Repricing deals continue to surge into technically hot institutional loan market

By Sara Rosenberg

New York, Nov. 10 - Over the last week or two the amount of institutional repricings has significantly increased and more are expected to come as the bank loan market continues to be viewed as extraordinarily hot. Newest to a long list of repricing deals is Harbor Freight Tools, and rumor has it that Roseburg Forest Products Co. may be joining shortly as well.

On Wednesday, news emerged that Harbor Freight would be holding a conference call on Friday to launch a mark-to-market repricing of its $440 million term loan that would lower pricing to Libor plus 225 basis points from Libor plus 275 basis points.

Credit Suisse First Boston and UBS are the lead banks on the deal for the Camarillo, Calif., tool and equipment catalog retailer.

Furthermore, speculation is that Roseburg Forest will be launching a repricing next week of its term loan that is currently priced at Libor plus 200 basis points, although, nothing has been formally announced as of yet, a market source told Prospect News.

Credit Suisse First Boston was the lead bank on the Roseburg, Ore., producer and supplier of wood products' term loan in the past.

These two new entries into the repricing world would be joining other recently launched deals like Dex Media East LLC and Dex Media West LLC, Communications & Power Industries Inc., CB Richard Ellis Group Inc. and FTD Inc.

On Tuesday, Dex East and Dex West asked lenders to lower pricing on their term loan Bs to Libor plus 175 basis points. Dex East is currently at Libor plus 200 basis points, and Dex West is currently at Libor plus 225 basis points.

JPMorgan is the lead bank on the Englewood, Colo., directory publisher's repricings.

On Monday, Communications & Power Industries asked lenders to lower pricing on its term loan to Libor plus 250 basis points from Libor plus 300 basis points. UBS is the lead bank on the deal.

The company is a Palo Alto, Calif., developer, manufacturer and distributor of components for systems used to generate, amplify and transmit high-power/high-frequency microwave and radio frequency signals.

Last Thursday, CB Richard Ellis held a conference call to reprice its $280 million 51/2-year term loan B with an interest rate of Libor plus 200 basis points.

Credit Suisse First Boston is the sole lead arranger on the Los Angeles commercial real estate services company's deal.

And finally, on Nov. 1 FTD, a Downers Grove, Ill., floral company, launched the repricing of its $85 million 61/2-year term loan B at Libor plus 225 basis points via Credit Suisse First Boston as well.

Thomson well attended

Thomson Media's Wednesday morning bank meeting saw "a lot" of investor attendance, according to a market source who said that the deal has been met with interest already.

Furthermore, now that the deal launched, price talk was made available on the $235 million credit facility with the $35 million revolver (B1) talked at Libor plus 275 basis points, the $160 million term loan B (B1) talked at Libor plus 275 basis points, and the $40 million second-lien term loan C (B2) talked at Libor plus 600 basis points, the source said.

Citigroup and Barclays are the lead banks on the deal, with Citigroup left lead.

Proceeds from the loan will be used to help fund Investcorp's acquisition of Thomson Media from The Thomson Corp. for $350 million in cash.

Thomson Media is a New York-based provider of largely print-based information products focused on the banking, financial services and related technology markets.

Affinia going well

Syndication of Affinia Group's $525 million credit facility (B2/BB-) is "in very good shape," according to a market source, with some saying that the term loan is even oversubscribed.

JPMorgan, Goldman Sachs, Credit Suisse First Boston and Deutsche Bank are joint lead arrangers on the deal, with JPMorgan left lead. UBS is acting as an agent.

The facility consists of a $125 million six-year revolver with an interest rate of Libor plus 300 basis points and a $400 million seven-year term loan B with an interest rate of Libor plus 300 basis points.

The $400 million term loan can be reduced by $100 million if the company does an accounts receivable deal, the source added.

Commitments are due on Nov. 15.

Proceeds will be used to help fund The Cypress Group's acquisition of Dana Corp.'s Automotive Aftermarket Group, which is being renamed Affinia Group, for about $1.1 billion in cash.

Affinia Group is a producer of automotive replacement products.

Ad Directory closes

Advertising Directory Solutions Inc., a corporation formed by an affiliate of Bain Capital, completed its acquisition of SuperPages Canada from Verizon Communications Inc. for $1.54 billion, according to news release late Tuesday.

To fund the acquisition, Advertising Directory got a new $1.139 billion credit facility consisting of a $769 million term loan B (B1/BB-) with an interest rate of Libor plus 225 basis points, an approximately $310 million second-lien term loan (B2/B-) - which was upsized during syndication from $230 million after the company's senior notes offering was reduced by $40 million to $170 million -with an interest rate of Libor plus 400 basis points, and a $60 million revolver (B1/BB-).

JPMorgan, Bank of America, Deutsche and Merrill Lynch were the lead banks on the Burnaby, B.C.-based directories publisher's deal.

© 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.