GE is also syndicating a $150 million hybrid asset-based term loan for United Agri Products (UAP), a manufacturer and distributor of crop production products. The credit, which is fully funded and is being sold to institutional funds, is out at LIBOR plus 3 1/4% with an original issue discount to yield 4%.
Technically, it is a second lien. But it is an asset-based loan, said a market participant. It's a revolver with a borrowing base for two-thirds of the year because of the seasonality of the business. "It's a tough business," one loan investor noted. "Anything related to agriculture and farming tends to be a difficult business to buy financing into--it's not necessarily your standard institutional loan type of business."
UAP's $500 million asset-based revolver, led by GE and incurred when Apollo Management acquired the company in November (LMW, 11/10), will roll into the new facility. The new deal launched May 3. GE bankers declined comment and David Bullock, UAP's cfo, did not return calls. An Apollo spokesman declined comment.