Citibank and Merrill Lynch Capital launched syndication last Thursday of a $475 million refinancing for Key Plastics. The deal comprises a $75 million revolver, $275 million "B" loan and $125 million second-lien "C" loan. The revolver and "B" loan are being talked at LIBOR plus 3 1/4% and the "C" loan at LIBOR plus 5 3/4%. Key designs plastic parts for cars and trucks.
The Carlyle Group purchased the company from bankruptcy for $115 million in 2001 (LMW, 4/8/01). Last year, Carlyle used Key to acquire Breed Technologies and the lead banks struggled to syndicate the deal. After some reworking, the deal closed as a $75 million revolver at LIBOR plus 4%; $150 million "B" loan at LIBOR plus 4 1/2%; and $100 million silent-lien "C" loan at LIBOR plus 10% (4/28/03). All three tranches had an original issue discount of 98. Citi bankers did not return calls and Merrill bankers referred calls to Citi. A Carlyle spokeswoman and David Smith, Key's cfo, did not return calls.