FiberMark OID emerges; APP Pharmaceuticals wraps pro rata; Tropicana up again

By Sara Rosenberg

New York, Dec. 18 - FiberMark Inc. came out with the original issue discount on its credit facility as the deal was launched with a bank meeting during the Tuesday session, and APP Pharmaceuticals Inc. (Abraxis Pharmaceuticals) has completed syndication of its pro rata tranches but is still working on its institutional loan.

Over in the secondary, Tropicana Entertainment LLC's first-lien term loan continued to grind higher in trading, still in reaction to the company's paydown news.

FiberMark held a bank meeting during market hours to kick off syndication on its $167.5 million credit facility, and in connection with the launch, the original issue discount was announced, according to an informed source.

Both the $25 million revolver and the $142.5 million term loan are being offered to investors with a discount of 99, the source said.

As was previously reported, price talk on the two tranches is Libor plus 425 basis points.

Commitments from lenders will be due in mid-January.

GE Capital is the lead bank on the deal.

Proceeds will be used to help fund American Securities Capital Partners' buyout of the company.

FiberMark is a West Springfield, Mass., producer and specialty converter of fiber-based materials serving high-end niche markets.

APP pro rata done

APP Pharmaceuticals wrapped syndication of its revolver and term loan A tranches, although the term loan B is still a work in progress, according to a market source.

The $150 million revolver and the $500 million term loan A are both priced at Libor plus 225 bps, in line with initial talk.

The $500 million term loan B is still being guided at Libor plus 250 bps, with an original issue discount that is in the 99 area, the source added.

Deutsche Bank and Wachovia are the lead banks on the deal, with Deutsche the left lead.

Proceeds from the $1.15 billion credit facility (Ba3/BB+) were used to help fund the company's already completed spinoff from Abraxis BioScience, Inc.

Pro forma, for the last 12 months ended Sept. 30, the company is estimated to generate revenue of $652 million and adjusted EBITDA of $263 million.

Total leverage is 3.8 times based on last-12-months adjusted EBITDA.

APP is a manufacturer and marketer of oncology, anti-infective and critical care hospital-based generic injectable products and proprietary anesthetic/analgesic products.

Tropicana gains continue

Switching to trading news, Tropicana Entertainment's first-lien term loan was stronger once again as lenders are still excited by the prospect that the debt will be paid down in full with asset sale proceeds, according to traders.

The first-lien term loan was quoted at 98¾ bid, 99½ offered, up from Monday's levels of around 98½ bid, 98 7/8 offered, traders said.

On Monday afternoon, Tropicana Entertainment announced that it will sell its Casino Aztar in Evansville, Ind., and its casino in Vicksburg, Miss., which is under contract with Nevada Gold & Casinos, Inc.

Last week, after the New Jersey Casino Control Commission denied the gaming license renewal application at Tropicana Casino and Resort in Atlantic City, it was ordered that the Atlantic City property be transferred immediately to a trustee until a sale can be arranged.

Proceeds from the three sales are expected to be enough to repay the company's credit facility in its entirety, according to the company, and if there are any proceeds left, they will be reinvested in the business.

The company also said on Monday that it made its scheduled semiannual interest payment on its 9 5/8% senior subordinated notes and is attempting to reach an agreement with its lenders that will allow for an orderly sale of the assets.

Tropicana Entertainment is a Fort Mitchell, Ky.-based gaming entertainment provider.

Quality Distribution closes

Quality Distribution, LLC closed on its new $225 million senior secured asset-based five-and-a-half-year revolving credit facility, according to a news release.

Credit Suisse acted as the lead bank on the deal.

The facility consists of a $195 million current asset tranche priced at Libor plus 200 bps, with a 25 bps commitment fee, and a $30 million fixed asset tranche priced at Libor plus 225 bps.

Proceeds were used to help fund the acquisition of Boasso America Corp. for approximately $58.9 million and to refinance existing debt. Remaining proceeds will be available for general corporate purposes.

Total availability under the revolver after giving effect to the Boasso acquisition and outstanding letter-of-credit commitments is roughly $60 million.

Other acquisition financing came from a $50 million floating-rate senior note due 2012, series B, that is priced at Libor plus 450 bps.

"Establishing our new ABL facility, and completing our $50.0 million notes offering during this turbulent market, provides a strong testament to the strength of our business and our ability to generate cash flow with our asset-light business model," Gary Enzor, chief executive officer, said in the release.

Quality Distribution is a Tampa, Fla., provider of bulk transportation and related services.

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