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

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) 4,755 19 11.75
2 Citi 4,288 14 10.60
3 Rabobank 2,633 4 6.51
4 Goldman Sachs 2,615 4 6.46
5 Barclays 2,603 8 6.43

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 24 Jul 2017
1 Bank of America Merrill Lynch 57,945.74 181 12.35%
2 Citi 57,243.86 174 12.20%
3 Wells Fargo Securities 48,214.86 152 10.28%
4 JPMorgan 33,301.70 114 7.10%
5 Credit Suisse 25,010.27 80 5.33%