J.P. Morgan and FleetBoston Financial completed a $250 million credit last week for National Mentor, flexing the pricing by 75 basis points in order to get the job done. The deal launched on Feb. 10, but struggled through syndication, as concerns about the company's dependence on state and federal funding kept investors back (LMW, 3/10).
A banker familiar with the credit said the pricing on the $175 million "B" piece increased from 4% to 43/4% over LIBOR. At the time of the launch, the $75 million revolver carried a spread of 31/2% over LIBOR. The final pricing on the revolver could not be determined. The banker added that an original issue discount was part of the deal, but an amount also could not be ascertained. Calls to John Gillespie, National Mentor's cfo, and a spokeswoman, were not returned. A J.P. Morgan official declined comment and a Fleet official did not return calls.