Buyside Goes With The Flowserve

  • 04 Apr 2002
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Credit Suisse First Boston and Bank of America's deal for Flowserve, which backs the acquisition of Invensys' valve division, is expected to join the club of credits recently oversubscribed, according to bankers. The seven-year, $735 million "B" loan was launched to institutional investors on Tuesday and carries a LIBOR plus 3 1/4% spread. A banker explained the "B" backs the $535 million acquisition and refinances existing debt. It could not be ascertained if pricing will flex yet, as the credit has only just been launched, said a banker.

The pricing on the old credit, also led by B of A and CSFB, is 1/4% higher at LIBOR plus 3 1/2%. After the acquisition is completed Flowserve will keep the same debt to EBITDA levels though, said Sean Clancey, a spokesman for Flowserve. CSFB is the syndication agent and B of A is administration agent on the new deal.

The two banks hit a home run with the $800 million term loan "B" for DaVita, despite a bumping up of leverage. The proceeds from the deal, which blew out but has yet to close, will fund a stock repurchase, but high predictable cash flow and a proven track record in the bank-debt market convinced hungry buysiders. The pro rata, which breaks into a $150 million five-year revolver and a $200 million term "A" loan, is still moving through the market, said a banker. Pricing on the pro rata deck is LIBOR plus 2 3/4%.

  • 04 Apr 2002

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 14,443 29 18.07
2 Bank of America Merrill Lynch (BAML) 8,264 27 10.34
3 Lloyds Bank 7,329 24 9.17
4 Citi 6,748 19 8.44
5 JP Morgan 5,220 8 6.53

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 118,826.70 342 11.07%
2 Bank of America Merrill Lynch 94,721.79 272 8.82%
3 JPMorgan 92,878.89 270 8.65%
4 Wells Fargo Securities 82,807.12 240 7.71%
5 Credit Suisse 70,475.74 184 6.57%