Peabody Energy Corp. is seeking a $1.2 billion loan to refinance debt while CPG International Inc. set a lender meeting to discuss $1.07 billion in loans to support a leveraged buyout.
The largest U.S. coal producer will meet with lenders at 10 a.m. on Sept. 6 in New York for the loan, according to two people with knowledge of the deal who asked not to be identified because it’s private. Peabody, based in St. Louis, has $862.5 million of loans due in October 2016 and about $301.8 million that mature in June 2015, according to data compiled by Bloomberg.
CPG, a manufacturer of highly engineered low-maintenance building material, is seeking the loans to support Ares Management LLC and Ontario Teachers’ Pension Plan Board’s buyout of the company from AEA Investors LP, according to a person with knowledge of that transaction. Barclays Plc is leading the deal and set a bank meeting for Sept. 9 at 10 a.m. in New York.
The deal comprises a $625 million term loan B, a $315 million bridge loan, and a $125 million asset-backed revolving line of credit, according to data compiled by Bloomberg.
Activision Blizzard Inc., the largest U.S. video-game publisher, set the rate on a $2.25 billion loan it’s seeking to support its buyback of shares from Vivendi SA, according to a person with knowledge of the deal. The seven-year loan will pay interest at 2.75 percentage points to 3 percentage points more than London interbank offered rate with a 0.75 percent minimum on the lending benchmark.
Medical device manufacturer Biomet Inc. proposed the discount on an $865 million incremental term loan it’s seeking to refinance debt, according to a person briefed on the matter. The loan is being offered to lenders at 99.25 cents to 99.5 cents on the dollar, and will pay interest at 3.75 percentage points more than the Libor, in line with debt obtained last year. There’s no floor on the lending benchmark.
Lenders must let Bank of America Corp., the bank arranging the financing, know by noon on Sept. 11 if they will participate in the deal, the person said.
Loan prices rose 0.01 cent to 97.65 cents on the dollar today, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 index.
A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, bank loan mutual funds and hedge funds. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.