Banks Gear Up for $1.5 Billion Levi Strauss Credit

  • 07 Jan 2001
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Bank of America, Citigroup and Bank of Nova Scotia launched in New York last Thursday syndication of their fully underwritten $1.5 billion deal for Levi Strauss, according to a banker familiar with the deal. The banks are looking only for participants and will not dole out any other titles. Commitment sizes and fees had not been finalized by press time, but one banker said the triumvirate will most likely seek amounts of $35 million, $25 million and $15 million. The new credit will refinance existing debt. B of A is administrative agent, Citi is syndication agent and Scotia is documentation agent. The banks equally underwrote the loan. Levi Strauss, based in San Francisco, designs, manufactures and markets clothing. A spokeswoman did not return calls seeking comment.

The credit is structured as a $750 million, two-and-a-half-year revolver, a $350 million, two-and-a-half-year term loan "A" and a $400 million term loan "B." Pricing opens at 31/2% over LIBOR across all tranches. Pro rata pricing is based on a grid linked to the company's leverage for the first six months, and then flips to a performance-based grid linked to earnings before interest, taxation, depreciation and amortization. A banker familiar with the pricing scheme declined to provide the ends of the grid. The "B" tranche will remain fixed.

  • 07 Jan 2001

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 10,542 20 17.55
2 Bank of America Merrill Lynch (BAML) 6,103 21 10.16
3 Citi 5,130 13 8.54
4 JP Morgan 4,681 6 7.79
5 Morgan Stanley 4,137 11 6.89

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1 Citi 81,261.11 236 11.59%
2 Bank of America Merrill Lynch 66,338.04 186 9.46%
3 Wells Fargo Securities 56,344.19 164 8.03%
4 JPMorgan 53,381.65 156 7.61%
5 Credit Suisse 44,872.46 115 6.40%