JPMorgan's Competitive Bidding Wins Schulman Financing

Competitive pricing helped JPMorgan win the lead on $350 million in senior secured credit facilities for A. Schulman, a supplier of plastic compounds and resins.

  • 27 Jan 2006
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Competitive pricing helped JPMorgan win the lead on $350 million in senior secured credit facilities for A. Schulman, a supplier of plastic compounds and resins. Robert Stefanko, cfo and treasurer, said the deal has not yet closed and the financing may take the form of a private placement of notes. Stefanko said the company wants to have a wide range of financing options available, adding the company may do a combination of both bank loans and notes. "It would give us an opportunity to go short term to long term. We want to have various options open to us."

Stefanko would not comment on the company's strategy in weighing the proposed loan against a potential bond deal. JPMorgan would also lead the bond deal if the company chose to go that route, said Stefanko. The company hopes to close the financing by Feb. 22. A JPMorgan spokesman declined to comment on the status of the deal.

Price talk on the proposed credit facilities is LIBOR plus 87.5 basis points, while its tenor would be between five-10 years. The deal would replace a $100 million revolver and $50 million of promissory notes. The revolver is priced at LIBOR plus 25 basis points, while the notes have a 7.27% coupon. It also plans to use the credit facilities to repurchase 8,750,000 shares of common stock. KeyBank and National City were the lead banks on the previous facility.

  • 27 Jan 2006

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1 Bank of America Merrill Lynch (BAML) 6,665 23 13.02
2 Citi 5,781 17 11.29
3 BNP Paribas 3,530 14 6.89
4 Barclays 2,853 9 5.57
5 Credit Suisse 2,783 8 5.44

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3 Wells Fargo Securities 72,661.39 222 9.61%
4 JPMorgan 52,367.24 169 6.93%
5 Credit Suisse 41,885.89 127 5.54%