Mandated lead arrangers and bookrunners Bank of America, BNP Paribas, Citigroup and Nordea have launched syndication of a five year $900m credit for security company Securitas.
The initial margin on the deal is 22.5bp at the borrower's rating of Baa2/BBB+. It ratchets to 25bp if the rating falls to Baa2/BBB and 35bp if the rating is Baa3/BBB-. If the borrower gets upgraded to Baa1/BBB+ then the margin falls to 20bp, and if the rating increases to A3/A- then the margin falls to 17.5bp.
The commitment fee is 30% of the applicable margin and there is a utilisation fee of 5bp when drawings exceed 50% of the facility.
Banks are invited to participate as arrangers for a commitment of $70m for a fee of 10bp and as co-arrangers for an amount of $40m for 8bp.
The loan refinances the existing five year $800m facility from 2003.
