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Greif Brothers Offers Hope In Pro Rata Market

18 Mar 2001

The pro rata piece of Merrill Lynch's $900 million credit backing industrial packager Grief Brother's acquisition of Huhtamaki Van Leer traded up after the deal closed recently, providing a glimmer of hope for credits in what has been a brutal pro rata market. "The pro rata traded inside the fees," said a participant banker, noting that the deal carried commitment fees of 5/8% and 1/2% on commitments of $25 million and $15 million, respectively. The credit's $400 million term "B" blew out quickly after the February launch as 60 accounts clamored to get a piece of the BB/Ba3 credit, which traded around 1001/2 after close.

18 Mar 2001