Pulled Deal Re-Launches

After being pulled hours after syndication launched in July (CIN, 7/21), IWCO Direct is back in the market for a dividend recap.

  • 06 Oct 2006
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After being pulled hours after syndication launched in July (CIN, 7/21), IWCO Direct is back in the market for a dividend recap. Bear Stearns launched syndication of a $235 million credit last Thursday to pay an $80 million dividend to Citigroup Venture Capital. CVC and the company's senior management acquired IWCO from shareholders in February 2005. A Bear banker declined comment.

The deal consists of a $25 million revolver, a $150 million term loan, a $35 million delayed-draw term loan and a $25 million second lien, which has already been placed through the use of a mezzanine facility, according to a banker. Pricing is LIBOR plus 3%, stepping up to LIBOR plus 3 1/2% if first lien leverage rises above 4.5 times. Leverage is currently 3.9 times through the first lien and 4.6 times through the second, according to a banker.

Chanhassen, Minn.-based IWCO will utilize the $150 million term loan and cash on hand to fund the dividend, which will be paid out to its current shareholders. The delayed-draw facility can later be used to fund an additional dividend as long as debt leverage does not increase above four times, the banker said. Calls to a CVC representative were not returned seeking comment.

The deal that originally launched for the direct-marketing company in July was pulled just a few hours after syndication began. The size of the credit and the reason for it being pulled could not be determined, but a banker said the new deal is slightly larger with lower leverage. The Bank of America and Lehman Brothers $400 million credit facility for directory services provider InfoNXX met a similar fate just a few weeks later when its was pulled from the market a day after it launched. The reason for that credit's termination could not be determined and it has not re-entered the market since (7/21). Calls to an IWCO Direct spokeswoman were not returned.

  • 06 Oct 2006

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Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 7,029 20 10.95
2 Bank of America Merrill Lynch (BAML) 6,703 19 10.45
3 JP Morgan 4,776 10 7.44
4 Credit Suisse 4,718 9 7.35
5 Deutsche Bank 4,262 13 6.64

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1 Wells Fargo Securities 67,591.81 167 11.54%
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4 Citi 55,051.46 160 9.40%
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