Helm Holding Co.'s $235 million six-year, first-lien loan broke in the mid 101 range last Thursday. The tranche, priced at LIBOR plus 2 1/4%, is part of the $385 million credit facility that backs K1 Ventures $472 million acquisition of the railcar-leasing company. The bank debt also comprises a six year, $50 million revolver and a seven year, $100 million second-lien term loan. Credit Suisse First Boston is the sole lead arranger and flexed down pricing on the "B" during syndication. The second-lien loan is priced at LIBOR plus 7%.
K1 Ventures is a Singapore-based venture capital company. Its subsidiary, Orient Express Acquisition Co., in turn a subsidiary of K1 Ventures' unit Long Haul Holding Corp., will merge into Helm Holding with the acquisition. Of the $472 million, $241 million will be for the acquisition and $219 million will retire existing debt. K1 is investing $137 million of equity.