Multicurrency Revolver Syndication Completes

Strategic Insights -

Bank of America, First Chicago NBD, and Societe Generale have successfully wrapped up syndication of a $900 million multicurrency reducing revolver for Applied Power, Inc. The new five-year facility will be used to refinance an existing loan and an existing $700 million revolver. The pricing for the new facility is Libor plus 100 basis points with a commitment fee of 27.5 basis points.

Key Takeaways:

  • The new multicurrency reducing revolver has a total amount of $900 million and a five-year tenor.
  • The existing lenders on the $700 million facility are being asked to increase their commitments on the new facility.
  • Co-agents First Union, PNC Bank, U.S. Bank, Credit Suisse First Boston, NationsBank, and Harris Trust are being asked to step up their commitments to $60 million from $40 million.
  • Participants Bank of Tokyo-Mitsubishi, BankBoston, Fuji Bank, Marshall & Ilsley Bank, Sanwa Bank, Firstar Bank, Sumitomo Bank, SunTrust Bank, Bank of New York, NatWest, Wachovia Bank, Credit Lyonnais, and Bank One are being asked to increase their commitments to $35 million from $25 million.
  • The proceeds from the revolver will be used to refinance an existing loan and an existing $700 million revolver that was arranged in June by Bank of America, First Chicago, and Societe Generale.
  • Applied Power, Inc. is a company comprised of three business segments: technical environments and enclosures, engineered solutions, and tools and supplies.

Statistics:

  • Total amount of the new multicurrency reducing revolver: $900 million
  • Pricing for the new facility: Libor plus 100 basis points
  • Commitment fee: 27.5 basis points
  • New commitments requested from co-agents: Up to $60 million each
  • New commitments requested from participants: Up to $35 million each
  • Existing $700 million revolver tenor: Five years
  • Existing $700 million revolver arranged by: Bank of America, First Chicago, and Societe Generale
  • Amount of the existing loan to be refinanced: Not specified

Sources:

  • Jennifer C. Strauss, BankAmerica
  • Bank of America
  • First Chicago NBD
  • Societe Generale
  • Applied Power, Inc.
  • Rubicon Group PLC
  • Existing lenders on the $700 million facility
  • Co-agents First Union, PNC Bank, U.S. Bank, Credit Suisse First Boston, NationsBank, and Harris Trust