Agrilink, Regal hit secondary with par-plus quotes; Charter steadies after Thursday's rise

By Sara Rosenberg

New York, Aug. 9 - Agrilink Foods Inc. and Regal Cinemas broke for trading in the secondary bank loan market on Friday at par-plus levels, according to market sources. Meanwhile, Charter Communications Inc. remained flat following Thursday's upward movement.

Agrilink Foods was quoted around par and 1/8 to par and 1/2, a market professional said.

"There weren't really any offers out because no one wants to sell," the professional said. "People tucked the asset away and they don't want to give it away."

The Rochester, N.Y. frozen vegetables company recently launched a $470 million credit facility (Ba3/B+), consisting of a $200 million five-year revolver with an interest rate of Libor plus 275 basis points and a $270 million seven-year term loan B with an interest rate of Libor plus 300 basis points.

Proceeds from the loan will be used to support the leveraged buyout by Vestar Capital Partners.

JPMorgan Chase, Bank of America and Bank of Montreal are the lead banks on the deal.

Regal Cinemas recently launched a $270 million term loan B with an interest rate of Libor plus 275 basis points. The loan is being used to refinance the company's existing term loan that has an interest rate of Libor plus 350 basis points, according to market sources.

Lehman Brothers and Credit Suisse First Boston are the lead banks on the deal.

Charter Communications Inc. was flat today in the secondary bank loan market after rallying about a point on Thursday to a bid of 88 and an offer of 89, according to a trader.

"Talk of Paul Allen taking it private boosted it a bit," the trader said. "And there's talk of assets sales."

Speculation on Allen's plans to take the company private emerged recently in the New York Times, prompting the company's bank debt and bonds to rise in price. On Thursday, the rumor was confirmed through a filing with the Securities and Exchange Commission in which Allen disclosed that he may buy the St. Louis cable operator's debt securities and is considering a restructuring to reduce borrowings or taking Charter private.

Allen, who owns directly and through investment vehicles 56.4% of Charter's class A common stock and controls 95.2% of the company's voting power, said he is considering buying - and may actually make purchases of - the company's public debt, including its convertibles.

He also said he is considering possible restructuring transactions designed to reduce the Charter's leverage. These could include a debt-to-equity exchange involving Allen or others or both.

As an alternative, Allen said he may propose a going-private transaction in which he would buy all or substantially all the company's stock.

Allen added that he "has not determined what if any course of action he may take with respect to any of the foregoing, nor he has made any proposals to the Issuer."

"Otherwise, it was a quiet Friday in August," the trader added.

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