Citigroup increased pricing 75 basis points on the $160 million term loan for Ravago last Wednesday, according to a banker. The $500 million deal originally launched for syndication Jan. 2 and consists of a five-year, $340 million asset-based revolver and the seven-year, $160 million cash-flow term loan. Pricing on the term loan was bumped up from LIBOR plus 2% to LIBOR plus 2 3/4%. The revolver remains priced at LIBOR plus 1 1/2%. The cause of the increase could not be determined, but one investor said it was because the buyside didn't like the deal. "If something is getting bumped up in this market you know it's not a decent deal," he said. A Citigroup banker declined comment.
Pricing Increases On Ravago Deal