Amwins Group Seeks Add-on Acquisition Loan; Calpine Debt Trades
Amwins Group Inc. is seeking a $175 million add-on term loan for an acquisition, while Calpine Corp. (CPN)’s $390 million debt rose in initial trading.
The insurance broker owned by private-equity firm New Mountain Capital LLC may pay interest at 3.75 percentage points more than the London interbank offered rate, with a 1.25 percent minimum on the lending benchmark, the same rate as the $710 million remaining under a pact it obtained in February, according to a person with knowledge of the transaction who asked not to be identified because the terms aren’t set. The six-year debt, which will back an acquisition and refinance payment-in-kind notes, is being offered to lenders at 99.5 cents on the dollar.
Power producer Calpine’s loan to support a bond tender began trading at 100.38 cents on the dollar, according to Markit Group Ltd, up from an issue price of 99.875 cents. The Houston-based company pays interest at 3 percentage points more than Libor, with a 1 percent minimum, according to data compiled by Bloomberg.
Packaging Corp. of America, a maker of corrugated shipping boxes, is getting $1.65 billion of unsecured loans to support its acquisition of Boise Inc., the company said today in a regulatory filing. The financing, which is being led by Bank of America Corp., includes a $350 million, five-year revolving line of credit, a $650 million term loan due in five years and a $650 million portion maturing in seven years.
Microsemi Corp. (MSCC), a maker of microchips for the aerospace and defense industries, is holding a lender call on Oct. 24 at 1 p.m. in New York to discuss a $150 million loan it’s seeking, according to a person with knowledge of the transaction. Morgan Stanley is leading the deal for the Aliso Viejo, California-based company.
Lenders received portions today of a $250 million term loan for Alliant Techsystems Inc. (ATK) that supports the world’s largest ammunition maker’s purchase of Bushnell Group Holdings Inc. The debt, which pays interest at 2.75 percentage points more than Libor with a 0.75 percent minimum on the lending benchmark, was sold at par.
Garda World Security Corp. is seeking a $525 million term loan and $150 million piece in Canadian dollars to refinance debt, according to a person with knowledge of the transaction. Canada’s largest security company may pay interest on the U.S. dollar loan at 3.25 percentage points more than Libor and at 3.75 percentage points more than the lending benchmark on the Canadian dollar slice, said the person, who asked not to be identified because terms aren’t set. Lenders must submit commitments to Royal Bank of Canada, the bank arranging the financing, by Oct. 31.
Morgan Stanley priced a $522.5 million collateralized loan obligation for CIFC Asset Management, with the AAA piece paying 1 percentage point more than Libor, according to a person with knowledge of that deal.
Prices of leveraged loans rose 0.03 cent to 97.68 cents on the dollar today, according to the Standard & Poor’s/LSTA Leveraged Loan 100 index. The debt has returned 3.61 percent year to date.
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