Bank of America, Goldman Sachs and Merrill Lynch have committed $1.125 billion of financing to back the proposed buyout of EGL by the company's management, including James Crane, ceo, and private equity firm General Atlantic. The company announced it received the proposal for $36 per share last Tuesday, which values the company at approximately $1.46 billion. EGL is currently reviewing the offer. Calls to the banks were not returned.
The company last tapped the bank market in September 2004 to refinance an existing revolver with $150 million of new unsecured debt (LMW, 9/24/2004). Bank of America was the lead arranger on the deal. Pricing of that credit is based on a grid and ranges between LIBOR plus 75 basis points to 175 basis points.
Houston-based EGL, a global transportation, supply chain management and information services company, operates under the name EGL Eagle Global Logistics. Calls to Mike Slaughter, v.p. finance of EGL, and a General Atlantic spokeswoman were not returned.