UBS is looking for commitments to back a $35 million add-on for International Coal Group. The existing facility consists of a $110 million revolver and a $175 million term loan and the company is exercising part of its accordion facility. The bank gave investors a short window, asking for commitments last week, due to the small size of the add-on.
The loans were originally put in place last November to back ICG's $768 million acquisition of Horizon Natural Resources Co. The debt was oversubscribed during syndication. The term loan was increased by $20 million to $175 million and pricing was reduced from LIBOR plus 3% to LIBOR plus 2 3/4%. The revolver spread is tied to a grid that begins at LIBOR plus 2 1/2%, 25 basis points lower than when it went out (LMW, 11/5).
An investor group led by Wilbur Ross' WL Ross & Co., formed ICG. A call to Ross was not returned by press time.