The $1 billion add-on to Georgia-Pacific's term loan "B" saw pricing flex down 25 basis points last week. Pricing was expected to remain the same as terms on the existing deal, but the term loan "B" was priced down to LIBOR plus 1 3/4%, according to an investor. The add-on, led by Citigroup, Bank of America and Deutsche Bank, consisted of a $250 million increase to the existing revolver and a $1 billion add-on to the existing term loan "B" (CIN, 12/1).
"It's not going to trade poorly because of the different spreads," one investor suggested about the 25 basis point difference between the new add-on and existing term loan "B." Pricing on the existing deal is LIBOR plus 2 1/4% on the revolver and LIBOR plus 2% on the term loan (12/1). Proceeds from the add-on are being used to repay part of the company's existing $2.25 billion second-lien.