AM General, Concord Re free to trade; Georgia-Pacific, VNU see some flow

By Sara Rosenberg

New York, Aug. 25 - AM General LLC's credit facility hit the secondary on Friday, with the term loan quoted atop par, and Concord Re broke for trading as well, with the term loan quoted in the upper-par's.

In other trading news, Georgia-Pacific Corp. and VNU NV saw some trading activity in what was otherwise a very quiet and pretty uneventful summer Friday.

AM General allocated its credit facility on Friday, after which the $750 million seven-year term loan B was seen quoted at par ¼ bid, par ¾ offered on the open in the secondary market, according to a fund manager.

By late afternoon, the bid on the term loan B had moved up to par 3/8 as it worked its way a little closer to the offer side of par 3/4, a trader added.

The term loan B is priced with an interest rate of Libor plus 300 basis points. During syndication, pricing on the tranche was flexed up from original talk at launch of Libor plus 250 to 275 basis points.

The company's $815 million credit facility also contains a $65 million six-year revolver.

Citigroup is the lead bank on the deal that will be used to refinance existing debt and fund a dividend.

AM General is a South Bend, Ind., military and special purpose vehicles company.

Concord breaks

Also allocating and freeing for trading on Friday was Concord Re's $375 million term loan B (Ba2/BB+) with quotes of par ½ bid, par ¾ offered seen by late afternoon, according to a market source.

The term loan B is priced with an interest rate of Libor plus 425 basis points. During syndication, pricing on the tranche was reverse flexed from original talk at launch of Libor plus 450 basis points due to strong market demand.

Goldman Sachs is the lead bank on the deal that will be used to serve as collateral for the ability to underwrite insurance business.

This transaction is an insurance deal for Lexington Property Division of AIG.

Concord is a single purpose dedicated insurance vehicle designed for participating in commercial property insurance business for AIG. It has a diversified book of insurance business, which includes energy, manufacturing, general property, real estate, communications, inland marine and construction services.

JC Flowers is the sponsor on the deal, providing $375 million of equity.

Georgia-Pacific, VNU trade

Georgia-Pacific and VNU saw some activity in their term loan B's at pretty much unchanged levels during Friday's muted summer session, according to a trader.

Georgia-Pacific's term loan B closed the day at par 1/8 bid, par 3/8 offered, the trader said.

VNU's term loan B closed the day at 99 5/8 bid, 99 7/8 offered, the trader added.

Georgia-Pacific is an Atlanta-based manufacturer and marketer of tissue, packaging, paper, building products and related chemicals.

VNU is a Haarlem, Netherlands-based information and media company.

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