Oreck Increases Dividend Through RBS Financing

The Royal Bank of Scotland tweaked Oreck Corp.'s bank deal last week, increasing the dividend to sponsor American Securities Capital Partners by $9.4 million from $60.5 million and reducing the interest expense.

  • 28 Jan 2005
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The Royal Bank of Scotland tweaked Oreck Corp.'s bank deal last week, increasing the dividend to sponsor American Securities Capital Partners by $9.4 million from $60.5 million and reducing the interest expense. The "B" tranche was increased by $5 million to $195 million and pricing was reverse flexed from LIBOR plus 3% to LIBOR plus 2 3/4%. Everybody is recommitting, a source close to the deal claimed. The credit also includes a $20 million revolver.

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 (LMW, 1/14). Oreck brings in more than $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, a lender said. The bank debt that is being refinanced is priced at LIBOR plus 4 1/2%. RBS bankers declined comment and David Horing, a managing director with American Securities, did not return calls.

 

  • 28 Jan 2005

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2 Morgan Stanley 2,420 6 13.57
3 Goldman Sachs 2,096 5 11.75
4 BNP Paribas 1,686 6 9.45
5 Barclays 1,565 4 8.77

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5 Credit Suisse 29,307.78 89 6.40%