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GE, Calyon Launch Alliant Recap

30 Jul 2004

GE Capital and Calyon kicked off syndication last Wednesday for a refinancing and recapitalization of Alliant Resources Group.

GE Capital and Calyon kicked off syndication last Wednesday for a refinancing and recapitalization of Alliant Resources Group. The credit comprises a $175 million "B" loan and $30 million revolver. Price talk is LIBOR plus 3 1/4% on the revolver and LIBOR plus 3 1/2% on the "B" loan.

The company currently has around $73 million of existing senior debt and $7 million of existing subordinated debt that is being retired, noted Paul Orzech, Alliant's cfo. The remainder of the proceeds from the new debt are being used to redeem preferred A stock and pay a dividend on preferred A, B and common shares. GTCR Golder Rauner owns about 62% of Alliant. Joseph Nolan, a senior principal with GTCR, did not return calls.

Alliant is an insurance and financial services distributor. "We've been in existence for a little over four years now and it was time for us to get our capital structure more in line with what our needs are prospectively," Orzech explained. In 2001, Alliant completed a $65 million credit facility led by Heller Financial with participants La Salle Bank, The Provident Bank and GE.

The company redid its facility about a year ago with GE and Calyon as the leads. "We've had a long relationship with each of them and they have served us well historically," Orzech said. "We have confidence that they'll continue to do that in the future." Ed Millet, a senior v.p. with GE Commercial Finance, Michael George, a managing director with Calyon, are working on the credit. GE and Calyon bankers declined comment.

30 Jul 2004