RBS Preps Dividend Deal For American Securities' Oreck Corp.

The Royal Bank of Scotland is launching a $210 million bank deal this Thursday in New York City for Oreck Corp. that will pay a $60 million dividend deal to equity sponsor American Securities Capital Partners (ASCP) and refinance bank debt at lower rates.

  • 10 Jan 2005
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The Royal Bank of Scotland is launching a $210 million bank deal this Thursday in New York City for Oreck Corp. that will pay a $60 million dividend deal to equity sponsor American Securities Capital Partners (ASCP) and refinance bank debt at lower rates.

The new structure will comprise a six-year, $20 million revolver and a seven-year, $190 million “B” loan. Pricing on the “B” loan will be ratings contingent but is expected to be in the LIBOR plus 3% range, said a banker. He added that leverage will be 3.5 times through the all-senior structure. RBS is sole lead on the deal but other banks may be brought in.

RBS led $140 million of senior debt backing ASCP’s leveraged buyout of Oreck in March 2003, but improved performance is enabling the vacuum-cleaner company to take out the dividend, the banker added. Oreck brings in over $300 million of sales and more than $50 million a year in EBITDA. At the time of the buyout, EBITDA was in the mid $40 million range, he said. The existing bank debt is priced at LIBOR plus 4 1/2%. David Horing, managing director of ASCP, did not return calls immediately.

  • 10 Jan 2005

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4 Barclays 4,040 11 6.87
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