Bear Stearns landed the lead role on the financing backing Wellspring Capital Management's acquisition of International Mill Service from GSC Partners. "We thought they were very well qualified and have a very good bank debt origination effort," explained William Dawson, a partner with Wellspring. While the exact size of the credit has not been determined it will be all bank debt and contain first- and second-lien loan components, Dawson noted.
Dawson said an all-senior transaction was chosen for flexibility and the fact that it's going to be very moderately leveraged. The company currently has about $72 million of existing bank and subordinated debt that will be refinanced as a part of the transaction. Bram Smith, senior managing director in leveraged finance at Bear Stearns, did not return calls.
Horsham, Pa.-based International Mill Service is a subsidiary of Envirosource. GSC Partners invested in the company in July 1999 and became majority shareholder in 2001. The purchase price is not disclosed. The company provides outsourced industrial services to the steel industry. GSC officials and Rick Fitz, cfo of both International Mill Service and Envirosource, did not return calls.