Staples sets talk; Kloeckner Pentaplast brings dual-currency deal; index unchanged on Tuesday

By Paul A. Harris

Portland, Ore., April 7 – The LCDX 22 index of bank loan credit default swaps ended at 102½ bid, 103½ offered, unchanged on Tuesday, according to a hedge fund manager.

In the primary market, Staples Inc. set price talk for its $5.75 billion credit facility.

A $2.75 billion six-year senior secured term loan B is talked at Libor plus 350 basis points with a 0.75% Libor floor at 99, with 101 soft call for six months.

Barclays, Bank of America Merrill Lynch, Wells Fargo Securities LLC and HSBC Securities (USA) Inc. are the bookrunners on the deal.

The facility also features a $3 billion asset-based five-year revolver.

And Germany-based Kloeckner Pentaplast plans to put in place a €931 million-equivalent dual-currency credit facility.

The deal, which is being led by arranger Credit Suisse, kicks off at a bank meeting on Thursday.

It includes two tranches of five-year first-lien covenant-light paper.

Featured is a dollar-denominated tranche sized at €631 million-equivalent, coming with talk of Libor plus 450 to 475 bps at 99.

There is also a €200 million tranche with talk of Euribor plus 475 to 500 bps at 99.

Both tranches come with 1% Libor floors and have six months of soft call protection at 101.

The facility also includes a €100 million 4.75-year revolver.

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