AMI expected to be smooth sailing; Masonite circulates pricing guidance; Calpine gives up gains

By Sara Rosenberg

New York, March 8 - Syndication of AMI Semiconductor Inc.'s proposed $300 million credit facility is expected to go smoothly as the deal has already gotten positive feedback. Meanwhile, Masonite International Corp. has indicated an unofficial pricing range to investors for its term loan B that falls in the low-to-mid 200 context over Libor.

In the secondary, Calpine Corp. on Tuesday basically gave up the ground it gained during Monday's session, with the second-lien paper quoted lower by about a half a point on the day.

AMI Semiconductor's credit facility, which launched via a bank meeting on Monday, is expected "to take care of itself" with the deal already said to be coming along just "great," according to a market source.

The facility was launched with opening price talk of Libor plus 175 basis points on the $90 million five-year revolving credit facility and opening price talk of Libor plus 150 to 175 basis points on the $210 million seven-year term loan B, the source added.

The term loan is being offered to investors at par.

Credit Suisse First Boston and Lehman Brothers are joint lead arrangers, with CSFB the sole bookrunner and administrative agent.

Proceeds will be used to refinance existing bank debt and help fund a tender offer for the company's outstanding 10¾% senior subordinated note due 2013.

AMI is a Pocatello, Idaho-based designer and manufacturer of application-specific integrated circuits.

Masonite guidance emerges

Masonite International Corp. has pointed investors toward a pricing range of Libor plus 225 to 250 basis points on its $1.175 billion term loan B when asked, although official price talk has yet to be released, according to a market source.

The term loan had received orders prior to and following its Monday bank meeting, with some people throwing in commitments regardless of price and others throwing in commitments based on specified pricing levels, a source previously told Prospect News.

Masonite's $350 million revolver is talked at Libor plus 250 basis points.

The term loan is being offered to investors at par, and the revolver carries upfront fees of 125 basis points for commitments of $25 million and 100 basis points for commitments of $15 million.

Commitments are due on March 21.

A couple of factors that seem to be working in the deal's favor are Masonite being an existing issuer, the business being one that is easy to understand and the amount of equity being contributed by Kohlberg Kravis Roberts & Co. as part of this leveraged buyout financing package.

Masonite was previously scheduled to hold the bank meeting during the week of Feb. 14 but a decision was made to cancel the launch because shareholders were expected to turn down KKR's LBO proposal at a Feb. 18 shareholders meeting. The opposition to the acquisition basically said that the original offer undervalued the company.

Later that week though, KKR announced that it increased its bid for Masonite to C$42.25 per share cash from C$40.20 per share cash, and, in light of the change, Masonite rescheduled its shareholders meeting to March 31 from Feb. 18.

The additional funds needed by KKR to complete the pricier-than-originally anticipated LBO will be coming from equity, which is why the size of the $1.525 billion credit facility (B2/BB-) and the proposed $825 million bond offering were left unchanged from original sizes.

The Bank of Nova Scotia and Deutsche Bank are co-lead arrangers on the credit facility, Deutsche and UBS Securities are co-syndication agents, and SunTrust and Bank of Montreal are agents.

Masonite International is a Mississauga, Ont.-based building products company.

Calpine weaker

Calpine Corp.'s second-lien term loan fell off about half a point to 89½ bid, 90½ offered on Tuesday from closing levels around 90 bid, 90¾ offered on Monday, according to a trader.

On Monday, the paper was said to be stronger by about a quarter to a half a point.

No specific news was seen pushing the paper lower on Tuesday or pushing the paper higher on Monday. However, some sources attributed Monday's strengthening to the company's bonds trading up.

Calpine is a San Jose, Calif.-based power company.

Applied Extrusion closes

Applied Extrusion Technologies Inc. closed on its new $125 million exit financing credit facility, according to a company news release, consisting of a $50 million senior secured term loan, a $55 million senior secured revolver and a $20 million "last out" term loan.

GE Commercial Finance was the lead bank on the deal.

Furthermore, the company announced on Tuesday that it has successfully emerged from Chapter 11. Through its plan of reorganization, the company has reduced its debt by about $225 million.

Applied Extrusion is a New Castle, Del., maker of polypropylene films used in consumer product labeling and flexible packaging applications.

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