Price talk has emerged on the $800 million credit backing Thomas H. Lee Partners' $1.75 billion acquisition of Nortek Holdings. UBS and Credit Suisse First Boston are leading the credit with Bank of America and Bear Stearns acting as co-documentation agents, according to loan market participants. The loan hit the market last Wednesday.
The credit comprises a six-year, $100 million revolver and seven-year, $700 million "B" loan. Price talk on the revolver and "B" loan is LIBOR plus 2 1/2% and LIBOR plus 2 3/4%, respectively. There is a 50 basis points unused fee on the revolver.
Nortek is a manufacturer and marketer of commercial and residential building products. T.H. Lee is buying Nortek from Kelso & Co., which acquired the company in January 2003. UBS bankers declined comment and CSFB bankers did not return calls. A T.H. Lee spokesman declined comment.
In January, UBS and Deutsche Bank were in the market with a $300 million credit backing Caxton-Iseman Capital's $570 million acquisition of Nortek subsidiary Ply Gem Industries (LMW, 2/2). Lead arrangers UBS and Deutsche Bank, along with J.P. Morgan as co-manager, are now coming back to market with a new deal for Ply Gem that backs its acquisition of MW Manufacturers. This credit comprises a $20 million revolver and $141 million incremental term loan facility and is expected to be syndicated this month.