Burns Philp to hold bank meeting for $375 million term B on Wednesday

By Sara Rosenberg

New York, Jan. 21 - Burns Philp & Co. Ltd. is scheduled to hold a bank meeting on Wednesday for a $375 million six-year term loan B with price talk of Libor plus 400 basis points, according to market sources. Credit Suisse First Boston is the lead bank on the deal.

Proceeds from the term loan B will be used to help fund the acquisition of Goodman Fielder Ltd.

Also, to help fund the acquisition the company received commitments for a A$1.3 billion multi-currency five-year term loan A via Credit Suisse First Boston, BOS International Ltd. and Credit Agricole Indosuez Australia Ltd., a $100 million one-year subordinated bridge loan via Credit Suisse First Boston to be repaid with an issuance of senior subordinated notes and a NZ$250 million bridge loan due Sept. 30 via Credit Suisse First Boston to be repaid with capital notes. The term loan A and the capital notes bridge loan have already been executed, according to a company news release.

Burns Philp is an Australian producer of bakers' yeast, yeast extracts, specialty yeast products such as wine/brewers' yeast, bakery ingredients, and herbs and spices.

In both distressed and par names, the secondary bank loan market took a breather Tuesday as very little activity was reported.

"It's the slowest day in probably a year," one distressed trader told Prospect News. "We just traded our first trade and its 4:02 (ET). I haven't seen anything quoted today. I've just seen sellers, no bid."

As for par paper, everything was basically "trading sideways on the Street names", a second trader said, adding that it was a quiet Tuesday.

When asked whether Nextel Communications Inc. or Charter Communications Corp. experienced any change, the trader reiterated: "Everything is sideways".

Nextel traded off about a point on Friday with the term loan D trading at 91 5/8 and term loans B and C trading at 94 1/8.

"Most things are a little weaker in sympathy to the stock market and bonds," a trader had explained regarding Nextel's weakening. He also attributed the Reston, Va. telecommunications company's mini-downfall to "sellers taking profits".

Meanwhile, Charter Communications Inc.'s bank debt was described as "wide" on Friday with "really no trades" taking place and was quoted with an 84½ bid and an 85½ offer.

Charter's bank debt fell off last week following the downgrade of the company's and its subsidiaries' debt by Moody's Investors Service.

Included in the downgrade was Charter Communications Operating LLC, Falcon Cable Communications LLC, CC VI Operating LLC and CC VIII Operating LLC senior secured bank debt, all cut to B2 from B1.

According to LoanX data, Tuesday's best performers on a percentage basis included Superior TeleCom Inc., McLeodUSA Inc. and American Tower.

Superior TeleCom's term loan B was reported up three points (8.41%) with a 38.667 bid compared to a 35.667 bid on Friday. The company is an East Rutherford, N.J. wire and cable manufacturer.

McLeodUSA's term loan B was reported up 1.75 points (4.38%) with a 41.75 bid, compared to a 40 bid on Friday. McLeodUSA is a Cedar Rapids, Iowa provider of integrated communications services.

And, American Tower's bank debt was reported up 2 points (2.32%) with an 88.333 bid compared to an 86.333 bid on Friday.

On Tuesday, American Tower announced that it expects to reduce outstanding term loans by at least $200 million with net proceeds from an offering of units made up of senior subordinated discount notes and warrants to purchase class A common stock.

The company needs to amend its credit facilities in order to obtain permission from lenders for the offering and to use up to $216 million of proceeds and cash on hand to repurchase 2.25% convertible notes.

As part of the amendment, the company's revolver will be reduced by at least $200 million as well.

American Tower is a Boston wireless and broadcast communications infrastructure 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.