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Commercial Barge Line lifts first- and second-lien term loan pricing
By Sara Rosenberg
New York, March 18 - Commercial Barge Line Co. (American Commercial Lines) raised pricing on its $450 million 61/2-year first-lien term loan (Ba3/B-) to Libor plus 625 basis points from Libor plus 500 bps and on its $200 million seven-year second-lien term loan (Caa1/CCC) to Libor plus 950 bps from talk of Libor plus 875 bps to 900 bps, according to a market source.
Also, the original issue discount on the first-lien term loan was revised to 98 from 99, while the discount on the second-lien loan remained at 98, the source said.
Both term loans still have a 1.25% Libor floor.
Included in the first-lien term loan is 101 soft call protection for one year.
The second-lien loan is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, sweetened from non-callable for one year, then at 102 in year two and 101 in year three, the source added.
Initially, the company was planning on just getting a $650 million first-lien term loan, but earlier this month, the tranche was downsized with the addition of the second-lien loan.
Bank of America Merrill Lynch, Goldman Sachs & Co., UBS Investment Bank and Wells Fargo Securities LLC 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.
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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