Momentive dips with amendment; Taminco weakens ahead of lender call; Windstream tweaks loan

By Sara Rosenberg

New York, Jan. 9 - Momentive Specialty Chemicals Inc. (Hexion) saw its term loans head lower in trading on Wednesday as the company launched an amendment that would result in the repayment of the debt, and Taminco's term loan softened on news of an upcoming lender call.

In more loan happenings, Windstream Corp. significantly upsized its term loan B-4 just one day after launching to investors, tightened the offer price and narrowed down talk on the Libor floor, and since the additional debt will be used to repay the term loan B-2 tranche, that debt traded down in the secondary market.

Also, LMI Aerospace Inc. revealed timing on the launch of its credit facility and a slightly revised structure than what was originally expected.

Momentive slides

Momentive Specialty Chemicals' term loan C-1 and term loan C-2 were both weaker on the day in the secondary market with news of a credit facility amendment proposal, according to a trader.

The term loans were quoted at 99 7/8 bid, par 3/8 offered, down from par 3/8 bid, par 7/8 offered, the trader said.

Under the amendment, which launched with a call at 11 a.m. ET on Wednesday, the company is asking for permission to sell up to $1.1 billion of first-lien bonds to repay all term loans due in 2015, repay second-priority floating rate notes due 2014 and for general corporate purposes. A majority of revolver and synthetic letter-of-credit facility lenders need to approve this proposal, sources said.

Furthermore, the amendment would allow for the incurrence of junior-priority debt at OpCo to refinance about $242 million of existing HoldCo notes due 2014. A majority of all lenders need to approve this part of the proposal, sources added.

J.P. Morgan Securities LLC is leading the amendment.

Momentive is a Columbus, Ohio-based producer of thermosets, and adhesive and structural resins and coatings.

Taminco trades lower

Taminco's term loan dropped to 101 bid, 102 offered from 101 1/8 bid, 102 1/8 offered as investors were told that the company will be holding a lender call at 10:30 a.m. ET on Thursday, according to sources.

The purpose of the call is not yet being disclosed, sources added.

Citigroup Global Markets Inc. is the lead bank on the deal.

Taminco is a Belgium-based producer of alkylamines and their derivatives.

Windstream reworks deal

In other news, Windstream lifted the size of its seven-year term loan B-4 to the area of $1 billion to $1.345 billion from $300 million, revised the offer price to 99¾ to par from 99½ and updated Libor floor guidance to 0.75% from 0.75% to 1%, according to a market source.

Pricing on the loan, which launched with a call on Tuesday, was left at Libor plus 275 basis points. The debt includes 101 soft call protection for one year.

Commitments are due on Thursday afternoon.

Bank of America Merrill Lynch, Barclays, Wells Fargo Securities LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc., Bank of Tokyo-Mitsubishi UFJ, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading the deal. J.P. Morgan Securities LLC is the administrative agent.

Windstream repaying debt

Proceeds from Windstream's term loan B-4 will be used to pay down a term loan A-2 due July 17, 2013that had a balance of $20.8 million at June 30, 2012, a term loan B-1 due July 17, 2013 that had a balance of $282.4 million at June 30, 2012, and a term loan B-2 due Dec. 17, 2015 that had a balance of $1.048 billion at June 30, 2012.

Pricing on the B-1 loan is Libor plus 150 bps and pricing on the B-2 loan is Libor plus 275 bps.

Initially, the company was only going to repay the term loan A-2 and the term loan B-1, but because of the upsizing to the new tranche, the term B-2 will now be refinanced as well, the source added.

With the news, the B-2 loan traded down to 99 7/8 bid, par 3/8 offered from par ¼ bid, par ¾ offered, a trader remarked.

Closing is expected by the end of January.

Windstream is a Little Rock, Ark.-based provider of advanced network communications, including cloud computing and managed services, to businesses.

LMI timing, structure

LMI Aerospace scheduled a bank meeting for Jan. 16 to launch a $325 million senior secured credit facility that consists of a $100 million revolver and a $225 million term loan B, a market source said.

By comparison, when the facility actually closed on Dec. 28, it was made up of a $75 million five-year revolver and a $225 million six-year term loan. Filings with the Securities and Exchange Commission had both tranches priced at Libor plus 475 bps, with the term loan having a 1.25% Libor floor and 101 soft call protection for one year, and the revolver having a 50 bps unused fee.

RBC Capital Markets and Wells Fargo Securities LLC are leading the deal that will be used to back the already completed purchase of Valent Aerostructures LLC, refinance existing debt and provide for working capital needs.

LMI Aerospace is a St. Charles, Mo.-based supplier of structural assemblies, kits and components and provider of design engineering services to the aerospace and defense industries. Valent is a Kansas City, Mo.-based provider of structural components, major sub-assemblies and machined parts for airframe manufacturers.

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