Georgia-Pacific emerges in grey market; Fresh Del Monte oversubscribed; Spectrum goes out

By Sara Rosenberg

New York, June 30 - Georgia-Pacific LLC's term loan C started seeing when-issued quotes in the secondary market during the trading session, and the company's term loan B was unchanged to a little bit higher, depending on who was asked.

In other news, Fresh Del Monte Produce Inc.'s revolver went very well in terms of syndication as the deal overfilled with orders ahead of the books closing on Tuesday.

Also, Spectrum Brands Inc.'s exit facility is being talked about to a couple of accounts and, as of now, there is no official launch set for the deal since it could end up being completed through this club-style execution, and price talk on Terra-Gen Power LLC's in-market credit facility surfaced.

Georgia-Pacific C loan quoted

Georgia-Pacific started to see levels emerge on its new $1 billion term loan C in the grey market on Tuesday at 95¼ bid, 95¾ offered, according to sources.

The loan had not yet allocated by day's end, but one source said that it will likely do so on Wednesday.

The term loan C (Ba2/BB+) due in December 2014 is priced at Libor plus 325 basis points, based on total leverage being less than or equal to 4.5 times. There is a step up to Libor plus 425 bps if total leverage is greater than 4.5 times.

Proceeds are being used to replace some of the company's existing term loan B debt that matures in December 2012.

On Tuesday, the company's term loan B was being quoted by one trader at 94 bid, 96 offered, up half a point on the day, and by a second trader at 94 bid, 94½ offered, compared to 94 bid, 95 offered on Monday.

Georgia-Pacific amends

As was previously reported, Georgia-Pacific's new term loan C is part of an amendment that the company received approval for at the end of last week.

Under the amendment, the company asked to extend all or some of its revolver to October 2012 from December 2010 and extend some term loan B through the creation of the term loan C. The company did not ask to extend its term loan A.

Pricing on the extended revolver will also be Libor plus 325 basis points with a step up to Libor plus 425 bps if total leverage is greater than 4.5 times.

The revolver has an unused fee that is initially set at 50 bps. This fee can step up to 75 bps based on leverage.

In connection with the amendment, the company is repaying $750 million of term loan A and non-extended term loan B debt on a pro rata basis.

Citigroup acted as the lead bank on the amendment.

Georgia-Pacific is an Atlanta-based manufacturer and marketer of building products, tissue, packaging, paper, pulp and related chemicals.

LCDX rises

The LCDX 12 index was stronger during market hours even though the stock market ended the day lower, according to a trader.

The index was quoted at 87.40 bid, 87.70 offered, up from 86.80 bid, 87.10 offered, the trader said.

Meanwhile, Nasdaq closed down 9.02 points, or 0.49%, Dow Jones Industrial Average closed down 82.38 points, or 0.97%, S&P 500 closed down 7.91 points, or 0.85%, and NYSE closed down 57.35 points, or 0.96%.

Fresh Del Monte well received

Over in the primary, Fresh Del Monte's $500 million 31/2-year revolving credit facility is going very well as the deal was "severely oversubscribed" ahead of Tuesday's official commitment deadline, according to a market source.

The revolver is talked at Libor plus 300 bps with a 62.5 bps unused fee.

Allocations are expected to be given out later this week, the source added.

Rabobank is the lead bank on the deal that will be used to refinance the company's existing $600 million revolver due Nov. 10, 2009 and term loan due May 10, 2011.

At March 27, the company had about $330 million outstanding under the revolver and $138.8 million outstanding under the term loan.

Fresh Del Monte is a Cayman Islands-based producer, transporter, marketer and distributor of fresh and fresh-cut fruit and vegetables

Spectrum Brands shopped to a few

Spectrum Brands' $242 million three-year senior secured asset-based revolving exit facility is being marketed to a couple of guys right now, mostly to investors that are in the company's debtor-in-possession financing facility, according to a market source.

Depending on how things play out, syndication may remain club style instead of going out wide to a whole bunch of accounts, the source said, adding that nothing final on the syndication style has been decided at this point.

The facility consists of a $197 million revolver tranche priced at Libor plus 400 bps with a 2.5% Libor floor and a $45 million first-in, last-out supplemental revolver tranche priced at and Libor plus 1,450 bps with a 3% Libor floor.

GE Capital is the lead bank on the deal.

Spectrum to exit this summer

Currently, Spectrum Brands is expecting to emerge from Chapter 11 in August as its plan of reorganization received the court's approval just a few days ago.

Upon its exit, the company will have reduced subordinated debt by $840 million and eliminated about $60 million of annual cash interest expenses for at least the next two years.

Under the plan, all of the company's $1.05 billion in existing note obligations will be exchanged for new common stock and a new series of senior subordinated notes, no distributions will be made to holders of current equity, and the claims of existing creditors other than the noteholders will be reinstated and unimpaired.

Spectrum Brands is an Atlanta-based consumer products company and supplier of batteries, lawn and garden products, pet supplies, shaving and grooming products, household insect control products, personal care products and portable lighting.

Terra-Gen floats talk

Pricing guidance on Terra-Gen Power's in-market $250 million term loan came out, with the tranche talked in the Libor plus 550 bps area with a 2.5% Libor floor and an original issue discount in the 96 to 98 context, according to a market source.

The term loan, along with a $25 million working capital revolving facility, was launched to investors with a bank meeting last Thursday, and at that time, price talk was not available.

Citigroup is the lead bank on the $275 million credit facility (Ba3) that will be used to refinance existing debt.

Terra-Gen is a New York-based renewable energy company.

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