Albertsons, AMC Entertainment, US Farathane free to trade; Men’s Wearhouse under pressure

By Sara Rosenberg

New York, Dec. 10 – Albertsons Cos. LLC and AMC Entertainment Inc. firmed original issue discounts on their term loan Bs and then broke for trading on Thursday.

Albertsons firmed the original issue discount on its $1,145,000,000 seven-year senior secured covenant-light term loan B-5 (Ba3/BB) at 99, the wide end of the 99 to 99.5 talk, according to a market source.

As before, the loan is priced at Libor plus 450 basis points with a 1% Libor floor and has 101 soft call protection for six months.

Once terms were set, the debt was able to make its way into the secondary market on Thursday, and levels were quoted at 99 1/8 bid, 99 5/8 offered, a trader remarked.

AMC Entertainment finalized the original issue discount on its $881 million seven-year senior secured term loan B (Ba1/BB/BB+) at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

The loan is still priced at Libor plus 325 bps with a 0.75% Libor floor and has 101 soft call protection for six months.

With final terms in place, the term loan B freed up for trading in the morning, and levels were seen at 99¾ bid, par ¼ offered, a trader added.

Also, US Farathane Corp.’s add-on term loan hit the secondary market, and Men’s Wearhouse Inc.’s term loan dropped on the back of disappointing earnings results.

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