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

  • 08 Sep 2002
Email a colleague
Request a PDF

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

New! GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 7,171 21 10.72
2 Bank of America Merrill Lynch (BAML) 6,901 20 10.32
3 JP Morgan 4,776 10 7.14
4 Credit Suisse 4,718 9 7.05
5 Lloyds Bank 4,420 14 6.61

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 24 Oct 2016
1 Wells Fargo Securities 68,611.22 170 11.38%
2 Bank of America Merrill Lynch 59,056.08 169 9.80%
3 JPMorgan 56,861.85 163 9.43%
4 Citi 56,521.05 165 9.38%
5 Credit Suisse 44,888.95 123 7.45%