Market Awaits Land O' Lakes Price Hike; Bridge Loan Cut

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Market Awaits Land O' Lakes Price Hike; Bridge Loan Cut

Buysiders expect J.P. Morgan Chase to increase pricing on the $400 million term loan "B" of the $1.15 billion deal for Land O'Lakes as institutional players are balking at the LIBOR plus 2 1/2 % being offered. New pricing is expected to come in at LIBOR plus 3%. The market also expects the company to pull its plans to finance a $250 million bridge loan priced at LIBOR plus 2% as the company is now telling investors it will speed up its execution of a $300 million bond offering it planned for next year in the 144a market. "They know we like to see some [bonds] below us," commented one buysider on why the company has switched strategies mid-syndication. Calls to J.P. Morgan Chase and Land O'Lakes officials were not returned by press time.

 

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