Commercial Barge trims first-lien loan size, adds second-lien tranche

By Sara Rosenberg

New York, March 7 - Commercial Barge Line Co. (American Commercial Lines) downsized its 61/2-year first-lien senior secured term loan to $450 million from $650 million and added a $200 million seven-year second-lien term loan to the capital structure, according to a market source.

The first-lien term loan is still talked at Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 99 and includes 101 soft call protection for one year.

Meanwhile, talk on the second-lien term loan is Libor plus 875 bps to 900 bps with a 1.25% Libor floor and a discount of 98, the source said.

The second-lien loan is non-callable for one year, then at 102 in year two and 101 in year three.

Recommitments are due on March 13, the source added.

BofA Merrill Lynch, Goldman Sachs & Co., UBS Investment Bank and Wells Fargo Securities are the joint lead arrangers and joint bookrunners on the deal, and PNC Capital Markets LLC, Royal Bank of Scotland and SunTrust Robinson Humphrey Inc. are the co-managers.

Concurrent with the new term loans, the company expects to increase its asset-based revolving credit facility to $550 million from $475 million.

Proceeds will be used to repay 10 5/8%/11 3/8% senior PIK toggle notes due 2016 at a redemption price of 105 and 12½% senior secured notes due 2017 at a redemption price of 106¼ and to fund a $207 million dividend.

Commercial Barge Line is a Jeffersonville, Ind.-based marine transportation and service company.

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