Tribune frees to trade; LCDX dips with stocks; Roskam Baking financing hoped to fill out soon

By Sara Rosenberg

New York, April 7 - Tribune Co.'s accounts receivable securitization facility allocated and broke for trading on Tuesday, with the term loan quoted above its upfront fee, and the LCDX 10 index was a little weaker in sympathy with equities.

Meanwhile, over in new deal happenings, Roskam Baking Co.'s buyout financing credit facility is moving forward in terms of syndication with the anticipation being that full subscription may be reached soon.

Tribune breaks

Tribune's one-year accounts receivable securitization facility hit the secondary market on Tuesday after allocations went out, and the bid on the term loan was seen slightly higher than the discount price at which it was sold during syndication, according to a market source.

The $150 million term loan was first seen at 99¼ bid on the break and then it inched up to 99½ bid by the end of the day, the source said.

Pricing on the term loan is Libor plus 600 basis points with a 3% Libor floor, and it was issued to investors with an upfront fee of one point.

Tribune also getting revolver

Tribune's $225 million accounts receivable securitization facility also includes a $75 million revolver that is priced at Libor plus 600 bps with a 3% Libor floor as well.

The revolver was sold to investors with an upfront fee of four points.

Proceeds from the facility will be used to refinance an interim $300 million accounts receivable securitization debtor-in-possession financing facility that was provided by Barclays back in July 2008 and expires on April 10 - which is when closing on the new deal is scheduled to take place.

Barclays is also the lead bank on the new transaction.

The actual borrower under the proposed deal is a bankruptcy remote special purpose entity.

Tribune is a Chicago-based media company.

LCDX slides

The LCDX 10 index was a touch softer during market hours as stocks weakened, while cash was more of a mixed bag, according to a trader.

The index was quoted at 74 bid, 74.40 offered, down from Monday's levels of 74.50 bid, 74.70 offered, the trader said.

Cash, on the other hand, was pretty name specific with some things down with stocks and other things up with CLO buying, the trader remarked, adding that overall it was a pretty quiet day of trading.

As for stocks, Nasdaq closed down 45.1 points, or 2.81%, the Dow Jones Industrial Average closed down 186.29 points, or 2.34%, the S&P 500 index closed down 19.93 points, or 2.39%, and the NYSE closed down 128.81 points, or 2.45%.

Roskam Baking progressing

Switching to the primary, Roskam Baking's in-market $115 million credit facility is "still working" on being fully syndicated; however, it is "looking good to fill out this week," a market source told Prospect News.

The facility consists of a $20 million revolver and a $95 million term loan.

Price talk on both tranches is Libor plus 650 bps with a 3.25% Libor floor and an original issue discount of 97.

CIT and GE Capital are likely to be the joint lead arrangers on the deal that is being syndicated club style.

Proceeds will be used to help fund the acquisition of the company by Wind Point Partners.

Roskam Baking is a Grand Rapids, Mich.-based commercial bakery.

Georgia Gulf coming along

Also heard to be going well is syndication of Georgia Gulf Corp.'s $175 million two-year asset securitization credit facility, according to a market source.

GE Capital is the lead bank on the deal that actually closed last month around the time it was launched into syndication.

Price talk on the facility is Libor plus 450 bps with a 2.5% Libor floor and a 100 bps unused fee.

There is a $25 million accordion feature.

Georgia Gulf is an Atlanta-based manufacturer and marketer of chlorovinyls and aromatics chemicals, and vinyl-based building and home improvement products.

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