Goldman Sachs and Citibank's $1.2 billion credit for SC Johnson Wax has snared a handful of banks for the $550 million pro rata while the "B" is attracting strong buyside support. BANK ONE has signed on for 20% of the total credit, GE Capital, ABN AMRO, and Royal Bank of Scotland have signed on for $100 million pieces while Bank of Tokyo Mitsubishi has taken a $50 million bite. Launched last week in London and New York, the $650 million "B" tranche is also attracting solid support, said a banker following the deal.
Up-front fees for the "B" are 1/8% for U.S. institutions and 1/4% for the Europeans. The Euro tranche is $100-200 million depending on demand said a banker. The banks are trying to develop buyers in Europe, he said, which is one reason behind the fee differential. There are a number of large LBO deals in the pipeline that are expected to fuel the leveraged loan market in Europe (LMW, 2/25). Pricing on the pro rata, which comprises a $300 million revolver and $250 million term loan "A", is LIBOR plus 31/ 4% and on the $650 million term loan "B" is LIBOR plus 33/ 4%.
Since the beginning of the year, bankers have said buysiders would find the credit appealing. Initially, however, there were some reservations over the pro rata, which was originally $800 million (LMW, 1/21). The loan backs the acquisition of DiverseyLever, Unilever's industrial cleaning business. Officials at the banks and company declined all comment.