Graham upsizes rollover amount; Cablevision gets some extensions; Ashland trims OID, breaks

By Sara Rosenberg

New York, May 21 - Graham Packaging Co. LP increased the amount of commitments that it is accepting from term loan B lenders who are willing to extend the debt's maturity date as a result of the oversubscription of the target amount.

Also on the extension front, Cablevision Systems Corp.'s amendment that allows for the maturity date of some of its term loan B debt to be pushed out was approved by lenders, and based on preliminary morning numbers, it appeared as if about one-third of the loan was extended.

Meanwhile, in new deal happenings, Ashland Inc. finalized the original issue discount on its term loan B at a tighter-than-expected level and then freed the deal up for trading, and Quebecor World Inc. firmed up timing on the launch of its exit financing facility with the scheduling of a bank meeting for next week.

Graham accepts more debt for extension

Graham Packaging increased the size of its term loan C, which is made up of rollover commitments from existing term loan B lenders who were willing to push out the maturity date, because of strong demand, according to a market source.

The term loan C is now sized at $1.2 billion, up from $1.1 billion, and being that there was over $1.2 billion in the book, the banks will have to cut orders down on a pro rata basis, the source said.

The term loan C matures in April 2014 and is priced at Libor plus 425 basis points with a 2.5% Libor floor.

By comparison, the existing term loan B matures in October 2011 and is priced at Libor plus 225 bps.

Any commitments not rolled over into the new term loan C will remain in the term loan B, so there will be $615 million of term loan B debt left outstanding.

Graham also extending revolver

In connection with the term loan extension, Graham Packaging is also planning on delaying the maturity of up to $125 million of its currently undrawn $250 million revolver to October 2013 from October 2010.

The extended revolver commitments carry pricing of Libor plus 425 bps with a 2.5% Libor floor as well.

Non-extended revolver commitments will continue to be priced at Libor plus 275 bps.

In order to be able to extend the maturities, the company needed to amend its credit facility to allow for these transactions, and that amendment has been approved, the source added.

Lenders were not offered an amendment fee.

Deutsche Bank acted as the lead bank on the amendment and extension.

The company had previously remarked that it was seeking the amendment now in order to take advantage of its strong operational performance and limit the risk of a future refinancing.

Graham Packaging is a York, Pa.-based designer, manufacturer and seller of customized blow molded plastic containers.

Cablevision delays some term maturity

Cablevision was another company that successfully amended its credit facility to allow for the extension of the maturity date of as much of its term loan B as possible to March 29, 2016 from March 29, 2013, according to a fund manager.

And, the fund manger said that as of Thursday morning, he had heard that preliminary numbers put the amount of the term loan B that was extended at about $1 billion.

Currently, there is about $3.395 billion outstanding under the B loan.

"They're still tallying up all the numbers," the fund manager added.

In response to this latest news, the company's term loan B saw little reaction in the secondary market, with levels staying at around 93½ bid, 94½ offered.

Cablevision gives extension fee

Cablevision could not offer lenders increased pricing on the extended term loan B debt since that would have required 100% approval under its credit agreement, so instead, these lenders are getting an extension fee, the fund manager explained.

Whoever extended their term loan B commitments will be getting an extra 150 basis points fee each year, starting now.

Actual pricing on the extended term loan B, however, remained unchanged at Libor plus 175 bps, the fund manager continued.

In addition, consenting lenders received a 5 bps fee for their approvals.

Cablevision also adds accordion

On top of permitting the extension of term loan B maturities, Cablevision's amendment provided for a new accordion feature as well, the fund manager said.

Under the amendment, the company can increase its total facility size, through revolver or term loan additions, by about $900 million.

If exercised now, the facility would be able to be increased to about $5.2 billion from the roughly $4.3 billion size that the company currently maintains.

Bank of America and JPMorgan led the amendment process.

Cablevision is a Bethpage, N.Y.-based telecommunications, media and entertainment company.

Ashland cuts OID

Over in the new deal market, Ashland ended up selling its $830 million term loan B at an original issue discount of 981/2, compared to earlier guidance of 98, according to sources.

Pricing on the term loan B is Libor plus 440 basis points with a 3.25% Libor floor.

The term loan B was fully syndicated.

Proceeds from the term loan B, which was funded in November 2008 but not syndicated because of market conditions, were used to help finance the acquisition of Hercules Inc.

At that time, the company also obtained a $400 million revolver and a term loan A that has a current balance of $377 million, with both of these tranches priced at Libor plus 350 bps with a 3.25% Libor floor.

The term loan B is the only tranche that was being syndicated at this time.

Bank of America and Scotia Capital are the lead banks on the deal.

Ashland frees to trade

After finalizing the original issue discount, Ashland allocated its term loan B and proceeded to break the deal for trading above its discount price, according to a trader.

The term loan B was quoted at 99 3/8bid, 99 7/8 offered on the break and then it moved up to par bid, par ½ offered, where it closed out the day, the trader said.

However, since the loan hit the secondary market very late in the day, there wasn't a whole lot of trading activity seen in the name, the trader added.

Ashland is a Covington, Ky.-based provider of specialty chemical products and services.

Quebecor timing emerges

Quebecor came out with timing on its exit financing credit facility as a bank meeting has been scheduled to take place on May 28, according to a market source.

Previously, it was known that the banks were hoping to launch the deal within the next few weeks, but a specific date had been unavailable.

The total facility size is expected to be around the $625 million to $700 million range, consisting of a revolver and a term loan. Recent estimations had each the revolver and the term loan sizes anticipated in the $300 million plus area.

Credit Suisse, GE Capital Markets and Wachovia are the lead arrangers on the deal that is anticipated to be finalized by mid-July.

Quebecor capital structure

In addition to the exit facility, Quebecor's new capital structure contemplated under its plan of reorganization would include up to $75 million of new unsecured notes.

Also making up the capital structure would be new convertible preferred shares, about 73.3 million of new common shares, about 10.7 million of new warrant bundles and a yet-to-be-determined cash payment.

The new capital structure would be exchanged for the $2.7 billion of liabilities subject to compromise and for repayment of the company's debtor-in-possession financing facility.

Quebecor is a Montreal-based printing and marketing company.

LCDX dips

Back to the secondary market, the LCDX 12 index headed lower on Thursday in sympathy with the stock market, according to a trader.

The index was quoted at 82.10 bid, 82.40 offered, down from 82.80 bid, 83.20 offered, the trader said.

Meanwhile, Nasdaq closed down 32.59 points, or 1.89%, Dow Jones Industrial Average closed down 129.91 points, or 1.54%, S&P 500 closed down 15.14 points, or 1.68%, and NYSE closed down 89.85 points, or 1.53%.

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