Deutsche Bank and Credit Suisse First Boston are powering up battery-maker Exide Technologies' $600 million exit loan. The two banks were in the market last October with a $550 million exit package (LMW, 10/20), but Judge Karen Carey denied the confirmation of the company's plan of reorganization (1/12).
Several adjustments were made and the court confirmed Exide's new plan on April 21. The six-month delay negatively affected the company's anticipated pro forma credit metrics, increasing leverage from 2.4 times to three times. But the delay did not hurt pricing on the exit facility. The first attempt was priced at LIBOR plus 4%, whereas the latest version will be priced at LIBOR plus 31/2%, said an Exide spokesman.
The facility consists of a $100 million multi-currency revolver, $172.5 million U.S. term loan, E127 million term loan and $172.5 million foreign, term loan. The deal will go into effect upon emergence, which is expected on or around Friday, the spokesman added. Approximately $500 million of proceeds will be used to repay about $457 million outstanding on the company's "Super DIP" and $43 million of fees and expenses.
Citibank is the lead on both the pre-petition debt and the debtor-in-possession facility. Pre-petition bank debt lenders will get around 99.4% of their $802.7 million in senior secured claims.