UBS will hold a bank meeting this week for the financing backing Hicks, Muse, Tate & Furst's $405 million acquisition of Regency Gas Services from Charlesbank Capital Partners. The credit comprises a $40 million revolver, $160 million first-lien term loan and $80 million second-lien term loan. The first lien is being offered at LIBOR plus 2 3/4%, while the second lien is going out at LIBOR plus 7 1/4%. Senior leverage is around 3.2 times and total leverage is about 4.8 times.
Charlesbank and company management formed Regency in June 2003 to purchase natural gas gathering, processing and pipeline assets from Houston-based El Paso Corp. Wells Fargo Bank provided the senior debt for the transaction. David Biegler, Regency's chairman, referred calls to Hicks Muse officials who did not return calls. Charlesbank officials also did not return calls.