The new structure will comprise a six-year, $20 million revolver and a seven-year, $190 million B loan. Pricing on the B loan will be ratings contingent but is expected to be in the LIBOR plus 3% range, said a banker. He added that leverage will be 3.5 times through the all-senior structure. RBS is sole lead on the deal but other banks may be brought in.
RBS led $140 million of senior debt backing ASCPs leveraged buyout of Oreck in March 2003, but improved performance is enabling the vacuum-cleaner company to take out the dividend, the banker added. Oreck brings in over $300 million of sales and more than $50 million a year in EBITDA. At the time of the buyout, EBITDA was in the mid $40 million range, he said. The existing bank debt is priced at LIBOR plus 4 1/2%. David Horing, managing director of ASCP, did not return calls immediately.