Investors voiced approval of the CIBC World Markets deal for BP Metals that came to market last week. Buysiders said they like the pricing on the $125 million dividend recap.
The $100 million term loan and $25 million second lien will be used by the company to fund a dividend of $60 million to equity sponsor Blue Point Capital Partners. Pricing on the deal is LIBOR plus 3 1/4% on the first lien and LIBOR plus 7 1/4% on the second. "It's priced appropriately--they pulled some nice ratings on this," said one investor. Standard & Poor's rated the company's new debt BB- with a recovery rating of 1 on the first lien and B- with a 5 recovery rating on the second. The company's debt leverage is about 3.36 times, according to an investor.
BP Metals was assembled back in July from a group of Blue Point's portfolio companies. Calls to a Blue Point representative were not returned.