Credit Suisse is leading a $290 million senior secured credit for the buyout of Valley Natural Gases by Caxton-Iseman Capital. The deal comprises a $50 million revolver, a $165 million first-lien term loan and a $75 million second-lien term loan. Pricing on the tranches could not be determined.
The New York private equity firm announced in November it would take Valley private for approximately $312 million. The new debt, along with an $80 million equity injection, will be used to finance the acquisition and refinance Valley's existing debt. The amount of existing debt could not be determined.
Standard & Poor's assigned the first-lien debt a B+ with a 1 recovery rating and the second lien CCC+ with a 5 recovery rating. Valley, headquartered in Washington, Pa., is a packager and distributor of industrial, medical and specialty gases, welding equipment and supplies, and propane and fire protection equipment. Calls to a spokesman and James Hart, cfo at Valley, were not returned.