Amphenol allocates, term loan B breaks for trading at par 3/8, par 5/8

By Sara Rosenberg

New York, May 5 - Amphenol Corp.'s credit facility (Ba2/BB+) allocated and broke in the secondary bank loan market on Monday, with the term loan B immediately moving higher on its first day of trading. The $500 million seven-year term loan B, which was priced with an interest rate of Libor plus 250 basis points and had a quarter point upfront fee, was quoted at par 3/8 bid, par 5/8 offer, according to market sources.

The pro rata portion of the deal consists of a $125 million five-year revolver with an interest rate of Libor plus 200 basis points and a $125 million five-year term loan A with an interest rate of Libor plus 200 basis points. Upfront fees are 7/8 for a commitment of $35 million, 5/8 for a commitment of $25 million and 3/8 for a commitment of $15 million.

Deutsche Bank and UBS Warburg are the lead banks on the deal that will be used to refinance the existing credit facility and to repay $144 million of 9 7/8% senior subordinated notes.

Amphenol is a Wallingford, Conn. producer of electronic and fiber optic connectors, cable and interconnect systems.

"Otherwise it "was one of the slowest days I've seen in a long time," a trader said of Monday's secondary activity. "It's a typical Monday. Quiet out there."

In other news, details on the structure of Owens-Illinois Inc.'s proposed credit facility, which is scheduled to launch Wednesday, emerged late Friday. The size of the facility was nailed down at $1.9 billion, close to the previously reported approximate size of $2 billion.

Furthermore, the new deal has already gotten off to a good start, a syndicate source told Prospect News on Monday. "We have a handful of commitments in. There's a big existing bank group that know the company really well. It's looking good."

The loan consists of a $650 million revolver with price talk of Libor plus 325 basis points, a $500 million term loan A with price talk of Libor plus 325 basis points and a $750 million term loan B with price talk of Libor plus 350 basis points, the syndicate source said.

Previously it was anticipated that the loan would contain about $1.3 billion to $1.4 billion of pro rata and a term loan B sized anywhere from $600 million to $700 million.

Deutsche Bank and Bank of America are the lead banks on the deal that will be used to refinance the company's existing debt.

Owens-Illinois is a Toledo, Ohio manufacturer of packaging products.

In the primary on Monday, Hayes Lemmerz International Inc. launched its $575 million exit financing credit facility (Ba3/BB-) and, according to a syndicate source, the bank meeting "went well". Citibank and Lehman Brothers are the lead banks on the deal.

The loan consists of a $450 million six-year term loan B with an interest rate of Libor plus 425 basis points and a $125 million five-year revolver with an interest rate of Libor plus 350 basis points. The term loan B is being offered at 991/2.

Previously, timing on the deal had been fluid as the company was working on getting approval of its plan of reorganization from existing creditors. However, this hurdle was cleared during early April as the company announced that it reached an agreement with prepetition creditors on a reorganization plan and set a confirmation hearing for May 7.

The Northville, Mich. auto parts maker and its subsidiaries located in the United States and one subsidiary in Mexico filed voluntary petitions for reorganization under Chapter 11 on Dec. 5, 2001.

Also launched on Monday was Interline Brands Inc.'s $205 million credit facility (B+), consisting a $65 million five-year revolver and a $140 million 61/2-year term loan B with an interest rate of Libor plus 450 basis points.

JPMorgan and Credit Suisse First Boston are the lead banks on the Jacksonville, Fla. building materials company's deal that will be used to refinance existing bank debt and mezzanine debt.

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