| Carl Fazio |
ABRY Partners' Cygnus Business Media has chosen GE Capital to lead its refinancing. Union Bank of California, the previous lead, will serve as co-syndication agent. "As we were going through the refinancing process we talked to a number of key institutions that ABRY, our private equity firm, had relationships with and GE was certainly one of them," said Carl Fazio, Cygnus' cfo. "We were attracted to their participation as well as their proposal, but certainly also wanted to maintain a relationship with Union Bank of California, who have been great partners," Fazio added. GE was a participant in Cygnus' previous deal. Fazio declined to comment on the other banks with which the company spoke. GE bankers and C.J. Brucato, a v.p. with ABRY, did not return calls.
The new deal launched last Tuesday and comprises a $30 million revolver, $20 million delayed draw and $140 million "B" loan. There is also a $30 million second-lien facility. The first lien is priced at LIBOR plus 4% and the second lien is being talked at LIBOR plus 6%. Investors committing $10 million to the revolver will get 75 basis points and 100 basis points are being offered for a $15 million commitment. There is a 25 basis point "B" loan commitment fee.