J.P. Morgan, CSFB Set To Launch Brand Services Deal

  • 08 Sep 2002
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J.P. Morgan and Credit Suisse First Boston today are launching syndication of a financing package backing J.P. Morgan Partners' $539 million acquisition of Brand Services from DLJ Merchant Banking. The bank portion comprises a $150 million "B" term loan and a $50 million revolver, which will be undrawn at closing. Pricing on the seven-year "B" piece is LIBOR plus 31/ 4%, while that on the six-year revolver is LIBOR plus 23/ 4% with a 50 basis point commitment fee.

The financing package also includes a $165 million senior subordinated note offering, a $20 million letter of credit facility and $4.2 million of capital leases and notes payable. Calls to Christopher Behrens, a general partner at the acquiring private-equity shop, and CSFB bankers, were not returned.

DLJ's private-equity unit put the St. Louis-based industrial scaffolding company up for sale in April, after acquiring it from Waste Management for $190 million in 1996. The banks that advised on the sale were said to be offering staple-on financing that amounted to five times leverage, but this has since been pulled back, said a banker familiar with the situation.

Standard & Poor's has put Brand Services' single-B corporate credit rating on watch with developing implications. The fear is that the new owners could decide to capitalize the company in a manner that has an unfavorable effect on its already aggressive financial profile, the agency noted in its report. J.P. Morgan Partners, however, does intend to inject $220 million of new equity into the deal.

 

  • 08 Sep 2002

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 6,415 22 12.84
2 Citi 5,781 17 11.57
3 BNP Paribas 3,530 14 7.06
4 Credit Suisse 2,783 8 5.57
5 Rabobank 2,633 4 5.27

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 99,251.11 279 13.17%
2 Bank of America Merrill Lynch 90,895.27 265 12.06%
3 Wells Fargo Securities 72,661.39 222 9.64%
4 JPMorgan 52,367.24 169 6.95%
5 Credit Suisse 41,885.89 127 5.56%