Pricing was cut a further 25 basis points on Kohlberg Kravis Roberts & Co. portfolio companyAccuride Corp.'s credit facility last week. Originally, the banks said they were going to hold the spread at LIBOR plus 2 1/2% and add a grid, but the next day chose to take it down to LIBOR plus 2 1/4%, a banker and buysider said. There is also a step down to LIBOR plus 2% at 3.5 times total leverage. "It kind of flexed twice, which I understand is not the investors' favorite thing to do," a banker familiar with the deal noted.
The $740 million credit backs the acquisition of Transportation Technologies Industries. Citigroup and Lehman Brothers lead the facility and UBS is documentation agent. Citi and Lehman bankers either declined comment or did not return calls. An Accuride spokeswoman could not be reached by press time.
