CSFB and Morgan Stanley launched syndication last week of a $100 million senior unsecured term loan and $260 million "C" loan for Dresser, refinancing the company's $382 million "B" loan. Price talk is LIBOR plus 31/2% on the unsecured term loan and LIBOR plus 21/2% on the "C" loan, a company spokesman said. The "B" loan was priced at LIBOR plus 33/4%, he added. Dresser's $100 million revolver will remain in place.
The spokesman said the refinancing is being pursued to increase financial flexibility. At the end of 2003, the company's total debt was about $947 million, including senior debt of around $382 million. CSFB and Morgan were the lead on the previous facility as well. Dallas-based Dresser manufactures and markets engineering equipment.