Investors did not wait until last Thursday's retail launch to get their hands on DIRECTV's $800 million "B" piece, causing oversubscription on the loan in advance of the bank meeting. Leads Deutsche Bank and Bank of America still went ahead with the meeting, however, leaving the book open for more "B" commitments to boost oversubscription levels even further, said a banker familiar with the deal. Before the meeting commitments reached the $1 billion level. "[The lead banks are] not going to shut it down yet," he said. He added that any pricing concessions or tranche changes would depend on how the pro rata and bond deal did in the markets.
Credit Suisse First Boston, Goldman Sachs and Citibank will lead the $1.4 billion bond deal to accompany the bank debt package. These three banks are also lenders at the agent level for the bank facility. Deutsche Bank and B of A officials declined to comment, while CSFB, Goldman and Citi officials could not be reached by press time.
The fully underwritten $1.55 billion credit will refinance parent company Hughes Electronics' existing debt as well as fund some other cash needs for the company, the banker said (LMW, 2/10). The facility also includes a five-year $250 million revolver and a $500 million delayed-draw "A" loan priced at LIBOR plus 31/ 2%. The seven-year "B" is priced at LIBOR plus 33/ 4%. Half of the "A" loan would be drawn at closing, according to one market player, while a 125 basis point commitment fee exists for the undrawn amount on the "A" loan. DIRECTV's total leverage is four times, with senior leverage at two times. A spokesman for DIRECTV did not return calls by press time.