Alderwoods Group is increasing its term loan by approximately $175 million to $385 million and has brought on boardMorgan Stanley alongside existing lead Bank of America for the amendment. Kenneth Sloan, Alderwoods' cfo, said B of A has been the funeral home and cemetery operator's lead for this loan, but this is the first time the company has worked with Morgan Stanley. Sloan said company officials have had interaction with the two banks from previous companies.
The term loan was originally $275 million when issued last September and is now around $210 million. The term loan is being increased and the company is pursuing a $200 million high-yield offering. Proceeds from the two transactions will be used to refinance about $320 million of outstanding 12 1/4% bonds due 2009 and a small bridge loan. The "B" loan is priced at LIBOR plus 2 3/4%.
Syndication launched in New York last Thursday and the term loan is being offered to both new and existing lenders. "We anticipate [the existing lenders] will be significant players in the term loan upsizing but it will be open to others as well," Sloan said. A Morgan Stanley banker and B of A spokeswoman did not return calls.