Jarden starts seeing orders for B loan; CHI Overhead Doors breaks at 101 plus

By Sara Rosenberg

New York, Oct. 21 - Jarden Corp.'s $1.05 billion senior secured credit facility (B1/B+) saw orders starting to pour in from institutional investors almost immediately after the well-attended Thursday morning bank meeting. While on the secondary front, CHI Overhead Doors Inc. allocated during the afternoon and broke for trading at plus 101 levels.

Jarden's facility consists of an $850 million seven-year term loan B talked at Libor plus 250 basis points and a $200 million five-year revolver talked at Libor plus 250 basis points.

"There was standing room only," one market source told Prospect News about the bank meeting. "There were no orders before the meeting [from institutional guys]. People genuinely feel it will be a blowout so they're throwing in big tickets.

"People know the company and like the company."

The revolver is essentially going to get done through relationship banks and, as was previously reported, prior to the meeting Bank of America had already signed on as a co-documentation agent.

Citigroup Global Markets and CIBC World Markets are joint lead arrangers and bookrunners on the deal, with Citigroup listed on the left.

The term loan is being offered and a commitment of $15 million on the revolver gets an upfront fee of 50 basis points.

Commitments are due Nov. 8.

Proceeds from the credit facility will be used to refinance existing debt and help finance the acquisition of American Household Inc. for $745.6 million, including the assumption of debt. The company will also receive a $350 million equity contribution from Warburg Pincus to help fund the acquisition.

The acquisition is expected to close during the first quarter of 2005, subject to Hart-Scott-Rodino approval and other customary closing conditions.

Upon closing, total debt to adjusted EBITDA is anticipated to be around 3.75x.

Jarden is a Rye, N.Y., provider of niche consumer products. American Household is a Boca Raton, Fla., consumer products company that produces such brand names as BRK, Campingaz, Coleman, First Alert, Health o meter, Mr. Coffee, Oster and Sunbeam.

CHI Overhead breaks

CHI Overhead Doors' $95 million first-lien term loan saw a "handful of trades" on the break with the paper quoted at 101¼ bid, 101¾ offered, according to a trader. The $30 million second-lien term loan was quoted at 101 bid, 102 offered, the trader added.

The first-lien term loan is priced at Libor plus 350 basis points, and the second-lien is priced at Libor plus 800 basis points.

The $145 million senior credit facility also contains a $20 million revolver with an interest rate of Libor plus 300 basis points.

UBS is the lead bank on the deal that will be used to help fund JLL Partners leveraged buyout of the overhead garage doors manufacturing company.

Allegheny gets strong response

The consent deadline came and went on Thursday for Allegheny Energy Supply Co. LLC's $1.044 billion term loan B priced at Libor plus 275 basis points with little worry from the syndicate as the deal has received "a tremendous" amount of interest, a market source said.

So far, it appears as if no existing lenders have dropped out of the deal and "more than a dozen requested significant increases if they can get it," the source added.

Allegheny is basically getting this new term loan B through an amendment of its credit facility.

The new term loan B would be used to combine Allegheny's existing term loan B and term loan C into one large term loan with lower pricing. Currently, the company has a total of $1.244 billion of term B and term C debt, with the term B priced at Libor plus 300 basis points and the term C priced at Libor plus 425 basis points. The $200 million that is not being refinanced under the amendment is being paid down using $50 million of cash and $150 million of equity proceeds previously raised by parent company, Allegheny Energy Inc.

After closing on the amendment, once the company pays down $200 million of the new term B tranche using cash flow, net cash proceeds from asset sales or net cash proceeds from the issuance of equity, pricing will step down to Libor plus 250 basis points.

Citigroup is the lead bank on the deal.

Allegheny Energy Supply is Greensburg, Pa., owner and operator of electric generating facilities.

Wynn likely for early-November

Wynn Las Vegas LLC/Wynn Resorts Ltd.'s proposed $1.65 billion credit facility is now expected to launch during the first week of November, with some speculating that Nov. 3 could be the day, according to a market source, who warned that at this point the launch is still a "moving target" so it can change at any time.

Originally, when news of the deal first emerged, market sources placed the launch date as one day during this week - an even that is definitely not occurring - the source added.

The facility consists of a $1 billion five-year revolver talked at Libor plus 250 basis points and a $650 million term loan B talked at Libor plus 300 basis points.

Deutsche Bank, Bank of America, Bear Stearns & Co. and JP Morgan are the lead banks on the deal.

Proceeds, along with proceeds from $800 million of eight-year second mortgage notes, will be used to refinance outstanding debt and fund construction of the La Reve property.

Wynn is a Las Vegas-based gaming, lodging and entertainment company.

Mediacom closes

Mediacom LLC closed on its new $1.15 billion senior secured credit facility (Ba3) consisting of a $550 million 81/2-year term loan B with an interest rate of Libor plus 225 basis points, a $400 million eight-year revolver with an interest rate of Libor plus 150 basis points and a $200 million eight-year term loan A with an interest rate of Libor plus 150 basis points.

Originally, the term loan B was sized at $500 million and priced at Libor plus 200 basis points, the revolver was sized at $600 million, and both the revolver and term loan A were priced at Libor plus 125 basis points, but pricing and sizes shifted during syndication.

J.P. Morgan Securities Inc. and Banc of America Securities LLC acted as joint lead arrangers and joint bookrunners on the deal. Citibank served as syndication agent, Wachovia Bank and Credit Suisse First Boston served as co-documentation agents, and J.P. Morgan Chase Bank acted as sole administrative agent.

Proceeds were used by the Middletown, N.Y., cable television company to refinance existing credit facilities that would have expired in 2008.

"As a result of this refinancing, Mediacom Communications has increased its subsidiary credit facilities to approximately $2.5 billion, and now has over $900 million of unused credit commitments," a company news release said.

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