Deutsche Bank, Wells Fargo Need More Time To Fill Veritas
The commitment date on Deutsche Bank's and Wells Fargo Bank's $275 million credit for Veritas DGC has been extended beyond its initial Nov. 15 cut-off date, said a banker familiar with the credit. There are some commitments in, but the banker would not divulge specific lender names or the level of commitments. "Time will tell," he said of how well the credit will perform. One buysider said a price increase or other concessions would be required to fill the deal. "It's a buyer's market right now," he joyfully noted. A banker at Wells Fargo did not return calls, while a banker at Deutsche Bank declined comment.
The line consists of a $75 million, three-year revolver with grid-based pricing set at LIBOR plus 21/ 4%-3%. There is also a $200 million, five-year term loan priced at LIBOR plus 31/ 2% with a 1/4% upfront fee. The credit will refinance the Houston-based company's existing Wells Fargo-led revolver, scheduled to expire in August 2003, along with $135 million in 93/ 4% senior unsecured notes that were callable after Oct. 15. Those notes do not mature until Oct. 2003. The proposed revolver will be undrawn at closing. Officials at Veritas did not return calls.