The Jean Coutu Group's $1.1 billion "B" loan traded actively in the 101 1/4-101 1/2 context after allocation last week. Deutsche Bank, Merrill Lynch and National Bank of Canada led the bank debt. Investors flocked to the credit during syndication, causing pricing to be flexed downward 50 basis points to LIBOR plus 2 1/4%. "Pretty much everybody is involved. It's a big flow name," one banker said.
The term loan backed The Jean Coutu Group's acquisition of the Northeast and mid-Atlantic Eckerd Corp. stores (LMW, 6/11). Jean Coutu has acquired the asset at an attractive price, and the company sees significant potential to improve Eckerd's cash flow, the banker said.
The financing includes a $350 million revolver and $250 million "A" loan. Six managing agents signed onto the pro rata with $70 million tickets. The agent banks are Bank of Montreal, Bank of Nova Scotia, BNP Paribas, Royal Bank of Canada, Toronto Dominion Bank and Caisse de Depot. Jean Coutu officials declined comment.