Deutsche Bank, Merrill Lynch and National Bank of Canada are gearing up to launch a $1.7 billion credit backing Brooks Pharmacy's $2.375 billion acquisition of the Northeast and mid-Atlantic Eckerd Corp. stores. The deal comprises a $350 million revolver, $250 million "A" loan and $1.1 billion "B" loan. The size of the "B" loan may move around slightly before launch, a banker said. There will also be a high-yield piece which hasn't been anchored but will be around the size of the "B" loan, he added.
Deutsche Bank is on the left for the U.S. bank debt, National Bank of Canada is on the left for the Canadian portion of the bank financing and Merrill is on the left for the bonds. Brooks is a subsidiary of The Jean Coutu Group. Coutu officials did not return calls and officials from Deutsche Bank and Merrill declined comment. A National Bank of Canada spokeswoman confirmed the details.
BNY Capital Markets led the $1.35 billion credit backing CVS Corp.'s $2.15 billion purchase of 1,260 Eckerd stores, primarily in the south. The CVS credit is a five-year, $675 million facility and a 364-day, $675 million facility. The 364-day is priced at 6.5 basis points and the five year at 8.5 basis points with a 30 basis points all-in drawn and 35 basis points all-in drawn with use over 50%. The price is based on a grid tied to ratings. Bank of America, Credit Suisse First Boston and Wachovia Securities are co-syndication agents on the credit.