4, while Headwaters' $640 million first-lien and $150 million second-lien loans broke at 101 1/4-101 1/2 range and 102 1/2-103 1/4 context, respectively. Both issues traded actively. "The market is hot," one trader said.
The Rockwood add-on is split into a $160 million tranche and a ¤65 million piece both priced at LIBOR plus 2 1/2%. Rockwood's bank deal also comprises a $250 million "A" loan, a $985 million "B" and a $250 million revolver priced at LIBOR plus 2 1/2%. The facility also has an additional ¤222 million "C" tranche, priced at LIBOR plus 3%. The approximately $1.7 billion deal is led by Credit Suisse First Boston, Goldman Sachs and UBS and financed Kohlberg Kravis Roberts & Co.'s acquisition of Dynamit Noble last spring (LMW 4/26.) A Rockwood spokeswoman declined comment.
The $790 million in bank debt backed Headwaters' acquisition of Tapco Holdings.J.P. Morgan and Morgan Stanley led the oversubscribed deal. Headwaters has a long-standing relationship with the two banks, according to Steven Stewart, cfo of Headwaters (LMW, 9/13). The first-lien loan is priced at LIBOR plus 3 1/4%, while the second-lien piece priced at LIBOR plus 5 1/2%.