Goldman Sachs and Credit Suisse are providing financing for the $175 million leveraged buyout of can maker Stolle Machinery by Littlejohn & Co. from American Industrial Partners. Last Thursday the banks launched syndication of a $200 million credit to back the deal, according to a banker. The financing consists of a five-year, $25 million first-lien revolver; a six-year, $115 million first-lien term loan and a seven-year, $60 million second lien. Pricing is LIBOR plus 2 3/4% on the first lien and LIBOR plus 6 3/4% on the second, according to a banker.
"It's beer and soda cans it's a business I understand," said an investor. "It looks to be a pretty good deal; looks like it's going well."
Standard & Poor's rated the first lien BB- with a 1 recovery rating and the second lien B with a 3 recovery rating. The ratings agency said the company's highly leveraged financial profile and limited size and scope of its operations is offset slightly by its strong market position. Moody's Investors Service assigned a Ba3 to the first lien and Caa1 to the second.
Centennial, Colo.-based Stolle Machinery is a supplier of machinery to produce beverage and food cans. Littlejohn & Co. is a Greenwich, Conn.-based private equity firm that manages over $1.3 billion in investment funds. A Littlejohn & Co. spokesman referred questions to a company release. Calls to Keith Randall, Stolle cfo, were not returned.