American Seafoods $300 million loan to come via CIBC

By Sara Rosenberg

New York, May 28 - American Seafoods Group LLC is expected to bring a new $300 million credit facility into the primary bank loan market, with the possibility that the deal may launch as early as next week, according to market sources. CIBC World Markets Corp. is the lead arranger and sole bookrunner on the deal.

The facility is expected to consist of an $80 million five-year revolver with a commitment fee of 50 basis points and a $220 million seven-year term loan B.

Security will be a pledge of American Seafoods' intercompany debt, 100% of the capital stock of American Seafoods and its wholly owned domestic subsidiaries and a security interest in certain assets of American Seafoods and its subsidiaries.

The Seattle producer of seafood products is seeking this new credit facility since it must terminate its previous line of credit as part of its plan to issue income deposit securities. Besides having to obtain a new credit facility, the company must also close on a consent solicitation of its 10 1/8% senior subordinated notes due 2010.

Proceeds from the credit facility combined with proceeds from the income deposit securities offering will be used to pay for the tender for the 10 1/8% notes.

Although the facility may launch in early June, it is possible that closing may not take place until July or August since the income deposit securities offering must be completed, according to a market professional.

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