Goldman Sachs and Bear Stearns were leading the deal, which consisted of a seven-year, $295 million term loan. When it launched, pricing had been talked at the LIBOR plus 2 1/4%-2 1/2% range following a Ba3 rating from Moody's Investors Service (CIN, 10/10), but there was the potential it would go out at LIBOR plus 2%. The company had planned to use the proceeds to retire all of its preferred stock and 13.125% senior discount debentures and prepay all or a portion of its 9.75% senior sub notes, according to Moody's. The company had intended to convert its 5% notes payable to common stock (10/10). Texas Pacific Group is the company's majority shareholder.
A spokesman for Texas Pacific Group declined comment. A call to Jim Scully, executive v.p. and cfo, was not immediately returned. Calls to bankers at Goldman Sachs and Bear Stearns were not returned.