Two deals were pulled from the market recently, the first a Goldman Sachs-led deal for United Subcontractors to fund a $125 million dividend to private equity group Wind Point Partners, and refinance debt.
"They restructured it at least twice and the company just wouldn't bite on the changes," said one investor. The market frowned at the fact the debt leverage was increasing from around 1 times to 4.5 times. Calls to a Goldman Sachs banker and to Tim Gallagher, cfo, were not returned. A Wind Point spokeswoman declined comment. The credit consisted of a $35 million revolver, a $15 million synthetic letter of credit, a $300 million first-lien term loan and a $200 million second-lien term loan (CIN, 9/15).
The second pulled deal was a JPMorgan-led $500 million term loan for Sherman Financial. "It was a best efforts deal," said a banker. "They just couldn't get it done at the price they were looking for...LIBOR plus 1 3/4%." The company is owned in part by Mortgage Guaranty Insurance Co. An MGIC spokesman declined comment. Calls to a Sherman representative were not returned.