Syndication of Acosta Sales Co.'s dividend recap launched last Tuesday. The company is using a six-year, $200 million add-on "B" loan to pay the dividend. The loan went out to investors at LIBOR plus 2 3/4%. "We decided to go with this structure because we like the non-amortizing nature and the term of the facility because it fits nicely into our capital structure," noted Greg Delaney, Acosta's cfo. The deal also includes a five-year, $80 million revolver at LIBOR plus 3%.
GE Capital and Wachovia Securities are leading the recap. "We made our selection of the lead banks primarily based on their capability and GE's ongoing relationship with the company. GE has been a great supporter of the business for the last several years," Delaney said. Rick Sell, a v.p. with GE, is the company's relationship manager at the bank. Dan Gioia, a managing director with GE, is working on the credit on the structuring side and Kevin Burke, also a managing director with GE, is on the distribution side.
"We've chosen those two as co-leads, but have received great support from the bank group that has been in our line," Delaney added, mentioning Wachovia, GE, Bank of America and Merrill Lynch.
Delaney said some commitments were made prior to the bank meeting but no orders were placed at the meeting. He declined to name who made the commitments. Management owns 52% of the company, while Chartwell Capital and Berkshire Partners own 48%.