Morgan Stanley Launches Deal For IPS Buyout

Morgan Stanley last week launched syndication of a $102 million senior secured credit backing the buyout of IPS Corp. by Fremont Partners and management.

  • 30 Jun 2006
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Morgan Stanley last week launched syndication of a $102 million senior secured credit backing the buyout of IPS Corp. by Fremont Partners and management. The credit will also pay down existing debt. The deal consists of a six-year, $20 million revolver and seven-year, $82 million term loan. Pricing is LIBOR plus 2 1/4% on both tranches. Syndication is said to be going well, according to a banker. The financing also includes $100 million of senior subordinated notes due 2014.

Standard & Poor's assigned a B+ rating with a 1 recovery rating. The ratings agency said that pro forma for the transaction, IPS will have total debt of $183 million, including capitalized operating leases, and pro forma debt to EBITDA of 5.4 times as of June 30. Moody's Investors Service assigned a B1 rating.

An executive at IPS could not be reached for comment. Based in Compton, Calif., IPS is a pipe adhesive and plumbing product manufacturer.

  • 30 Jun 2006

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 3,136 9 12.62
2 Citi 2,562 6 10.31
3 Goldman Sachs 2,150 3 8.65
4 Credit Suisse 1,822 6 7.33
5 Societe Generale 1,814 4 7.30

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
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1 Citi 41,255.30 117 12.99%
2 Bank of America Merrill Lynch 37,631.92 109 11.85%
3 Wells Fargo Securities 32,082.26 89 10.11%
4 JPMorgan 20,969.41 64 6.60%
5 Credit Suisse 16,754.47 44 5.28%