Appleton Papers breaks to trade around 101; Yankees breaks wrapped around 101½

By Sara Rosenberg

New York, June 8 - Appleton Papers Inc.'s $375 million credit facility (Ba3/BB) allocated Tuesday morning and broke for trading with the term loan B trading in the 101 range, according to a market source. Also, hitting the secondary was the New York Yankees term loan, which headed all the way up to plus 101 levels.

The term loan is priced with an interest rate of Libor plus 225 basis points. Originally the tranche went out with pricing of Libor plus 250 basis points but was reverse flexed late last week on strong demand.

Appleton's facility also contains a $125 million five-year revolver with an interest rate of Libor plus 250 basis points.

Proceeds from the credit facility, combined with proceeds from a notes offering that was downsized to $335 million from $350 million at pricing, will be used to fund a cash tender offer for $199.958 million of outstanding 12½% senior subordinated notes due 2008. The tender offer expires on June 9. Closing on the credit facility is scheduled for Friday.

Despite the decrease in the bond sale size, the bank deal was not increased to compensate for the change.

Bear Stearns and UBS are the lead banks on the deal, with Bear listed on the left.

The term loan amortizes at a rate of 1% each year with the balance due at maturity.

Total leverage is 3.6x and senior leverage is 2.5x.

Appleton is an Appleton, Wis., manufacturer and distributor of paper and paperboard products.

Yankees breaks

The New York Yankees' $225 million term loan allocated and broke for trading with the tranche quoted at 101.375 bid, 101.625 offered by late afternoon, according to a market source.

Goldman Sachs is the lead bank on the New York major league baseball franchise's deal.

Pricing on the term loan, which was oversubscribed during syndication, is Libor plus 250 basis points.

Rockwood resets NYC launch

Rockwood Specialties Group Inc. firmed up a bank meeting date in NYC with the launch now scheduled to take place on Monday, according to a an informed source. The deal was expected to launch this past Monday but was pushed off until next week due to scheduling conflicts resulting from the transaction's "various moving parts," the source added.

The deal is launching in London on Wednesday, as was originally planned.

Rockwood's proposed $1.85 billion credit facility (B1/B+) consists of a $1.05 billion seven-year term loan B with an interest rate of Libor plus 275 basis points, a $250 million six-year revolver with an interest rate of Libor plus 250 basis points with a 50 basis points commitment fee, a $250 million six-year term loan A with an interest rate of Libor plus 250 basis points and a $300 million eight-year term loan C with an interest rate of Libor plus 300 basis points.

Credit Suisse First Boston, UBS and Goldman Sachs are the joint lead arrangers and joint bookrunners on the financing.

Proceeds, combined with proceeds from a bond offering and equity, will be used to help fund the acquisition of four chemical businesses of Germany based Dynamit Nobel.

The equity for the transaction will be provided by Rockwood's internal resources, its existing majority shareholder Kohlberg Kravis Roberts & Co. LP and by CSFB Private Equity. The sponsors bid €2.25 billion for the four business units.

Closing of the transaction is planned for the third quarter of 2004 and is subject to approval by the supervisory board and annual general meeting of MG Technologies, parent company of Dynamit Nobel, as well as by the relevant antitrust authorities.

Rockwood is a Princeton, N.J., specialty chemicals and advanced materials company.

Directed Electronics size changed

Directed Electronics Inc. made a minor adjustment to the size of its six-year term loan B, increasing it to $113 million from $111 million, according to a syndicate release. Pricing on the tranche remained unchanged at Libor plus 425 basis points after being increased previously from Libor plus 400 basis points.

The $25 million five-year revolver with an interest rate of Libor plus 350 basis points was, once again, left unchanged in size and pricing.

Wachovia and CIBC are the lead banks on the deal.

Proceeds will be used to fund a dividend payment to TriVest Partners and repay some junior notes.

Directed Electronics is a Vista, Calif., vehicle security, remote start and car audio manufacturer.

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