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

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2 Bank of America Merrill Lynch (BAML) 6,103 21 10.16
3 Citi 5,130 13 8.54
4 JP Morgan 4,681 6 7.79
5 Morgan Stanley 4,137 11 6.89

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