New names surface in primary market; Sierra Pacific, QwestDex credit facilities launch

By Sara Rosenberg

New York, Oct. 7 - It appears as if some market participants are getting what they wished for as new loans other than the high-profile giant deals from Del Monte Foods Co., Burger King Corp., Ball Corp. and QwestDex (which had its institutional launch on Monday) are once again scheduled to hit the primary in the near future. Some such deals that are anticipated this week include White Mountains Insurance Group Ltd., The Aerostructures Corp. and United States Filter Corp. Already launched this week was Sierra Pacific Power Co.'s $100 million term loan.

Leveraged players have been getting fidgety, as new issuance has been relatively scarce over the past few weeks.

But these individuals can now breathe a sigh of relief as this week's calendar may end up bringing new life into the previously dead primary.

White Mountains Insurance Group Ltd. is scheduled launch a $230 million term loan C with an interest rate of Libor plus 300 basis points on Tuesday, according to market sources. Lehman Brothers is the lead bank on the deal.

Proceeds are being used to take out the term loan A, giving the company amortization relief, one source told Prospect News.

White Mountains Insurance is a Bermuda-domiciled financial services holding company.

Sierra Pacific Power Co. was said to have held a bank meeting on Monday regarding a $100 million five-year term loan, according to market sources. The Reno, Nev. electric utility's deal is being led by Lehman Brothers.

QwestDex held its highly anticipated institutional bank meeting for approximately $1.5 billion credit facility on Monday. The loan was anticipated to consist of a 61/2-year term loan B sized at about $700 with an interest rate of Libor plus 350 basis points and a six-year pro rata portion sized at approximately $800 million with an interest rate of Libor plus 300 basis points, a source close to the deal previously told Prospect News.

The directory services company's deal has been presented to top-tier agents and some larger institutions already, sources say.

The launch apparently took up most of the afternoon, according to market participants and the syndicate, making official launch details not immediately available at press time.

JPMorgan, Bank of America, Deutsche Bank, Lehman Brothers and Wachovia Securities are the lead banks on the deal.

In follow-up news, Brand Services Inc. restructured its credit facility recently, modifying both the size and pricing, according to market sources. The company downsized its term loan B by $20 million to $130 million and flexed the rate up by 50 basis points to Libor plus 400 basis points.

"They changed the structure of the entire deal," a fund manager said. "Now its $35 million of mezzanine notes at the holding company, the subordinated debt was reduced by about $15 million and the term loan B is $130 million, reduced from $150 million. Pro forma leverage will now be 4.1 times and senior debt will be 2.0 times."

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