UBS Fills Challenging ILC Deal

  • 13 Apr 2003
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UBS Warburg's $130 million deal backing the leveraged buyout for ILC Industries by Behrman Capital is now full after investors were offered higher pricing and a juicier up-front fee. A banker familiar with the credit said it will fund this week and was done with a combination of middle-market lenders and institutional investors. Additionally, The Blackstone Group is said to have signed up for an increased mezzanine piece, with a coupon north of 161/2%. But, a banker said the yield is in the low teens.

The fully underwritten deal consists of a $115 million "B" tranche and a $15 million revolver. Pricing on the "B" was initially LIBOR plus 4% with a 25 basis points up-front fee, but the pricing was flexed to LIBOR plus 43/4% with a 100 basis points up-front fee. The deal also contains a $45 million mezzanine piece, that was increased by $9 million to reduce senior leverage to 2.85 times, said an investor. "[Syndication] was challenging in a challenging market for small B1 [credits]," said one banker. Total leverage is 4.4 times, total, another banker added. A UBS official declined to comment.

  • 13 Apr 2003

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 2,007 6 16.61
2 Goldman Sachs 1,798 4 14.88
3 BNP Paribas 1,434 4 11.87
4 Barclays 1,097 2 9.08
5 Morgan Stanley 1,094 2 9.06

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 20,542.69 67 10.85%
2 JPMorgan 18,820.53 50 9.94%
3 Bank of America Merrill Lynch 17,976.22 56 9.49%
4 Wells Fargo Securities 16,568.24 48 8.75%
5 Barclays 13,499.53 45 7.13%