Pricing on the oversubscribed Morgan Stanley and Credit Suisse-led $935 million credit facility for Dresser was cut by 25 basis points last week. Originally launched Oct. 12 at LIBOR plus 3%, the credit was flexed down to LIBOR plus 2 3/4%. The credit is set to close tomorrow. The deal was oversubscribed a week after its launch, according to market sources.
The deal comprises a $100 million revolver, a $50 million synthetic letter of credit and a $785 million term loan "B." A Dresser spokeswoman said the company is looking at "strategic alternatives" with regard to its ownership of the company (CIN, 10/13). Dresser was acquired by First Reserve Corp. during a management-led buyout from Halliburton in April 2001. It is currently a portfolio company of both First Reserve and Odyssey Investment Partners. A First Reserve spokeswoman confirmed it was "pursuing other alternatives" for the company, but declined further comment. Calls to an Odyssey representative were not returned by press time.