On Wednesday, BNP Paribas will hold a bank meeting to syndicate a $130 million credit for Willis Stein & Partners' buyout of Roll Coater from ArvinMeritor. The financing for Roll Coater, the second largest provider of coil coating services in the U.S., comprises a five-year, $25 million revolver and six-year, $105 million "B" loan. Both tranches are being offered at LIBOR plus 3 1/4%. B2/B ratings are expected. "There is great asset coverage," the market player commented. Roll Coater has about $125 million of PP&E (property, plant and equipment) and $30 million of receivables, he added.
Leverage is 3.23 times and the debt is all senior. The structure is very conservative with 40% equity or near equity, the source said. There are junior subordinated notes at the holding company that come from Willis Stein that are considered near equity since they are deeply subordinated, he added. Roy Jain, a v.p. with Willis Stein, did not return calls and an ArvinMeritor spokeswoman declined comment.