B&G Foods term loan launch a blowout, seen at L+350 bps; Day, Per Se also launch

By Sara Rosenberg and Ronda Fears

New York, Aug. 14 - Business was mostly concluded for the day by the time the power outage in the N.E. and Canada struck, sending bankers who would be working longer hours abruptly home. At the forefront of Thursday's business was the launch of B&G Foods Inc.'s term loan with a rave success.

New York was among several major cities impacted by what was speculated to be an overload at a Niagara Mohawk distribution grid intersection that dispersed electricity from Cleveland to Toronto.

However, Niagara Mohawk and other electricity officials, in New York, New Jersey and elsewhere, said the cause of the outage had not been determined.

Many commuters to New York were stranded by the blackout and Friday's business was uncertain, depending on the length of the outage.

During the day, before the blackout drama unfolded, B&G Foods, Day International Group Inc. and Per Se Technologies Inc. launched deals while Calpine Construction Finance Co. L.P. and Kerr Group Inc. closed transactions.

B&G Food's was the star of the day, gathering commitments totaling $250 million for the $150 million term loan B before the day was done. Price talk puts the loan at Libor plus 350 basis points.

Part of the popularity of the B&G Food loan was it's business area.

"You're talking about food products, which tend to be a little bit more stable," one investor told Prospect News..

Lehman Brothers is the lead arranger of the B&G Foods transaction, which is expected to close by the end of September.

Day's deal is also expected to go well, according to market sources. With three banks involved and the revolver - typically the most difficult to distribute - being relatively small, that tranche is pretty much wrapped up.

Day is marketing a $30 million six-year term loan A talked at Libor plus 350 bps, $20 million five-year revolver talked at Libor plus 350 bps, $105 million six-year term loan B talked at Libor plus 400 bps and $32 million five-year delayed draw term loan talked at Libor plus 400 bps. All tangible and intangible assets are pledged as security.

Proceeds are earmarked to repurchase the company's $100 million 11-1/8% senior unsecured notes due 2005, repay the existing credit facility and fund a potential acquisition.

Per Se Tech launched its $50 million three-year revolver at Libor plus 350 bps and $125 million five-year term loan B at Libor plus 400 bps via joint lead arrangers Bank of America and Wachovia.

The company is refinancing its 9-½% senior $175 million credit facility.

Closings also took place for Calpine Construction Finance and Kerr Group.

The Calpine unit closed its $750 million refinancing package, consisting of a $385 million first-priority term loan and $365 million of second-priority floaters.

The $385 million of first-priority secured institutional term loans due 2009 were offered at 98 and priced at Libor plus 600 bps with a Libor floor of 150 bps. The Rule 144A $365 million of second-priority secured floating rate notes due 2011 were offered at 98.01 and priced at Libor plus 850 bps with a Libor floor of 125 bps.

Noteholder recourse will be limited to the unit's seven natural gas-fired electric generating facilities.

Proceeds were used to refinance a portion of the unit's existing debt that matures in November, with the balance repaid from cash on hand.

Lead bank for the Calpine transactions was Goldman Sachs.

Kerr Group also closed its transactions, boosting the term loan portion due to strong investor demand.

The company closed a $245 million credit facility - a $30 million revolver at Libor plus 300 bps and a $215 million term loan B at Libor plus350 bps with a step-down to Libor plus 325 if leverage falls below 2.75 times.

Originally, the term loan B was expected to be $175 million, but $40 million of mezzanine debt was put into the term loan because of demand, market sources said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.