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 Bank of America Merrill Lynch (BAML) 6,103 21 10.42
3 Citi 5,130 13 8.76
4 JP Morgan 4,681 6 7.99
5 Lloyds Bank 3,389 13 5.79

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5 Credit Suisse 38,252.19 94 6.23%