84 Lumber prices, trades higher; TransDigm upsizes; PowerFlute brings euro deal

By Paul A. Harris

Portland, Ore., Oct. 12 – Yom Kippur celebrations dampened activity in the leveraged loan market on Wednesday, according to sources.

Investors are looking for whatever they can get their hands on, and loans tend to be trading above their call prices, a trader said.

Cash flow is flowing into the bank loan asset class, presently the highest they have been in 18 months, and are steadily increasing, the trader said.

Retail loan funds saw $80 million of daily inflows on Tuesday, the most recent session for which data was available at press time.

In the primary market, 84 Lumber Co. priced its covenant-light loan, which traded higher in the secondary.

TransDigm Group Inc. upsized its incremental term loan.

And Powerflute Oyj scheduled a Thursday lender presentation for a euro-denominated deal.

84 Lumber prices

84 Lumber priced its Libor plus 575 basis points seven-year covenant-light term loan B (B3/B+) at 98.00.

The deal traded to par bid, 100¼ offered.

The spread increased from 525 bps.

The discount deepened from earlier talk of 99.

There were also revisions to the amortizations, and the restricted payments basket was revised, the source said.

The loan has a 1% Libor floor and 101 soft call protection for one year.

Wells Fargo and PNC were the leads on the deal.

Proceeds will be used to refinance existing debt.

TrasDigm upsizes

TransDigm Group Inc. upsized its incremental first-lien term loan F (Ba2/B) to $1.15 billion from $650 million.

Discount talk tightened to 99.5 from earlier talk of 99 to 99.5.

Commitments are due at noon ET Thursday.

Other terms were left unchanged.

Like the existing term loan, the add-on loan will mature in June 2023 and bear interest at Libor plus 300 basis points, subject to a 0.75% Libor floor.

The incremental term loan will have 101 soft call protection through June 2017.

Credit Suisse is the lead bank on the deal.

Proceeds will be used to make a shareholder distribution and to refinance debt.

The incremental loan will be fungible with the company’s existing term loan F.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for use on commercial and military aircraft.

PowerFlute brings €315 million

Nordic Packaging & Container (Finland) Holdings Oy set a Thursday lender presentation for a €315 million credit facility backing the acquisition of Powerflute Oyj by Madison Dearboarn Partners.

Barclays and Deutsche Bank Securities Inc. are the arrangers.

The deal features a €240 million seven-year term loan, a €35 million eight-year second lien loan and a €40 million six-year revolver.

Proceeds will be used to finance the acquisition and repay existing debt.

The Kuopio, Finland-based company manufactures, sells and distributes Nordic semi-chemical fluting as well as coreboard and cores.

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