BNP Paribas is looking for commitments in exchange for tier one titles and early-bird upfront fees ahead of an Oct. 22 bank meeting that will be held in Los Angeles for a $150 million revolver for Smart & Final. A company official said BNP Paribas was chosen to lead the deal after the food company talked to several banks. "Smart & Final was impressed with the team though pricing is always an issue as well," he said. There was a wide range of scenarios quoted by the banks interviewed, probably because of the uncertainty of the market, said the source. One was 1/4% lower, others were 1/2% or 3/4% higher.
The revolver replaces the existing three-year facility that matures in November this year, according to a BNP official. Pricing is based on a grid and starts at LIBOR plus 21/ 2% out of the blocks with a 1/2% commitment fee. Pricing has been increased 1/4% relative to the existing deal. The Smart & Final employee said it is a tough market right now, but the company has good ties with its bank syndicate and the business is not highly GDP sensitive, with people still needing to eat.