Credit Suisse First Boston and Wachovia Securities launched syndication of a $214 million credit facility for KRG Capital Partners portfolio company UTI Corp. last Thursday that backs UTI's $230 million acquisition of MedSource Technologies. In conjunction,DLJ Merchant Banking Partners is committing equity in UTI to support the MedSource bid. After the transaction is completed UTI will be jointly owned by KRG, DLJ's private equity arm and its co-investors.
The credit comprises a five-year, $40 million revolver and six-year, $174 million "B" loan. Both tranches went out at LIBOR plus 3% and there is a 50 basis point commitment fee on the revolver. UTI and MedTech serve the medical device industry. KRG officials and Stewart Fisher, UTI's cfo, were traveling and could not be reached for comment. Andy Rush, managing director for DLJ Merchant Banking Partners, did not immediately return calls.