Plastech considering restructuring and remarketing credit facility

By Sara Rosenberg

New York, Jan. 2 - Plastech Engineered Products Inc. is mulling over a possible restructuring of its in-market $600 million credit facility and beginning a remarketing of the deal later on this week.

Details on the potential new structure of the transaction are still to be determined, according to a market source.

Originally, the deal was launched as a $200 million ABL revolver (B1/BB) talked at Libor plus 200 basis points, a $250 million first-lien term loan B (B2/B+) talked at Libor plus 450 to 500 bps and a $150 million second-lien term loan (Caa2/B-) talked at Libor plus 750 to 800 bps.

The term loan B was launched with 101 soft call protection for one year, and the second-lien term loan was launched with call protection of 102 in year one and 101 in year two.

As syndication progressed, pricing guidance on the first-lien term loan B narrowed to Libor plus 475 to 500 bps, and then expectations emerged that final pricing would end up at the high end of talk at Libor plus 500 bps.

In addition, the market was anticipating that pricing on the ABL revolver would end up in line with initial talk since the tranche was oversubscribed.

As for the second-lien term loan, market chatter around mid-December was that the tranche would undergo some significant changes, with pricing expected to come wider than the original guidance and additional call premiums expected to be layered into the deal.

No official word on second-lien changes or final pricing on the first-lien term loan B and ABL revolver ever emerged before the end of 2006.

And now with the start of the new year, it appears as if the credit facility will be starting fresh with an overhauled structure and a revived syndication process.

Goldman Sachs is the lead bank on the deal that will be used to refinance existing debt.

Plastech is a Dearborn, Mich., maker of blow-molded and injection-molded plastic products, primarily for the automotive industry.

Munder closes

Crestview Partners, LP and management completed their buyout of Munder Capital Management from Comerica Inc., according to a news release.

To help fund the transaction, Munder got a new $120 million credit facility (Ba2/BB+) consisting of a $110 million six-year term loan B priced at Libor plus 200 bps and a $10 million five-year revolver priced at Libor plus 225 bps.

During syndication, pricing on the term loan B was reverse flexed from original talk at launch of Libor plus 225 bps on strong oversubscription.

Credit Suisse acted the lead bank on the deal.

Munder is a Birmingham, Mich., provider of investment advice and asset management services.

Graceway closes

Graceway Pharmaceuticals, LLC completed its acquisition of the pharmaceutical business of 3M Co. for about $875 million, according to a company news release.

To help fund the transaction, Graceway got a new $740 million credit facility consisting of a $30 million revolver (Ba3/B+), a $500 million first-lien term loan (Ba3/B+) and a $210 million second-lien term loan (B3/B-).

Graceway, a portfolio company of GTCR Golder Rauner, LLC, is a Bristol, Tenn., pharmaceutical company.

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