Sorenson rises; Ford better with results; Smurfit-Stone expected soon; Del Monte floats talk

By Sara Rosenberg

New York, Jan. 5 - Sorenson Communications Inc.'s first- and second-lien term loans were both stronger during Tuesday's trading session as investors are expecting the repayment of some of the company's bank debt in the near future.

Also in the secondary market, Ford Motor Co.'s old term loan gained ground after the company released December and full-year sales results.

Moving to the primary market, Smurfit-Stone Container Corp. came out with an anticipated timeframe for the launch of its proposed exit financing facility and Del Monte Corp. began circulating price talk on its upcoming pro rata credit facility.

Sorenson trades up

Sorenson Communications' first- and second-lien term loans headed higher in trading as news emerged that the company plans to repay second-lien and PIK holdco term loan borrowings, according to traders.

The first-lien term was quoted by one trader at 96½ bid, 97½ offered, up from 95¾ bid, 96¾ offered, and by a second trader at 96 bid, 97 offered, up from 95½ bid, 96½ offered.

And, the second-lien term loan was quoted by the first trader at 98½ bid, par ½ offered, up from 94 bid, 95 offered, and by the second trader at 97½ bid, 99½ offered, up from 95½ bid, 97½ offered.

Sorenson issuing notes

Early on Tuesday, word surfaced that Sorenson will be selling $735 million of senior secured notes to fund the paydown of the second-lien and PIK holdco loans, and to finance an equity distribution.

The bonds are expected to price next week.

Late last year, the company had received lender approval on an amendment to its credit facility to allow for this new bond transaction to take place.

The amendment also modified the leverage ratio contained in the credit agreement.

Sorenson is a Salt Lake City-based provider of industry-leading communications services and products.

Ford higher with numbers

Ford's old term loan was stronger on Tuesday following the company's announcement of December and full-year sales results, according to a trader.

The old term loan was quoted at 94 bid, 96 offered, up from 93 bid, 95 offered, the trader said.

For the month of December, total company sales were 184,655, up 32.8% from 139,067 in the same period last year.

Total Ford, Lincoln and Mercury sales for the month were 179,017, up 33.5% from 134,114 last year.

Car sales for the month were 61,195, up 42% from 43,087 in December 2008.

And, total truck sales for the month were 117,822, up 29.4% from 91,027 last year.

Ford full-year results

Also on Tuesday, Ford released full-year 2009 results that included total sales of 1.682 million, down 15.4% from 1.988 million in 2008.

Ford, Lincoln and Mercury sales for the full year were 1.621 million, down 15.4% from 1.915 million in the previous year.

Car sales for the full year were 595,671, down 11.4% from 671,965 for full year 2008.

And, truck sales for 2009 were 1.025 million, down 17.5% from 1.243 million last year.

"Ford's plan is working," said Ken Czubay, vice president, U.S. Marketing Sales and Service, in a news release. "Customer consideration continues to grow for our high-quality, fuel-efficient vehicles. In 2010, we will introduce an even higher number of new products, giving customers more reasons to drive one."

Ford is a Dearborn, Mich.-based manufacturer and distributor of automobiles.

Smurfit-Stone expected timing

Smurfit-Stone Container is looking at Jan. 13 as the date to hold a bank meeting for its proposed $1.2 billion six-year term loan, a market source told Prospect News on Tuesday.

As was previously reported, price talk on the term loan is Libor plus 500 basis points with a 2% Libor floor.

There is no talk on an original issue discount for the term loan as of yet, the source continued.

JPMorgan, Deutsche Bank and Bank of America are the lead banks on the exit financing deal.

As part of its exit facility, the company also intends to get a new revolver. The size of that revolver is still to be determined based on what banks commit to the transaction, the source added.

Smurfit-Stone is a Chicago-based manufacturer of paperboard and paper-based packaging.

Del Monte price talk emerges

Del Monte price talk started making its way around the market as the company is getting ready for the Thursday bank meeting that will officially kick off syndication on its proposed $1.1 billion senior secured credit facility, according to a market source.

Both the $500 million five-year revolver and the $600 million five-year term loan A are being talked at Libor plus 300 bps, the source said.

Bank of America, BMO and Barclays are the lead banks on the deal that will be used to refinance existing debt.

Covenants include a maximum leverage ratio and a minimum fixed-charge coverage ratio.

Closing on the facility is expected in late January or early February.

Del Monte is a San Francisco-based producer, distributor and marketer of branded food and pet products.

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