Headwaters Goes To The Two Morgans For Tapco Acquisition

Headwaters has tapped J.P. Morgan and Morgan Stanley to lead the financing backing its $715 million acquisition of building products manufacturer Tapco Holdings.

  • 08 Sep 2004
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Headwaters has tapped J.P. Morgan and Morgan Stanley to lead the financing backing its $715 million acquisition of building products manufacturer Tapco Holdings. The acquisition is completed but the credit is going to be syndicated at a meeting next week, explained Steven Stewart, Headwaters’ cfo.

The credit comprises a $640 million first-lien term loan and $150 million second-lien term loan. Pricing blended together on both tranches is expected to be between LIBOR plus 3-3 1/2%, Stewart noted. “We’ve had a relationship with J.P. Morgan and Morgan Stanley,” he said of the selection of the lead banks. “We’ve always felt it’s kind of healthy to have two relationships.”

Earlier this year Headwaters tapped Bank One to lead a new $100 million credit facility, replacing a facility led by GE Capital (LMW, 5/17). The Bank One-led credit comprised a $50 million revolver and $50 million “A” loan. Both tranches were priced on a grid tied to leverage ranging from LIBOR plus 1 3/4-2 1/2%. That credit facility has now been paid off, Stewart said. The new credit also includes a $75 million revolver that is in place now with J.P. Morgan and Morgan Stanley splitting the exposure. The banks are not planning on syndicating the revolver and there are currently no borrowings on the line, Stewart noted.
  • 08 Sep 2004

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 10,542 20 17.55
2 Bank of America Merrill Lynch (BAML) 6,103 21 10.16
3 Citi 5,130 13 8.54
4 JP Morgan 4,681 6 7.79
5 Morgan Stanley 4,137 11 6.89

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1 Citi 81,261.11 236 11.54%
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3 Wells Fargo Securities 57,637.40 170 8.18%
4 JPMorgan 53,570.42 158 7.61%
5 Credit Suisse 45,349.30 117 6.44%