Quebecor revolver fills out; books still open; Solo getting revolver; Church's floats talk

By Sara Rosenberg

New York, June 19 - In new deal happenings on Friday, Quebecor World Inc.'s revolving credit facility is now fully syndicated. The books, however, are being left open a little longer to give some investors more time to get involved.

Also, Solo Cup Co. announced plans for a new deal asset-based deal that will be used to help refinance its existing first-lien facility, and price talk on Church's Chicken's proposed loan has been making its way around the market.

Quebecor fills revolver

Quebecor's three-year exit financing revolving credit facility has received enough commitments to full out the tranche, but syndication is remaining open for a few more days to give those still working time to get into the deal, according to a market source.

Originally, the commitment deadline had been set for June 12. However, being that banks tend to do a fair amount of extensive underwriting, the deadline had been extended.

The $350 million revolver (B1) is talked at Libor plus 450 basis points with a 3% Libor floor, and an unused fee that can range from 75 bps to 100 bps.

Investors are being offered two points up front on allocations of up to $50 million, and 2.5 points for allocations above $50 million.

No changes have been made to the revolver since launching at the end of May.

Quebecor also getting term loan

In addition to the revolver, Quebecor is getting a $450 million three-year term loan (B1) as part of its $800 million exit facility.

Pricing on the term loan is Libor plus 600 bps with a 3% Libor floor, and it was sold to investors at an original issue discount of 90.

On June 12, the term loan had been upsized from $325 million and the original issue discount had been tightened from initial talk of 88 due to the tranche being massively oversubscribed by investors.

The term loan carries 101 call protection for two years and during those two years, there's also 101 call protection against a change of control.

Credit Suisse, GE Capital Markets and Wachovia are the lead arrangers on the exit facility, with Credit Suisse the left lead on the term loan and GE the left lead on the revolver.

The facility is expected to be finalized by mid-July.

Quebecor reducing preferred stock

In connection with the term loan upsizing, Quebecor will be lowering the amount of convertible preferred shares it was planning to issue as part of its reorganization to $100 million from $200 million.

Remaining proceeds from the term loan upsizing will be used to enhance liquidity.

As previously reported, the company's new capital structure contemplated under its plan of reorganization would also include new unsecured notes, new common shares and new warrant bundles.

The new capital structure would be exchanged for the $2.7 billion of liabilities subject to compromise and for repayment of the company's debtor-in-possession financing facility.

Quebecor is a Montreal-based printing and marketing company.

Solo Cup reveals revolver plans

In more primary news, Solo Cup disclosed that it will be getting a new $200 million asset-based revolving credit facility (Ba2), according to a news release.

In addition, the company plans on selling $300 million of senior secured notes via Goldman Sachs and Bank of America.

Proceeds from the revolver and the notes will be used to repay all amounts outstanding under the company's existing first-lien credit agreement.

Earlier in the week, the company had said that it was pursuing alternatives to refinance the existing senior credit facility, which matures in 2010, through, possibly, an asset-based lending facility and secured or unsecured notes.

Solo Cup is a Highland Park, Ill.-based manufacturer of single-use products used to serve food and beverages.

Church's Chicken guidance circulates

Early price talk on Church's Chicken's proposed $150 million senior secured loan has been working its way around the market, with the tranche guided around Libor plus 750 bps with a 2.5% Libor floor and an original issue discount of 98, according to a market source.

Bank of America, Golub Capital and Wells Fargo are the lead banks on the deal.

Proceeds will be used to help fund Friedman Fleischer & Lowe's buyout of the company from Arcapita Bank, which is expected to close within 30 days.

Church's Chicken is a quick-service chicken restaurant concept.

Secondary quiet, flat to softer

Switching over to trading news, the market in general felt unchanged to a bit weaker on Friday with very light activity, and the LCDX 12 index was lower as well, according to traders.

"A little activity in the morning, but pretty quiet. Unchanged, maybe a quarter of appoint weaker. A couple of higher quality names may be up an eighth, but not enough trading to really tell," one trader said about the cash market.

"Market in general was weaker. Saw a little bit of buyers today but was generally weaker this week as we saw some profit taking," a second trader remarked.

Meanwhile, the LCDX 12 index was seen down about 0.40 on the day from Thursday's closing levels of 85.60 bid, 85.90 offered, a third trader added, while stocks were mixed.

Nasdaq closed up 19.75 points, or 1.09%, Dow Jones Industrial Average closed down 15.87 points, or 0.19%, S&P 500 closed up 2.86 points, or 0.31%, and NYSE closed up 28.04 points, or 0.47%.

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