Juno Lighting's $240 million credit facility was oversubscribed a week after Wachovia Securities launched syndication. The deal comprises a $30 million revolver, $150 million first-lien term loan and $60 million second-lien term loan. A week after the April 14 launch, the first-lien had about $350 million of orders and the second lien had close to $100 million, a buysider said.
The revolver and first-lien term loan are priced at LIBOR plus 3%, while the second-lien went out at LIBOR plus 53/4%. Proceeds from the facility will be used to refinance existing subordinated debt, senior debt and pay a special dividend to stockholders, according to George Bilek, Juno's executive v.p., cfo and treasurer. Fremont Partners owns about 75% of Juno's fully-diluted equity and the remainder is public. The dividend will be $50-60 million, Bilek noted.
Wachovia is replacing Bank of America as Juno's lead. Bilek said B of A proposed a new deal but, "Wachovia provided a better proposal at this point." It is unclear right now if B of A will participate in the new facility, he added. A B of A spokeswoman and Mark Williamson, a managing partner with Fremont, did not return calls.