A couple of tweaks were made last week to Del Laboratories' credit facility. The term loan was flexed down to LIBOR plus 2 1/4% from LIBOR plus 2 1/2% last Tuesday. The following day the term loan was downsized by $10 million to $200 million so the bonds, which priced at 8%, could be increased. While the decrease is small, it's still less paper to go around, one buysider noted. The bonds were originally $150 million.
J.P. Morgan, Bear Stearns and Deutsche Bank are leading the credit, which backs the $486 million acquisition of the cosmetic and over-the-counter pharmaceutical manufacturer by Kelso & Co. (LMW, 1/10). The credit also includes a $50 million revolver that went out at LIBOR plus 2 1/2%. Officials from the lead banks and Enzo Vialardi, Del's executive v.p. and cfo, did not return calls.