Georgia-Pacific launches term loan repricings

By Sara Rosenberg

New York, Feb. 22 - Georgia-Pacific Corp. held a conference call on Thursday morning to launch a repricing of its term loan A and term loan B-1 bank debt, according to a market source.

Citigroup, Bank of America and JPMorgan are the lead banks on the deal, with Citi the left lead.

Under the proposal, the company is looking to reprice both its term loan A and its term loan B-1 at Libor plus 175 basis points from Libor plus 200 bps, the source said.

In addition, the pricing grids on the term loan A and the term loan B-1 are being revised to bring the grids down by 25 bps and change the conditions under which pricing will step down.

Under the modified grids, pricing on both the term loan A and the term loan B-1 can now drop to Libor plus 150 bps when total leverage is under 4.6 times, the source explained.

Furthermore, a step down is being added to the company's existing term loan B-2 tranche, which already carries pricing of Libor plus 175 bps, under which pricing can drop to Libor plus 150 bps when total leverage is less than 4.6 times.

However, the new pricing grids on the term loan A, term loan B-1 and term loan B-2 do not take affect until the company delivers second-quarter 2007 financial statements.

Lastly, under the amendment proposal, the commitment fee on the company's revolver is being reduced to 37.5 bps from 50 bps, the source added.

Georgia-Pacific is an Atlanta-based manufacturer and marketer of tissue, packaging, paper, building products and related chemicals.

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