Compression Polymers breaks for trading with both term loans quoted at plus par levels

By Sara Rosenberg

New York, March 3 - Compression Polymers Holdings LLC's credit facility allocated and broke for trading on Wednesday with the first lien term loan quoted at par ½ bid, par 7/8 offered and the second lien term loan quoted at par ¼ bid, par ½ offered, according to a fund manager.

"There were only a couple of trades in the first lien. I think only two. The second lien didn't really trade," the fund manager said.

The $90 million six-year first lien term loan (B1/B) is priced with an interest rate of Libor plus 325 basis points, and the $30 million 61/2-year second lien term loan (B2/CCC+) is priced with an interest rate of Libor plus 600 basis points. Both tranches were originally issued at par.

Originally the second lien term loan was priced with an interest rate of Libor plus 625 basis points but was reverse flexed during syndication.

The $140 million credit facility also contains a $20 million five-year revolver with an interest rate of Libor plus 300 basis points.

Wachovia is the lead bank on the deal that will be used to refinance debt, for general working capital and to pay a dividend to shareholders.

Compression Polymers is a Moosic, Pa., manufacturer of thermoplastic sheet and plate.

Achievement gets orders

American Achievement Corp.'s $155 million term loan had already seen "lots of orders" a few hours after its Wednesday morning bank meeting, according to a market source. The tranche is being talked at Libor plus 275 basis points.

The company's $195 million credit facility also contains a $40 million revolver.

Goldman Sachs and Deutsche Bank are the lead banks on the deal, with Goldman listed on the left.

Proceeds will be used in combination with a proposed $150 million bond offering to support the acquisition of American Achievement by a new company organized and managed by Fenway Partners from Castle Harlan Inc.

American Achievement is an Austin, Texas, manufacturer and seller of high school and college class rings and yearbooks.

Home Interiors to see interest

Home Interiors & Gifts Inc.'s proposed $370 million credit facility (B2/B) is anticipated to be met with good demand since the company currently has an existing term loan in the market and this refinancing is expected to capture "a lot of interest from existing lenders," according to a sellside source.

The facility consists of a $320 million term loan with an interest rate of Libor plus 325 basis points and a $50 million revolver with an interest rate of Libor plus 275 basis points.

Home Interiors' existing term loan is priced with an interest rate of Libor plus 450 basis points so this deal would result in a nice reduction in interest expense for the company. As for the potential lenders, "the company received B2/B ratings so 325 is appropriate for that rating," the professional explained.

JPMorgan and Bear Stearns are the lead banks on the deal that is launching on Thursday via a bank meeting, with JPMorgan listed on the left.

Proceeds will be used to refinance about $169.8 million of existing senior debt, to repurchase all approximately $139 million or a portion of the company's outstanding convertible preferred stock, for general working capital purposes and to pay transaction fees and expenses.

On a pro forma basis after giving effect to the refinancing and the anticipated use of the proceeds from the refinancing, as of Dec. 31 the company would have had about $474.6 million in total debt, compared to about $323.2 million in total debt as of Dec. 31 on an actual basis.

Home Interiors & Gifts is a Dallas integrated manufacturer and distributor of home decorative accessories.

Paxton moving smoothly

Paxton Media Group LLC's $350 million credit facility has received "a couple of tickets post meeting" and had four banks sign on to the deal as agents prior to the Tuesday bank meeting, according to a source close to the deal.

"It's going great. All these agents have come in. It's a very consistent company. Moderately leveraged inside four times," the source said.

Wachovia is the left lead bank on the facility. Fleet, Bank of New York, SunTrust and KeyBank are the four agent banks that joined the syndicate.

The facility consists of a $200 million revolver and a $150 million term loan A, both containing a seven-year term and both priced with an interest rate of Libor plus 150 basis points.

Proceeds from the new credit facility will be used to refinance the company's existing credit facility.

Commitments are due in mid-March and closing on the Peducah, Ky., media company's deal is expected to occur by month's end.

Ply Gem rebounds

Ply Gem Industries Inc.'s term loan B, which allocated and broke for trading on Tuesday, saw an early morning drop in levels to par 7/8 bid, 101 offered, from 101 bid 101 1/8 offered, according to a market source who speculated that their may have been more sellers than buyers. However, the paper rebounded to the 101 bid, 101 1/8 offered level by afternoon as the demand/supply ratio shifted back.

"It was par 7/8, 101 when it first broke and then it moved to 101, 101 1/8. First thing this morning it came back down to par 7/8 and then jumped back up to that 101 bid. Maybe they had a couple of people trying to sell the paper and that moved the bid back. Some trades probably took place so they were able to clear out that inventory and move the bid back up," the source explained.

The $200 million seven-year term loan B is priced with an interest rate of Libor plus 275 basis points.

The $255 million senior secured credit facility (B1/B+) also contains a $55 million five-year revolver with an interest rate of Libor plus 250 basis points.

Originally the term loan B was expected to be sized at $235 million but it was reduced to $190 million following the pricing of an upsized bond offering. Then, the term loan was increased to $200 million from $190 million and the revolver was decreased to $55 million from $65 million because of strong demand for the institutional paper. Furthermore, pricing on the term loan B came in to Libor plus 250 basis points from Libor plus 275 basis points during syndication.

UBS and Deutsche Bank are joint bookrunners, and CIBC and Merrill Lynch are co-arrangers and documentation agents on the facility.

The deal launched at the end of January to a small group of investors made up of around 25 accounts in order to avoid massive oversubscription and a complicated allocation process.

Proceeds will be used to help support the company's acquisition by Caxton-Iseman Capital Inc. from Nortek Inc., which was actually completed on Feb. 12.

Ply Gem is a Kearney, Mo., manufacturer and distributor of products for use in the residential new construction, do-it-yourself and professional renovation markets.

TransWestern Publishing closes

TransWestern Publishing Co. LLC completed the tender offer for its $215 million outstanding Series F 9 5/8% senior subordinated notes due 2007. About $185.7 million or 86.4% of the notes ended up being tendered, costing the company approximately $192 million plus accrued interest, according to a company news release.

In connection with the tender offer the company obtained a new $665 million credit facility. Goldman Sachs and Wachovia were the joint lead arrangers on the deal, with Goldman listed on the left.

The facility consists of a $400 million first lien term loan (B1/BB-) that ended up pricing at the lower end of price talk at Libor plus 225 basis points, a $200 million second lien term loan (B2/B) that also priced at the low end of price talk at Libor plus 375 basis points and a $65 million revolver (B1/BB-).

Both the first and the second lien term loan were well oversubscribed on the day of their launch.

Proceeds were used by the San Diego telephone directory publisher not only to finance the tender offer of its senior subordinated notes, but also to refinance the existing credit facility and help pay a dividend to equity investors.

White Birch closes

White Birch Paper Ltd. in a financial partnership with RFR Holding LLC completed its purchase of the Papiers Stadacona paper mill in Quebec City from Enron Corp. earlier in the week for a purchase price of $205 million, according to a company news release.

In order to help fund the acquisition, White Birch got a new $130 million six-year term loan (B) with an interest rate of Libor plus 550 basis points. The company also obtained a C$50 million three-year revolver (B+) with an interest rate of Libor plus 325 basis points.

TD Securities was the lead bank on the deal.

Security for the term loan is a second lien on receivables and inventory and a first lien on all other assets. Security for the revolver is a first lien on receivables and inventory and a second lien on all other assets.

White Birch is a Greenwich, Conn., newsprint, paper and paperboard company.

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