Institutional players are reportedly eating up last week's launch of Credit Suisse First Boston and Deutsche Bank's $775 million loan backing AEA Investors and DLJ Merchant Banking's leveraged buyout of B.F. Goodrich's chemical business, Performance Materials. One banker added that bankers expect the deal to be oversubscribed as a conservative structure has made the institutional tranches very appealing to the market.
The deal comprises a six-year, $140 million revolver, a six-year $225 million term loan "A", and a six-year, $410 million term loan "B". The revolver and term loan "A" pieces, which will be tied to debt grids, are expected to price at LIBOR plus 3%. The term loan "B" piece is expected to price at LIBOR plus 31⁄2%. There is a 50 basis points commitment fee on the deal.