The California Public Employees' Retirement System (CalPERS) has joined the $240 million asset-based deal for Foamex International, according to a banker familiar with the credit. Bank One and Congress Financial also joined at the agent level after GE Capital signed on as a co-lead with original lead Bank of America, the banker added.
CalPERS has joined several asset-based deals directly, the banker noted, citing the asset-based credits for Kmart and Unisource Worldwide as examples. Non ABL loan investment is done through external managers, the banker added. CalPERS' external fixed-income managers include Highland Capital Management, ING Ghent Asset Management, Nomura Corporate Research & Asset Management, PIMCO and Shenkman Capital Management. A CalPERS spokeswoman declined to comment.
The credit includes a $190 million revolver and a $50 million term loan priced at LIBOR plus 3% and LIBOR plus 31/4% respectively. Hedge fund Silver Point Capital also provided a separate second lien, $80 million term loan to further back the bed and auto cushioning company's debt refinancing plans (LMW, 7/7). A B of A official declined to comment and a Foamex spokeswoman declined comment.