Door-Maker Credit Cited As Potential Bellwether
Bank of Montreal and Bank of Nova Scotia's $685 million loan for Premdor is seen as a potential market bellwether, as it does not carry the baggage of other credits in the market right now and has good collateral coverage. Commitment levels could not be ascertained, but pricing has not flexed, said one banker, which is a good sign. A BMO official said pricing on the pro rata deck, comprising a $100 million revolver and a $100 million term loan is LIBOR plus 3%. On the $385 million "B," pricing is LIBOR plus 31/ 2%. There is also a $100 million asset-sale portion of the facility, he added. The credit backs the acquisition of Masonite from International Paper.