Navistar dips in trading after slight run-up; AOT Bedding, Payless/Collective ready deals

By Sara Rosenberg

New York, Aug. 29 - Navistar International Corp. on Wednesday saw its term loan B give up some of the gains that it posted over the course of this week in the secondary market after news of a management shake-up came out.

Meanwhile, over in the primary, AOT Bedding Super Holdings set timing on the launch of its credit facility, and details on structure were also announced.

Payless ShoeSource/Collective Licensing International surfaced with term loan plans.

Navistar softens

Navistar's term loan B slid in trading on Wednesday to par ½ bid, 101 offered from par ¾ bid, 101¼ offered, according to a trader. On Monday, the loan was quoted at par ¼ bid, par ¾ offered.

The company's debt has been trending higher with the company's disclosure early this week that its chairman, president and chief executive officer, Daniel C. Ustian, is retiring effective immediately.

Lewis B. Campbell, former chairman, president and chief executive officer of Textron Inc., was named as executive chairman of the board of directors and interim chief executive officer.

Also, Troy A. Clarke was promoted to president and chief operating officer from president of truck and engine operations.

Navistar is a Lisle, Ill.-based manufacturer of commercial and military trucks, buses, RVs and diesel engines.

Supervalu holds firm

Supervalu Inc.'s term loan was steady at 99 7/8 bid, par 3/8 offered as the company revealed that it is restructuring its executive leadership team to better drive and execute its business turnaround, according to a market source.

As part of the changes, Kevin Holt is taking on an expanded role as president of retail, and executive vice president and chief marketing officer Michael Moore will now report to Holt, as will Tim Lowe, who has been promoted to executive vice president of merchandising from senior vice president of merchandising.

Also, Janel Haugarth has accepted a newly created position of executive vice president, business optimization and process improvement, where she will be responsible for identifying and executing strategies to create a more streamlined, effective organization.

SuperValu is an Eden Prairie, Minn.-based supermarket operator.

AOT timing, structure

Switching to the primary, AOT Bedding set a bank meeting for 9:30 a.m. ET on Sept. 6 to launch its proposed credit facility, which is now known to be sized at $1.458 billion and made up of a $225 million ABL revolver and a $1.233 billion seven-year senior secured term loan, according to market source.

Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., UBS Securities LLC, Deutsche Bank Securities Inc., Barclays, Jefferies & Co. and RBC Capital Markets LLC are leading the deal that will be used with $725 million of high-yield bonds to fund the buyout of the company by Advent International and refinance existing debt.

Sellers, Ares Management LLC and the Ontario Teachers' Pension Plan will retain a significant equity stake in the company at close, which is expected to occur in the fourth quarter.

AOT Bedding, a mattress manufacturer, is the parent company of Hoffman Estates, Ill.-based National Bedding Co. and Atlanta-based Simmons Bedding Co.

Payless/Collective on deck

Also coming out with bank meeting plans was Payless ShoeSource/Collective Licensing, as it scheduled a meeting for 10 a.m. ET on Sept. 7 to launch a $275 million seven-year senior secured term loan that is being led by Morgan Stanley Senior Funding Inc., Jefferies & Co. and KKR Capital Markets, according to a market source.

The term loan is in addition to the company's previously announced commitment for a $250 million senior secured asset-based revolving credit facility that is being led by Wells Fargo Capital Finance.

Proceeds will be used to refinance existing debt and help fund the buyout of the company by Blum Capital Partners and Golden Gate Capital from Collective Brands Inc., which is expected to close late in the third quarter or early in the fourth quarter.

Payless is a Topeka, Kan.-based specialty family footwear retailer, and Collective Licensing is an Englewood, Colo.-based development and licensing company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.